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Employers in the clothing industry in Newcastle, KwaZulu-Natal have threatened a total shutdown tomorrow and Friday similar to the one held last year to show support to their colleagues whose factories were closed this week for not complying with the minimum wage requirements.
The shutdown of 90 factories will jeopardise about 8 000 jobs. Yesterday, the bargaining council closed two factories, Star Fair and Simunye Clothing, putting about 500 people out of work. There are four more factories to be closed this week. In total, all six factories employ about 2 000 people.
Ahmed Paruk, the chairman of the United Clothing and Textile Association (UCTA), which represents 300 non-compliant factories, said it was consulting with their lawyers for a long-term solution. “But in the meantime, (tomorrow) and Friday, there will be a total shut-down of all the factories… about 90 factories will close down for two days,” Paruk said.
“We are taking this matter very seriously as the UCTA and are saying let us talk and save these jobs but the bargaining council is adamant to close the factories down. I can’t understand that at a time when President Jacob Zuma and the ANC are talking about creating jobs, this is happening. We are very disappointed with the way this is conducted, at a crucial time before the elections, people are losing jobs,” Paruk said.
Alex Liu, the chairman of the Newcastle Chinese Chamber of Commerce, whose company Simunye was one of the two closed yesterday, said the group would meet with members to discuss a way forward before finalising whether they would go ahead with a total shutdown.
Liu said there were members who had hinted that they would want to shut down in solidarity with their colleagues.
The minimum wage is R336 a week and it will rise to R465 by the end of the year before topping R516 by next April.
Last year, the UCTA proposed that instead of a minimum wage, there should be an entry level wage of R220 a week paid to a general worker in rural areas and R300 in urban areas. A qualified machinist from a non-metro area would earn R280 a week while a metro-based counterpart would take home R450.
In terms of agreements at the bargaining council, the minimum weekly wage for a qualified machinist working in a city is R740 and in a town it is between R451 and R522.
Leon Deetlefs, the compliance manager of the bargaining council, said he was not in a position to comment on the factory closures.
Wayne van der Rheede, the deputy secretary-general of the Southern African Clothing and Textile Workers Union, said the union had not been notified of plans to shut down all the factories tomorrow and on Friday.
Van der Rheede said the union would take action to protect its workers if the shut-down went ahead.
Last year, Sactwu took legal action against the employers following a voluntary shut-down by Chinese-owned factories, which was described as an “illegal lockout”. - Slindile Khanyile
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Blackfoot, wrote
It's still cheaper to import the finished product direct from China. Government will support a few BEE individuals doing this type of trade, and making huge profits, but not the soon-to-be unemployed (and starving) local workers. Typical no-brain ANC attitude.
Anonymous, wrote
Chinese people have been always been exploited in south africa.Only recently in 2008 was chinse people considered human.
David, wrote
The unions are saying rather have a person die from hunger than earn wages below minimum wage. Does this not go against the workers constitutional rights? Can't the government subsidise these factories instead of paying social grants? This situation is insane. There has to be a solution that works for everyone. I just cannot understand the solution by government to shut down the factories since it goes completely against what they are striving for to get more people employed. This is a worrying situation on many levels about this country's ability to solve important problems.
peter, wrote
It is sad what these people earn , but give them 3 x that and you will get the same production . What they need to do is be very productive and then the bosses will want to keep them at a better wage . Bargaining councils are there to keep the big existing companys and unions fat and happy , it's got nothing to do with workers rights .
Rigil, wrote
In a free enterprise system one cannot dictate minimum wages. Workers themselves will dictate this. Unions and bargaining councils have no idea what free enterprise means. They have no idea what it takes to run a business. They have no idea what it takes to be entrepreneurial. One only has to look back in history to see what happens to a country's economy when unions and labour socalist governments start dictating terms. Great Britain being a typical example. A big serious recession ! If however the present government and union movements were serious about the worker's wages and employment figures, surely they should have prohibited the import of made up goods in the clothing industry. Makes one wonder who is being backhanded here. No wonder it is difficult for established businesses to stay operational and new businesses to start up. Workers should also shoulder some blame for voting for unions who are just ripping them off. Yet, the present government sanctions the import of goods from countries with shocking labour practices ! What double standards !
ralph, wrote
If you pay peanuts you will get monkies working.Why not invest money to upgrade your employees and give them a better work enviroment. The more stable your workforce is the more money you will make in yhe long run.Unions are for all the idiots that will follow like sheep.Please dont think that the Chinese work for peanuts they are a well dissiplined society that has one work do the job of three,no unions who interfere.
