Government Serves Notice To Suspend COLA in Future
The cost of living allowance (COLA) to be cancelled by government in the near future, this information was made to the organized labour.
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According to government, the COLA became necessary due to the conditions external factors have plunged the country into. As the name suggests, cost of living allowance; meaning any foreseeable future period will see to the suspension of the allowance.
The Cost of living allowance which saw the teacher unions and other labour unions go on industrial strike action to be cancelled in the future. Before consensus was reached between the government and the organized labour last Thursday, the proposed rate was 20 percent.
Unfortunately, after a crunch meeting and series of deliberations the rate was brought down to 15 percent. This means that, this 15% COLA percentage will be applied on the basic salary of workers of the organized labour.
Government Serves Notice To Suspend COLA in Future
Despite this agreement reached between the two parties, the government is of the view to have this (COLA) allowance scrapped. This revelation was made by the deputy Minister of Employment and Labour, Hon Bright Wereko Brobbey.
According to him, the allowance is not a permanent one and at any given time the government feels conditions are settled, they will not hesitate to suspend the COLA.
Below are excerpts of his statements on the cancellation of the COLA. “We have agreed that the Cost of Living Allowance 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 when these factors are no longer there, there will not be the relevance to still continue with it.”
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Though looking at the terms of agreement of the COLA, there is no issue of suspension but the Deputy Minister believes that the name implies that it’s a temporal thing.
Recap of events.
Before the approval of the 15 percent COLA, negotiations went on for a period of two weeks. This latterly resulted in industrial actions by the four teacher unions; GNAT, NAGRAT, CCT and TEWU. Also the Ghana Medical Association and the Public Sector Workers Union threaten to join the industrial strike action.
Until then, all LEARNRITEHERE can report is that the COLA will be suspended in the future period. The government has served noticed to organized labour.
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[SOURCE:CITITV/FACEBOOK]
