The ReDress Consultancy

Clothing industry dispute continues

2012-05-31T19:01:00.000+02:00

South Africa
This is a rough translation from Afrikaans

Commentary from The ReDress Consultancy

How positions seem to have changed during the course of the past six or so months. From reading this article we understand that it is now the clothing union, Sactwu that is reluctant to pursue the closing of non-compliant clothing companies that will result in massive unemployment.

Is this politics at play - election time? Or, is the union considering a revaluation of the state of the industry?
And what is the real position of AMSA. The organisation seems determined to now pursue legal recourse in shutting down non-compliant companies. Is there a solution?

THREATENED CLOTHING FACTORY WARS

25 May 2012 Dewald Van Rensburg

Sake24

Johannesburg. - The controversial shutting down of clothing factories that
do not pay minimum wages could soon be resumed.

A total of 450 factories could be affected by this.

Between them, these factories employ "10 000 to 12 000" people, a full fifth
of the employees registered with the sector's Bargaining Council" says Johan
Baard, director of the Council's largest employer group, Apparel
Manufacturers of South Africa (AMSA).

A "phasing in period" for transgressors which was granted last year amidst
an inundation of factory strikes, expired at the end of April. According to
AMSA, the doors of anyone not yet paying the minimum wage would be locked.

He insists that the closing down of factories is not his first choice in
solving the problem.

The possibility of shutting down of factories could lead to labour unrest in
the industry, as relations between AMSA and SACTWU, the union in the
Bargaining Council, deteriorated spectacularly this year.

SACTWU does not agree about the phasing in period, and the demands (Amsa's) that whoever
does not ascribe to the prescribed wage levels should immediately be shut
down. The union has declared a dispute with AMSA.

A third party shall therefore have to decide if the agreement implies that
the shutting down of factories must be resumed.

Earlier this month the union said in a letter to AMSA that they "do not
share the employers' viewpoint that "there had been no way forward" to
reduce wage transgressions.

To the contrary, compliance with prescribed wages had actually improved.

The damage and rivalry between transgressors had caused AMSA members has,
according to the union, lessened and the time had come for less drastic
measures to be taken.

AMSA also insists that it does not want to shut down factories, but says
that it has no choice as their members, who do indeed pay the prescribed
wages, would be undermined by wage transgressors.

Since 2005 a number of shutting down campaigns have been put into operation
and at the beginning of last year the Council estimated that "between 200
and 300" factories had already been shut down since the National Bargaining
Council was formed a decade ago.

However, without SACTWU's agreement the Council cannot carry out the
shutting down of factories.

AMSA now intends to approach the Labour Court with an urgent proposal that
the standing agreement with the sector, which according to them indeed
compels the shutting down of transgressing factories, must be implemented
despite opposition by SACTWU.

According to Baard the Court application has already been drawn up and is
expected to reach the Court within a few days.

It is unknown how this will affect the dispute stated by SACTWU.

Andre Kriel, head secretary of SACTWU, told Sake24 yesterday that the fate
of the factories which are still not paying the minimum wage would have been
discussed on 18 April at a meeting with AMSA at the Service Board. "AMSA
unilaterally cancelled this meeting a day before it was scheduled" said
Kriel.

Thereafter AMSA also unilaterally withdrew from a loan negotiation meeting
on 18 April.

There is indeed an agreement that next Monday AMSA will furnish SACTWU with
a "new loan structure". For years AMSA has been promoting a system which
will couple wages to productivity, although yesterday Baard would not
disclose the proposed suggestions to SACTWU.

WAGE PLAN IN CLOTHING SECTOR FAILS

The agreement which was reached last year in the clothing sector to reduce
new employees' starting salaries in support of job creation appears to be a
total failure.

To date only between 200 and 250 employees have been appointed in the sector
at the lower starting salary said Johan Baard, Director of the sector's
prevailing employer group, Apparel Manufacturers of South Africa (AMSA).

In this agreement the target was set that the employers involved would
increase the number of posts by 15% within 3 years, approximately 5400
additional posts. Following on from this, by March this year there should
have been 3% more, or approximately 1000 new posts created.

According to Baard this drawback was predictable.

The new employees had soon become dissatisfied with earning between 20% and
30% less than other employees who are often doing the same work that they do
and who maintain the same productivity level, said Baard.

This leads to one of two things: Either the employees leave the factory or
the employer eventually pays them the standard wage.

The lower wages that were permitted for new employees ranged between R427
and R522 per week for machinists, the most common occupation within the
industry.

This is in comparison to the R489 to R740 which would otherwise be
applicable.

According to Baard, trade uncertainty is another reason why recruitment does
not grow in the sector.

Wage talks stalled

2012-05-28T12:25:00.001+02:00

South Africa
Current clothing wage negotiations have for the second time come to a halt.

Compliance snag halts textile wage talks

May 25 2012

Ref: Business Report

Nompumelelo Magwaza

The clothing industry wage negotiations have hit another snag after the Southern African Clothing and Textile Workers Union (Sactwu) declared a dispute against the Apparel Manufacturers of SA (Amsa) during the second round of bargaining in Durban on Wednesday.

At the centre of the dispute are claims by employers’ group Amsa that the union had entered into an agreement with complying employers that full compliance with minimum wages would be achieved by the end of April this year.

Amsa executive director Johann Baard said the union was not prepared to confirm the agreement for the comprehensive enforcement of prescribed minimum wage in the industry. However, according to the 2011/12 substantive agreement, which was signed by seven employer associations and the union, there is no such provision.

Sactwu disputed this, saying the “agreement” was never part of any provisions made during wage talks last year.

