Ghana increases workers’ pay to avert general strike
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Trade unions, including teachers and health sectors workers had planned to strike in the coming weeks if wages were not increased as rampant inflation, currently at a record 29.8%, hits consumers.
Ghana’s government, in an agreement with labour unions, has jacked up the cost of living allowance to avert a planned strike by public sector workers over pay.
The finance ministry said the cost of living allowance has been increased by 15%.
Trade unions, including teachers and health sectors workers had planned to strike in the coming weeks if wages were not increased as rampant inflation, currently at a record 29.8%, hits consumers.
“Settlement reached with labour unions is expected to ease conditions for Ghanaian public sector workers, in light of the impact of current global economic headwinds on the Ghanaian economy,” the finance ministry said on Twitter.
“All industrial actions have also been called off,” it said, adding that the decision will take effect retroactively from July 1.
Ghana, a producer of oil, cocoa and gold, is facing major economic challenges including a heavy debt burden and widening budget deficit.
It is working with the International Monetary Fund (IMF) to develop a potential support programme.
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