Newmont Ghana has temporarily suspended its plan to lay off over 600 workers by the close of the second quarter of this year.
The mining giant attributed its downsizing of employees to an ongoing process to improve cost and operational efficiency but was forced to suspend it when the National Labour Commission (NLC) intervened on the workers’ behalf and directed Newmont to halt its planned cutback.
Newmont was dragged to the commission by the Ghana Mineworkers Union (GMWU) over the retrenchment exercise.
Both parties presented their case to the NLC on Wednesday but the NLC ruled that Newmont should rather seek arbitration on the matter with the mine workers union.
Newmont’s regional Senior Vice President of Newmont’s Africa Operations Johan Ferreira in a press statement on NLC’s directive said the mining firm will comply with the directive and is hopeful the matter will be resolved quickly.
Director of External Affairs and Communications at Newmont, Adiki Ayitevie said even though she was worried about the effects NLC’s directive will have on the company, it has temporarily put a hold on the planned workforce reduction.
Asked when the company would reactivate the policy, she said the company would communicate that decision once it is made.