Sale of Bogoso Prestea Mine: Workers demand payment of entitlements

Sale of Bogoso Prestea Mine: Workers demand payment of entitlements

Golden Star Resources sold its Bogoso Prestea Mine to Future Global Resources Employees of Golden Star Resources (GSR) Bogoso Prestea Mine have urged the government to as a matter of urgency prevail on the company to pay their entitlements following the sale of the mine.

A statement issued yesterday by the employees alleged that the permanent employees of the company were being denied their legitimate severance entitlement and the opportunity for legal engagement with the buyer contrary to the employment contract agreement between permanent employees and the employer (GSR).

Golden Star Resources sold its Bogoso Prestea Mine to Future Global Resources.

The employees said they had earlier petitioned the government on the business decision of GSR, the precedence risk the sale presents to the Ghanaian employees and the risk to the micro economy of Prestea Huni-Valley Municipality.

“In this petition submitted to the government following the initial sale announcement on July 27 2020, employees highlighted, with grave concern, that the buyer does not have any credentials in the mining industry unlike the likes of Newmont, Anglogold Ashanti, Goldfield and Barrick to run a mine with the largest concession in Ghana,” they said.

The statement said “Three critical issues arise from this sale; the risk of losing the mine in the hands of an inexperienced and non-listed mining company reverting $53million rehabilitation liability to government, an attempt by Golden Star Resources to violate employment agreements with employees and a precedence of selling or trading Ghanaian workforce between foreign investors.”

The statement alleged that there was absolute neglect of employees on the sale adding that “the announcement came as a surprise to the entire workforce who had been working assiduously to ensure the turnaround of the Bogoso Prestea Mine. The sale agreement indicated employees have been transferred to the buyer of the mine against the contract agreement the permanent employees have with the Bogoso Prestea mine.”

“The transfer denies employees their free choice of employer which is enshrined in the Ghana Labour Act (Act 651) and against international human rights laws. Employees argue that, they are not part of the company’s transferable assets or balance sheet to be traded as equipment or plant as is the intent in this case,” the statement stated.

The statement said “The entire mining community is concerned about the ability, tenacity and resilience of a non-listed private firm with no prior mining experience to run the mine that has the largest concession in Ghana […]

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