The Graduate, wrote
Don't you folks get it. The minimum wage is a law that has to be complied with, period. There is no middle ground or compromise any of the unions or factory owners can negotiate. There is a serious culture of failing to abide by the rules in this country whether it be a corrupt politician or a factory boss in the private sector. There is a reason for these laws, obey them and slowly but surely we'll build that desperately needed socio-economic infrastructure.
Fred, wrote
I used to own a clothing manufacturing factory and a factory making table and kitchen linen. We were overpowered by high wages and pathetic productivity before the Chinese dumped their products into our market, and after that we just gave up and lost the two million Rand we had put into our businesses. When all your major retailers are importing from China, it leaves no hope for the textile industry in this country. I personally think that no matter what the government does now, the textile industry in South Africa is beyond saving. Our Unions are another of the biggest problems in the industry, always demanding, but never encouraging their members to be productive. Suffice to say I will never open another labour-intensive business in this country.
Tanya, wrote
And while they're striking the poor factory workers will not be getting any pay (not that they're missing much)to at least put some food on the table. the union fatcats are only worried about their own pockets!It's a crying shame that these people earn such a meagre salary, most of them not even belonging to a provident fund as they can't afford that to be deducted too as the salary's already so little.I wish that SOMEONE will agree that the factory workers deserve a decent wage increase, considering the hours and travelling that it cost them. What's left to take home???? think about it
Graham F, wrote
Its incredible that they would sooner put people out of work rather than let them work for lesser pay. No wonder we can't compete against Chinese imports!
Matrix, wrote
I agree with the factory owners. This government has a very sick attitude to employers. The greater problem is that there are no jobs period. This is the issue that should be addressed. If there was a healthy economy then employers would be forced to pay market related wages to retain workers, there would be no need for laws to enforce this, the market itself would. South Africa has a culture of " bite the hand that feeds it". They punish the people who contribute to the economy be it in business or personal capacity and are always marginalising them and they reward laziness by creating a culture of "hand-outs" and "entitlement". I shudder to think what 2020 is going to bring.
Jay G, wrote
Is the cost of food items, electricty, water, fuel, medication etc lower in rural areas?
Jay G, wrote
Is the cost of food items, electricty, water, fuel, medication etc lower in rural areas?
John, wrote
Business people are in the trade for profit, but will respond in a fairly reasonable manner if the authorities listen to them. Alternatively, the factories will relocate to Lesotho,etc. The state is not without its faults and thus both sides have to compromise. Its officials and ministers have often exhibited greed and dishonesty.....this puts everyone into a suspicious position.
Anonymous, wrote
would these people rather have R220.00week or have R0.00future??? Let the people decide. Unions are in it for their own welfare and not considering their members wellbeing. Have they even considered what these increases will do to the factories? As it is, imports from China, India are so cheap already and in order to stay open, they need all the "competitive edge" they need to get their goods to the market. Rather have 8000 employed, contributing to the economy, than 8000 un-employed, siphoning funds of R100week from unemployment funds.
Anonymous, wrote
@Adrian - this is not about handouts. This is about exploitation and a breach of the law by those factories. Africa has for long cursed the West now it faces the hardest taskmaster of all...the East!
Anonymous, wrote
Actually there something the news didn't mention abt UNIONS, my father was a factory owner. Last year they took all our machines and our material and auction them out. They promise to my workers that all the money they make out of auctions will divide equally to compensate the under pay wage. But at the end the UNIONS made empty promises, they kept all the money. And now our factory is closed down. Some of my workers still unemployed.
Anonymous, wrote
Actually there something the news didn't mention abt UNIONS, my father was a factory owner. Last year they took all our machines and our material and auction them out. They promise to my workers that all the money they make out of auctions will divide equally to compensate the under pay wage. But at the end the UNIONS made empty promises, they kept all the money. And now our factory is closed down. Some of my workers still unemployed.
Anonymous, wrote
Actually there something the news didn't mention abt UNIONS, my father was a factory owner. Last year they took all our machines and our material and auction them out. They promise to my workers that all the money they make out of auctions will divide equally to compensate the under pay wage. But at the end the UNIONS made empty promises, they kept all the money. And now our factory is closed down. Some of my workers still unemployed.
Ivan, wrote
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