The Rex Trueform plant in Salt River, the symbol of the Western Cape textile industry, closes its doors at 2pm - but a brave and imaginative rescue plan will be signed on Tuesday.
The plan, agreed on in principle by Rex Trueform management, the SA Clothing and Textile Workers Union (Sactwu) and the new owners, House of Monatic, starts off in a limited way from next month.
Sactwu secretary general Ebrahim Patel said once the company's intention to close had been confirmed, the union had set to work on a plan that would secure the maximum benefits to retrenched workers, plotting a "sustainable model" which could act as a flagship for rebuilding the tattered industry, and holding out a lifeline of re-employment in the same factory.
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The parties have agreed:
'When I leave the factory today, it will be like I am leaving my family behind'
The entire staff of 920 people will get retrenchment packages substantially higher than the statutory requirement. A machinist, for example, will be paid two weeks' salary for each year worked instead of the statutory minimum of one week.
From July to December Rex Trueform will start up a trouser line, with 100 workers, as a transitional operation between the current owners and the new owners.
On January 2 the House of Monatic, Brimstone's flagship enterprise in the fashion industry, will start operations in the Rex Trueform building under the Rex Trueform label.
The new company will have the option of a five-year lease on the premises, and will be allowed the use of the Rex Trueform machines.
The new owners will restructure operations to include a traditional textile manufacturing plant that is expected to provide employment for 500 people.
It will also set up a cluster of cut, make and trim operations in the building so that small independent operators will have access to modern infrastructure and necessary support services.
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