Clothing union speaks about the new entry-level wages.
Responsible media coverage of clothing & textile sectors.
It is absolutely imperative that media report on the clothing and textile sector in a responsible manner. Instead their misunderstanding and or integration of the words clothing and textiles in their reports sews further confusion and leads to misrepresentation.
The new entry-level wage agreement is NOT for the textile sector. The Apparel Manufacturers Association (AMSA) does not represent the textile industry. This agreement is only for the apparel industry.
Sactwu’s General Secretary answers questions posed by South Africa’s textile federation regarding the new entry level wages for the clothing sector.
Date: 13 October 2011
Question:
Why is there this change from SACTWU? A wage proposal albeit linked to productivity was tabled over a year ago but was rejected by SACTWU?
Answer:
THERE IS NO CHANGE FROM SACTWU. WE HAVE FOR A LONG TIME BEEN EXPERIMENTING WITH THE CONCEPT OF A LOWER ENTRY RATE, BEFORE INTRODUCING IT INTO THE CLOTHING INDUSTRY. FOR EXAMPLE, IF YOU SPEAK TO SOME OF THE EMPLOYER NEGOTIATORS IN THE TEXTILE SECTOR, THEY WILL TELL YOU THAT FOR QUITE A FEW YEARS, IN SOME OF THE SECTORS, THAT CONCEPT EXISTED. WHAT IS NOW NEW IS THAT IN THE CLOTHING AGREEMENT IT IS FIRMLY LINKED TO EXPLICIT JOB CREATION COMMITMENTS.
WE HAVE NOT REJECTED PRODUCTIVITY LINKED WAGES IN CLOTHING. IN FACT, SACTWU HAS CHAMPIONED IT. THE CURRENT CLOTHING MAIN AGREEMENT'S WAGE STRUCTURE PROVIDES FOR WAGE LEVELS WITH AND WAGE LEVELS WITHOUT PRODUCTIVITY INCENTIVES. WHAT IS SAD IS THAT EMPLOYERS HAVE FAILED TO IMPLEMENT IT, AND IT ONLY GETS IMPLEMENTED WHERE THE TRADE UNION PUSHES IT.
Question:
Does this new wage proposal only pertain to compliant clothing companies? Or does it also apply to non-compliant clothing companies?
Answer:
IT APPLIES ONLY TO COMPLIANT COMPANIES
Question:
Will companies have to increase new personnel to 100% of bargaining council wages within a certain period or will there be an incremental > increase in wages?
Answer:
INCREMENTAL, BUT THE END POINT IS 70% OF THE CURRENT QUALIFIED (METRO AREAS) AND 80% OF CURRENT QUALIFIED IN NON-METRO AREAS.
Question:
Are there other conditions that employers have to comply with?
Answer:
YES. THEY CANNOT RETRENCH CURRENT WORKERS AND REPLACE THEM WITH NEW EMPLOYEES ON A LOWER RATE. THEY MUST GROW EMPLOYMENT IN COMPLIANT COMPANIES BY 15% BY MARCH 2014, AT A BENCHMARK RATE OF 3% EVERY 6 MONTHS WITH EFFECT FROM 1ST SEPTEMBER 2011.
Question:
Cosatu is, according to Patrick Craven, still "looking into the agreement to find out what it is about." Is there a possibility that Cosatu will not endorse it?
Answer:
I AM LIAISING WITH COSATU REGARDING THE MATTER AND AM CERTAIN THAT AT THE APPROPRIATE TIME SOME SORT OF PRONOUNCEMENT OR COMMENT WILL BE MADE BY THE FEDERATION. SACTWU IS PROCEEDING WITH THE IMPLEMENTATION OF THE AGREEMENT THOUGH, AS WE SPEAK, AS IT IS AN AGREEMENT THAT HAS BEEN LEGITIMATELY REACHED IN TERMS OF OUR COLLECTIVE BARGAINING PROCEDURES. I UNDERSTAND COSATU'S CONCERN AND WILL WORK WITH THE FEDERATION TO HELP ADDRESSING IT.
Question:
This agreement provides a legal framework for employers in the already stressed textile sector to seek a similar agreement. Can this agreement be extended to the textile industry?
