Business News of 2014-06-06

Newmont halts planned lay-off at the behest of NLC

Newmont says it would comply with a directive by the National Labour Commission to halt a planned lay off of its workers.

Over 600 workers were to be affected in the planned lay-off, an action the company said was to sustain the company, especially its Ahafo mine.

The Director of External Affairs and Communications at Newmont Adiki Ayitevie said due to the declining gold prices, high operational cost, there was the need to cut down cost and remain sustainable.

Planned lay-off of workers was only one of the many measures to cut down cost, she explained.

According to her, there has been a production drop in Ahafo mine and there was the need to take action to keep the company buoyant.

But the Ghana Mine Workers Union disputed the claims by the mining giant. The General Secretary of the Union, Prince William Ankrah told Joy News documents in his possession do not support Newmont’s claims.

The Union therefore petitioned the NLC to block the planned lay off. The National Labour Commission agreed with the concerns of the union and directed Newmont to halt the action.

While still concerned about the effect the directive of the Commission will have on the company, Adikie Ayitevie said Newmont will nonetheless comply. She said the company has decided to "temporarily put on hold the planned workforce reduction."

Asked when the company would reactivate the policy, Adikie Ayitevie said the company would communicate that decision once it is made.

Meanwhile the Chief Executive Officer of the Minerals Commission Dr. Tony Auben said any decision by a company to lay off its workers is always a cause for major concern.

He said each employee has about six dependents, which means, if one person is laid off, almost seven people will lose their source of livelihood.

He was quick to admit however that there is a production drop, a phenomenon, he said, has assumed a "global" proportion.

Dr Auben said the cost of production is now "building up quite significantly" and called for a collaborative effort from all stakeholders to resolve the matter.

Source: myjoyonline.com
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