Golden Star Resources is refusing to pay severance to workers Workers of Golden Star Resources (GSR) have said despite efforts to get the mining company to pay them severance packages, the firm is unwilling to do so.
Unlike Bogoso Gold Limited that made severance payments to its employees during the takeover of the gold mine by GSR in 1999, GSR is failing to do same as Future Global Resources (FGR) prepares to take over.
A letter written on behalf of the CEO, Andrew Wray, a copy of which is in the possession of GhanaWeb shows that GSR has refused to recognise the group Employees Affected by the Bogoso Prestea Sale (ELAPSE).
The group comprises of permanent workers of Bogoso-Prestea mine who have been affected by the sale and whose severance payment is being denied them.
The letter by GSR was in response to a notice by employees that fronting as ELAPSE, they have engaged the services of a lawyer to lead negotiations.
But GSR said it does not recognise ELPASE and hence will not engage them.
“We respect the right of every employee to seek and obtain independent advice relevant to his or her circumstances, however, should you wish to raise your own concerns as an employee, you are able to do so in accordance to Company’s policy and your concerns will be addressed accordingly.
“With this in mind management, unfortunately, is unable to engage with ELAPSE as GSBPL has no such recognised group,” the letter signed by Ahmed-Salim Adam for and behalf of the CEO stated.
The workers are wondering if the government, which holds 10 per cent stake in GSR, will watch the foreign company that claims to have made over $45 million profit to flout the labour laws of Ghana.
Justification for severance payments
An Asset Purchase Agreement (APA) – usually between companies – is an agreement that finalises terms and conditions related to the purchase and sale of a selling company’s assets.In such agreements, the sale and purchase of a company’s employees do not include employees of the selling company as the employees although assets to the selling company do not make up or constitute the capital assets of the selling company and hence are not ‘valued and priced’ as part of the total costs of the company to be purchased or sold.APAs usually do not bode well for employees of the selling company as oftentimes job security enjoyed by the employees are threatened. This […]
