Council of trade union slams govt’s 3 percent cost of living adjustment, calls for body to advise finance minister on real issues impacting workers and employers

BY NED GAGAHE

The Solomon Islands trade union council has slammed government’s recent 3 percent cost of living adjustment (COLA) as a failure.

The Council of Trade Union (SICTU) also called for the immediate establishment of a Tripartite Advisory Body with equal representation from government, employers, and workers to advise the Minister of Finance and Treasury on critical issues relating or impacting workers and employers like Cost-of-Living Adjustments (COLA).

The recently awarded 3% COLA fails workers as it failed to meaningfully address at least in the minimum, struggling workers and their family long suffering due to high cost of living.

“A 3% COLA to a worker with a gross salary of $2,000 is only an increase of an additional taxable $60,” the SICTU statement said.

This adjustment which is unilaterally decided by the government, ignores skyrocketing cost of living and workers’ hardships, SICTU adds.

“For years, COLA decisions have been made without meaningful consultation, prioritising fiscal convenience over workers’ survival.

“This undermines trust and worsens inequality workers continued to experience from national government top down approach.

“An ancient approach long thrown away by government around the world over more consultative one,” SICTU said.  

The high cost of living stems from poor price management of goods and services by government agencies.

Workers cannot sustain families on unjustified, token increases bring about by a government failure to protect its workers and citizen from high cost of living.

“The government’s unilateral approach must end.

“We demand a seat at the table to ensure COLA reflects real needs, not spreadsheet calculations,” SICTU said.

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