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Resolution Passed by the 10th Quadrennial Delegates Conference of the Ghana Mineworkers’ Union of TUC on 26th August 2011 at Sunyani
Considering that social dialogue is a tripartite process that promotes negotiation, consultation and/or exchange of information among stakeholders in achieving issues of common interest in relation to economic and social policies, that encourages good governance, advances social and industrial stability and boost economic progress; and
Recognizing that benefits accruing from Provident Fund and Social Security schemes alone would not be adequate to provide a sound and secured financial future for its members due to the low income levels in the country; and
Believing that mineworkers deserve to live in decent accommodation through affordable home ownership arrangements; and
Affirming that workers have a need for, and a right to information, training and genuine consultation on and participation in the preparation and implementation of safety and health measures concerning the hazards and risks they face in the mining industry, and recognizing that it is imperative to prevent any fatalities, injuries or ill health affecting workers or members of the public, or damage to the environment arising from mining operations; and
4. Concerned that poor job evaluation/rankings has resulted in an inequitable pay structure and unfair working conditions in the mining industry;
5. Concerned that wide income inequalities that persist in the mining industry is promoting skills flight to other mining economies particular within the sub-region; and
6. Acknowledging that there is a genuine skill shortage and skills expatriation in the mining industry of Ghana because not many job seekers possess the needed skills mine employers require; and
7. Concerned about the huge expatriate recruitment for skills that are available in Ghana and its associated high cost of retention; and
9. Concerned that certain critical personal incomes intended to cushion employees are taxed; and
Convinced that corporate social responsibility should not be a matter of choice; and
Agreeing that Precious Minerals Marketing Company Limited is the only institution charged with the responsibility of shipping bullion outside the shores of Ghana to generate revenue for the State and control bullion shipment; and
There should be broader and consistent consultations of relevant stakeholders including the Ghana Mineworkers’ Union of TUC, Ghana Chamber of Mines and the Minerals Commission in all decision making processes concerning and affecting the advancement of the mining industry.
11. Convinced that mining economies and communities must benefit from the operations of mining proceeds through the provision of infrastructural development; and
12. Aware that mining technology has shifted and not many people can be attracted into the mining industry, resulting in young unemployed youth engaging in dangerous and environmentally destructive activities such as ‘galamsey’ operations; and 13. Convinced that business opportunities should be created for local businesses to invest in the extractive industry to grow indigenous businesses in Ghana; and 14. Concerned that the State is losing out in mineral revenue due to the only 10% government mandatory shares in minerals operations in Ghana as stipulated in Minerals and Mining Act, 2006 (Act 703); and 15. Aware that price of gold has soared higher to an unprecedented levels in recent times without any benefit to the State; and 17. Acknowledging that foreign direct investment is crucial for job creation and economic growth; and
18. Concerned that the numerous cases of industrial disputes and prolonged unresolved cases before the National Labour Commission over the years create industrial tension and untold stress on workers and their Unions;
Do hereby resolve as follows:
The Union will ensure that the End of Service Benefit scheme is negotiated and restored in the Collective Agreement for its members to enhance their terminal benefits and secure their financial future.
The Union will negotiate for a Housing Trust Fund to be established by mining companies to support the development and acquisition of affordable homes by mineworkers.
The Union would engage mine managements to establish fair, equitable and transparent job evaluations systems that assign employees to right salary scales as per the worth of the jobs they do.
The Union would ensure the formulation of a new wage/salary policy through bipartite consultations to bridge the wide income inequalities that exist in the mining industry.
Stakeholders in the mining industry should formulate policies to address skills shortage and skills expatriation in the mining industry.
Government should enforce the law that promotes succession training plan, capacity building and skills transfer to local employees.
Ghana Mineworkers’ Union of TUC as critical stakeholders in the mining industry should be consulted and be involved in the formulation and implementation of policy issues regarding expatriate recruitment.
Government should speed up the ratification of ILO Convention 176 which deals with safety and health in mines to guarantee conformity to global occupational health and safety standards and also serve as a precursor to improving on the country’s national mining laws.
All critical incomes such as terminal benefits paid to retirees, rent, leave travelling allowances, school fees should be exempted from tax.
Corporate social responsibility should be regulated by Government using the Newmont Ghana Gold Limited model as a blueprint for the other mining companies.
Government should initiate a comprehensive infrastructural growth agenda to deal with the poor state of roads in mining areas such as Tarkwa, Bogoso, Damang, Huni Valley, Prestea, Bibiani and Obuasi. Stakeholder’s engagement will be appropriate to foster commitment and ownership. Establish a fund (2% out of 5% royalty) for direct infrastructural development in mining communities.
Mining companies should collaborate with the government to develop an alternative livelihood plans/fund to provide young people in the communities with alternative livelihoods that would ensure that young people in these communities do not embark on dangerous and environmentally destructive activities.
