Labour Law & Unions News South Africa

14 000 jobs lost if 450 KZN factories close

The Congress of SA Trade Unions (Cosatu) in KwaZulu-Natal criticised employers in the clothing, leather and textile industries on Tuesday (29 January) for threatening to cut more than 14,000 jobs.
14 000 jobs lost if 450 KZN factories close

Cosatu's provincial secretary, Zet Luzipo said that employers are not entitled to threaten workers with job losses before negotiations with unions are underway.

On Monday (28 January), more than 14,000 factory workers in KwaZulu-Natal were told they could be out of work by the end of the week because 450 clothing factories were due to be shut down by the National Bargaining Council (NBC) for failing to comply with minimum wage laws.

United Clothing and Textile Association chairman Ahmed Paruk was quoted as saying mass imports from Bangladesh, China, Mauritius and Pakistan made it almost impossible for local factories to survive, let alone pay the prescribed wages.

Luzipo said wage negotiations between the textile industry and the Southern African Clothing and Textile Workers' Union were expected to start in March.

He accused employers of pre-empting the outcome of the collective bargaining.

"Clearly, to them, the demand for a living wage is economic sabotage. We will rally behind the demands of those workers not just for a living [wage], but also for better working conditions," he said.

Luzipo said the employers' tactics were to seek public sympathy and create an environment that scared people.

He conceded that the the union had not been informed that the textile industry was suffering financially.

Luzipo said the Labour Act allowed employers to be exempt from paying the minimum wage if their company was struggling financially, he said.

"Employers are running away from full disclosure, which determines whether a company gets exempt or not," he said.

"Also, employers were making it seem as if the workers' demands were ridiculous, which was irresponsible," he added.

Source: Sapa via I-Net Bridge

Source: I-Net Bridge

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