Amsa, which is the majority employer body in the industry, made it clear that it would not engage in wage negotiations unless Sactwu dealt with non-compliant employers as set out in the agreement.

Sactwu said yesterday that Amsa was publicising false claims in order to escape its obligation to grant workers a decent wage increase. The first round of the wage negotiations came to a halt when Amsa walked out of a meeting in Cape Town last month.

It is understood that non-compliant employers, who are not party to the national bargaining council (NBC), pay their workers less than minimum wages.

Sactwu general secretary Andre Kriel said: “The union rejects this claim and has pointed out that there is no such provision contained in last year’s wage agreement. Despite the union having pointed this out to the employers, they have persisted in their public claims to this effect.”

The union has referred the dispute to the bargaining council for processing. It has asked Amsa to withdraw such claims and confirm that no provision envisaging that 100 percent compliance would be achieved by April 30 was contained in the 2011\12 wage agreement.

Amsa said this included the serving of the writs of execution currently held by the NBC against more than 450 non-compliant clothing manufacturers. Baard said if wage negotiations went ahead without Sactwu first seeing to these non-compliant employers, then the compliant employers would feel cheated.

“To do so would simply exacerbate the competitive disadvantage suffered by our members who pay the minimum wages, whilst those who break the law by underpaying their employees, continue to take business away from the compliant factories.”

Amsa also accused the union of engaging the KwaZulu-Natal Coastal Clothing Manufacturers Association in legal wage talks, saying the majority of its members were non-compliant.

“This gesture is severely compromised due to the fact that many of its members will pay the increase off a low wage base due to them not honouring the current wage levels governed by the NBC main agreement.” However, a representative from the association, Rajen Naicker, disputed this. He said the association was party to the bargaining council and that it had non-compliant and compliant members.

Amsa took a decision to provide the union with a detailed proposal regarding a new wage model for the industry by next week.

Further reading:

“The sector is fighting a losing battle against low productivity, skills shortages and high wages,” Manufacturing Sector. Click here to read the entire article.

"The results of the much-trumpeted deal reached last year in the bargaining council for the clothing industry, in terms of which new employees could start on wages 30% lower than the previously agreed norms, have been disappointing: only a few hundred new employees were employed under the scheme nationally." Click here to read entire article.

Belief in South Africa's Clothing Industry

2012-05-22T17:56:00.001+02:00

South Africa

One year in, and Umuzi Clothing is a promising outfit

May 22 2012

Nompumelelo Magwaza

BUSINESS REPORT

Amid job losses and factory closures in the textile and clothing industry, a beacon of hope shines in the little town of Hammarsdale in KwaZulu-Natal.

A year ago, Umuzi Clothing Manufacturers was established. At that time the owners and managers were not sure if they were going against the curve as many factories debated workers’ wages. Others were closing shop and many were simply waiting for the government to save the industry.

A year after opening its doors, Umuzi has created 100 jobs and plans to double the number by next year.

Umuzi’s fabrics are supplied by the Mediterranean Textile Mill (MTM), which has been in the area since 1961.

Although the two companies operate as separate entities, they share a supply chain partnership.

MTM is one of oldest textile factories in the area and just like any other textile mill, it has undergone the hardship of retrenching its workers and shrinking its operations. It is believed that in the 1980s nearly every second person living in Hammarsdale worked in the clothing and textile sector.

But as the sector became eroded with high competition from cheap Chinese imports and lagged behind in technology upgrades, many factories had to shut down and jobs were lost.

Renato Palmi, a project manager for both firms, said the partnership would create local clothing lines and job opportunities. “The link between the two entities provides a unique value chain… our customers are supporting local production and content and in their way contributing to employment in the country,” he said.

He added that the only way to bring life back to the textile and clothing sector was to increase productivity to match international competition.

This should include the adoption of quick response manufacturing. Palmi added that apparel production was changing from the traditional mass-production to mass-customisation and in-trend manufacturing models.

“We are very proud that we’ve managed to get this going. We were able to create some jobs and all we need now is the support of the government and the industry.”

Palmi said: “Our efficiency is in the unique relationship between the textile company and Umuzi, the entire linkage being proudly South African and an intense focus on quality, productivity, output, price and market understanding.”

Industry players, including MTM director Marcus Varoli, have recently disputed claims by the Southern Africa Clothing and Textile Workers’ Union that productivity in the sector has increased by 73 percent.

In his argument, Varoli asked: if this was the case, why were companies such as Seardel and Trubok still retrenching workers? He also asked why Sactwu’s report was never made available to the rest of the industry.

A partner at Umuzi, David Telford, said the sector needed motivated workers who would increase volumes to improve the local industry’s competitiveness. “We are racing with China, Pakistan and countries like Turkey so we need to motivate for high productivity, which will get us to be better competitors,” he said.

Both Telford and Palmi agreed that Umuzi could benefit from government incentive schemes, but they called for stricter rules to police the initiatives.

They both agreed that government manufacturing incentives or initiatives to revive the industry were going in the wrong direction and companies like Umuzi deserved the opportunity to establish themselves

SA Olympic Committee Backtracks - alittle

2012-05-21T16:43:00.001+02:00

Apparently South Africa's Olympic Committee has decided to have a South Africa designer design the team's opening kit.

However, as the clothing union rightly says, what about the manufacturing?

It is strange that the SA Sports Confederation and Olympic Committee (Sascoc) has not mentioned anything about production.

Will the Chinese firm that is making the kit - see link - will also be making the opening ceremony kit?

We await further details from Sascoc.

The ReDress Consultancy feels this is just shallow tokenism.

SA companies to be more competitive: DTI

2012-05-16T09:15:00.000+02:00

SA firms 'must be more competitive

If SA companies are to be relevant in global markets and especially in Africa, they have to raise their competitiveness, says Trade and Industry Minister Rob Davies.

