Mining pay regulated ahead of shift to local contractors

Ghana has ordered its mining regulator to standardise pay and employment conditions across the industry, a move that could ease union concerns over a planned shift of mining operations from multinational companies to local contractors by December, reports Business Day. Africa’s top gold producer has directed miners to transfer operations to local contractors or face sanctions under local-content rules affecting major operators including Newmont, AngloGold Ashanti, Zijin and Ghana Manganese Company. Labour unions have opposed the policy, warning it could reduce workers’ pay and benefits. The Ministry of Lands and Natural Resources said it had instructed the Minerals Commission to ensure no worker employed by a mining contractor suffers a cut in wages, benefits or conditions of service as a result of the shift from owner mining to contract mining. The regulator has also been tasked with harmonising salaries, wages and employment conditions across the mining value chain and introducing a contractor classification system based on capacity. It must complete the process and submit implementation proposals by 30 November. The Ministry said there would be ‘zero tolerance’ for unfair labour practices, cartelisation, bid rigging and fronting arrangements that undermine local-content objectives. The Minerals Commission did not immediately respond to a request for comment.

Full Business Day report