Better Work Lesotho

Lesotho is one of the poorest countries in the world. According to the UNDP Human Development Report 2007/2008, Lesotho is ranked 138 out of 177 countries on the Human Development Index. The apparel industry is the largest employer in Lesotho, as it accounts for nearly 50 percent of the formally employed workforce. There were approximately 36 factories accounting for over 40,000 workers in late 2009, making up about 80% of all jobs in Lesotho’s manufacturing sector. The apparel industry accounted for about 75% of Lesotho’s exports in 2004, almost exclusively to the US market. In 2008, garment exports to the US were worth US $ 340 million. The industry faces significant risks, including trade policy uncertainty. Ensuring a future for the industry in Lesotho requires a multi-faceted approach including efforts to improve vertical integration, diversify markets, enhance production, and ensure high levels of compliance with labor and environmental standards. The goal of the Better Work Lesotho project is to reduce poverty in Lesotho by expanding decent work opportunities in the apparel and footwear sector. The project will improve competitiveness of the industry by enhancing economic performance at the enterprise level and by improving compliance with Lesotho labor law and the principles of the ILO Declaration on Fundamental Principles and Rights at Work. Better Work Lesotho combines independent enterprise assessments with enterprise advisory and training services to support practical improvements through workplace cooperation. It is an industry-based scheme designed to work at the enterprise level. Enterprises can use the Better Work Information Management System (IMS) to demonstrate compliance performance and corrective actions to their international buyers. This allows buyers to reduce their own auditing and redirect resources toward fixing problems. The Lesotho government, employers’ and workers’ organizations, as well as international buyers, support this approach. Better Work Lesotho will work in close collaboration with existing initiatives, particularly those focusing on the apparel industry and capacity building of the Ministry of Labor and Employment, as well as social partners (worker and employer organizations). Better Work Lesotho is envisioned as one part of the ILO’s larger Decent Work Country Program, which includes ongoing efforts to support sustainable enterprise development and HIV/AIDS in the workplace. Better Work Lesotho has three components: (1) Enterprise Assessments & Advisory Services, (2) Stakeholder Engagement & Sustainability, and; (3) Knowledge Management & Impact. The project will have a tripartite advisory committee with representatives from the employers, trade unions, and the Government. Better Work Lesotho expects to have the following outcomes: • Improved working conditions and job opportunities; • Increased market access and enhanced relations between suppliers and international buyers, as a result of a credible demonstration of labor standards compliance and reduced worker turnover, leading to improved productivity for enterprises; • Export growth, increased employment, and positive social and human development outcomes; • Enhanced reputation protection for international buyers, made possible by the provision of credible information on compliance in supplier factories and assurance that suppliers are taking remedial action; and, • Cost savings due to reduction in duplicative auditing and remediation. Better Work Lesotho will use the comprehensive monitoring and evaluation framework currently under development by the global program in order to rigorously measure these anticipated outcomes.

Project symbol

LES/09/01/USA

Admin unit

DWT/CO-Pretoria

Start date

28/09/2009

End date

30/03/2014

Total allocation

1726615

Total expenditure

Status

Closed

1726615

Development Partners

USA, United States Department of Labor, Bureau for International Labor Affairs, Office of Trade and Labor Affairs

Country/Countries

Lesotho

Outcomes

Decent Work in Economic Sectors