Tension Mounts At Abosso Goldfields ...Over Severance Pay

TENSION is mounting at Abosso Goldfields Limited (AGL), the second largest mining company in Ghana, following a misunderstanding that has arisen between the management on one side and both the senior and junior staff associations on the other, resulting in what the workers described as indefinite suspension of all mining activities.

An attempt made by management of the company to defy the order by going to the Damang township where the mine is located to employ casual workers to keep the operations of the mine going was met with strong resistance by the workers who are on a sit-down strike, thus forciing management to also respond by ordering all workers who have the company's communication gadgets in their possession to surrender them or face the full rigours of the law.

Chronicle investigations into the impasse, which has now affected production of gold by the company, established that the misunderstanding between the two bodies came as a result of the alleged refusal by the managing director of the company, who is based in Australia, to pay the workers their severance pay, after concluding negotiations with Goldfields Ghana Limited (GGL), also a mining company based at Tarkwa, to sell the company to them for $41million.

Mr. David F. Hatch, managing director of AGL, refusing to pay the workers their severance pay, stated in a document sighted by Chronicle that they had received unambiguous legal advice that there is no case for severance or redundancy payments to be made to workers as a consequence of the proposed changes in the shareholding of the company.

According to the MD, Goldfields - Repadre, a South African mining company whose subsidiary - Goldfields Ghana Limited (GGL) - is operating the Tarkwa mine, has made it clear that they would change the condition of service of Ghanaian employees after concluding the necessary negotiations to buy AGL at the cost of $41million..

The MD further contended that the $135million development requirement for the Damang mine being operated by AGL was funded by $80million of bank debt and $55million from Ranger Minerals Ltd, the parent company of AGL.

According to him, at the time of the announcement of pending change of ownership of AGL, the project still owns $55million.

And as the proposed sale values Ranger's assets at $41.7million, it is clear that this sum is principally a repayment of Ranger's loan to AGL, he said in the document.

The Senior Staff Associaion of the company who are spearheading the sit-down strike action also told Chronicle that within the period of conception of idea to sell the company up to date, AGL management had cunningly stripped the workers' conditions of employment off the necessary clauses and articles to suit their long-term objective.

According to the workers, AGL's terms and conditions of service for senior and supervisory staff as stated in Article 25.7 which deals with change of ownership states

"An employee will be paid a redundancy or severance pay should the ownership of the company change and the employment is affected where majority shareholding will be affected other than presently consituted."

The workers further contended that currently there is no trace of this enticing clause by which Ranger Minerals have used to retain employees from their exploration era through the plant construction to produce the gold to date except three months consolidated pay for severance or redundancy.

"Their ultimate objective has been to transfer workers blindly to the prospective buyer without paying the workers their due severance compensation. The usual practice of transacting business with the sole and only mind of maximising profits without any consideration of interest of other parties, the working tools," the workers said.

They further said at the worker management dialogues following the announcement about the sale of the company, AGL management categorically and repeatedly stated that by the conditions of their dealing with Goldfields, the new buyer, they, AGL, cannot guarantee workers' employment but were at the same time preaching workers' continuity of service with the new buyer.

According to them, conditions of service at AGL are far better than what is being offered by Goldfields Ghana Limited (GGL), the new buyer, therefore there is absolutely no need for any special knowledge for one to dismiss any argument, attempting to suggest the maintainance of their present conditions of service with AGL, as the latter is trying to make the workers to believe.

They, therefore, resolved that until AGL makes effort to pay them as stated in their conditions if service, they will not go back to work.

The General Manager of AGL, Mr. Andy Cameron, would not talk to reporters when an attempt was made, but the Managing Director of GGL, Mr. Richard Greame, told Chronicle at Tarkwa, when the Parliamentary Select Committee visited Tarkwa in the heat of the cyanide spillage, that his company would not sack AGL workers when they finally takeover.

What he did not explain is whether they would adopt the conditions of service of AGL.