Ghana’s mining policy faces union warning over wages

Accra, Ghana —

Ghana’s mining policy requiring international companies to outsource key operations to local contractors is facing strong union resistance over fears it could reduce wages and weaken job security. The Ghana Mineworkers Union says the policy, which affects companies including Newmont, Zijin and AngloGold Ashanti, could push workers into lower-paid contractor roles. Reuters reported that Ghana has directed large mining firms to shift activities such as blasting, loading, hauling and dumping to local contractors by December or face sanctions. The dispute comes as Ghana, Africa’s top gold producer, seeks to increase local participation in mining while protecting jobs in one of its most important export sectors.

Workers fear lower pay and weaker protection

Union President Abdul Moomin Gbana told Reuters the policy could hurt ordinary miners because local contractors often offer lower pay and weaker employment protection. “Any attempt to proceed with this policy in its current form will be met with strong, coordinated and sustained resistance,” the union said in a letter cited by Reuters. The union, which represents about 14,000 workers, has warned that it will strike and protest if the policy does not change. It says some contractor workers already face concerns over unpaid pension and provident fund deductions.

For mineworkers and their families, the concern is direct. A lower basic wage can mean less money for rent, school fees and transport in mining communities where jobs often support extended households. Reuters cited a staff member at a local contractor as saying contractor workers typically earn about 50% less in basic pay than workers directly employed by mine operators.

The government says oversight will be tightened

The Minerals Commission says it plans tighter oversight of contractors to prevent undercutting that harms workers and operating standards. Isaac Tandoh, Chief Executive of the Minerals Commission, said unions were right to push for worker welfare. He said the regulator would use clearer pricing benchmarks and support local firms through guidance and joint ventures. He also cited cases where mining costs paid to local contractors fell from $3 per tonne to below $2.50, leaving less room to protect workers’ earnings.

Rocksure, one of the local contractors named in the Reuters report, rejected suggestions of poor labour practices. Nina Lamptey, the company’s head of human resources, said Rocksure was up to date with salaries, pension payments and statutory obligations. She said the company pays strictly according to the terms of its contracts.

Local ownership versus labour rights

The policy reflects a wider national debate over how Ghana should increase local ownership in mining without reducing labour standards. Supporters of local content rules argue that Ghanaian firms should benefit more from the country’s mineral wealth. Labour groups say that this aim must not come at the expense of the workers who helped build the industry.

The union supports local participation but wants guarantees that wages, benefits, and safety standards will not fall. The Minerals Commission’s response suggests the government may seek a middle path: keeping the local outsourcing requirement while adding safeguards for pay and working conditions. The issue is likely to remain a flashpoint as the compliance deadline in December approaches.

Source: Reuters