*KOIDU MINING DISPUTE RESOLVED: GOVERNMENT AND COMPANY STRIKE DEAL TO RESTORE INDUSTRIAL PEACE*
By Mahmud Tim Kargbo
Tuesday, 25 March 2025
FREETOWN, Sierra Leone – In a significant breakthrough aimed at restoring industrial peace, the Ministry of Employment, Labour and Social Security (MELSS) and Koidu Limited have successfully brokered a resolution to the labour unrest that recently disrupted operations in the diamond-rich town of Koidu.
The agreement follows a series of negotiations prompted by peaceful protests involving mine workers and support from Her Excellency, Dr. Fatima Jabbie Bio, the First Lady of Sierra Leone, who hails from Kono District. The government and company leadership have now formulated a framework agreement to facilitate the immediate return of the national workforce and address the grievances that sparked the unrest.
The dispute, which escalated tensions between workers and management, was driven by concerns over wages, labour conditions, and compliance with Sierra Leone’s Employment Act of 2023. This resolution marks a critical turning point in the country’s industrial relations landscape.
*A PACT FOR STABILITY AND ECONOMIC GROWTH*
According to a joint statement released on 20 March 2025, MELSS and Koidu Limited have committed to implementing practical solutions to address workers’ demands. The agreement includes:
• Quarterly bonus payments for workers, linked to diamond export pricing under government supervision.
• A commitment to resolving workforce grievances within 48 hours after employees return to work.
• The establishment of the Koidu Workers Forum (KWF)—a structured platform for ongoing dialogue between labor representatives, government officials, and the company.
“The government is committed to ensuring that industrial disputes do not disrupt economic productivity and national stability,” said a senior MELSS official who participated in the negotiations. “This agreement not only addresses immediate concerns but also lays the foundation for long-term labour reforms in the mining sector.”
*FIRST LADY CALLS FOR PATIENCE AND COOPERATION*
Reacting to the joint press release, First Lady Dr. Fatima Jabbie Bio expressed her gratitude and appreciation to the workers of Koidu Holdings for their peaceful approach to addressing their concerns. She reassured them that she had received the agreement on their behalf and called for patience as she reviews its details.
Dr. Bio further announced her plans to hold a high-level meeting with the Minister of Labour and Koidu Holdings leadership, where she will serve as an intermediary representing the interests of the workers from Kono. She promised to provide a clear update to the people of Koidu, including a visit to the region to discuss how workers and management will collaborate moving forward.
“I deeply appreciate everyone who participated in this peaceful protest,” she said. “This was never about disobedience—it was about ensuring that the workers of Kono receive fair treatment. Praise be to the Almighty, change is coming for those working at Koidu Holdings.”
She also commended the Mayor of Koidu City for his unwavering support, describing him as a young leader who stood by his people during the process.
“There is light at the end of the tunnel,” she continued. “We just need to push forward over the next 48 hours and cross that bridge together. I am looking forward to a fruitful meeting tomorrow.”
*BALANCING CORPORATE INTERESTS WITH WORKERS RIGHTS*
Koidu Limited, one of Sierra Leone’s most significant diamond mining firms, has reaffirmed its full compliance with national labour laws. However, the company has taken a firm stance against reinstating dismissed employees, despite ongoing negotiations. Instead, it has agreed to pay end-of-service benefits to those affected, in line with statutory labour protections.
While some labour unions and civil society organisations have welcomed the agreement, others have raised concerns about worker protection and dispute resolution mechanisms.
“The refusal to reinstate dismissed employees sets a worrying precedent,” said a representative from the Sierra Leone Labour Congress (SLLC). “While financial compensation is important, workers should have a clear avenue for appeal in cases of unfair or politically motivated dismissals.”
*GOVERNMENT OVERSIGHT AND THE EXTRACTIVE INDUSTRY*
Sierra Leone’s diamond industry has long been marred by concerns over transparency, revenue mismanagement, and corporate accountability. The decision to tie worker bonuses to diamond export pricing represents a novel approach to wealth distribution, but it also raises questions about fair implementation.
Government oversight, led by the Ministry of Mines and MELSS, will play a critical role in ensuring transparency in diamond exports and worker compensation. However, industry analysts warn that stronger regulatory enforcement is necessary to ensure that companies do not manipulate pricing models to minimise bonus payments.
“There must be an independent oversight body to ensure that these commitments are upheld,” said Dr. Abdulai Conteh, a legal expert on labour rights and governance. “If left unchecked, companies might exploit pricing structures to reduce worker entitlements, undermining the purpose of this agreement.”