Answer:
NO, IT DOES NOT PROVIDE A LEGAL FRAMEWORK FOR EMPLOYERS IN THE TEXTILE SECTOR TO SEEK A SIMILAR AGREEMENT. THE AGREEMENT IS ONLY LEGALLY BINDING ON THE CLOTHING INDUSTRY. CONDITIONS ALSO DIFFER: FOR EXAMPLE, IN THE CLOTHING INDUSTRY THERE IS ONE NATIONAL BARGAINING COUNCIL COVERING THE WHOLE SECTOR.
THIS IS NOT THE CASE IN TEXTILES, WHERE FOR EXAMPLE FABRIC KNITTING EMPLOYERS HAVE FOR YEARS REFUSED TO BE COVERED BY THE SCOPE OF THE TEXTILE BARGAINING COUNCIL. FURTHER, IN SOME TEXTILE SECTORS, THERE IS ALREADY A SIMILAR DISPENSATION IN PLACE (IE ALOWER ENTRY RATE) BUT WITHOUT SPECIFIC JOB CREATION TARGETS. ALSO, AS AN EXAMPLE, THEIR IS QUITE A SOPHISTICATED MULTI-TIERED WAGE REGIME IN PLACE IN THE CLOTHING SECTOR (FOR EXAMPLE, AT LEAST 60 DIFFERENT WAGE CATEGORIES FOR A MACHINIST, DEPENDING ON GEOGRAPHIC AREA, LENGTH OF SERVICE, ETC, WHICH IS NOT THE CASE IN THE TEXTILE SECTOR)
ALSO, IT IS MUCH CHEAPER TO CREATE A JOB IN THE CLOTHING SECTOR THAN WHAT IT IS TO CREATE A JOB IN THE TEXTILE SECTOR. HOWEVER, NOTHING OF COURSE PREVENTS TEXTILE EMPLOYERS FROM TABLING ANY PROPOSAL DURING THE ANNUAL ROUND OF WAGE NEGOTIATIONS. IT IS THEN UP TO THE NEGOTIATING FORUMS TO DEAL WITH IT.
Question:
When will this new entrant wage proposal be implemented?
Answer:
THE AGREEMENT IS EFFECTIVE RETROSPECTIVELY TO 1ST SEPTEMBER 2011.
ENDS
On 13 October Sactwu’s General Sectary was interviewed by the Financial Mail.
Q & A - Sactwu general secretary, Andre Kriel
Of mutual gain
Claire Bisseker speaks to SA Clothing & Textile Workers’ Union general secretary Andre Kriel about the wage deal with employers allowing them to pay new entrants 30% less than existing workers.
Q: What made Sactwu agree to the new model, given that labour has long opposed a two-tier labour market?
Among other things, it was the realisation that we need to embark on an extraordinary effort to ensure the repatriation of foreign orders linked to domestic job creation, further attack non compliance and grow trade union membership.
Q: Did you consult with Cosatu before signing it?
No, there was no need to. This agreement does not transgress Cosatu policy.
Q: Is Sactwu happy with the agreement or do you still harbour suspicion about a two-tier labour market?
We will, of course, remain vigilant against any possible abuses and will regularly monitor implementation progress. We are committed to make it work. This is an example of a settlement where both parties have their concerns but, on balance, each feels it is of mutual gain. Like any virgin agreement, there will be controversy and debate. This is healthy to help strengthen the developmental mandate of our labour market policy.
Q: Could the economic downturn derail the agreement?
Employment levels in compliant companies must grow by 15% over 30 months, failing which the agreement is automatically cancelled. This provision is not subject to any factors such as economic downturns. Employers will have to find innovative ways of meeting their job creation commitment if any challenges arise.
Q: Can Sactwu account for R100m in provident fund money which it allegedly invested in Canyon Springs Investments?
The provident funds are stand-alone funds, independently controlled by a board of trustees. Sactwu has never been part of the investment decisions of the board of trustees. Nevertheless, we’ve taken steps to initiate and lead a section 417/418 Companies Act inquiry into the missing money. We are determined to find out what has happened to the money and to bring any guilty party to book.
ENDS
The ReDress comments that the lowing of wages may have an impact on unions and bargaining councils in other industry sectors. This was endorsed by Sacci.
On the 10 October it was reported that the SA Chamber of Commerce and Industry said that the new clothing wage model could be followed by other industries.
The lowering of the minimum wage in the clothing and textile industry can serve as a model to other industries, the SA Chamber of Commerce and Industry said on Monday. The agreement to lower the minimum wage by 30 percent within the clothing and textile industry is a model that can be implemented to increase South Africa's competitiveness and employment creation," Sacci president Chose Choeu said in a statement.
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