AGC crises - stakeholders meet, work to resume

Accra (Greater Accra) 25 May '99

The striking workers of the Ashanti Goldfields Company Limited (AGC) on Monday evening agreed to resume work immediately.

Within 72 hours of resumption of duty, the management and union would meet to re-negotiate, according to a Memorandum of Understanding signed by the social partners at the end of a day long meeting convened at the instance of the Ministry of Employment and Social Welfare.

The Memorandum said the workers and management have agreed to re-affirm their confidence in the negotiation process and to abide by the rules governing such practices.

"The results of the negotiation and subsequent related developments will be communicated to the Ministry of Employment and Social Welfare."

The Memorandum of Understanding was signed by Alhaji Mohammad Mumuni, Minister of Employment and Social Welfare, Mr Christian Appiah Adjei, Secretary General of the Trades Union Congress and Mr J. K. Brimpong, National Chairman of the Ghana Mine Workers Union.

The others who signed were Elaine Kwame, Senior Manager Administration, Sam Okrah, Corporate Executive, Industrial Relations, Ms Adelaide Borden, Branch Secretary, Obuasi Union and Eric Addae Twum-Barimah, General Manager, Human Resources.

The rest are Abraham Baidoo, Branch Union Chairman Obuasi Union, George Sankarl, Assistant Branch Secretary Obuasi Union, Samuel Ocran, Vice- Chairman Obuasi Union.

Those from the Ayanfuri mine, who signed were Mensah Kwarko Gyakari, Branch Union Chairman, Naab Augustine Baba, Branch Secretary and Daniel Opoku Acheampong, deputy Secretary.

The meeting of stakeholders to resolve the 11-day-old strike by workers of Ashanti Goldfields Company at the Obuasi mine began in Accra on Monday with a call for dialogue for the mine to re-open.

Alhaji Mumuni, said, in his opening statement, that everything possible should be done to bring the situation back to normal.

An earlier meeting could not reach a compromise as management and workers were divided on the agenda.

Whilst AGC management representatives maintained that they were not there for negotiations, union members and the workers held the view that negotiations should be open on salary issues.

The workers are demanding an increase in monthly minimum salaries from 132 dollars to 500 dollars.

At 1300 hours, the meeting was adjourned to allow for further consultations of the partners.

Speaking to newsmen after the first meeting, Alhaji Mumuni said it did not touch on negotiations or salaries.

He said the main aim was to bring the management and striking workers together in a conducive atmosphere to brainstorm on how to solve the problem from their own perspectives.

Alhaji Mumuni said a significant step forward had been made to achieve this, adding that the meeting was "productive, friendly and cordial".

He said "we are in the boat together and we sink together".

Asked whether the impasse could be resolved today, Alhaji Mumuni replied, "that is being too optimistic.

Alhaji Mumuni said, AGC has a high profile internationally and anything affecting the company has national and international dimensions.

He called for dialogue among all interested parties to arrive at a consensus and get the striking workers back to work.

He said whatever happens to AGC impacts on the national economy and development.

The Minister described the labour dispute as unfortunate, saying the strike has adversely affected productivity.

Mr Mumuni said with current globalisation and stiff international competition, Ghana could not afford to gamble with productivity.

The management of AGC said on Thursday that Ghana loses 700,000 dollars in export revenue for every day that the strike at the Obuasi mines continues.

"More importantly, this situation cannot help government efforts at attracting investment into this country", it said in a statement issued by Mr James Anaman, General Manager, Corporate Affairs.

"There has clearly been a breakdown of law and order, a situation which cannot augur well for the development of the country", AGC said.

The workers started the strike to press demands for more pay. However, AGC said wages of workers of the company had been indexed to the dollar.

Under this system, their wages have increased by 25 per cent over the last two years, going up from 295,000 cedis on May 1, 1997 to 370,000 cedis this month.

In addition, in May last year, Ashanti paid a lump sum of 250,000 cedis to each of the Obuasi mine workers, which is equal to a six per cent rise.

"The latest package agreed with the Mine Workers' Union provides for further benefits equivalent to a 10 per cent increase."

AGC said these include a lump sum payment of 317,500 cedis, compared with the average wage of 370,000 cedis, a life insurance scheme funded by AGC which is equivalent to three per cent rise in pay and "an aggressive bonus scheme which rewards productivity."

"A typical underground worker at Obuasi can earn 900,000 cedis per month including the basic wage and production bonus.

"In addition, he gets an annual production bonus of not less than 400,000 cedis."

AGC said some employees have been given subsidised housing, medical benefits and scholarship schemes.