*A TEST FOR INDUSTRIAL RELATIONS IN SIERRA LEONE*
The Koidu dispute resolution is being widely viewed as a test case for industrial relations in Sierra Leone, a nation where labour unrest in the mining sector has historically led to economic and social instability.
With mining contributing significantly to Sierra Leone’s GDP, fostering a harmonious relationship between workers, corporations, and the government is essential for sustained economic growth.
The establishment of the Koidu Workers Forum (KWF) is a step toward institutionalising structured dialogue and preventing future conflicts. However, its effectiveness will depend on whether it has genuine negotiating power or remains a symbolic entity without enforcement capacity.
As Sierra Leone positions itself as a responsible player in the global extractive industry, this agreement will be closely monitored by international investors, labour rights organisations, and local communities.
For now, the people of Koidu can breathe a sigh of relief as mining operations resume. However, whether this peace endures will depend on all stakeholders’ commitment to fair labour practices, corporate accountability, and government oversight.
For further information or comment, contact:
• Ministry of Employment, Labour and Social Security: [email protected]
• Koidu Limited: [email protected]
Koidu Holdings Limited
Transcribed By
Dr. Conteh
21st March, 2025
JOINT STATEMENT
THE MINISTRY OF EMPLOYMENT, LABOUR AND SOCIAL SECURITY & KOIDU LIMITED
Thursday 20th March, 2025 – Following extensive discussions between the Ministry of Employment, Labour and Social Security and the leadership of KOIDU Limited in the wake of the peaceful protest and the agreement of a resolution framework, the Ministry of Employment, Labour and Social Security (“MELSS”) and Koidu Limited (“Koidu”) hereby encourage Koidu’s national workforce to immediately return to work.
Upon their return, MELSS and Koidu will immediately agree solutions to the recommendations and advice outlined by MELSS in their letter to the General Manager of Koidu on 28 February 2025, as referenced in Appendix 1 of this release.
Extensive discussions between MELSS and Koidu have taken place. Both parties are confident that once the national workforce has returned to work, solutions to all of the concerns raised by MELSS will be reached within 48 hours. In addition to the above, it has been agreed to introduce quarterly bonus payments to the national workforce based on the diamond export pricing, which is supervised by the Government of Sierra Leone (“GoSL”). This bonus scheme will come into effect on 2 April 2025. These bonuses will be awarded based on parameters to be negotiated and agreed upon between Koidu and MELSS.
Even after lengthy discussions, Koidu has insisted on not re-employing individuals who have been dismissed. In the spirit of the constructive relationship that has been established between all parties involved in the negotiations, especially the Ministry of Employment, Labour and Social Security, and at the specific request of the Government of Sierra Leone, Koidu will pay full end-of-service benefits to dismissed employees. Any employee who is aggrieved shall utilise the avenues provided for in the Employment Act of 2023.
Koidu Limited reconfirms that the operations of Koidu are in full compliance with the laws of Sierra Leone. Diamond production and exports are under the full supervision and control of GoSL officials representing key government institutions.
GoSL and Koidu are committed to restoring long-term industrial peace and stability to the benefit of all stakeholders. To achieve this objective, MELSS and Koidu will establish the Koidu Workers Forum (“KWF”) chaired by the Honourable Minister of Employment, Labour and Social Security. The KWF will develop initiatives in line with international best practices for the benefit of the national workforce and other stakeholders.
For further information or comments, please contact: [email protected] or [email protected].
Attachment:
Appendix 1 – Letter from MELSS to Koidu on 28 February 2025
1. Reinstate without precondition all workers suspended, terminated, and dismissed as a result of advocating for their rights from 22nd August 2024 to date and forward copies of all rescinded letters to the Ministry for our attention.
2. Pay all backlog salaries and other benefits to staff affected in point number 1 above.
3. Increase 30% to the existing salary of staff effective 1st April 2025 to make up for historical injustice.
4. Pay risk allowance to staff working in areas identified as high risk during the risk assessment.
5. Management to provide bus service for staff at selected pick-up points to ease movement.
6. Management to provide medical facilities in accordance with Labour Laws.
7. Management to allow staff to choose banks of their choice for salary payments.
8. Pay inducement allowance to staff as a way of motivation.
9. Management to provide safe drinking water to all staff.
10. Management to improve housing, meal, and education allowance.
11. Management to establish a salary advance scheme for all national staff.
12. Management to pay overtime where applicable (Section 65(1) of the Employment Act).
13. Cost of living allowance to be added to the basic salary.
14. Recognition of trade union rights without prejudice as provided for in Part III, Section 12 of the Employment Act No. 15 – 2023.
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