The rationale behind the COLA was to alleviate workers in the country from the excruciating hardship of the economy at the time.
Public sector workers were granted 15% Cost of Living allowance base on their Base Pay to cushion them through this hard time. End of Strike 14th July, 2022. Emergency meeting Held again Concludes 15% COLA effective Date..
Unfortunately, the 15% COLA Came with a surprising increase in Tariff, Utilities, and Even the Performance of the Ghanaian Cedis against the US Dollar and major trading currencies around the globe broke chains, making the whole salary Plus the 15% COLA almost worthless. Current inflation rate is not the same when we agreed on 15% CoLA – CCT-GH
Remove COLA Only After New Salary
Most Public sector Workers are not happy with this announcement, as they suggest the COLA does not leave the Salary until there is a new salary increment.
You may hear some Public sector workers calling for a 40% Salary increment and some demanding their salaries are purged with the US Dollar. In that case when the Cedi even depreciates their salaries will still have some value.
In 2023, if you take the same salary with even the COLA still on it, you can not survive, Prices of Goods and Services are not the same, inflation is terribly High hence there is the need for Salary negotiations and good Increment, so that next year can start with a new and Better salary.
The Salary negotiators are warned to look at the economic Outlook in the future and make an informed decision, they are warned not to make the same mistake they made with the COLA, that agreement was made and the following day Inflation was almost doubled.
More to come