Organised Labour requested for a 60% Base Pay rise and Gov’t came with 10% which was rejected.
During the 2023 Budget reading, the Finance Minister announced a 2.5% increase in VAT which changed the Whole story with Organised Labour also increasing their Demands from 60 to 65% Base Pay Increment; Labour Union Moves Base pay Negotiations to 65% .
Many referred to organised Labour as being insensitive to current economic situations, but organised labour mentioned that, all workers deserve better, Government can not pay certain bracket of workers more than others and due to the high cost of living currently, that’s why they are also demanding something better for their members.
After back and forth Meetings, many inconclusive meetings which led to intense negotiations in January 2023 , with many speculations; 21% Plus COLA ; Public sector workers Salary Negotiations, the meeting ended with organised labour accepting a 30% increment in base pay. 30% Conclusions made on 12th January Public Sector Base Pay Negotiations.
Surprisingly, During the Cost of living allowance negotiations and offer by government, utility tariffs were increased Confirm Validation; COLA Paid to workers – Check Amount and deductions made (Tax),
In less than a week, Utility tariff was increased so much that it almost swallowed the whole COLA, with many workers agitating 15 % COLA ; 48.7% Water + Electricity Tariff = Neg 33.7%; Government Impoverishes Ghanaian Public Sector Workers perpetually
Similarly as the Base Pay of 30% has been given to workers, there’s new increment in tariff and Cost of living skyrocketing.
Utility Tariff took off 1st February, 2023;
With Electricity Tariff of 30%
Water Tariff 8.3%
Diesel Tariff 8-10%
Here are some comments after the increment
Richard Elikplim A
Apartment renting is a very sensitive issue. Utility Tariff has increased; electricity, water, gas, fuel, and others. Cost of living is going to be challenging for most people including both tenants and landlords.
It means that even if your salary is increased by 50% It’s gonna hit your real hard because your purchasing is gonna be affected. Disposable income is gonna be affected, savings is gonna be affected. It’s sad
For these and many other reasons, Many are calling for the return of the Cost of living allowance for public sector workers.
Gov’t swerved Labour by taking off COLA and increasing Tariffs to cover-up the 30% Increment. An Insensitive Act. COLA must return.
As Salaries were paid, many workers are even asking of the whereabout of their 30% as they can’t feel a thing, rather increased in taxes and deductions on their payslip.
For sure, even if Organisd labour will demand for cost of living allowance in 2023, definitely not this time, the hard truth.
Maybe it should have been 30% Plus COLA during the Base Pay negotiations.
Government must do well to see to the hardship faced by Ghanaians. If inflation goes down, especially food inflation and other items become stable including the Cedi, Requesting for COLA won’t be part of workers worry.
TUC/Organised Labour will definitely take a decision at the right time.
The 2022 COLA was requested for by Teachers GNAT Demands Cost of Living Allowance,Pay our ‘cost of living allowance’ as a matter of urgency.-Teacher Unions
Maybe the 2023 COLA would be requested by Doctors or nurses ….
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