Ghana Mineworkers’ Union (GMWU) has called for an end to the many years of unfair wages being paid to its members by the multinational mining companies operating in the country.
The General Secretary of GMWU, Prince William Ankrah who made the call maintained that in the union’s yet to be published study on wage inequalities confirmed the huge gaps in wages among nationals and the expatriates in the country’s mining industry.
He added that; “the outcome of the analysis confirmed the long held view of the Union that, wage inequity is a major challenge in the mining industry of Ghana.”
“It emerged from the analysis that the bottom (poorest) 10% of the workers share of the income for the period was 1.26% whilst the top (richest) 10% percent share was 57.48%. In other words, 90 percent of the workers share of wage income (42.52%) was less than the top richest 10% income of 57.48%”.
Mr Ankrah told delegates at the union’s 11 quadrennial conference in Tarkwa that another revealing outcome of the analysis showed that the ratio between the highest salary (261,793.60) and the lowest salary (473.74) for the industry was 555.61 to 1 (555.61:1).
“Expressed another way, it will take the lowest paid person 555.61 months or 46.1 years of hard work to earn one month salary of the highest paid person.”
The Gini index which measures the extent to which the distribution of income deviates from a perfect line of equality was 0.63 (or 63 percent if expressed in percentage terms) for the companies confirming the illogical income distributional patterns in the industry which the Union has for many years complained about.
Furthermore, Mr Ankrah noted that the union also undertook external benchmarking to establish the relationship between the reward system in our industry and what pertains elsewhere. What emerged from this exercise only exacerbated the situation, he stated.
According to a 2013 HAYS research report put together by HAYS Resources and Mining Global Salary Guide titled “Australia 2nd in Worldwide Resources and Mining Salary Ranking”, which ranked 37 countries according to locals/nationals and expatriates average annual salaries.
The report indicated that, Ghanaian locals/nationals only make US$39,200 compared with their expatriates counterparts of US$152,100. This represents 25.77% or a quarter of what the expatriates earn.
Comparing our locals with their peers like South Africa (60%), Congo DR (50%), Mozambique (38.56%), Namibia (51%) all in the Africa region, Ghanaian workers are shortchanged in every aspects.
A further probe by the union in an attempt to establish the underlying causes of the present situation revealed that there are certain missing variables.
These include but not limited to factors that affect salary/wage determination at the unset of mining operations, for the middle to lower level staff over the years in Ghana.
They include the classical economic theory of demand and supply, the notion of Ghana is a low wage country, the minimum wage of Ghana as well as benchmarked public & private sector pay.
This is done without regard to the unique peculiarities of the mining industry both locally and internationally such as the commodity in trade and the currencies used in trade, how professional and technical skills are priced to match international best practices, Mr Ankrah indicated.
“In sharp contrast, in the case of expatriates, senior and junior Management personnel, everything is done right regarding the application of the unique peculiarities of the mining industry both locally and internationally”.
Added to the above missing variables is the debilitating impact of the use of the purchasing power parity theory as a defensive mechanism for the naked injustice being perpetrated to further marginalize workers from developing countries, GMWU General Secretary lamented.
On the way forward, Mr Ankrah emphasised that union was communicating to the key stakeholders especially the mining giants to end the discrimination, alienation and the injustice in the mining industry.
The National Chairman of GMWU, Kwarko Mensah Gyakari observed: “Today, employment in the industry is fast transforming from long and permanent status to a more precarious fixed term contract and casual work”.
“Currently, some labour brokers whose only duty is to facilitate employment have turned themselves into employers and abusing workers’ rights. We want to caution such organizations to end the practice now or face the wrath of the Union”.
The Secretary General of TUC, Kofi Asamoah called for strong resurgence in the country’s labour sector.
This, he said starts with a re-commitment to trade union unity and solidarity, stressing “We can start our re-commitment by seeking areas to leverage our strengths and capacities in cross-cutting areas”.
For example, are there areas the mining sector unions can share or collaborate with the oil sector unions or others, Mr Asamoah asked?
Meanwhile, new National Officers of the Ghana Mineworkers’ Union who will serve a four year term were elected and sworn into office by the by Mr Asamoah at the delegates conference.
They include: National Chairperson – Mr. Kwarko Mensah- Gyakari; First Vice National Chairperson- Mr. Abdul-Rauf Issahaku; Second Vice National Chairperson-Madam Philomena Aba Sampson; General Secretary- Mr. Prince William Ankrah: Deputy General Secretary- Mr. Abdul-Moomin Gbana; First National Trustee- Mr. Felix Lartey; and Second National Trustee- Mr. Edward Quainoo.