Launching the DTI's R5.8-billion manufacturing competitiveness enhancement programme yesterday, Davies said research had shown companies among the first to fail during the recent economic downturn were those that had not modernised.

He said there were opportunities for South African manufacturers including entering African markets.

"We are convinced that the African continent, including South Africa, is well placed in the medium term for strong growth."

Davies said if South Africa wanted to be a significant player on the African continent it would have to make significant investments to improve its competitiveness.

Explaining the new programme, Davies said that a major aim was: "... encouraging companies to make competitiveness enhancement improvements now rather than later".

He said the programme was aimed at improving production output and was similar to the strategy used to help the clothing and textile sector.

"It is no secret that the clothing and textile sector was in dire straits, but by focusing on production output, it has stabilised, and even in some cases increased employment," he said.

Ref: TimesLive, 16 May 2012

Clothing Union and Bargaining Council in their own Utopia

2012-05-11T09:59:00.001+02:00

South Africa
Academics, economists, commentators, industry leaders, employers in various ways send the same message.
There is so much potential for job growth, productivity and competitiveness in South Africa's clothing/textile sector. The bargaining council terms of engagement and the union require a serious re-evaluation. Skills-development is critical but wage expectations of the unskilled and unemployed are hindering serious growth.
Why are South African companies in Lesotho growing or South African retailers venturing to source more from South Africa's neighbors? Why are clothing/textile companies in SA closing?

The author of the article below is right to a point. The industry and more so labour needs a critical shift in thinking and a willingness to bin antiquated ideologies for the betterment of all. The meaningless rhetoric must stop and be replaced with constructive dialogue, engagement and action.

SA must just get out of textiles trap

Ref: Business Day, 11/5/12

DAVID GLEASON

ONE definition of insanity is repeating the same action, expecting a different result each time. That sounds so like the South African textile sector it isn’t funny.

This country’s textile industry is stuffed, period. We cannot compete with China. Doing so is an invitation to get knocked down repeatedly.

In fact, it’s a tragedy, but it’s been a tragedy for so many years that what is least understandable is why we go on mourning it. This country’s textile industry is stuffed, period. We cannot compete with China. Doing so is an invitation to get knocked down repeatedly. Getting out of the ring and finding something else to do, now that would be clever — but it’s probably asking too much of employers and union officials.

In October last year, employers and the dominant South African Clothing and Textile Workers Union reached a landmark deal in terms of which new employees would start on wages 30% lower than the previously agreed norms. The development was seen as a genuine attempt by all sides to rescue the clothing sector.

Employers agreed to employ 5000 more people over three years. They arrived at this compact as a result of the union’s rejection of a new wage model proposal put forward by the Apparel Association of SA. It had concluded there was no alternative to the industry’s endemic problems other than to arrive at an entirely new arrangement.

The union has now turned up at the annual bargaining table. It wants a 13% wage increase, which association executive director Johann Baard says translates into a 20% raise for non-metro employees.

In any event, employers have disengaged from the process. They consider it grossly unfair that as many as 40% of employees registered with the sector bargaining council are being paid substantially below the regulated minimum wage.

Baard tells me he is sitting on 450 writs of execution against companies that are paying less than the minimum wage. They owe workers millions in unpaid contributions to provident funds and medical aids. The association doesn’t want to move the process to the Labour Court because the outcome would be that thousands of workers would end up on the streets. They would add to the 61000 who have lost their jobs since 1992.

But what this does, of course, is illustrate the penury of the minimum wage system. It makes no sense because the arithmetic is all wrong. What retailers are prepared to pay for product bears little or no relation to the factory cost, and wages are a major element in that cost.

According to Baard, the industry has few options. One is to accept the disconnect between factory costs and the minimum wage, introduce a new (lower) wage model and legitimise overnight many of the companies that are noncompliant.

A second is to enforce the current agreement, which would mean closing down around 450 companies and leaving thousands without work.

A third would be to dissolve the national bargaining council, recognising that it hasn’t come to terms with the hard commercial reality.

It would need to be replaced with an alternative such as plant-level bargaining, or individual company or even regional negotiations.

The textile industry presents exceptionally low barriers to entry. It offers the lowest ratio of any sector anywhere in terms of the capital required to generate jobs. In SA, Baard estimates a R10m investment in textiles would create 485 new jobs; the nearest challenger is agriculture, which would create just 48 jobs.

This makes textiles a logical target for countries with large populations, especially those whose labour is preponderantly semiskilled or unskilled. The Chinese, Indians and Bangladeshis have done a good job of turning this to their advantage.

Baard says the South African industry has not been "out-competed"; it has been "out-subsidised". It doesn’t seek protective tariff barriers, but it wants equal treatment. He claims China offers as many as 60 different subsidies by national, provincial, local and city governments.

Given the wage structure in SA, it isn’t difficult to see why the industry is up a creek minus a paddle.

More clothing / textile companies to close

2012-05-10T16:17:00.000+02:00

South Africa

It is distressing to have just heard that three more companies in the clothing / textile sector are on the verge of closing or have closed.

It is estimated that over 2000 jobs will be impacted.

More than 10000 people will be directly affected by this. Notwithstanding, the consequence of such job losses will have on the economy of the workers’ community, and on the entire economy.

And job losses are down and productivity is up according to Sactwu.

We need to excavate the reason for the closures.

Is it poor management?

Were the companies’ unproductivity, uncompetitive?

Were they unable to compete with imports?

Were they out priced on wages and the wages did not equate to productivity output?

This has been a disastrous first quarter for the clothing/textile sector.