The 10% Government mandatory shares in mining companies in Ghana should be increased to 25% with further opportunities to procure additional 10% shares in order to have a voice in the management of mining business.
14. Parliament should expedite action in the consideration of the local content policy into legislation to enable indigenous businesses engage in economic activities in the extractive industries reserved mainly for foreign investors.
Mining companies and other extractive industries must be made to pay special windfall profit taxes when commodity prices reach unprecedented peak in any given period. The current gold price behavior attests to this. Revenue generated from this could be used as a source of revenue to address the infrastructural deficit in the mining economies.
Government should establish a mechanism to monitor the direct transactions and export of precious minerals by foreign and local dealers to ensure that all precious minerals are exported only through the Precious Minerals Marketing Company.
Ghana Investment Promotion Centre in their quest to woo investors into the country should desist from portraying to potential investors that it is inexpensive to invest in Ghana, particularly with regards to income levels as it results in payment of low wages/salaries on the part of these investors to very qualified Ghanaians.
The Ghana Labour Commission should expedite action on all unresolved disputes. By this we enjoin the GTUC to ensure that the Labour Commission deals with these disputes and also call on government to adequately resource the Commission to perform efficiently.
21-11-11
NEWS RELEASE
GHANA
MINEWORKERS' UNION COMMENDS GOVERNMENT FOR THE BOLD STEPS TO ENHANCE THE
REVENUE BASE OF GHANA AS CONTAINED IN THE 2012 BUDGET.
The Ghana Mineworkers' Union, GMWU of GTUC commends
government for taking bold steps to enhance the revenue base of Ghana as
contained in the 2012 budget. The union is particularly happy with the
introduction of the wind fall profit tax imposed on mining companies in the
2012 budget. While the GMWU welcome the 10 per cent windfall profit tax, it
hopes that government will be resolute in its successful implementation. Also
worthy of note is the upward review of the corporate tax for mining companies
from 25 to 35 per cent. In the view of
the GMWU, the windfall profit tax and the revised corporate tax clearly
demonstrate government's bold resolve to generate enough revenue from the
mining sector for our country’s development goals. The GMWU believes that
unlike the case of South Africa, United States of America and Australia, Ghana
lost out in the era of the gold rush. It is at this stage fair and prudent for
the government to effect such changes in Ghana’s revenue mobilization strategy.
It is the position of the GMWU that while pursuing these policies, government
should be firm and demand that players in the mining industry must be honest
and come clean when making their case about the cost implications and the
impact on their operations. This will
prevent the situation where multinational mining companies tend to make huge
profits at the expense of Ghana's overall development agenda. GMWU further expects that an engagement
process aimed at increasing government’s stake in various mining companies will
soon commence.The acknowledgement in the 2012 budget that mining is one of the
leading sectors in the country, yet its economic and social benefits have not
met our expectation as a nation is indeed factual. This means drastic measures
will be required to change this sad state of affairs. Again government
representatives on Boards of mining companies must place the national interest
first and therefore demand valid financial information and open book policy in
line with ethical means of doing business in the 21st Century. Another critical
area in the 2012 budget which the leadership of the GMWU has taken note of is
the provision on Young Graduates Entrepreneurship and Innovation
Initiative. This initiative needs the
support of all Ghanaians, because the issue of unemployment is indeed scary and
should be handled through pragmatic programmes like the establishment of the
Centre for Entrepreneurship Employment and Innovative Initiative proposed in
the 2012 budget. It is reassuring that
the proposed centre will help facilitate business startups, finance, business
ideas, evaluation monitoring and business development. The GMWU hopes this time round, tackling
infrastructural deficit in the mining communities will receive top priority
especially as the focus of the 2012 Budget is geared towards infrastructure
development for accelerated growth and job creation. Being mindful of 2012 as an election year,
the GMWU will like to entreat all political stakeholders especially Members of
Parliament to constructively exhaust discussion on the budget in the interest
of our dear country. The national good should be at the core of all political
discourse with regard to the budget, so that Ghana will continue to maintain
the international accolade of good democratic governance, a pre-requisite for
accelerated economic growth. It will be
recalled that the GMWU 10th Quadrennial Delegates conference held in Sunyani in
August this year, among other critical issues urged the government to impose a
windfall profit tax following the rising price of gold on the international
market. We wish to emphasize that the
prompt response by government in introducing the windfall profit tax shows the
willingness of political leadership to take on board suggestions from all
sections of the public. To the GMWU,
this is a culture that should be nurtured to enhance democratic governance and
accelerated national development.
ISSUED BY THE GENERAL SECRETARY-GMWU (TUC), ACCRA,
MR. PRINCE WILLIAM ANKRAH, ON BEHALF OF THE NATIONAL EXECUTIVE COUNCIL TO THE
MEDIA; DAILY GRAPHIC, GHANAIAN TIMES, CHRONICLE, BUSINESS & FINANCIAL
TIMES, DAILY GUIDE, GNA, PEACE FM, RADIO GHANA AND JOY FM
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