The Ghana Mineworkers’ Union (GMWU) has issued a strong warning over a proposed shift to contract mining for major gold producers, describing the policy direction as “dangerous, regressive, and economically unsound,” and cautioning that it could significantly alter employment standards in the sector.
The concern is directed at a reported directive requiring companies such as Zijin, Newmont and AngloGold to transition from owner-operated mining to contract mining by December 2026. In a letter to the Chief Executive Officer of the Minerals Commission, the Union said it “disagrees without equivocation” with the move and rejects it in its current form.
At the core of the Union’s argument is the belief that the policy would fundamentally weaken the structure of mine employment in Ghana. It says previous experiences under contract mining arrangements have already shown a pattern of deteriorating labour conditions, including what it describes as “the rise in the fragmentation of production chains, created and increased precarious work, reversed decent work gains and pushed most mineworkers into the working poverty syndrome.”
The GMWU further argues that the impact on workers is direct and measurable, particularly in earnings. It states that in many cases, wages are “significantly reduced, mostly by at least half of what they were earning under an owner miner for the same job,” with knock-on effects on household income and retirement security.
The Union also warns that benefits tied to formal employment structures are often eroded under contractor systems. It notes that “almost every other benefit the worker enjoyed under the owner miner is either completely stripped off the worker under a local contractor or heavily diluted.”
Beyond pay and benefits, the GMWU raises concerns about compliance standards among some local contractors operating in the sector. It points to challenges in meeting statutory obligations such as SSNIT contributions, Tier 2 pensions and tax payments, arguing that these gaps affect both workers and state revenue systems.
It also references ongoing tensions in parts of the industry, including “a major standoff between workers and Engineers and Planners over the blatant refusal of the company to meet these statutory obligations which have accrued for years.”
In contrast, the Union suggests that multinational mining firms have generally maintained more stable employment systems and stronger compliance records, raising questions about the rationale for replacing owner-operated models with contractor-led arrangements.
The GMWU argues that the broader policy direction risks prioritising structural change over worker welfare, warning that the proposed shift could deepen job insecurity and weaken existing labour protections.
It is in this context that it characterises the contract mining model as “dangerous, regressive, and economically unsound,” insisting that it would worsen already fragile conditions for mineworkers.
The Union is therefore calling for the immediate suspension of the directive and the commencement of broader stakeholder consultations involving workers, employers and regulators before any implementation is pursued.