We are sure the union will find a way to shift the blame onto the greedy capitalist.

While the industry fades and people are swallowed by the uncompassionate multitude of the unemployed the leadership of the union continues unabated and uncompromising to spew forth rhetoric that has no substance.

A barren and scattered landscape of ghosts of a once thriving clothing and textile sector is the future - there will be no paradise for the workers unless those who do have influence change their blinked views and ideology.

Clothing union ignores questions

2012-05-09T17:06:00.001+02:00

South Africa
Comment:

The South African clothing union is either being purposely obstinate or they just simply do not get the the main theme of the current debate taking place in the media.

All the industry is asking for is to have a look at the two reports. The one where the union claims unemployment is down and the other that productivity is up. Nothing more nothing less. What is it that they do not get??????

Hmmm ...the latest report from Stats SA says unemployment has increased. The union does not mention Seardel and other companies that are having to retrench.

The union leadership are living in their own Utopia. They have no idea of the realities on the ground. Nor do they ever consider that it is the employer who create the jobs. Not the union.

Instead, the union responds with aggression and empty rhetoric. Why the reluctance to release the reports? A press release and a presentation without backing these with the entire reports is simply unacceptable. How can they expect anyone to take what they say seriously?

Sactwu should follow their colleague as exemplars of what good communication is about.

United Association of South Africa (Uasa) released a report stating that they " found that high wages for unskilled labour in South Africa was contributing to the country’s high unemployment rates."

Each reader can reach their own conclusion about the above statement. The fact is [lesson for Sactwu] is that there is a link to the presentation report and more information on the report.

We hope that Sactwu will stop with their aggressive and defensive behavior and engage in open and honest dialogue. Lets see the two reports and then debate their content.

High unskilled wages contributing to unemployment – Uasa report

A report by trade union United Association of South Africa (Uasa), released on Friday,found that high wages for unskilled labour in South Africa was contributing to the country’s high unemployment rates. In the 2012 South African Employment Report,economist Mike Schüssler pointed out that many unskilled and semi-skilled potential employees struggled to find jobs as the price of certain labour has become unaffordable.

In April, an International Monetary Fund working paper found that rapid growth of real wages in South Africa, which outpaced labour productivity growth in most sectors, was suppressing employment creation.

Schüssler added that South Africa was the only country in the world that held an unemployment rate above 20% over the last 15 years.

He also explained that fewer people were employed in the manufacturing sector during the second quarter of 2011 than at any other point since 1972.

To see presentation click here

The report went further to say:

"In its 2012 South African Employment Report (SAER), which was presented by economist Mike Schussler in Johannesburg today, the trade union UASA suggests that South Africa should employ people in “training” jobs at lower salaries for a period of time to enable them to gear up their employability. UASA also believes that a starting wage subsidy may help lower the effective salaries of unskilled and semi-skilled people and could make a difference in the rate of unemployment."

To read more click here

Even SA Stats contradicts Sactwu. In the latest report Stats SA writes the following:

SA jobless rate quickens to 25.2%

Reference: Reuters, 8 May 2012

South African unemployment rose in the first quarter of 2012, data showed on Tuesday, in a sign that economic growth remains far below the levels needed to create jobs, one of the most pressing challenges facing the government.

The jobless rate jumped to 25.2% of the labour force in the first quarter from 23.9% in Q4, with employment decreasing by 75 000 between the two quarters, Statistics South Africa said in its latest quarterly Labour Force Survey.

The number of unemployed people stood at 4.5-million in the three months to March from 4.244 million in the fourth quarter.

While the manufacturing and retail sectors created new employment, jobs were lost in the construction sector, pointing to economic activity remaining generally depressed after Africa's largest economy suffered a recession in 2009.

The data backs the case for interest rates remaining at 30-year lows as the Reserve Bank balances the need to boost economic growth with concerns over rising inflation.

The Reserve Bank slashed its repo rate by 650 basis points to 5.5% in the two years to end-2010, but has since left it unchanged, with CPI consumer inflation hovering at the top of a 3% to 6% target band.

"Today's numbers play into our more bearish view on growth this year and that a sharper slowdown in retail will be on the way as aggregate disposable income drops," Nomura emerging market analyst Peter Attard Montalto said.

"This also reinforces our view of rates being on hold for longer than consensus and the chances of cuts as a ... tail risk still very much being there."

Sactwu defends its actions

2012-05-07T14:00:00.002+02:00

Comment:
A presentation is very different to a research study and or a report. Like a press release a "presentation" can be constructed to present a particular view-point or outcome. Sactwu, why the reluctance to release the two reports - on productivity increase and job loss reductions? The union is extremely silent.

Letters to Editor

Clothing employers refuse to see truth

It is no surprise that Apparel Manufacturers of SA (Amsa) employers have reacted so defensively to the Southern African Clothing and Textile Workers Union’s (Sactwu) claim of rising clothing worker productivity levels outstripping earnings in Business Report on April 30.

Amsa claims that Sactwu has not provided any information to substantiate our claim. Yet they were present when we tabled our detailed presentation on this matter at the first round of annual clothing industry wage negotiations on April 18. They were not interested to hear us then, because they were more intent on executing their predetermined agenda to walk out of the wage negotiations.

Strange that Amsa speculates on the technical reasons why productivity levels have risen, yet they do not dismiss the fact that it actually has. Instead, they deny that workers should be credited and rather opt to invoke the “conspiracy theory” that this is just a ploy by the union to argue for more wage increases. In Amsa’s view, anything to rubbish workers’ rightful claims to be rewarded for their efforts, will of course do.

