In the eyes of the operators of Jubilee oil field, it was a record time of development from discovery to first oil in December 15, 2010. To the government of Ghana, getting the Petroleum Revenue Management Act 815 in March 2011, 3 months after first oil, “was good decision to guide how oil revenues were going to be spent”. To some Ghanaians, it was a do or die affair at getting oil jobs. To the already employed staff of some oil companies, there was fire on the mountain!
“Our faith was hanging in the balance when you were all jubilating over the new found oil. At that time I asked myself if we were going to be treated same as our colleagues with equal competence in Algeria, Kenya and others? Were we going to be given similar or same conditions of work? These were the issues that went through my mind.” Charles Acheampong, Union member, Schlumberger-Takoradi.
In the beginning of the boom, expatriates were largely at the forefront. Along the line, many Ghanaians got on. Today, it is reported that there are some 7,000 persons working in the oil industry in Ghana, made up of over 70 percent Ghanaians. [Petroleum Commission, 2016].
While the Petroleum Commission is excited about the numbers, truth is, the 7,000 or so are habouring a lot pain. The expectations in the area of payoffs are shattering. Many of the staffs working in this highly skilled field are paid GH7.00 a day, the minimum wage, and the Labour Act 651 of 2003 agrees with it. The result is the accounts below.
In November 2011, Workers of Weatherford Services Limited, a Scottish oil service company based in Takoradi, demonstrated at the company’s premises to express their displeasure over intimidation and poor working conditions.
On 7th March 2014, workers of Schlumbeger in Takoradi protested against salary disparities between locals and expatriates. The attempt to seek redress ended up in a deadlock.
On October 29th 2014, 25 workers of MODEC, operators of the FPSO Kwame Nkrumah on the Jubilee Fields embarked on industrial action in protest for better conditions of work.
On January 22nd 2015, 9 workers of SKARM Construction and Engineering Services Limited in Takoradi were sacked for joining union. The nine were believed to be executives of the company’s local union.
It couldn’t have gotten any better if Ghanaian Oil Companies had not behaved similarly. This time, it was workers of the state’s own gas facility, Ghana Gas. In August 26, 2016, workers at the Atuabo Gas Processing Plant at Atuabo in the Ellembelle district of the western region also demonstrated, demanding better-working conditions. The result was sacking leading members of the protest.
Baker Hughes and co were also on redundancy spree to the dismay of workers. At one point, a worker is declared redundant but within days, the same worker is called back on contract basis for the same post he was declared redundant.
In truth, while appellations are said of the industry by the Ghana government and the “big guys”, the Ghanaian oil and gas labour front is seeing traumatic developments six years down the line.
“Two key issues we have found as NGO to be worrying the labour front in the oil and gas sector are the never ending salary disparities between expatriates and locals, and the denial of workers in the industry from joining labour unions.” Solomon Kusi Ampofo; Communications and Advocacy Coordinator at Friends of the Nation, a socio-economic advocacy NGO in the Western Region.
But a critical examination of why the oil front is experiencing these setbacks reveals flaws in the policy formulations leading up to oil production.
Consider this: Ghana had regulations for spending state funds before oil discovery in 2007. However when oil was discovered, the nature of the new resource called for the development and enactment of the Petroleum Revenue Management Act 815. Prior to that, a team of experts were flown to Norway to study “best practices” that made their oil industry a blessing. That gave birth to the famous Heritage Fund and others.
Shockingly, Ghana was consumed at finding how to spend oil revenues only than who helps it get the revenues and their welfare. Seriously, why didn’t Ghana inquire and implement how to handle labour issues in the industry since we were also new to it?
Again, the Ghana Revenue Authority has had series of capacity building support since the oil era. This too is geared at getting the money.
But what is happening to PIAC? Yea! That’s it.
On the labour front, there was the labour law. Why did we not amend portions of it to meet industry standards? Why it is that oil and gas workers in Ghana are treated just like my colleagues at the Regional Coordinating Council? Why will workers in the field be paid according to the minimum wage? If we had laws on public spending but yet we developed the PRMA, why couldn’t we revise the labour laws for those in the oil and gas sector?
“We have been left to our fate. Our people did absolutely nothing on labour issues when we discovered oil. Their focus was on money, revenues money! It was as if the oil industry is like any other industry. But, this is a high risk area with serious specific consequences when there is a mistake. All over the world, oil industry and its staff are treated exceptionally. But here in Ghana, it’s anything else”. [A local union member at Weatherford, December 2016]
“Our local content law was simply quite on labour issues. Local content policy that only focused on companies is simply an incomplete document. What is local content when it does not talk about the people who work for these local companies? What is shocking is that, under the current circumstances, oilfield workers are treated like any ordinary profession. That Labour Act, 2003, Act 651 came into force 8th October, 2003, way before oil was find. Does that sound OK to you?” [A redundant employee of Baker Hughes, Andrew Agyiri. December 2016]
“We had to demonstrate on the FPSO before the world could hear us. That problem wasn’t created by us. Leadership at the forefront of the oil industry failed from the beginning. Unfortunately, some of us had to pay for their inability. Today, I’ve been sacked for standing up to our right. [Former employee of MODEC sacked for protesting salary disparities]
Yes! At the national level, the oil is a blessing. But a blessing on the sweats of persons who feel left to their fate.