By Nadia Ntiamoah
A major industrial dispute is brewing at the National Lottery Authority after salary negotiations between management and workers collapsed, prompting employees to declare a formal deadlock and threaten nationwide demonstrations over what they describe as an inadequate pay adjustment amid worsening economic conditions.
The standoff, which has been developing for months, has exposed deep frustrations among workers over salary levels, tax deductions, operational challenges, and what they describe as a growing disconnect between management and staff concerns.
Union leaders insist that unless significant progress is made through mediation, workers may resort to industrial action to press home their demands.
The anchor their demands on the high cost of living as well as the ostentatious lifestyle of the management headed by the Director General, Mohammed Abdul Salam.
Workers Reject 12 Percent Offer
At the centre of the dispute is management’s proposal of a 12 percent salary increase, which workers have overwhelmingly rejected.
Employee representatives argue that the proposed increment falls far short of addressing the rising cost of living and the financial burden imposed by recent tax deductions that have significantly reduced workers’ take-home pay.
Workers are instead demanding a salary adjustment of between 17 and 18 percent, insisting that anything less would leave many employees financially worse off than before.
According to union sources, the gap between the two positions proved impossible to bridge during negotiations, leading to the collapse of talks.
Tax Deductions Spark Anger
A major source of tension stems from what workers describe as a long-running tax anomaly affecting employees recruited after 2016.
According to staff representatives, an incorrect tax computation method had allegedly been used for several years, contrary to regulations of the Ghana Revenue Authority.
Workers claim the issue had been under discussion between the Authority and the tax regulator for years but was only disclosed to employees recently.
Following the correction of the tax arrangement, workers say deductions from salaries increased significantly, with some employees losing between 10 and 13 percent of their monthly earnings.
The impact has been particularly severe for staff servicing loans and other financial obligations, many of whom now struggle to meet monthly commitments.
Employees argue that if the tax implications had been fully disclosed before salary negotiations in 2025, they would never have accepted the five percent salary increment that was agreed at the time.
Negotiations Delayed by Administrative Processes
The dispute was further complicated by delays associated with a change in management and the need for guidance from the Fair Wages and Salaries Commission.
Workers say they were repeatedly assured that consultations with the Commission were ongoing and that negotiations would begin shortly.
However, weeks passed without progress, creating growing frustration among staff and union leaders.
Formal negotiations reportedly commenced only after sustained pressure from workers and subsequent approval from the NLA Board.
Talks Collapse After Positions Harden
When discussions eventually began, workers tabled a demand for an 18 percent salary increase, while management offered eight percent.
Subsequent rounds of negotiations produced only marginal movement. Management increased its offer to 12 percent, while workers lowered their demand to 17 percent in an attempt to reach a compromise.
However, management reportedly informed labour representatives that it could not exceed the 12 percent threshold because of budgetary limitations approved by the Board.
Union leaders interpreted the position as a non-negotiable ultimatum rather than genuine collective bargaining.
The resulting impasse prompted workers to formally declare a deadlock.
Workers Say Increment Will Not Offset Losses
Labour representatives maintain that the proposed salary increase would fail to compensate for the losses caused by revised tax deductions.
According to calculations presented during negotiations, employees earning average gross salaries of approximately GH¢5,000 would experience little or no real improvement in their disposable income.
Some workers argue that once taxes and other deductions are applied, the 12 percent increase effectively becomes a reduction in purchasing power.
Operational Challenges Fuel Frustration
The salary dispute has also reopened broader concerns about conditions within the Authority.
Workers accuse management of neglecting critical operational needs despite citing financial constraints during negotiations.
Among the issues raised are aging point-of-sale terminals used for lottery operations, which employees say require urgent replacement to improve efficiency and revenue generation.
Staff have also complained about deteriorating official vehicles used for field operations.
According to workers, several vehicles currently in service date back to before 2012 and frequently suffer breakdowns.
