Sale of Bogoso Prestea mine: affected permanent employees will receive severance pay

The assigned staff of Golden Star Resources (GSR) who operated the Bogoso Prestea mines in the Western region will receive severance packages in three stages.

The compensation payment plan will run between October 2021 and October 2023, a statement said.

Recall that following the sale of the Bogoso Prestea mine on September 30^e 2020, employees of the former owner, Golden Star Resources (GSR), expected the payment of severance packages before the deal was finalized.

However, this was not respected and consequently led to a series of strikes and lawsuits against GSR Bogoso Prestea Limited.

The Ghana High Court judge and the Miners’ Union subsequently called for negotiations to iron out the differences.

This culminated in an extraordinary meeting of the Permanent Joint Negotiating Committee (JSNC) between FGR Bogoso Prestea Limited, the Miners Union of the Trade Union Congress, Bogoso Gold Enterprise Based Union and the exempt staff of FGR Bogoso Prestea Ltd.

But the two sides settled their differences and reached a consensus.

“This agreement only deals with severance pay following a change of business owner. In addition to severance pay, all affected permanent employees will be rehired on established employment contracts with a specified period of time. As a result, it was agreed that the legal action brought against GSR Bogoso Prestea Ltd by the affected workers will be dropped, ”the statement added.

After agreeing on a way forward, the statement said the outcome of the meeting prevented further industrial actions resulting from the sale of the mine by GSR and the non-payment of severance pay. , adding that “mining operations can now continue in the interest of all parties and local communities.”

Golden Star is an established gold mining company that owns and operates the Wassa underground mine in the Western Region of Ghana, West Africa.

Listed on NYSE American, Toronto Stock Exchange and Ghana Stock Exchange, Golden Star is focused on obtaining strong margins and free cash flow from the Wassa mine.

Senior Staff Union secretary Samuel Kumi Menu, who spoke to Joy News, said they would not work until they received positive responses from the parties concerned.