ACCRA, Ghana, 3rd April: The Extractive Industry Workers Union of Ghana (EIWUG) has raised alarm over the future of job security in the country’s mining sector, cautioning that a planned transition to contract mining could expose thousands of workers to job losses and worsening conditions.
At a press conference, the Union’s Executive Director, Victor Gyapong, expressed concern over a government directive requiring major mining companies to shift to contract mining for surface operations by December 2026. He described the move as a significant structural change with potentially far-reaching consequences for workers across the industry.
Speaking on an Accra-based television station monitored by Ahotor FM’s Emmanuel Romeo Tetteh, Mr. Gyapong said the Union’s concerns are closely tied to the Local Content and Local Participation Regulations (LI 2431), which seeks to increase Ghanaian participation in the extractive sector.
According to him, while the regulation was designed to promote local involvement, its implementation has, in some cases, produced unintended consequences for workers.
“When multinational companies come into Ghana, they employ a mix of expatriates and Ghanaians. Over time, the government has encouraged them to cede portions of their operations to Ghanaian-owned companies. However, what we have observed is that when these transitions occur, workers often suffer, salaries are reduced, allowances are cut, and in some instances, redundancies are declared,” he explained.
Mr. Gyapong cited operations of companies such as Newmont Corporation at Ahafo South and Ahafo North, as well as AngloGold Ashanti, to illustrate that many mines are already predominantly staffed and managed by Ghanaians, with minimal expatriate presence.
“At some of these sites, you can hardly count more than a handful of expatriates. The workforce, including top management, is largely Ghanaian. So the question is, what exactly is the problem we are trying to solve?” he queried.
He argued that outsourcing portions of mining operations to local contractors risks benefiting a few individuals at the expense of thousands of workers.
“What we are seeing is a situation where the policy could enrich a small group while impoverishing the many Ghanaian workers currently employed in these mines. Is that the direction we want to take as a country?” he asked.
As an alternative, Mr. Gyapong proposed that Ghanaian entrepreneurs with the capacity to take on large-scale mining contracts should form consortia and establish their own mining ventures.
“Ghana is blessed with abundant mineral resources. Instead of taking over existing operations, local businessmen should be supported to develop new mines from scratch. That way, they can create jobs for the many unemployed youth in the country,” he suggested.
He further warned that the current approach could discourage foreign investment in the mining sector.
“If investors perceive that they will be compelled to surrender portions of their operations after committing significant resources, they may be reluctant to enter the Ghanaian market. That could have long-term implications for the growth of the industry,” he cautioned.
EIWUG is therefore calling on government to review its approach and engage stakeholders to ensure that policies aimed at promoting local participation do not inadvertently undermine worker welfare and investor confidence.
Story by: Emmanuel Romeo Tetteh(#RomeoWrites✍️)/Ahotoronline.com | Ghana 🇬🇭