It is even more amazing how employers now dismiss what is good news for the industry, by painting an untrue picture of doom and gloom, when most key indicators (not only productivity) clearly show that the sector is in much better shape now than it has been for many years: the overall rate of job losses is significantly down, the elements of tripartite agreed industrial policy support measures are being implemented, raids on illegal imports are at their highest levels, local procurement regulations have been promulgated in which the industry has been designated as a major beneficiary, and significant competitive advantage dispensations have been introduced for compliant employers.

But enough is never enough. What sacrifices have employers made, to promote the industry’s sustainability, other than to constantly try and squeeze more and more out of workers and government?

Andre Kriel

sactwu General Secretary

Ref: Business Report. 7 May 2012

Unraveling Productivity Data in the Clothing Industry

2012-05-04T12:58:00.002+02:00

South Africa

Unraveling Productivity Data in the Clothing Industry

SACTWU’s General Secretary Mr. Andre Kriel, claims productivity in South Africa’s clothing industry has increased by 73% in the last five years according to statistics supplied by Productivity SA . I am concerned that Kriel did not have the data independently verified and quantified before embarking on a 13% pay hike.

His assertion that productivity in the clothing industry has increased by 73% in the last five years does not stack up. If that was the case, why would an organization like Seardel be in the process of retrenching over 1,000 workers, of whom SACTWU is a major shareholder? Likewise, Trubok, a Bargaining Council member in Newcastle is also in the process of retrenching.

He seems to be insinuating that employers are exploiting the increased productivity, but he fails to inform the public that clothing prices have reduced substantially in the past five years due to economies of scale, subsidization and lower wage costs in Asia.

Furthermore, not withstanding the fact that the SA clothing industry enjoys a 45% tariff barrier and over 70%- 80% of clothing is still imported. If productivity has so improved then why is there a need for protective barriers, and such a high percentage of apparel is still imported?

Our own experience also shows a different picture to that what is portrayed by Kriel and Productivity SA. We find that skills in our area, which was formerly a hub of clothing and textile manufacturers, are poor, and that the acceptance and understanding of productivity is non – existent. By way of an example we experience a hard core daily absenteeism of over 10%, compared to Mauritius which sits at 1.5%.

According to the General Sewing Data evaluation of global productivity in the apparel industry, where data is captured by international software companies that supply productivity models to do costing, SA’s productivity in this industry sector is dismally poor compared to our major competitors.

Such facts are further endorsed when the World Competitive Report for 2011/2012 ranked South Africa 50 out of 142 countries. Less than a year ago in responding to this report Productivity SA said, “South Africa is falling behind in terms of its competitiveness against other countries.”

Lastly, and most importantly the divide between rates paid by compliant and non-compliant companies will become greater with the proposed increases by SACTWU. This will simply suffocate compliant companies leading to the ultimate closure, or forcing them to migrate to Lesotho and Swaziland, which in turn will see an increased level of imports back into South Africa from these countries.

Instead of embarking on increases based on non-credible information, Kriel and his union should address the various challenges facing both compliant and non-compliant companies. They should strive to find a new remuneration solution that will result in a sustainable co-existence between the sectors of the industry.

Mr. M. Varoli, CEO, Med Textiles

2 May 2012

Clothing union refuses to release research

2012-05-02T11:26:00.000+02:00

South Africa

Comment:

In April, the clothing union, Sactwu, released two press statements.

The first claiming that job losses in the industry had decreased and the second that productivity had increased.

The ReDress Consultancy has been informed by media representatives that the union is refusing or stalling to release the report that the first press statement is based on. Why?

In regard to the second report, The ReDress Consultancy has contacted via email Productivity SA, of which the second report is based on to inquire further on the study and to ask if we could see this report. Sadly, we are still waiting for the curtsy of a response from the organisation.

In the article below the General Secretary of Sactwu response with an attack against AMSA.

Why?

This is a challenge to the union. Release the two reports. Let the industry study the reports and if AMSA is wrong in their assertion we are sure they would apologize.

The ReDress Consultancy reiterates the point that in both press statement the union omits the role of the employers. So disappointing.

Clothing employers dismiss productivity report

Employers in the clothing manufacturing industry last week dismissed a research report by Productivity SA which stated that South African clothing workers had become significantly more productive yet still earned comparatively less per garment they produced.

Although the sector is beginning to stabilise, it has struggled to compete with cheap Chinese clothing imports over the past couple of years, resulting in significant job losses.

Southern African Clothing and Textile Workers Union (Sactwu) general secretary Andre Kriel said last week that recent data compiled by Productivity SA showed that between 2005 and 2010, labour productivity for the sector had increased by 73%, far outstripping the 54% growth in real earnings over the same period.

However, Apparel Manufacturers of SA (Amsa) director Johann Baard said the research was not "valid".

"Not only is the research not valid, the research on labour productivity as opposed to sector/manufacturing productivity does not exist," he said. "Sactwu is conflating worker productivity with multifactor sector manufacturing output. The two are very different concepts."

Mr Baard said Sactwu had effectively not provided information to substantiate their "claim" that worker productivity had increased. "I suspect that the increase in productivity cited is a crude calculation of the amount of output compared with the number of workers employed."

He said clothing workers in SA were the highest paid in Africa. Local workers were also paid more than those in mainland China and India — the sector’s biggest competitors, he said.

Mr Kriel said it was not a surprise that employers had reacted "so defensively". "It is amazing how they (Amsa) now dismiss what is good news for the industry, by painting an untrue picture of doom and gloom, when all key indicators, not only productivity, clearly show that the clothing sector is in much better shape now than it has been for many years."

