The Solomon Islands Council of Trade Unions (SICTU) has praised the Government for the recently announced 3% Cost of Living Adjustment (COLA) approved by Cabinet last week.
This decision demonstrates recognition of the economic pressures faced by workers and their families, and SICTU welcome this step toward alleviating their burdens.
However, SICTU wishes to highlight that the current adjustment falls short of fully addressing the challenges workers confront daily.
According to the Central Bank’s latest published inflation data for November 2024, which stands at 4.3%, a COLA award of 5% would more accurately reflect the rising cost of living.
“While we appreciate the government’s efforts, we stress the critical need for such adjustments to be guided by updated and transparent economic data to ensure they meaningfully cushion workers against inflation,” SICTU says.
Workers across the Solomon Islands continue to grapple with uncontrolled price hikes in essential goods, including food, fuel, utilities, and housing.
Beyond these, everyday livelihood costs such as transportation, healthcare outside of public health services, education, childcare including school fees, electricity and others further strain household budgets.
A data-driven COLA mechanism is not merely a matter of fairness but a necessity to safeguard the dignity and well-being of workers.
SICTU emphasized, while the 3% COLA is a welcome relief, it must keep pace with the realities workers face.
“Inflation erodes purchasing power, and outdated or incremental adjustments risk leaving families further behind.
“We urge the government to review the formula for calculating COLA to ensure it aligns with the latest economic indicators and prioritizes the needs of the workforce,” SICTU says.
SICTU which represent workers trade unions and associations both in government and all industries within the private sector call on the Government to strengthen collaboration with unions, Economic Association of Solomon Islands (EASI), and the Central Bank to institutionalize a responsive and equitable framework for wage adjustments. Regular consultations and timely revisions based on verified data will foster trust and ensure that policies remain relevant in dynamic economic conditions.
SICTU remains committed to constructive dialogue with the Government and all stakeholders to advance the interests of workers.
“We reaffirm our readiness to collaborate on solutions that promote economic justice and shared prosperity for all Solomon Islanders,”.
- SICTU
