Ghana avoids strike, reaches allowance deal with unions

ghana avoids strike, reaches allowance deal with unions
ghana avoids strike, reaches allowance deal with unions

The government of Ghana has averted a walkout by public sector workers over pay by reaching a deal with the country’s major labour organisations to increase the cost of living allowance by 15 percent, according to the country’s finance ministry.

The trade unions, including teachers and health sector workers, had planned to strike in the coming weeks if salaries were not increased, as the west African country’s consumers face record-high inflation of 29.8 percent.

“In light of the impact of present global economic headwinds on the Ghanaian economy, the settlement struck with labour unions is expected to improve working conditions for Ghanaian public sector employees,” the finance ministry said on Twitter.

“All industrial actions have been cancelled,” the statement continued, adding that the decision will take effect retrospectively beginning July 1.

Ghana, a producer of oil, cocoa, and gold, faces significant economic issues, including a growing debt burden and budget deficit. It is developing a prospective support programme with the International Monetary Fund (IMF).

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