Reference: Business Report, BEKEZELA PHAKATHI

Published: 2012/05/02

Union claims reduction in clothing job losses

2012-04-23T09:19:00.003+02:00

South Africa

Comment:

The South African clothing union has claimed in some report that there was a reduction in 2011 of job losses.

It would be interesting to see this report. The extrapolation of data to manipulate a particular outcome is easy. Will the media and industry call to see the entire report so that the data can be excavated and evaluated?

The Save Jobs Campaign is still an enigma?

What is disappointing about the report is that there is no acknowledgement to employers. It is the employers who take the financial risk to maintain factories, create new jobs. Without them there would be no employment. Surely, some acknowledgement would go a long way in building relationships between labour and industry?

The report cannot be isolated.

The first quarter of 2012 has seen a lot job losses and our National Olympic Team makes a mockery of the Proudly SA campaign and procurement policy. What has the union done about this?

What about the pending cases again the dozens of non-compliant companies they may result in significant losses of jobs?

Or for that matter the fact that new labour entering the industry are not happy about the lower wages as mandated by the union. It seems that the inexperienced and the unemployed want the highest wage or no wage at all. Is this the fault of industry?

SACTWU Press Release

Date:20 April 2012

CLOTHING INDUSTRY JOB LOSSES SLOWS SIGNIFICANTLY

Job losses on the clothing, textile and leather sectors have shown a significant slowdown in 2011, a report tabled late last week at the National Executive Committee (NEC) meeting of the Southern African Clothing & Textile Workers' Union (SACTWU) shows.

According to Statistics South Africa data, employment in the clothing, textile and leather sectors decreased by 1.4% in 2011.

This is significant, considering the massive job losses that the industry had experienced in previous years. For example, as recently as 2008, the industry lost almost 13 000 jobs. Import

antly, each of the last three

quarters has seen increased employment numbers.

Job losses in 2011 dropped significantly compared to 2010 and 2009: in 2011, the union database recorded 48% less job losses than in 2010 and 55% lower than in 2009.

The last two years has seen employment in the industry being more stable.

The turn-around is mainly due to more solid support from government, especially since 2009, and the union's Save Jobs Campaign.

Issued by

Andre Kriel

SACTWU

General Secretary

Walmart and China - What Next?

2012-04-19T17:51:00.000+02:00

More products from China, that are delivered faster to American shores, may create some advantages for major importers like Wal-Mart, but the national impact could be an accelerant to manufacturing job loss.

A new generation of Cargo Ships can transport goods across the Pacific to California in less than 5 Days. This shaves 4 days of the typical trip that used to run 9 days at sea. Simply, the massive new ships travels at over 30 knots vs the older ones at under 20 knots. Wal-Mart commissioned the first ship and it is one of three with the other two scheduled for release in 2012. Over 90% of Wal-Mart products are made in China.

Given the speed, these super ships are now competitive even when carrying some perishable goods. The sobering reality is that the world has literally become smaller when perishables are shipped from half of the way around the world vs grown locally, regionally…or even domestically.

What a ship ... no wonder 'Made in China ' is displacing North American made goods big time.
This monster transports goods across the Pacific in just 5 days!!

This is one of three ships presently in service, with another two ships commissioned to be completed in 2012. These ships were commissioned by Wal-Mart to get all their goods and stuff from China. They hold an incredible 15,000 containers and have a 207 foot deck beam!

The full crew is just 13 people on a ship longer than a US Aircraft Carrier (which has a crew of 5,000. With its 207' beam it is too big to fit through the Panama or Suez Canals ...

It is strictly Transpacific. Cruise speed: 31 knots. The goods arrive 4 days before the typical container ship (18-20 knots) on a China-to-California run. 91% of Wal-Mart products are made in China. So this behemoth is hugely competitive even when carrying perishable goods. The ship was built in five sections. The sections floated together and then welded.

The command bridge is higher than a 10-story building and has 11 cargo crane rigs that can operate simultaneously unloading the entire ship in less than two hours.

Additional info:
Country of origin - Denmark
Length - 1,302 ft
Width - 207 ft
Net cargo - 123,200 tons
Engine - 14 cylinders in-line diesel engine (110,000 BHP)
Cruise Speed - 31 knots
Cargo capacity - 15,000 TEU (1 TEU = 20 cubic feet)
Crew - 13 people !
First Trip - Sept. 08, 2006
Construction cost - US $145,000,000+

Silicone painting applied to the ship bottom reduces water resistance and saves 317,000 gallons of diesel per year.

A recent documentary on the History Channel noted that all of these containers are shipped back to China , EMPTY. Yep, that's right. We [USA] send nothing back on these ships.

South Africa's Proudly Chinese Olympic Kit

2012-04-13T18:59:00.000+02:00

Commentary:
All the outcry from various elements such as, Cosatu smacks of some hypocritical condemnation.
As the article below highlights the fact that a few years ago Cosatu caps/T-shirts were Made in China. Even the ANC had T-shirts Made in China.
We do agree, get rid of the entire Proudly Chinese Olympic kit and have a Made in South Africa label in them. The Olympic team should condemn the kit.
Maybe instead of marching against those creating jobs clothing workers could march against those who destroy jobs and retard the industry.

With 105 days to go to what promises to be a spectacular opening ceremony at the Olympic Games in London, countries have started unveiling their team apparel.

From tracksuits to sandals, caps to backpacks and swimsuits to smart wear, athletes and prospective Olympians have been strutting out in their kits for nations to admire or, in some cases, disapprove.

In Britain, for instance, the chatter is about designer Stella McCartney’s downgrading of the red in the Union Jack, making it the trim of the British strip, with white and shades of blue dominating.

It is largely a fashion debate. The Telegraph reported that the kit would be made by adidas in factories in Turkey, Portugal and the Far East, with a small number in the UK.

