Omanghana
The Ghana Mineworkers’ Union (GMWU) has warned that a new government directive requiring international mining companies to outsource some operations to local contractors could lead to lower wages and weaker job security for thousands of workers.
The union, which represents about 14,000 workers in Ghana’s mining sector, says employees transferred to local contractors often receive significantly less pay and fewer benefits than those directly employed by multinational mining firms.
Under the directive from the Minerals Commission, major gold producers including Newmont, AngloGold Ashanti, and Zijin Mining must transfer all surface mining activities to fully Ghanaian-owned companies by December 2026. The affected operations include blasting, hauling, and dumping.
Union President Abdul Moomin Gbana said contract workers in the industry can earn as much as 50 percent less in basic salary compared with workers employed directly by large mining companies. He argued that the policy risks worsening income inequality within the sector.
The union also fears that workers may lose hard-won benefits secured through years of collective bargaining. These include pension contributions, provident fund support, and stronger employment protections that are more common under multinational operators.
Government officials have defended the policy as part of a broader effort to increase local participation in the mining industry and ensure that more of Ghana’s mineral wealth remains within the national economy. Authorities say empowering Ghanaian-owned service providers can create local business growth and long-term economic value.
Despite this justification, the GMWU has formally petitioned the Lands Ministry and the Minerals Commission to review the directive. The union has vowed sustained opposition and says strikes or protests remain possible if worker protections are not built into the policy.
Acknowledging the concerns, Minerals Commission Chief Executive Isaac Tandoh said international mining firms often push down prices when awarding contracts to local companies. In some cases, service rates reportedly fall from $3 per ton to below $2.50 per ton, creating pressure that can directly reduce worker pay.
To address the issue, the Commission says it plans to introduce pricing benchmarks and tighter oversight to stop contractors from undercutting wages simply to win bids.
The debate highlights the challenge of balancing local economic empowerment with fair labor standards, as Ghana seeks to maximize the benefits of its mining industry while protecting workers’ livelihoods.
Source: Omanghana
