Local Labour Relations
Local Labour Relations
March 24, 2016
Written by: Talitha Cherer, Co-Team Leader for Burkina Faso
Keywords: Gold, Burkina Faso, West Africa, Mining, Labour Relations
Positive local labour relations and regulations are necessary for the success of the gold industry in Burkina Faso. An active labour force is required for the efficient extraction of gold and smooth operation of mines. Local labour relations are key in an effort to protect company interests in Burkina Faso, especially during times of political instability.
Potential and relevant labour risks in the gold mining industry in Burkina Faso include strikes and high underemployment levels. In recent years the gold mining industry has witnessed strikes across Burkina Faso that are highly damaging to company assets and operations. In May 2011, IAMGOLD experienced strikes at their Essakane mine as miners protested against the terms of their contracts and a lack of local employment. More recently, following the flight of the country’s long-term dictator Blaise Campaore, Burkinabe peoples appear to feel increasingly emboldened to demand change from the mining sector. In January 2015 nearby local residents caused $6.1 million of damage to a True Gold Mining Inc. operation at the Karma mine. Just a month later, protestors smashed equipment and set fire to vehicles at the $1 billion Tambao manganese mine run by Pan Africa Minerals. Mining workers are demanding change as demonstrated by these strikes and by legal action taken against mining companies in the region. For example, a lawsuit was filed against Avocet Mining Plc in April 2015 by a gold miner who claims he, along with 324 others, were unfairly fired after striking against pay cuts. Due to unequal revenue distribution and lack of contribution to local development by mining operators, the mining boom has fuelled social tensions. Without the implementation of mitigation strategies, we predict that strikes will continue at a more aggressive rate.
Related to the strike risk, is the underemployment of mining jobs and lack of skilled labourers in Burkina Faso. The Economic Intelligence Unit predicts that public anger over high unemployment, public corruption and limited economic opportunities will remain high risk factors to political stability in 2016-17. Although industrial gold mining provides employment opportunities across Burkina Faso, they cannot match the employment potential of artisanal gold mining. Artisanal mining and small scale mining broadly refers to mining practiced by individuals, groups or communities often informally (i.e. illegally) and in developing nations. It should also be noted that the industrial mining jobs created by foreign mining companies are often temporary and that many artisanal miners who are not hired by industrial mining companies find themselves unable to fend for themselves any longer. Underemployment, poor skill levels and low wages are effectively keeping Burkinabe peoples impoverished and reflect the real problem of the divide between training and employers’ needs. The private sector remains very poorly developed and structurally unable to absorb job seekers. The scarcity of skilled labour resources and growing local dissatisfaction with job opportunities both remain high-risk areas for the gold mining industry. An impoverished and unemployed labour pool may lead to increased violence and anger towards gold mining companies, therefore we recommend the implementation of mitigation strategies to reduce this risk factor immediately.
Various mitigation tactics exist to prevent the adverse outcomes of the aforementioned risks. The first tactic is to provide increased training and education opportunities for Burkinabe peoples, especially the youth. This is exemplified by the efforts of IAMGOLD and PLAN Canada to renovate 24 technical colleges across the country to provide new equipment and revamp the curriculum. These companies have also attempted to improve social conditions by creating initiatives such as programs to help prepare locals for life after the mines close. One such program established by IAMGOLD teaches women to grow fruit and vegetables in their garden so that they may have access to cheaper food. Youth employment in the mining communities remains particularly salient and will likely become a major obstacle for gold mining companies in the future. It may be predicted that over time, the youth population will demand more, leading to increased taxes and royalties for gold mining companies. In order to avoid this outcome, it is recommended that gold mining companies attempt to increasingly employ the burgeoning youth population. The creation of training facilities and education opportunities not only results in the preoccupation of an otherwise dissatisfied labour pool, but also provides new economic opportunities for community members. Additionally, these training programs create a body of highly skilled labourers within the country, who are readily available for employment by foreign mining companies as needed. It is recommended here that programs such as Observatoire National De L’Emplois Et De La Formation (ONEF) be more heavily funded in an effort to maximize job opportunity within mining communities. This particular program works to ensure that information is flowing properly between job seekers and employers, which will likely result in increasingly positive local labour relations.
Another mitigation strategy suggested here is to develop and improve infrastructure in Burkina Faso. This strategy has been exemplified by IAMGOLD in the mining town surrounding the Essakane mine. The material conditions of existence within the community have improved dramatically with the building of new concrete houses, two new schools, a medical center, and a youth center. Another example of infrastructure improvements include the construction of dams. Water is a huge problem in particular areas of Burkina Faso, therefore the construction of dams is a great incentive for many villages to host a mining site. Infrastructure trade-offs are highly attractive to villages and will likely increase local labour relations and satisfaction levels.
Although there remain major risk factors for the gold mining industry in Burkina Faso, the mitigation strategies will likely be effective. Canadian gold mining companies such as IAMGOLD have already used some of these tactics and set an example of the success that they may bring.
