South Africa's Budget: Clothing/Textiles/Fashion

South Africa: February 2009

South Africa's budget was unveiled yesterday and a quick scan reflects very little money is being allocated to clothing & textiles whom we are told by government officials is a vital industry sector for employment and economic development. SACTWU confirmed that a large number of people had already this year lost their jobs.
.
The Department of Trade and Industry's budget seems as a colleague said, "remarkably naked." The budget hints that a development programme for the textile and clothing sector is soon (have we not heard this before) to be unveiled. The same colleague asks important questions "how is this going to be funded? There is no mention of textile and clothing support programmes."

Does this mean that the industry will have to find support through existing general incentive programmes or through institutions like the Industrial Development Corporation which has already bailed out one company. Responses from the industry will be interesting.

A quick review of the budget for Arts and Culture reveals very little (nothing) on fashion design. The only mention of fashion and fashion designers in the budget is the following statement: "In 2007/08, the department partnered with 9 established fashion designers and 25 crafters in each province to collaborate on fashion items and accessories. This provided opportunities for the crafters to be part of the business of fashion, and for skills transfer between designers and crafters."

And how sustainable is this collaboration? What were the actual financial benefits for the participant crafters and designers? Just more PR spin? Of course, reading budgets will be too taxing for the fashion sector and engaging with government in a public forum far too much work so I do not expect any voice of concern from this sector.

Of interest as my colleague pointed out is that South Africa will be spending R1.94bn in building a square kilometre radio telescope. How will the workers retrenched from the clothing and textile sector feel about this? How will those clinging to their jobs by a thread feel about such expenditure – a telescope to look into space seems more important than saving and protecting jobs and an entire industry sector. What will SACTWU say about this?

The DTI’s budget can be found at http://www.treasury.gov.za/documents/national%20budget/2009/ene/32%20dti.pdf.

Written by Renato Palmi.
South Africa

Update on South African apparel regulations

The South African Department of Trade and Industry have issued more information relating to the label regulations. To read back ground to this please click here. To read the new notice from the Department of Trade Industry click over here.

Provided below are some useful contact details. It would be interesting to do a test to see how active DTI is if they get an enquiry from the public about Non-compliance?

Contact details:
Non-compliance with the Notice must be reported to the dti for
investigation, at Tel No. 012-394 1422, Fax No. 012-394 4422

or e-mail to Sipho Tleane at: siphot@thedti.gov.za

Enquiries from manufacturers and retailers on how to comply can be
forwarded to the Compliance Unit at Tel No. 012-394 3873,

Fax No. 012- 394 4873,

or email to Bulelwa Hewu at: Bhewu@thedti.gov.za
or write to:
The dti
Consumer Complaints
Consumer and Corporate Regulation Division
Private Bag X84
PRETORIA
0001
SARS can be contacted at: Tel. No 012-422 6905/6862,

Fax No. 012-422 6910 or email to: nroopnarain@sars.gov.za

In January we posted a note from SARS. Click here to read the note.
We are now informed of new developments about SARS checking imports.
Initially SARS said that all containers due to be searched would only be searched in Durban – now it appears that SARS says they will exercise some discretion in this regards – suggesting they could be searched elsewhere. To read the amendedSARS notice click here
or try this link:
http://www.sars.gov.za/uploads/images/42568_SC-CC-01-L25_–_External_–_Clothing_and_Textile_Campaign_-__Correspondence.pdf

For background to imports, and the quotas click here.

A question to readers: Do you think companies or individuals caught by SARS should be named, fined and jailed. We still (as far as I know) do not know the ID of the company or person/s cought by SARS. Why not???

South African politicians must wear the talk when it comes to fashion

Continuing with my argument that South African politicians should be wearing designed and made in South Africa clothing (see link) I think it is vital that the fashion industry communicates this message to our government officials in a strong coordinated and synchronised voice. It is no good for both the fashion sector and out clothing and textile manufacturing sector to bemoan the current state of affairs this beleaguered industry is facing without those who make up the industry stand up and be heard. Where are the unions? Why such silence from them? Further job losses in South Africa's apparel sector are a certainty.

Instead of cheap rhetoric from South African president hopeful Jackob Zuma who said the ruling party "needed to become more involved in the economy … [and] look for ways of saving and growing jobs in the clothing and textile sector,[1]" he should be wearing local designed and made in South African clothing and using his presence on the political and social stage to demonstrate that he is Proudly South African and urge his followers, fellow politicians from every political party to proudly wear local designed and made clothing. Our politicians need to look at America's new first family as an exemplar of what can be done to create a surge in demand for local fashion designs.

President Obama's wife Michelle is supporting American fashion. Even though she has been unfairly criticised by "The Black Artists Association" for having yet to use a black designer and instead has worn clothing designed by Cuban and Asian-American designers is in my opinion just a pathetic grumble – of course she is going to wear at some time clothing designed by African-Americans. The point is she is supporting and promoting American designers and American retailers.

Obama's children Malia and Sasha wore on the day their father was sworn in as President of America dresses from American retailer J Crew a company that started in 1983. According to it promotional material the company "uses the finest fabrics, craftsmen and mills from Europe and the US." News reports said the company's website crashed due to high traffic when the American public discovered where the children's clothing had been purchased from.

Clothing researchers in America say that Mrs. Obama will have a positive impact on the American apparel sector. According to retail analysts companies such as Gap and its Banana republic chain, J.Crew, Club Monaco and Chico White House/Black Market will be some of the benefactors of her choice in clothing. Of course it will be dependant on these retailers to take advantage of this global opportunity to sustain the interest in their fashion lines.

The central point to Mrs. Obama's choice of clothing is that she is demonstrating that even the First Lady of America can look slick and elegant without having to wear Couture designs with hefty price tags[2].

In most cases in the world of fashion and glamour there is a Machiavellian side – SWEATSHOPS – and this most hated of words in the fashion industry can be linked to Mrs. Obama's choice of clothing. While I applaud her for using American designers, her choice of retail brands is questionable. In July 2008, New York State labour officials investigated an American clothing company in Queens, New York that employed Chinese immigrants.

Investigators said the company, Jin Shun, cheated its workers out of more than $5 million in pay, told its workers to lie to inspectors, did not pay overtime to their employees and kept two sets of timecards. Guess which company is linked to this inexcusable exploitation of labour-GAP one of the companies that may benefit from Mrs. Obama's choice of fashion. Another company supported by Mrs. Obama is Banana Republic. In March 2008, the company was linked to sweatshop labour in India where workers making clothing for this brand are forced to work up to 70 hours a week for under a dollar an hour. Club Monaco, apparently another favourite of the First Lady is affiliated to the Ralph Lauren's fashion empire which is known to source its manufacturing from dubious clothing companies that exploit workers.

Whilst I argue that South African politicians need to wear the talk and emulate America's new first family they should go further and demonstrate that they will only support local designers, retailers and manufacturers that have a transparent, ethical sourcing procedure and in the case of manufacturing support those companies that are registered with the South African Clothing Bargaining Council.

Written by Renato Palmi.

[1] "Time for State to Step in, Says Zuma." Angola Press, 5 February 2009.
[2] "Analysis: Desperate American fashion sector gets the kicker it needs from First Lady." Business Report, 5 February 2009.