DA visits Newcastle clothing factories to seek solution to closure threats
By Ayanda Mdluli
THE NEWCASTLE factories saga, which has put close to 9 500 jobs at risk, has taken a new dimension with the DA entering the fray. A delegation from the official opposition, headed by DA trade and industry spokesman Tim Harris, met with factory owners and workers accompanied by a team of delegates in Newcastle on Monday.
Other DA leaders in the delegation were MPs Sherry Chen and Alf Lees and provincial DA deputy leader and member of the KwaZulu-Natal provincial legislature Sizwe Mchunu. The delegation visited members of the Newcastle Chinese Chamber of Commerce (NCCC), which was recently branded as having the worst employers by the Southern African Clothing and Textile Workers Union (Sactwu), and the Newcastle Chinese Textile Industries Association in separate meetings.
Harris said the DA's main concern over the closure of non-compliant factories was the potential threat of job losses. He expressed that more than a million jobs had been lost since the recession started and that the main cause for the DA's involvement was that of finding a way to create jobs in the sector. "Several misguided ANC policies have worsened the situation. Centralised bargaining arrangements have priced rural factories out of the labour market and the ruling party's cosy relationship with the trade unions has blocked reform. This has resulted in an unusual situation where factory workers in Newcastle are siding with their employers against the closure of the plants by the bargaining council," said Harris.
He further clarified the DA's position and told factory owners that the party would never endorse a situation that resulted in the exploitation of workers and inadequate working conditions, adding that the two factories that the party had visited met the minimum standards for working conditions. "We had been made aware of isolated incidents of exploitation in recent years and we condemned them in the strongest terms. The state has a responsibility to protect workers," he added.
Harris said several interventions by the state to curb unemployment over the past decade had failed. He said simple policy reforms would have had a positive effect on employment. "The implementation of DA polices would have a revitalising influence on the factories under threat of closure." He explained that the DA's proposal of wage subsidies for first-time job seekers would help lower the cost of employment and the direct reimbursement of training costs would help improve skill levels, while labour bargaining reform would also make it easier for new entrants to operate.
Harris said he was confident these policies would create more jobs. In contrast, ANC KwaZulu-Natal provincial secretary Sihle Zikalala said factories had to comply with the rules and regulations and must pay the minimum wages.
Zikalala added that the government was dealing with the matter and the party would intervene if there was a need. Sactwu general secretary Andre Kriel stressed that job creation in the clothing industry could not be based on slave wages. "Member companies of the NCCC paid machinists between R' and R280 per week, while the legal minimum wage for a machinist is already low at R479.10 per week."
In addition, Kriel said there was no evidence to suggest that low wages were a guarantee against job losses. He said according to a report delivered to the congress, it was revealed that over a three-year period to June 30, 18 291 clothing sector jobs were lost and 52 percent of them were from areas such as Ladysmith, Qwa Qwa, Newcastle, Port Shepstone and Botshabelo, where the wages were the lowest in the industry.
Ferdi Alberts, the director of economic development at the Newcastle municipality, said wages should be based on productivity. "Workers should be paid based on what they produce. Wages must be linked to production and an incentive should be provided for those who work hard."
Alberts referred to China, where the government provided companies with an incentive to stay afloat after the recession. "In China, there is also an export incentive and if companies manufactured goods they would get an 11 percent export incentive from the government. The government in China is also paying the full unemployment insurance fund for employees. It's small but it assists. The government there is taking proactive measures to keep the economy growing."
Tholakele Shabalala, a machinist at the Old Tailor Garments factory at Madadeni in Newcastle, said she did not experience any problems with the working conditions at the factory. However, she expressed concern over the R310 she earned every week. "Sometimes what we earn is not enough, but at least we have been empowered and can manufacture our own clothes. If I had the means I could start my own business from the skills that I learned here," she added.
Published on the web by Business Report on September 28, 2010.
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© Business Report 2010. All rights reserved.
Rob Davies warns Sactwu of Asian giants
Sunday, September 26, 2010
Trade and Industry Minister Rob Davies says South African clothing and textile workers will need to improve their productivity a great deal if they want to compete with Asian manufacturers. SABC news reports that the minister directed his comments to the South African Clothing and Textile Workers' Union (Sactwu), during his address at the union's national congress in Cape Town. The minister called for the protection of the industry against Eastern giants, saying reserving certain items like police, military and hospital uniforms for local production is part of such measures.
During his address, Davies warned Sactwu that the local industry was facing an onslaught from Asian countries; he added however that if the local production market gets its game right, they can identify particular segments of the textile industry to target. Delegates were then urged to come up with more proposals to protect the industry. Davies says government wants to align its procurement policy with Black Economic Empowerment codes, to benefit workers.
Davies launched a new programme last week Tuesday which his department said would assist the clothing and textile industry in upgrading its processes. "The main objective is to assist industry in upgrading processes, products and people, and to re-position it to compete effectively, domestically and globally." the department had said in a statement.
Reference: http://www.newstime.co.za/
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