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General News of Monday, 14 July 2003

Source: GNA

Confusion erupts at the main gates of AGC

Obuasi (Ash), July 14, GNA- Confusion erupted at the main gates of Ashanti Goldfields Company (AGC) offices at Obuasi and the miners' circle early this morning, when some ex-casual workers besieged the area over the failure of the company to pay their ex-gratia benefits for the past three years.

The angry ex-workers blocked the road with blocks, tables and chairs and deflated tyres of some of the company vehicles. In the process of dispersing them the police fired warning shots injuring six of the workers.

According to some executive members of the ex-workers, AGC had been delaying the payment of their entitlements.

Sources close to AGC management indicate that the over 900 casual workers will be paid their entitlements on Wednesday, July 16.

Meanwhile, a letter from the Ministry of Manpower Development and Employment signed by the acting Chief Director, Mr J.K. Bapuuroh and addressed to the Managing Director of AGC, stated that the payment of ex-gratia award should not be confused with retrenchment or severance award for which a formula is normally negotiated between the parties. "An ex-gratia award on the other hand is a gesture on the part of the employer as a sign of goodwill for the workers' contribution to the organisation", the letter said.

The Ministry, therefore, asked AGC to pay one-month salary across board considering the level on which the worker was. In addition, the company is to pay two weeks salary to each worker if there is evidence that their contracts were abrogated without any notice.

According to the letter dated May 12, 2003, the company is again to pay two weeks salary to any of the workers who showed evidence that he did not take his leave.