News on SA Clothing Sector

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Monday, 14 September 2009

Will strike unstitch the industry?

South Africa

Interviewed on e-news 24 on the eve of a national clothing and textile strike by the South African Clothing and Textile Worker's Union (SACTWU) Renato Palmi said it was very disappointing that such action would be evoked.

The union confirmed that tomorrow (15 September, 2009) strike action would begin. The union had received a mandate to embark on strike action. The union stated 92% of the 46 000 of union members were in favour of strike action. The apparel manufacturing sector has offered a 5% wage increase with condition that they "forfeit overtime earning for any form of absenteeism, even when such absenteeism is legally authorised." The union is demanding a 7.9% wage increase which resulted in a deadlock.

In the TV interview it was stated that manufacturers claimed the issue was not money but the high percentage of absenteeism. Palmi responded by saying that it was strange that money was not a problem as the industry is under stress, cash-flows tight and profit margins even tighter but confirmed that the issue of absenteeism was a problem. "This is due to a number of factors such as HIV/AIDS and the fact that the majority of workers are women who are often the single bread winner and they have to deal with domestic problems resulting in them not arriving at work."

Asked what the consequences would be for the industry Palmi responded by saying the long term consequence would be detrimental for the industry. He said he "understood that the union was following the mandate of its members but the short term results would be overshadowed by the long term negative impact on the industry and consequently the union's members." Palmi said he saw the following options for the apparel sector:
(a) Clothing companies would wait out the strike.
(b) Clothing companies would retrench and restructure their work force and production facilities
(c) Clothing companies would close and possibly relocate elsewhere.
(d) Would see a migration of companies into the unregistered informal sector.

A further consequence of this strike action would be "unregistered companies in the informal sector that are not registered or unionised seeing a possible increase in orders. The immediate result for the apparel sector could see retailers cancelling orders, even fining suppliers for non-delivery and simply placing orders either with unregistered companies or moving more of their procurement offshore."

In a research study Palmi did in 2007 the results reflected that absenteeism was a major concern with 80% of the respondents saying HIV/AIDS was a concern and 96% saying that the high level of absenteeism could be a result of the pandemic. To read the full study click here.

Palmi stated that the low level of wages and the difference between metro and non-metro areas was a concern and he understood the position of the union however, he questioned if the industry could really afford a strike. "What this will result in is more imports and less locally made clothing. The effect of this strike can have a ripple effect throughout the entire industry and the various stations within the apparel value-chain will be adversely affected. He said he hoped that the strike would not be militant or result in damage. The unions cannot afford to marginalize the consumer, "they [the union] need to get the consumer on their side and to understand the importance of supporting locally made apparel."
Photos of union members participating in ballot. Click here
Responses, observations and comments on the strike are welcome.
Breaking news: 13h30 -15 September 09
Developments in Lesotho known as a haven for the apparel industry because of the abundance of cheap labour may see some radical labour changes that will place both South African and foreign apparel manufacturers in a precarious position.

Workers in the Lesotho clothing sector have petitioned the National Assembly portfolio committee that oversees labour. The workers are demanding a Loti 1,500 minimum wage which equates to R1491.00. This is according to the workers that beginning of a larger “campaign to force government to heed their request.” If the action taken by the workers is successful it may have enormous consequence for the apparel sector within the SADC region. Leotho may see a migration of clothing companies to other alternative localities and South African companies may find it not worth the expense to relocate to Lesotho.

The current starting wage in the South African clothing sector is for a general worker within the KwaZulu-Natal Metro region R 426 per week.



15 SEPTEMBER 2009
PRESS RELEASE: IMMEDIATE
THOUSANDS OF CLOTHING WORKERS EMBARK ON NATIONAL WAGE STRIKE

The clothing industry came to a standstill today as tens of thousands of members of the Southern African Clothing & Textile Workers' Union (SACTWU) have commenced a national wage strike in support of their wage demands.

The strike commenced early this morning, when workers started the day with general meetings at their workplaces. By between 09h00 - 09h30 they had clocked out, held brief protest actions in front of their workplaces and then dispursed to go home because the union had called for the strike action to be in the form of a stayaway from work today.

By 12h30 today, the trade union had completed a survey to measure the extent of support for the strike. Nationally, a total of 336 factories jointly employing about 33 000 workers were surveyed. The preliminary outcome indicates close to 90% support for the strike. Extrapolating this result nationally, it means that about 55 000 clothing workers have embarked on national strike action today. This shows a massive rejection of the employers' wage proposals and solid support for the union's demand for a decent wage increase for clothing workers.

In the meantime, employers have issued a lock-out notice late on Sunday evening. The notice comes into effect this evening at 22h00. The purpose of the lockout is to force clothing workers to accept the employers' offer.

Clothing employers are meeting this afternoon to discuss their way forward. Last Friday, the trade union offered to suspend its strike action to allow for a further voluntary conciliation meeting tomorrow, but the employers have regretably declined to take up this offer (their precondition was that we should not embark on action today) and are only expected to discuss whether or not they should do so at their meeting later this afternoon. Whatever happens in their meeting later today, it appears that it would be too late to set up any proper logistics for such a voluntary conciliation meeting tomorrow given that employers are only due to decide later today on whether or not to accept the offer of a suspension of the strike action and a further conciliation meeting.

Clothing employers are currently offering a weekly wage increase of between R19 and R32 per week. This is equal to a 5% wage increase. But even this low offer is conditional on clothing workers agreeing to forfeit overtime- and other normal earnings for any form of absenteeism, even where such absenteeism is legally authorised. The trade union is demanding a 7.9% wage increase. Wage negotiations started as far back as April this year and the new wage increase was due on 1 September 2009. The trade union is of the view that its demands are reasonable and affordable, that it now only resorts to strike action as a last option because negotiations cannot continue inconclusively forever. Clothing workers are the lowest paid employees in the whole of the South Africa Manufacturing sector.

In the run up to the strike, the trade union had conducted a strike ballot among 46 600 clothing workers nationally, of whom 92% voted in favour of strike action in pursuit of their wage demands.

Issued by
Andre Kriel
SACTWU
General Secretary

3 comments:

Anonymous said...

Great comments on the strike – well done

Anonymous said...

i do not understand the thinking of the union. They acknowledge cheap imports and loss of jobs however they are prepared to go on strike and possibly see more jobs lost for what. Is the principal a job is better than none not stand?

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