60 face job losses at Komatsu

Komatsu, Union Stalemate over Disclosure of Financial Information Komatsu demands non-disclosure agreement to protect “confidential” financial information Union says the financial information is not protected by the MoU between the two parties District Labour Office intervenes to guarantee protection of financial information As the mining sector sheds jobs at an alarming rate, Botswana Mine Workers Union and the world's second largest earth moving equipment maker, Komatsu, have stalemated in negotiations for retrenchment packages for 60 employees due to be laid off in a restructuring process at the company. [ihc-hide-content ihc_mb_type="show" ihc_mb_who="1,3,2,4" ihc_mb_template="1" ] Komatsu has been adjudged to be bargaining in bad faith and both parties have been accused of withholding information necessary for the negation process. A key issue in the stalemate is disclosure of financial information by Komatsu. The restructuring is necessitated by a drastic change in the equipment maintenance model previously used for Debswana mines in Jwaneng, Orapa, Letlhakane and Damtshaa mines. Documents seen by The Business Weekly & Review indicate that Botswana Mining Workers Union (BMWU) and Komatsu have reached a deadlock in their negotiations over packages and benefits for the 60 employees facing retrenchment. The matter was referred to the District Labour Officer which subsequently appointed an arbitrator. According to one of the orders issued by the part time arbitrator, Tebogo Sigwele, on 22 August 2022, Komatsu was found to have bargained in bad faith by failing to disclose important information such as the company’s financial standing and relying on Group policy to negotiate. Sigwele also found that both parties (Komatsu and BMWU) did not provide tangible information to assist in supporting their positions for a fair, reasonable and appropriate package. “The respondent (Komatsu) is further ordered to provide the applicant with audited financial statements from the year 2020 to 2021 and audited/unaudited financial statements for the year 2022 on or before 30th September 2022 to open the bargaining process on the severance package and any other relevant information to assist in the proceedings,” reads Sigwele’s order. However, a subsequent letter addressed to the District Labour Office by BWMU spokesperson Dikano Gabatshwarwe says Komatsu has not complied with the order and has instead insisted that its financials “are confidential, hence they will require the union to sign a non-disclosure agreement, this the Union objected leading to the non-disclosure by the respondent (Komatsu).” According to Komatsu, it tried on several occasions, even prior to the arbitration process, to share its financial statements with the union on condition that the union sign a non-disclosure agreement (NDA). Komatsu holds that it is not a public listed company and therefore needs a NDA to ensure that the “proprietary information” sought by the union is protected. Sigwele has confirmed this position of the company on the matter which Komatsu says is in a Memorandum of Agreement. “The respondent in their position letter stated that they are willing to share the required information on condition that there is assurance that such proprietary information will be protected and solely used for the purpose of negotiations or consultation with applicants as guided by the Memorandum of Agreement and any other legal instrument,” he said BMWU, therefore, sought guidance on how this matter should be resolved. After BMWU and Komatsu failed to break the impasse, the matter was referred back to Sigwele for further determination. In another order dated 17 November, Sigwele ruled that the Non-Disclosure Agreement NDA used by Kumatsu purporting to protect “their information cannot suffice in this matter since it is not a condition as per the MOA nor the award order for information disclosure.” He directed that Komatsu should submit all the required information to the District Labour Office on or before 22 November 2022 after which the District Labour Officer will issue the information immediately to BMWU with a stamp for authentication. Sigwele also directed that BMWU to use the information solely for the purpose of negotiations of retrenchment packages and to protect that information. Responding to Sigwele’s order through a letter date 22 November 2022, Komatsu Botswana spokesperson, Class Mathunya, wrote: “It is Management's considered view that although the Memorandum of Agreement does not have a specific clause that requires the Union to provide an NDA, this does not prevent Komatsu from requesting one for the sole purpose of protecting its proprietary information. “We hold the view that such protection is, in fact, contemplated by the provisions of the Trade Unions and Employers' Organisation Act. “We would like to request your kind office to have this matter referred to a meditator to establish the appropriateness of information of such a sensitive nature being disclosed without a non-disclosure agreement and/or protection against disclosure to unintended third parties.” He added that Komatsu is committed to “having this matter resolved amicably and speedily with the assurance that their information will be protected.” [/ihc-hide-content]

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60 face job losses at Komatsu

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