Re-strategizing to meet profit has been the plight of most employers in the wake of the harsh economic conditions facing the world. The fall in commodity prices on the world market has prompted harsh decisions by management of some organizations to help them recover production cost.

Goldfields Ghana are laying off about 500 Ghanaian and expatriate workers in its Tarkwa and Damang mines, both situated in the Western Region of Ghana. Mr. Alfred Baku, Senior Vice President for the West Africa Region of the company disclosed this information in an interview after paying a courtesy call on Osagyefo Dr. Kwamina Ennimil VI, Omanhene of the Wassa Fiase Traditional Area.This move is part of the company’s measure to reduce the cost of operations and restore profits due to a continued fall in the price of gold on the world market. Newmont Ghana also announced a similar action in a press release on the 25^th of September, 2013. It said about 300 employees will be affected by the end of the fourth quarter of the year. Regional Senior Vice President, Africa, of the company, Mr. Dave Schummer, is quoted saying, “Ongoing price volatility and steadily rising costs create intense pressure for us to continuously improve our efficiency and effectiveness to ensure our operations are profitable and sustainable. We face some very difficult decisions in streamlining our organization and are committed to treating people fairly throughout the process.”

Speaking with Mr. Nana Akwasi Awuah of AB Lexmall and Associates on the legal implications of this subject, he said the action taken by Goldfields Ghana was not illegal since section 62 of the Labour Act makes provisions for redundancy. “There are laid down procedures that organizations need to follow when they take such decisions. It is only when organizations do not follow the procedure defined in the Labour Act thatlegal action can be taken against them.”

With the worrying growthof unemployment in Ghana, such measures being taken by organizations to help them arrest the economic challenges they faces may only add up to worsen the already unpleasant situation of unemployment. Of the people who are unemployed in Ghana, 20.6% have worked before and the remaining 79.4% are seeking jobs, according to the 2010 population census.