FUAMAH, Bong – The China Union Investment Mining Company Limited, located in Fuamah district, lower Bong County has laid off 117 of its employees.

A document provided by one of the affected employees, dated March 1, 2016 and signed by Sally Shao, the company’s human resource director, attributed the action to the steep drop in iron ore prices on the world market.

The letter said the commodity had dropped sharply below US$40 per ton. Shao said mining companies globally have suffered huge losses and also stopped production due to the downturn of commodity on the world market.

She pointed out that the Bong Mines project was also suffering huge losses and had been forced to turn to intermittent production since August 2015.

“China Union is constrained to carry out the redundancy due to the current situation on the world market in the price of iron ore and to also protect the Liberian economy and friendship,” Shao’s letter continued.

Patial View of the China Union Investment Railway. Photo: Zeze Ballah

Shao said the redundancy measures were being carried in accordance with the Ministry of Labor’s Redundancy Regulation.

The company’s management agreed to settle the affected employees’ payments and other benefits, which include severance pay for one month and any other benefits required by law.

Shao also emphasized in her communication that the redundancy would be effective as of March 1, 2016, noting all payments will be completed by March 8.

Attempts to reach Allen Fu, China Union’s Public Relations Manager, for comments on the redundancy process did not materialize.

An employee of the company who spoke to The Bush Chicken on the basis on anonymity said employees had not been engaged in active work for the past 6 months, noting the company was constrained to pay them for that period.

The employee said the company’s management was incurring huge loses with its operations being at a standstill.

He further said a total of 117 employees were laid off, pointing out that “three hundred and ten expatriates were also redundant six months ago.”

Speaking by phone, Frienkee Tyler, the Secretary General of the Workers Union, said the workers’ interest was fully represented.

Tyler said the union was also involved in the process of calculating the affected employees’ benefits.

Joseph Kortu Nyandido, Director of Communications at the Labor Ministry, told The Bush Chicken that the Ministry of Labor received a communication in February 2016 from the company about a planned redundancy of 117 workers.

Joseph Kortu Nyandido, Director of Communications at the Labor Ministry. Photo: Zeze Ballah

“A team from the ministry is currently working alongside the company to ensure that the affected employees receive their benefits in line with the labor practices law of Liberia,” Nyandido said.

He avoided saying how much each employee would receive but he said the payments would be in line with the tenure served by each employee.

While he said the situation was regrettable that Liberians would be laid off from their jobs, Nyandido said much of the foreign staff had also been reduced.

“The ministry was also informed in the company’s communication that 80 percent of the expatriates were [made] redundant few months ago,” he added.

Featured photo by Zeze Ballah