Workers trade union, the Independent Domestic Union Lesotho (IDUL) has expressed dissatisfaction with Letšeng Diamond Mine’s decision to retrench 20 percent of its workforce without prior consultation.
Letšeng announced on Wednesday this week that due to continued United State tariff uncertainties and the impact of a prolonged weakened global diamond price compounded by a weak US dollar, it may be forced to reduce its workforce.
In a media statement, Letšeng noted that the company has comprehensively reviewed its short-term mine plan and cost base to significantly reduce operational expenditure.
The mine revealed that it was currently implementing decisive measures to conserve cash, protect shareholder value, and the sustainability of its operations.
While the company has met its production targets, it has not been immune to the sustained pressure on rough diamond prices and adverse exchange rate movement,” it said.
Letšeng indicated that as part of short-term measures, it would continue to operate its two plants at existing treatment volumes whilst waste mining volumes in both the main and satellite pits have been reduced to a maximum for an initial 12-month period without compromising the longer-term life of mine plan.
“The company regrets that an approximately 20 percent reduction in workforce may be necessary to align with the scaled-back waste mining operations and other necessary operational changes,” it said.
But IDUL, which has 35 members employed at the mine, argue that the move was a clear disregard for workers’ rights and undermines the collective bargaining process.
The union accused Letšeng of violating the Labour Act of 2024 and the Code of Good Practices, 2003, which state that workers’ unions must be consulted on matters affecting employees.
But the mine noted in its statement that engagement with employees and relevant stakeholders is ongoing to ensure that the rationalism process is managed responsibly and transparently.
The Labour Act, 2024 was enacted by Parliament in January 19, with the purpose of providing a comprehensive framework for regulating employment relations, promoting fair labour practices, as well as ensuring the welfare and rights of both employers and employees.
IDUL chairperson, Clarke Letsie asserted that even though it has not been confirmed whether its members would directly be affected by the retrenchment, the union would this week formally write to the mine seeking proper consultations.
However, the union warmed that if the mine fails to engage in meaningful dialogue, it would be compelled to pursue legal action to protect the interests of its members.
Letsie noted that prior consultations were crucial as they enable the union to facilitate essential services to affected workers, including counselling and negotiations with the employer regarding benefits and other work-related matters.
By being part of the discussions, he said, the union can better represent and protect workers’ interests, and ensure that their rights and welfare are safeguarded during significant decisions like retrenchments.
“The collaborative approach which we urge is vital for maintaining fair labour practises and supporting affected employees,” he stated.
Letsie further indicated that consultations with the mine would also give the union an opportunity to emphasize the importance of recalling the retrenched workers with first priority when operations turn to normalcy.
Additionally, IDUL wants to confirm that the affected workers receive all their entitled benefits including severance pay, to mitigate the impact of retrenchment and ensure fair process.
Last year, Kao Mine and Liqhobong Mine laid of part of their workforce due to the poor performances caused by low prices of diamonds on the international market.
