Ghana’s government has averted a planned strike by public sector workers over pay, reaching an agreement with the country’s main labour unions to increase the cost of living allowance by 15%, the finance ministry said on Friday.
The 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 in the west African country.
“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.