Tema Oil Refinery Secures First Collective Bargaining Agreement Since 2018
On July 9, 2024, Ghana’s Tema Oil Refinery (TOR) signed a new collective bargaining agreement (CBA) with its local unions, marking the first such contract reached since 2018. The ceremony, held at the refinery’s administrative office, was attended by CEO Nayon Bilijo, Managing Director Edmond Kombat, Deputy Managing Director Alhaji Mustapha Abubakar, and representatives from the General Transport, Petroleum and Chemical Workers’ Union (GTPCWU), the Union of Industry, Commerce and Finance Workers (UNICOF), and the refinery‑specific union bodies.
Background: Tema Oil Refinery’s Role in Ghana’s Energy Sector
Located in the industrial city of Tema, the refinery is Ghana’s sole petroleum processing facility. Commissioned in 1963, it currently operates at a design capacity of approximately 45,000 barrels per day, supplying refined products such as gasoline, diesel, and kerosene to the domestic market. The facility is owned by the Ghana National Petroleum Corporation (GNPC) and operates under the oversight of the Ministry of Energy.
Historically, labor relations at TOR have been shaped by periodic negotiations aimed at aligning employee compensation with industry benchmarks while maintaining operational stability. The previous CBA, concluded in 2018, governed wage adjustments, benefits, and workplace safety provisions for a five‑year term.
Details of the New Agreement
The July 9 agreement covers a three‑year period (2024‑2027) and includes the following key elements:
- Wage Adjustments: A graduated increase averaging 7.5 % per annum, linked to inflation rates published by the Ghana Statistical Service.
- Benefits Enhancement: Expansion of the medical allowance to cover dependents and introduction of a contributory pension scheme matching 5 % of employee salaries.
- Training & Development: Allocation of GHS 2 million annually for technical up‑skilling programs, certified by the Petroleum Commission of Ghana.
- Workplace Safety: Commitment to quarterly safety audits and the adoption of ISO 45001 occupational health and safety management standards by the end of 2025.
- Grievance Mechanism: Establishment of a joint management‑union committee to resolve disputes within a 14‑day window.
These provisions were disclosed in a joint statement released by TOR and the participating unions, which emphasized that the agreement “reflects management’s commitment to improving employee welfare and recognizes competitive compensation as a key factor in motivating employees and maintaining productivity.”
Statements from Leadership and Union Representatives
CEO Nayon Bilijo highlighted the collaborative nature of the talks:
“The successful conclusion of this CBA demonstrates what can be achieved when management and labor engage openly, respecting each other’s perspectives while focusing on the refinery’s long‑term sustainability.”
Managing Director Edmond Kombat added that the agreement aligns with TOR’s strategic plan to boost refinery utilization rates from the current 68 % to over 80 % by 2026.
Union leaders expressed optimism about the tangible benefits for workers. Ibrahim Mensah, Secretary General of GTPCWU, noted:
“Members will see immediate improvements in take‑home pay and access to better healthcare, which directly impacts their families and community wellbeing.”
Representatives from UNICOF stressed the importance of the training component, stating that upskilling will help employees adapt to evolving refining technologies and Ghana’s push toward cleaner energy products.
Implications for the Refinery and Ghana’s Energy Landscape
Analysts from the African Energy Chamber suggest that stable labor relations are a critical factor for attracting investment in downstream operations. By securing a multiyear CBA, TOR reduces the risk of work stoppages that could disrupt supply chains, especially given Ghana’s reliance on imported crude and the refinery’s role in meeting domestic demand for petroleum products.
The agreement also supports Ghana’s broader policy objectives outlined in the National Energy Policy (2022‑2030), which calls for increased refinery efficiency and workforce competency to support the country’s transition to cleaner fuels while maintaining energy security.
Conclusion
The signing of the new collective bargaining agreement at Tema Oil Refinery marks a significant step toward harmonizing management goals with employee aspirations. With concrete wage, benefit, and safety improvements, the deal aims to foster a more motivated workforce, enhance operational reliability, and reinforce TOR’s position as a cornerstone of Ghana’s energy infrastructure. Stakeholders will be watching closely as the parties implement the agreed measures over the next three years.
