Monrovia — Labour Minister Cllr. Cooper W. Kruah Sr. has, with immediate effect, mandated two hiring (subcontractor) companies operating at the Liberia Agriculture Company (LAC) in Grand Bassa County to pay retroactive wages to more than 500 contractors for unlawful salary deductions and underpayment.
Earlier this year, Minister Kruah led a Labour Ministry delegation to LAC to assess the living and working conditions of employees. During the visit, several contractors informed the Minister that they were being paid below Liberia's statutory minimum wage.
LAC management distanced itself from the allegations, stating that the affected workers were employed by independent hiring firms and not directly by the company.
Following the complaint, Minister Kruah summoned the heads of the two hiring firms, George B. Vonsuah and Arthur Peters, and launched an immediate investigation to establish the facts surrounding the workers' grievances.
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Addressing journalists in Monrovia over the weekend, Minister Kruah disclosed that, in accordance with Chapter 5, Section 16.1(a) of the Decent Work Act of Liberia, workers in concession areas classified under the formal sector are entitled to a minimum wage of US$5.50 per day.
According to the Minister, a review of payroll records and related documentation revealed that both hiring firms failed to comply with the statutory minimum wage requirement.
He emphasized that the same labour laws applicable to concession management equally apply to subcontractors and hiring firms.
The investigation established that Mr. Arthur Peters, who has been recruiting Liberian contractors since 2019 and currently has 213 workers on his payroll, paid employees US$3.80 per day instead of the legally mandated US$5.50.
Similarly, George B. Vonsuah, who has been operating since 2022 and employs 326 workers, was also found to have paid US$3.80 per day.
Minister Kruah maintained that the prolonged underpayment of workers constitutes an unfair labour practice under the Decent Work Act.
As a result of the findings: Mr. Vonsuah is required to pay US$9,705.92 in retroactive wages to 326 affected workers. Mr. Peters, covering the period from 2019 to 2025 with 213 workers, is required to pay US$9,414.60 in back wages.
Both hiring firms have been mandated to fully compensate their workers for the wage differentials accumulated over the years. Minister Kruah stated that the Ministry's action is intended to serve as a deterrent to all employers and hiring firms engaged in the practice of underpaying workers, particularly contractors.
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He stressed that all hiring entities must strictly comply with the minimum wage provisions as stipulated by the Decent Work Act of Liberia. The Minister attributed such unfair labour practices to the growing trend of major concession companies subcontracting aspects of their operations to third-party hiring firms.
"In recent times, some major employers and concessionaires have opted to engage subcontractors to recruit workers on their behalf. Unfortunately, some of these hiring firms operate outside the provisions of the Decent Work Act," he noted.
He further emphasized that this arrangement often shifts responsibilities for employee benefits and decent working conditions from the principal companies to subcontractors, some of whom fail knowingly or unknowingly to uphold legal labour standards.
Meanwhile, Minister Kruah has instructed the Labour Commissioner of Grand Bassa County, Jackson Quabion, to ensure the full implementation of the Ministry's findings and recommendations.
