Lesotho: 5000 textile workers put on three-month unpaid leave as industry struggles with impact of US tariffs & reduced orders
"5 000 Textile Workers Sent On Unpaid Layoff", 22 June 2025
At least 5 000 workers from two textile companies are facing an uncertain future after they were sent on a three-month unpaid layoff as the industry grapples with the impacts of increased tariffs on exports.
The workers are from Pressures Group and Maseru E.
The secretary general of the General Workers Trade Unions (GENTU), Bahlakoana Lebakae, said the workers have been placed on“short term” layoff until September.
“We have never seen anything like this before,” Lebakae said.
“Our members are struggling to make ends meet, and this break has come at a time when many families can barely afford basic necessities,” he said.
“Some people have moved from the rural areas to Maseru where they can work.”
A worker at Maseru E, who only identified herself as 'Masempe, told thepost that “it is saddening that I am not going to get any income for the next three months”.
“Already, the company owes me money for the past month and we were told that there were no funds to pay us,” 'Masempe said.
She was among hundreds of workers who protested outside the factory's gates this week demanding payment for work done before the company sends them on the unpaid layoff.
“All we want now is payment and then we can start talking about how we go about the lay-off,” said another worker...
The situation has raised concerns among trade union leaders about the long-term implications for the nation's economy and its workforce...
...recent changes in trade policies by President Donald Trump, particularly the imposition of higher tariffs, have severely affected the industry's viability.
Many factories in Lesotho have been forced to halt operations, leaving workers without wages during this extended period.
Lebakae further revealed that another company, TZICC, has 2 000 workers who have also been temporarily laid off.
Another company, Luqy's Group Investments (Pty) Ltd, has been criminally charged before Maseru Magistrate Lerato Ntelane for failing to pay workers...
The police's investigation found that some of the workers were paid as little as M500 a month, far less than the minimum wage of M2 644...
May Rathakane, the Independent Democratic Union of Lesotho (IDUL) secretary general, said the US-imposed tariffs have“had a huge impact on textile firms' workers”.
“Because of these tariffs buyers are no longer placing orders,” Rathakane said.
“Workers are now relying on savings or support from family members to survive, but those resources are quickly dwindling,” he said.
Local markets are also feeling the strain, as reduced income among workers leads to decreased spending, affecting small businesses...