Ghana’s main mineworkers’ union has warned it will resist a government policy mandating the use of local contractors in mining operations, saying the move risks cutting wages, weakening job security and eroding long-standing labour protections.
The policy, introduced in 2025 as part of reforms to boost local participation in Africa’s top gold producer, requires international mining companies to outsource key operations to Ghanaian-owned firms. Authorities have given companies until December 2026 to comply or face sanctions.
But the Ghana Mineworkers’ Union says the shift to contract mining will come at the expense of workers.
Union president Abdul Moomin Gbana told Reuters that local contractors typically pay significantly lower wages and offer less job security than multinational operators.
“Even if jobs are maintained, the conditions of service will deteriorate,” Gbana said, warning of “a huge impact on workers.”
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The union, which represents about 14,000 workers, has threatened strikes and protests if the policy proceeds unchanged.
Under the rules, surface mining must be carried out by fully Ghanaian-owned firms, while underground operations must be handled by companies with at least 50 percent local ownership.
Major mining firms operating in Ghana — including Newmont, Zijin Mining and AngloGold Ashanti — have already begun adjusting to the requirements.
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Mining executives, however, have criticised the directive as anti-business and potentially unlawful, arguing it conflicts with Ghana’s mining legislation, which allows leaseholders to determine how operations are conducted.
Labour concerns resurface
The dispute revives tensions seen between 2017 and 2018, when workers unsuccessfully opposed a shift by Gold Fields to contract mining. That earlier transition, which included a failed court challenge by the union, paved the way for broader adoption of outsourcing in the sector.
Gbana said the union was not consulted on the current regulation and accused authorities of sidelining labour concerns.
“The growing reliance on contract mining is reversing hard-won labour protections,” he said.
The union has formally petitioned the mining regulator and the lands ministry, warning that any attempt to enforce the policy in its current form would be met with “strong, coordinated and sustained resistance.”
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Wage gap at centre of dispute
At the heart of the conflict is a widening pay gap between workers employed directly by mining companies and those hired by contractors.
A staff member at a local contracting firm told Reuters that contractor employees typically earn around 50 percent less in basic pay than their counterparts working directly for mine operators.
Gbana also raised concerns over weaker job security and alleged irregularities in statutory payments, including pensions and provident funds.
“These changes will erode gains secured through years of collective bargaining,” he said.
Several Ghanaian contractors — including Engineers & Planners, Rabotec Group, BCM Group, Electrochem Ghana and Rocksure International — have been cited by the union as failing to meet workers’ expectations.
Rocksure, however, rejected the claims. Its head of human resources, Nina Lamptey, said the company pays salaries and pensions on time and complies fully with contractual obligations.
Other firms did not immediately respond to requests for comment.
Regulator pledges tighter oversight
Ghana’s Minerals Commission acknowledged concerns about falling wages and said it plans to strengthen oversight of contractors.
Chief executive Isaac Tandoh said mining companies often push down contract rates, citing cases where costs dropped from about $3 per tonne to below $2.50, squeezing contractors and ultimately workers.
“We will introduce clearer pricing benchmarks and provide guidance to ensure fair practices,” Tandoh said, adding that joint ventures could help build the capacity of local firms.
He also said unions were justified in advocating for workers’ welfare.
The government argues that the policy is essential to ensuring Ghanaians benefit more directly from the country’s mineral wealth. But with tensions rising, the sector now faces the prospect of labour unrest as the 2026 compliance deadline approaches.
