Business Report article on 2010 Clothing

Dispute lights up over imported Fifa, Bafana apparel

By Florence de Vries

A dispute have brought to light the fact that at least 40 percent of Fifa and Bafana Bafana apparel is being imported from China and other countries.

The dispute has risen between the Southern Africa Clothing and Textile Workers' Union (Sactwu) and South African Football Association's (Safa) master licensee Safa legal and management (Slam).

Sactwu is arguing that unaudited figures received from Slam and its international affiliate Sarragan, a sister company to the Adidas group, are incorrect.

According to Slam, 80 percent of its pieces are manufactured locally while 20 percent are imported from other countries.

But the figures provided for its imports include a Lesotho-based factory as a South African manufacturing facility.

The discrepancy brings to 40 percent the total of imported goods. Local companies and licensees claim they are struggling to find affordable local facilities to produce merchandise and buckle under pressure to finish goods on time for the event.

Sactwu has called upon Slam and Sarragan to provide audited numbers of the amount of soccer world cup-related gear being manufactured locally, following a report claiming that a number of Fifa and Bafana Bafana-related items are being manufactured in China, Mauritius and Pakistan.

Clothing and textile researcher, Renato Palmi, from the Redress Consultancy found Bafana Bafana and Fifa- gear had been manufactured in other countries, contravening Sactwu's agreement with the Local Organising Committee (LOC) that all producers of Fifa-related sportswear in South Africa should be members of the national clothing bargaining council.

Palmi said the swing tags on Bafana Bafana beanies, t-shirts and hats confirm its status as official merchandise of the South African Football Association but "that they are made in China".

"Fifa bags and t-shirts at a retail outlet in Durban's Gateway Mall proved to have its origins in Mauritius and Pakistan," he said.

According to Palmi, it is widely known that a 'made in China label' connotes production under sweat-shop conditions.

The Business Times on Sunday reported that organisers of the World Cup Soccer tournament have announced an investigation into how a 10 000 square metre factory in China's largest city, Shanghai, landed several international subcontracts worth almost R840 million to manufacture South Africa's official mascot Zakumi.

Etienne Vlok, senior researcher at Sactwu, said the world cup is a chance to promote local decent work but that the union has had trouble obtaining verified numbers from Slam.

"Two types of soccer shirts are being manufactured locally. International sportsbrand Adidas has been working with locally compliant manufacturers to produce soccer shirts and have been co-operative in providing information," he said.

Vlok said Fifa-related gear is being manufactured by Fifa sub-licensees including local clothing companies like JSE-listed Seardel and Monviso.

Ian Stein, managing director of Monviso told Business Report that the "bulk of goods are made in South Africa but that there is some coming from China."

According to Stein, Monviso imports from China constitute roughly 10 percent of goods.

"We import whatever we cannot make locally." Stuart Queen, chief executive of Seardel, said the group has the official Fifa apparel contract and that the majority of its goods, which constitutes apparel are being produced locally.

"But because the World Cup is upon us, we cannot gear a factory to produce the amount of garments needed and so there will be an element of importing," he said.

Figures received from Fifa-appointed licensee Slam and its international affiliate Sarragan (sister company to the Adidas group) have not been audited and are incorrect, according to Sactwu.

"This is a huge concern for us. We're starting to see more and more reports like Palmi's," he said.

Slam’s managing director Vivian Casaletti told Business Report that approximately 80 percent (513 796 pieces) of its goods are produced locally while 20 percent (134 700 pieces) were imported.

The group has received 60 200 pieces from its affiliate Prestige and had 344 598 pieces on order, while its other affiliate Tern had delivered 16 984 pieces, with 92 014 pieces on order.

Slam was expecting another 100 000 pieces from China and other countries in coming months. These include t-shirts in polyester and cotton.

When asked about the Lesotho-based facility, Tern, Neil Farrar, director of London-based clothing firm ASD which is affiliated with Slam, said the items from Tern would have a "made in Lesotho" label.

According to Farrar, caps, bags and a small quantity of jackets have to be imported as there are no other manufacturing plants available in South Africa due to either pricing or the extremely high compliance standards of State-Owned Entities that have to be met.

Franz Ruedling from Sarragan said the group has asked the union for "opportunities" to manufacture locally but that the recommended manufacturer was "too expensive."

South African Revenue Services official Sibabalwenathi Mfabe confirmed last week that R33 million worth of counterfeit Bafana Bafana goods had been seized at the OR Tambo International airport in the past three months.

"At present we await other incidents of counterfeit goods, specifically those related to the world cup, across our major ports," Mfabe said.

Published on the web by Business Report on February 1, 2010.