Clothing wage talks begin

South Africa
Wage negotiations in the clothing sector are to begin within a volatile climate.

Comment from The ReDress Consultancy:

It is a noble stand that the United Clothing and Textile Association (UCTA) will not accept “the outcome of new wage negotiations,” however, the law is in favour of the union and bargaining council which declares that the collective agreement in regard to the National Bargaining Council for the Clothing Manufacturing Industry is automatically expended to all employers in the industry.  If this were not the case, non-compliant companies, would not be currently waging the ongoing interchange in regard to wages with the union and the bargaining council. 

In excavating this article I have found, in my opinion, some inconsistencies.

On the 24 March this year, the clothing union (Sactwu) released a statement saying, “A large group of clothing employers, organised under the auspices of a national employers' association called the Apparel Manufacturers of South Africa (AMSA) has threatened to boycott this year's clothing wage negotiations.”  The union statement went further explaining that the “clothing bosses” said they should not “be required to present themselves for wage negotiations this year, due to the extent of wage non-compliance in the industry and the fact that the union has not accepted their proposal for a 'new wage model' for the industry.”

Of course, we can unpack the meaning of “threatened.” However, the mere fact that AMSA felt compelled to disclose their feelings to the union means they initially felt it imperative to let the union know that they were contemplating boycotting the forthcoming wage talks. However, this article clearly defines that AMSA has had second thoughts and will take part in the discussions. I do endorse AMSA’s statement that labour alone cannot define wage hence the need for negotiations, however, the outcome of any negotiations will preference the requirments of a minority of clothing companies and place even further strain on companies falling under the auspicious of UCTA.

The United Clothing and Textile Association was officially launched in February 2011, and is currently taking steps in accordance with the labour law to become a registered industry representative body.  The objective is for UCTA to join the bargaining council  which will be welcomed by the clothing union who said on the 30 March 2011, “once UCTA is a legally registered employer association,  [it should] join the clothing bargaining council as a party employer’s association [ and then]  SACTWU would without hesitation agree to enter into negotiations with UCTA, to explore how their concerns could be accommodated.”  UCTA, has not been in existence for two years as alluded to in this article.

The union is asking for a nearly 20% increase in wages.  However, I also have to ask will the R90 million in workers’ provident fund that was lost be discussed and furthermore, will the union compensate any decrease in their prescribed wage increase if “clothing bosses” take a 30% cut in wages.  The next few days will be hard negotiations within a volatile environment, whatever, the outcome, there is no doubt that there will be an outcry from the industry and we could see even further clothing companies closing or an increase in retrenchments.

Textile employers to boycott wage talks

The United Clothing and Textiles Association (UCTA) would not accept the outcome of the new wage negotiations now under way at the bargaining council until the minimum wage dispute was resolved, UCTA chairman Ahmed Paruk said yesterday.

Paruk also claimed that other employer organisations in the industry had taken a similar position.

But Johann Baard, the executive director of the Apparel Manufacturers of SA (Amsa), denied that it would boycott negotiations for new wages.

Wage negotiations will take place in Durban tomorrow and on Friday. The increase will be implemented in September.

“We can’t accept the new wage before the old issue (minimum wage) is resolved,” Paruk said.

The UCTA and the bargaining council have clashed since last year over the payment of a minimum wage, which increased to R336 a week in April. The bargaining council has been cracking down on non-compliant factories after a decision to allow these companies to phase in compliance.

There are 300 non-compliant factories represented by the UCTA. The bargaining council has been inspecting 416 non-compliant factories since last month and has closed some in the process, although others have also reopened.

The non-compliant factories employ at least 14 500 people and owe workers R86 million in short wages from September 2008 to September 2009.

Last year, it was agreed that factories must start paying a minimum wage of R336 a week by the beginning of April, R465 by the end of the year and R516 by April next year.

Baard said Amsa could not support the UCTA’s call to shun negotiations because it would mean labour alone would decide wages for the industry.

“We have invited the UCTA to the bargaining council for the past two years because if you are in the bargaining council, you can influence events instead of shouting from the sidelines after the events,” he said. “Precisely by engaging in the wage negotiations, we are trying to find a new wage model for the industry.

“We agree with the UCTA that the current wage model is not sustainable and it is undesirable to close companies down but it is not Amsa’s fault that these companies are closing down,” Baard said.

Wayne van der Rheede, the deputy secretary-general of the Southern African Clothing and Textile Workers Union, said the union was not concerned by the UCTA’s position as it was not part of the bargaining council.

Paruk said its lawyers had asked the bargaining council for more information on the compliance assessments.

Bargaining council national compliance manager Leon Deetlefs said yesterday it was still collating information about the assessment and would have an update tomorrow. - Business Report

Reference Business Report, May 18 2011

By Slindile Khanyile