Ghana: Minerals Commission orders contract miners to set wage benchmarks

The Minerals Commission has directed contract mining companies in Ghana to develop industry-wide benchmarks for wages and conditions of service, amid concerns over disparities in pay and working conditions across the sector.

The directive was issued at a meeting between the Commission, major contract mining companies and other stakeholders, where Chief Executive Officer Isaac Andrews Tandoh stressed the need to ensure that Ghana’s local content policy delivers tangible benefits to Ghanaian workers.

Mr. Tandoh said increased Ghanaian ownership of mining operations should go beyond a change in ownership and translate into decent jobs, fair remuneration and improved working conditions.

The Commission’s directive comes amid concerns that intense competition for mining contracts is encouraging some operators to submit unsustainably low bids, potentially putting pressure on labour costs.

The Ghana Mineworkers’ Union has also raised concerns about differences in wages and conditions of service between some indigenous contractors and foreign-owned companies.

Under the Commission’s directive, contract mining companies are expected to develop a framework setting benchmarks for wages and conditions of service across the industry.

The draft framework will be reviewed by stakeholders before being submitted to the Minerals Commission for approval.

If adopted, the framework would provide common standards for remuneration and working conditions and could help discourage companies from competing for contracts by cutting labour costs.

The Commission is also considering the ability of bidders to provide fair wage provisions as part of the broader assessment of future contract awards, alongside technical and financial capacity.

Mr. Tandoh urged Ghanaian contractors to compete based on technical expertise, productivity and service quality, rather than relying primarily on the lowest bid.

He said local ownership must generate local value, with decent employment and fair wages forming part of the benefits expected from Ghana’s local content policy.