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Government set to scrap COLA – Dep Employment Minister

The Minister of Employment and Labour Relations has disclosed that government would suspend the 15 per cent Cost of Living Allowance (COLA) for members of organized labour when the conditions that necessitated it are no more.

According to the Ministry, the allowance is as a result of certain factors that have arisen, so, if the factors are no more, it may be suspended.

“We have agreed that the Cost of Living Allowance will be paid effective 1st July. As the name applies, it is an allowance which is a result of certain factors that have arisen in the course of the year so as and when these factors are no longer there, there will not be the relevance to continue with it,” Deputy Minister of Employment and Labour Relations, Bright Wereko Brobby told Citi News.

Recently, The various worker unions declared an indefinite strike in demand of a 20 percent cost of living allowance to cushion them against the current economic hardship.

The various worker unions, including the four teacher unions, the Ghana Medical Association, and the Public Sector Workers Union, among others, demanded the payment of 20 percent of their basic salaries as Cost of Living Allowance (COLA) due to the current economic situation in the country.

Negotiations dragged on for over two weeks, compelling CCT, GNAT, NAGRAT, and TEWU to embark on industrial action to insist on their demands.

But the government has reached a consensus with them for the payment of 15 percent of the allowance effective July 1, 2022.

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