Foreign companies in the news again

Foreign-owned companies in Lesotho continue to face scrutiny for violating labour laws, with concerns raised about, among others, union busting, unfair labour practices, and non-compliance with regulations.

This week, the Construction, Mining, Quarrying and Allied Workers Union (CMQ) is breathing fire following the layoff of 1,400 workers from the Polihali Transfer Tunnel construction, and is threatening legal action against the contractor, Kopano Ke Matla Joint Venture (JV), for allegedly flouting Lesotho’s labour laws.

Kopano Ke Matla JV – comprising Chinese firms Yellow River Company, Sinohydro Bureau 3, and Unik Civil Engineering – was contracted by the Lesotho Highlands Development Authority (LHDA) to construct the Polihali Transfer Tunnel.

CMQ has since condemned the company’s conduct, accusing it of sidestepping legal procedures and failing to consult the union before implementing the mass layoff.

The union also accused Kopano Ke Matla of breaching Clause 19 of Lesotho’s 2003 Code of Good Practice, which requires employers to consult with trade unions before initiating layoffs.

It adds, “A layoff isn’t a unilateral decision. It must be negotiated with the union to prevent salary disputes and avoid unnecessary retrenchments. The company also failed to discuss the suspension of salary payments with the union. We will not allow workers to bear the consequences of the company’s failure to meet environmental standards.”