Wages & Working Conditions

Wages Earned By Workers in Lesothos Textiles & Garment Industry Play An

Important Role in Poverty Alleviation

• The wages earned by employees engaged in Lesothos textiles & garment industry is of vital importance to Lesothos economy. ComMark currently estimates that Lesothos textile and apparel workers earn about M500[1] million a year.

• With effect from Oct. 2007 skilled garment workers are guaranteed a monthly minimum wage of M770, and unskilled workers M725. Lesothos labour laws enshrine all aspects of the ILOs core conventions (no child / forced labour; non-discrimination; freedom of association), regulate maximum working hours (45 normal & 11 hours overtime per week); and minimum leave.

• While the application of Lesothos labour laws is regulated by the inspectorate of the Lesotho Ministry of Labour, many Brands that source garments from Lesotho also monitor factory conditions. The GAP and Levis Strauss (in particular), but also Walmart, Jones Apparel, Sears, etc. regularly inspect the working conditions of workers employed by their Lesotho vendors.

Exports

Lesotho Continues To Remain The Largest Sub-Saharan Exporter Of Garments To The Usa. It Is A Concern That It Exports Virtually Nothing To The European Union In Fact They Are Derisory

• It is estimated that about 85% of Lesothos textile & garment exports go to the USA. Lesotho continues to remain the largest Sub-Saharan African exporter of garments to the USA (in 2006 30% of total SSA garment exports by value, and 29% by volume).

• In the period Jan-Sept. 2007 Lesotho exported 75.48million square meter equivalents (SME) to the USA up 3.75% over the same period in 2006 (and about 4% up on the same period for 2005).

• Lesothos next biggest purchaser of garments is South Africa; its third biggest is Canada. Small volumes also go to member states of the European Union, Dubai, Qatar, Chile, Japan and Taiwan. Lesothos denim mill also exports denim fabric to Nicaragua, Botswana, Kenya, Egypt, Madagascar and Mauritius; while it sells large amounts of ring spun yarn to RSA textile mills.

• In spite of EU trade preferences (Cotonou) Lesothos EU garment exports are negligible. In 2006 Lesothos EU garment exports was only .3% of total country garment exports to the USA. EU preferential trade rules of origin prohibit the use of 3^rd country fabrics (AGOA allows this).

• Purchasers of Lesothos garments include well known Brands such as: the Walmart, JC Penny, GAP, Reebok, Jones Apparel, Edun, Levis Strauss, K-Mart, Footlocker, Target, Sears, Gloria Vanderbilt, Ralph Lauren, Disney, etc. It is thought that much of its garment exports to the EU are specialist items (chefs jackets), and product for GAP stores. In recent times there has been growing interest in Lesothos garment industry from retailers such as H&M and Nike, and from regional Southern African retailers such as Woolworths, Pep, Edgars and Mr. Price.