Ghana’s mineworkers’ union has intensified its opposition to a policy requiring mining companies to shift key operations to locally owned contractors, warning of possible industrial action despite growing compliance by major firms.
The directive, enforced through the Minerals Commission, forms part of broader reforms aimed at increasing local participation in the mining value chain. It requires surface mining activities to be undertaken by wholly Ghanaian-owned firms, while underground operations must involve companies with at least 50 per cent local ownership.
However, the Ghana Mineworkers’ Union says the policy risks eroding labour standards and reversing gains made through years of collective bargaining. The union’s General Secretary, Abdul Moomin Gbana, has warned that workers could resort to strikes and protests if their concerns are not addressed.
Speaking on the matter to Reuters, Mr Gbana argued that local contractors often offer lower wages and reduced job security compared to multinational operators, raising fears of declining working conditions across the industry. He added that the union had not been consulted prior to the introduction of the regulation, describing the process as one that sidelines labour interests.
Under the policy, global mining companies operating in Ghana, including Newmont Corporation, Zijin Mining and AngloGold Ashanti, are expected to transfer activities such as blasting, hauling and dumping to local contractors by December 2026 or face sanctions.
Industry players have also raised concerns, with some executives arguing that the directive may conflict with existing mining laws that allow leaseholders to determine operational structures. Critics say the policy could discourage investment if not properly aligned with the legal framework.
The union’s resistance follows an earlier unsuccessful attempt between 2017 and 2018 to halt a shift towards contract mining by Gold Fields, a development that opened the door for wider adoption of contractor-led operations.
Central to the union’s concerns is a widening wage gap between contractor employees and workers directly employed by mining firms. According to industry sources, contract workers can earn significantly less in basic pay, with some reporting gaps of up to 50 per cent. There are also claims of irregular statutory payments, including pensions and provident fund contributions.
Mr Gbana warned that even if employment levels are maintained, the shift to contract mining could lead to a steady decline in wages and benefits, undermining worker welfare across the sector. He cited concerns about some local contractors’ ability to meet labour standards, although at least one firm, Rocksure, has defended its record, stating that it complies fully with contractual and statutory obligations.
The Minerals Commission has acknowledged the concerns and indicated plans to strengthen oversight of contractors. Chief Executive Isaac Tandoh said tighter regulation would help prevent underpricing practices that drive down wages and operational standards.
He explained that in some cases, mining service rates have fallen significantly, placing pressure on contractors and, by extension, workers. To address this, the Commission is considering clearer pricing benchmarks and support mechanisms, including partnerships and technical guidance for local firms.
The standoff highlights growing tension between the government’s localisation agenda and labour concerns, as Ghana seeks to balance economic empowerment with the protection of worker rights in one of its most critical sectors.
Source:
www.graphic.com.gh