By Teboho Serutla
Textile factory, NIEN HSING International Lesotho (PTY) LTD is due to suspend its operations and retrench workers due to severe financial challenges, caused by the COVID-19 pandemic.
Th company says the ongoing COVID-19 pandemic has affected some its main markets, especially the United States of America. It says it continues to be financially burdened with few emerging markets/business or potential customers in this region, adding that COVID-19’s second wave created strict governmental regulations such as lockdowns and manpower cut offs which caused uncertainties in the company’s capacity to pursue business to client’s standards.
“With no new markets or orders, the reduction of current and future orders, the company could not secure enough orders to keep NH2 operational despite the efforts to share available orders from its sister factories.
“In order to sustain the business, the NH2 factory will suspend its operations by July, 23, 2021 and implement the retrenchment of all employees of the cutting, sewing, packing departments and other administrative elements according to the production requirements of remaining orders,” the company said in a statement.
The retrenchments are to be completed during or by the indicated periods:
- Cutting: May 28, 2021
- Sewing: between June 21 and 25
- Packing: between July 19 and 23
- Other supporting/administrative elements: between July 19 and 23.
The transfer of washing department’s employees, laser room, and boiler station to NH3 should be effected on July 21.
In conclusion, the company says the retrenchments will be implemented in accordance with the Labour Code.