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21 September, 2009
Patience by members of ICEM-affiliated Ghana Mine Workers’ Union (GMWU) has worn thin with the African nation’s three largest gold producers, AngloGold Ashanti, Goldfields, and Newmont Mining. The union has been in wage talks with the major producers throughout the summer, focusing mainly on narrowing the wide pay gap between expatriate workers and Ghana staff.
The mining houses have become difficult in talks. Despite gold being one mineral which has maintained high pricing value during the economic crisis, AngloGold and Goldfields, in particular, are cold to the GMWU’s proposal to lift base wages of Ghanaian miners gradually over the next three years. The wage agreement for 2009 in mining expired in July.
The mining companies’ intransigence has already produced GMWU industrial actions. In early August, 4,600 miners staged a two-day strike at AngloGold’s three mines and last week, 2,100 Goldfields miners began “go-slow” industrial actions at the South African-based mining house’s two mines, including Ghana’s largest producing gold mine – Tarkwa.
Talks between GMWU and Goldfields on 17-18 September again went nowhere, and GMWU General Secretary Prince William Ankrah said the union’s executive council met over the weekend to assess the situation and plan further action.
“The situation is dire,” he said. “There now is a very good possibility that we will conduct nationwide strikes against the entire industry.” Such industrial actions would also involve smaller mining concerns. Since Goldfields has applied to the Ghana Labour Commission for intervention over last week’s actions, GMWU will now file for arbitration with the commission.
“We are realistic that mining companies cannot equalize the pay disproportion between expatiates and local staff immediately,” said Ankrah. “But we have very clear direction from our National Executive Council that a wage review must now begin, with the disparity bridged over the next three years.”
The union is seeking a 24.5% increase over the three years, which would produce a minimum monthly salary of US$500 by 2011. The mining houses have offered an increment of only 3.5%.
GMWU points out that pay of Ghana’s AngloGold executives is 289 times that of the lowest-paid worker, while at Goldfields it is 201 times. Mid-level expat workers in the gold mines receive salaries that are above twice that of local staff doing the same jobs. Lower-tiered salary levels for Ghanaian staff are up to 30 times less than that of expat workers.
At AngloGold, junior staff – numbering about 4,000 workers – account for 46% of the payroll, while 675 managers account for 35% and 42 expat workers count for 18% of payroll costs.
In Ghana’s mining sector, the US dollar is used as the basis for salaries. In bargaining with Goldfields, the company said the weakness of the American dollar had already lifted salaries when converted to cedis (GHC), an argument the GMWU found insulting.