GMWU Calls for Fair Contracts Between Local Entities and Multinationals

By Erica Apeatua Addo

Tarkwa (W/R), Aug. 21, GNA – The Ghana Mineworkers’ Union (GMWU) of the Trade Union Congress (TUC) has urged government to ensure fair contracts between local entities and multinational mining companies operating in Ghana. 

The Union warned that existing contractual arrangements were exploitative, suffocating, and posed serious risks to the stability of the mining sector if not addressed urgently. 

Mr. Jerry Andoh, Deputy General Secretary of GMWU, speaking on behalf of Mr. Abdul-Moomin Gbana, General Secretary, made the call at the Union’s first-half National Executive Council meeting in Tarkwa. 

He argued that while the concept of local content was laudable, its implementation had largely disadvantaged local businesses. “The consequences of these cut-throat contracts are dire, with workers’ welfare relegated to the background, delays in salary payments, non-payment of Provident Fund contributions, and other violations,” he noted. 

Mr. Andoh emphasized that mining and hauling activities, designated for local entities, required urgent government attention due to their capital-intensive nature and the high cost of credit in Ghana. 

He further cautioned multinational companies and the Chamber of Mines to address these concerns, warning that failure to act could undermine industrial stability in the near future. 

The Union also expressed concern over a major shift in the mining labour market, where more than 90 per cent of the workforce is now engaged in non-standard forms of employment. This, Mr. Andoh said, had eroded job security, reduced workplace protections, and worsened risks of injuries and rights violations. 

“The practice of farming out core mining business under profit-driven contracts must stop,” he stressed, insisting that mining companies remain strictly liable for employees’ costs and decent working conditions. 

Mr. Andoh called on the Ministry of Lands and Natural Resources to intervene with policies that protect local entities and workers, ensuring fairer participation in the mining value chain. 

GNA  

Edited by Justina Paaga/ Audrey Dekalu