Fashion has hardly entered the South African debate. Outsourcing of the team’s gear is the issue, with the SA Sports Confederation and Olympic Committee (Sascoc) being called “unpatriotic” for choosing a manufacturer which will also make the Chinese team’s garments.

Clearly Sascoc went for a sponsorship offer, brushing aside issues of national pride and job creation.

It has assured us, though, that it will receive no cash. No other maker matched the $4 million (R31.7m) sponsorship China’s Erke label put on the table – it was that simple.

The Department of Trade and Industry waded in, as did Proudly South Africa, which called it an insult to efforts to promote local services and goods. The unions snapped at Sascoc too, though Cosatu may want to refrain on this issue until memory fades of its Made in China caps and T-shirts some years ago at a national conference.

Was Sascoc greedy? Or was there inadequate planning and consultation here, where interested parties such as all those above, and others, failed to plan and pool resources to secure Olympic gear Made in South Africa? Ref: Daily News, 13 April 2012

COSATU demands new SA kit

COSATU spokesperson Patrick Craven (File)

Johannesburg - The Congress of SA Trade Unions (COSATU) is demanding a kit sponsorship change for South Africa's Olympic and Paralympic Games teams because the kit was not produced by a local manufacturer.

The kit, which would serve the teams for both the London games later this year and the Olympics of 2016 to be held in Rio de Janeiro, is produced by Chinese manufacturer Erke.

This has angered COSATU, prompting them to label it as a "total lack of patriotism" from SASCOC, saying the Olympics should be a platform to exhibit the very best of each country’s products.

"Thanks to [SASCOC], our teams will now be promoting the best of Chinese clothing," spokesperson Patrick Craven said in a statement.

The use of the Chinese-made kits was also anathema to the local procurement accord, signed last year by government, business, organised labour and community constituencies. The accord was aimed at promoting local procurement to boost employment.

"COSATU demands that the deal with Erke be cancelled and the contacts for the kit be given to Proudly South African companies, so that the athletes can wear them with real pride," Craven said.

Earlier on Wednesday, SA Clothing and Textile Workers' Union (SACTWU) spokesperson, Andre Kriel, also condemned SASCOC's choice of a foreign supplier over local industry.

"It is important for our country's national pride that local manufacturers be promoted in the supply of attire to our national sporting teams. More importantly, it is crucial that local manufacturing be encouraged to helpwith local job creation."

SASCOC president Gideon Sam defended the decision, saying Erke had provided a sponsorship valued around US$4 million and that no South African company was willing to take up the sponsorship.

"In 2009, when we were looking for sponsorship, it was coming up to the FIFA World Cup and everyone [local business] said they had their money tied up.
"We could not stand back, we had to put our feelers out wider."
Erke's offer of sponsorship went hand-in-hand with the manufacture of the kits," said Sam.

Ref: Sport 24, 5 April 2012

SA Olympic Team Supports China

2012-04-05T19:54:00.003+02:00

South Africa's Olympic Body Support China-not South Africa

Comment from The ReDress Consultancy
South Africa

So our Olympic team supports China at the expense of South African jobs, clothing businesses and the economy. And they want us to support them

But as always, there will be so much talk which will all come to a big ZERO. Easy to condemn but WHAT will Sactwu really do and where is the collective voice of the clothing and textile industry to show their disgust? Where is government to do something? Burn the kit and force them to remake the kit in South Africa.

Sasco, makes a mockery of the much touted local procurement policy.
But, we have heard the murmurs of weightless condemnation before.

In 2010 Sactwu called for a meeting with cricket and rugby organisations to promote local. Hmmm … Sactwu, “chance to harness the power of sport to generate jobs and develop the economy.”
In 2011, there was much outcry from the public when the apparel encouraged to sport on “Bok Friday,” had the Made in China label.

Sascoc under fire for SA Olympic kit

The SA Sports Confederation and Olympic Committee (Sascoc) was criticised on Thursday because the SA Olympic and Paralympic Games teams' kit was not produced by a local manufacturer.

The kit, which would serve the teams for both the London games later this year and the Olympics of 2016 to be held in Rio de Janeiro, is produced by Chinese manufacturer Erke, according to a Sascoc press statement released on Wednesday.

SA Clothing and Textile Workers' Union (Sactwu) spokesman Andre Kriel condemned Sascoc's choice of a foreign supplier over local industry.

“It is important for our country’s national pride that local manufacturers be promoted in the supply of attire to our national sporting teams. More importantly, it is crucial that local manufacturing be encouraged to help with local job creation.”

Sascoc president Gideon Sam defended the decision, saying Erke had provided a sponsorship valued around US4 million and that no South African company was willing to take up the sponsorship.

“In 2009, when we were looking for sponsorship, it was coming up to the Fifa World Cup and everyone (local business) said they had their money tied up.

“We could not stand back, we had to put our feelers out wider.”

Erke's offer of sponsorship went hand-in-hand with the manufacture of the kits, Sam said.

But Proudly South African “buy local” campaign chief executive Leslie Sedibe said this was no excuse for failing to support local industry.

“The excuse of lack of funding given by Sascoc raises a number of questions: If the Chinese have enough national pride to have a Chinese company, Erke, make their national kit, why can we not support our local clothing manufacturers?

“Why let Erke manufacture the SA kit? Yes, Erke sponsors Sascoc, but they (Sascoc) have also received funding from the department of sport and the Lotto, among others,” Sedibe said. He said it was a “mockery and an insult” to efforts for the promotion of local goods and services.

