Do SA retailers support non-compliant apparel manufacturers?

According to this report from The Swazi Observer, it is alleged that Woolworths has apparel suppliers that are not compliant.

Local factory in Woolworths ‘fiasco’

16 April, 2010

By Mthunzi Maziya

The Swazi Observer

A clothing supplier, which has supplied Woolworths for 32 years, says it was stunned by the retailer’s decision to cancel its contract in favour of a competitor that may not be trade compliant. The trader in question is Junit Manufacturing, a factory based in the country but has South African ownership. A report on Fin24.com states that Sterling Clothing, which supplied Woolworths with men’s casual wear, including chino pants, says it was astonished when its contract was cancelled by Woolworths.

“The decision had nothing to do with pricing or the quality of the merchandise we supplied. What makes it all seem completely bizarre is that, by its (Woolworths’) own admission, it has absolutely no problem with us in terms of service, delivery or quality,” said Sterling’s Bruno Desmet. In response, Woolworths’ Brett Kaplain told the website that in line with the demands of modern retail, Woolworths processes are reviewed from time to time, including sourcing opportunities. “In this instance, an existing local supplier offered us a wider catalogue and a more compelling proposition overall,” he said.

He added that although the new supplier was a South African registered company (Junit Manufacturing), it made its merchandise in factories in neighbouring Swaziland. “By non-compliant, we mean it is not part of any formal association or trade body representing the clothing and textile industry of South Africa and, accordingly, it is not paying the required or prescribed wage rate.”

Woolworths’ decision to source merchandise from the Swaziland-based supplier, while South African manufactures were struggling, says Desmet, would exacerbate unemployment in the SA’s clothing and textile industry. Meanwhile, Kaplan said Woolworths’ operates a tightly integrated network of suppliers to ensure exacting standards. “Conformance with Woolworths’ code of business principles is a prerequisite for suppliers,” he said.