Ghana’s Mineworkers Vow to Fight Policy That Unions Say Will Slash Wages and Jobs

Ghana’s Union of Mineworkers has issued a sharp warning to the government: a sweeping policy requiring international mining companies to shift core operations to locally owned contractors will destroy wages, eliminate benefits, and undermine job security for thousands of workers across the sector.

The union, representing approximately 14,000 workers, has pledged to mount strong, coordinated and sustained resistance — including possible strikes and protests — against the regulation, which mandates that surface mining be carried out exclusively by fully Ghanaian-owned firms, while underground operations must be handled by companies with at least 50% local ownership.

The policy, introduced in January 2025, has already been complied with by major international gold producers operating in the country, including Newmont, AngloGold Ashanti, and Zijin. But the union says the compliance has come at an unacceptable cost to ordinary workers.

The Core of the Dispute

Under the new rules, international mining companies operating in Ghana — Africa’s largest gold producer — must transition all blasting, loading, hauling, and dumping activities to local contractors by December 2026, or face regulatory sanctions.

Mining executives have defended the policy as a legitimate exercise of national sovereignty, aimed at increasing local participation in a sector that has historically been dominated by foreign firms. The Minerals Commission says the regulation supports Ghanaian businesses and creates domestic value chains.

But mineworkers say the reality on the ground tells a different story. The growing reliance on contract mining is reversing hard-won labour protections. Workers who once enjoyed direct employment with full benefits are now being absorbed into contractor firms that pay significantly less and offer far weaker job security. – Union president Abdul Moomin Gbana

The Wage Gap

According to union officials and workers in the sector, contractor staff typically earn around 50% less in basic pay than employees directly hired by mine operators. A staff member at one local contractor firm told Reuters that the disparity was glaring and had already begun to affect morale across the sector.

Beyond wages, the union has raised concerns about unpaid statutory deductions — including pensions and provident fund contributions — that some contractors have failed to remit to relevant authorities. Gbana said established local firms, including E&P, Rabotec, BCM, Electrochem, and Rocksure, had all failed to meet workers’ expectations in various ways.

Rocksure’s head of human resources, Nina Lamptey, pushed back, saying the company was up to date with all salary, pension, and statutory obligations, and paid strictly according to contract terms. E&P, Rabotec, BCM, and Electrochem did not respond to requests for comment.

A History of Resistance

The current conflict is not entirely new. Ghana’s mineworkers unsuccessfully attempted to stop Gold Fields’ voluntary shift from owner mining to contract mining in 2017-2018, including through a court challenge. That failure, the union says, opened the door for wider adoption of the model across the sector.

What is different now is the scale and the government mandate behind it. Unlike the Gold Fields case, where the shift was a voluntary business decision, the current transition is backed by regulatory enforcement and the threat of sanctions.

The union was not consulted when the policy was drafted, Gbana said, accusing authorities of sidelining labour concerns in a decision that would directly affect thousands of workers and their families.

The Regulatory Response

The Minerals Commission, Ghana’s mining sector regulator, acknowledged worker concerns and said it was planning tighter oversight of contractors. Chief Executive Isaac Tandoh said miners had been cutting rates to local contractors — citing cases where mining costs fell from per ton to below .50 — which left workers worse off.

He said the commission would use regulations to set clearer pricing benchmarks and support local firms through guidance and joint ventures. He added that unions were right to push for worker welfare.

The Minerals Commission letter to industry players, seen by Reuters, instructed companies to ensure contractors met employment standards and labour law requirements.

Stakes for Ghana’s Mining Sector

Ghana’s gold mining industry contributes significantly to the country’s GDP, foreign exchange earnings, and government revenue. The sector directly employs around 60,000 people, with a further 400,000 in indirect roles.

Any disruption to operations — whether through strikes, regulatory uncertainty, or a deterioration of labour relations — would have significant economic and political consequences for the government of President Nana Akufo-Addo, whose administration has sought to position Ghana as a preferred destination for mining investment in West Africa.

The mineworkers’ union has petitioned the Minerals Commission and the Ministry of Lands and Natural Resources, demanding a meeting and a formal review of the policy. So far, the government has shown no indication it intends to reverse course.