In the last two years, Proudly South African had met three times with Sam, and had received assurances that Sascoc would encourage their registered sports federations to support local manufacturers of sporting equipment and clothing. - Sapa, 5 April 2012

A fashion wake-up is needed

2012-04-03T17:21:00.000+02:00

South Africa

While South Africa’s clothing and textile sector unstitches and shreds due to various elements, one sector that combines these two elements of the industry remain self-deluded in their world of “fashion make-believe.”

I cannot throw this blanket accusation to all in fashion but it would, I believe, cover most.

Here is an industry, because of the power it has to influence the youth, to make headline news, and garner support throughout communities and across gender, political and racial divides could coalesce support and even influence policy for the local manufacturing sector.

There are those making important linkage with retail and design but it could be so much bigger. As I mentioned previously, a few designers on a catwalk will not have make a difference on the industry.

I pose the following questions to the fashion industry to gather statistical evidence, not hype.

How many designers, roughly would have participated in all the fashion weeks in SA alone during the past month
If they are using local fabric: how much meters/tonnage are they using and have/are local textile mills producing for them ?
If nothing is being produced for the designers by textile mills then where are they getting their textiles? From fabric suppliers, wholesalers –thereby using off-runs, over-runs and small quantities. If this is the case then in essence they are not supporting local manufacturing are they or are these local fabrics or imported?
What are the repeat orders, how many items on average do they produce and where, could I go and buy the garments show cased at the fashion week?
Do designers use local clothing manufacturers? What are average runs on orders?

Instead, we have fashion brawls and sought after shallow glamour seeking attention.

Come on.

Does the fashion industry not realise the following?

Without a strong, vibrant, economically viable clothing manufacturing sector backed by a versatile and successful textile sector local fashion will never really achieve its full potential-that is manufacturing –not selling a few dozen items.

The alternative: designed in South Africa and made …?

The following excellent article unravels our world of fashion very succinctly

Africa's Dueling Fashion Weeks
By BAMBINA WISE, WWD
2/4/12

JOHANNESBURG — March was a busy month for African fashion, with no less than three competing fashion weeks being staged one after the other, each one vying to be the only fashion week on the continent that really matters.

African Fashion International (AFI) — the organizers of Joburg Fashion Week, Cape Town Fashion Week and Africa Fashion Week — kicked off Joburg Fashion Week at the beginning of March with the unveiling of a new partnership with Mercedes-Benz. Echoing fashion weeks in New York, Berlin and Tokyo, the title sponsorship of Joburg Fashion Week — henceforth known as Mercedes-Benz Fashion Week Joburg — is, according to AFI executive chairman Dr. Precious Moloi-Motsepe, “the perfect fit with African Fashion International in terms of leveraging the profile of African designers internationally.”

Mercedes-Benz will also lend its name to the Cape Town and Africa Fashion Week events, slated for July and October this year, respectively.

No sooner had Mercedes-Benz Fashion Week Joburg ended than another fashion week was staged, this time in Lagos, Nigeria. Bannered as Arise Magazine Fashion Week, the Lagos event, now in its second year, is essentially the runway platform of Arise Magazine, an internationally distributed, edgy publication celebrating all things African and chic, with editorial headquarters in London. Helen Jennings, the editor, is also the author of “New African Fashion,” a book about contemporary African style.

The man behind Arise, Nigerian tycoon Nduka Obaigbena, is a controversial figure in African fashion. Interestingly, Arise and AFI had combined forces in 2009 to launch Arise Africa Fashion Week in Johannesburg, with much fanfare. R&B superstar R. Kelly headlined the first Arise Africa Fashion Awards in a glitzy ceremony at the Sandton Convention Centre in Johannesburg. The best collections were then showcased at the Paris and New York Fashion Weeks in 2009 and February 2010.

The union between Obaigbena and Moloi-Motsepe did not last, and with lawsuits flying all over the place, both parties decline to comment on the matter. Undeterred, Obaigbena set up the Lagos events and staged the annual Arise Africa Fashion Collective in New York last September, after an absence of 18 months and persistent rumors that suppliers have yet to be paid.

While Johannesburg or Cape Town may seem much more fashionable than Lagos, the Nigerian event positions itself as a pan-African fashion week, and seems to attract designers from across the continent and from the African diaspora who garner media attention overseas.

AFI, on the other hand, claims that its 2011 Africa Fashion Week drew thousands of fashion entrepreneurs, store and boutique buyers, industry professionals and local and international media to Johannesburg, with more than 20 international film crews covering the event. The star attraction was South African-born, New York-based designer Alexander Koutny. This year’s shows featured local stalwarts such as David Tlale, Thula Sindi and Abigail Keats, as well as Gavin Rajah and design duo Malcolm Klûk and Christiaan Gabriel du Toit, who also showed at Lagos.

A Google search indicated that Arise Magazine Fashion Week in Lagos made more waves in the international media. Maybe the presence of model Alek Wek and British men’s wear designer Ozwald Boateng helped — his show was the event’s finale.

Toiling quietly away, oblivious to the catfights and intrigues between Africa Fashion Week and Arise Magazine Fashion Week is the veteran designer showcase in Africa, the just concluded South Africa Fashion Week Summer Collections. Now on its 16th year, the event was conceived by former model Lucilla Booyzen.

She has used SA Fashion Week as a platform for launching or nurturing the careers of South African designers, many of whom have become established names in the industry, such as Jacques van der Watt of Black Coffee, Ephymol, Christopher Strong, Clive Rundle, House of Ole, Nkhensani Nkosi of Stoned Cherrie, and Rajah and Kluk CDGT. More than seeking glamorous sponsors to headline the event, Booyzen has instead concentrated on creating retail partnerships throughout South Africa in order to showcase local designers and their collections to a greater public within their home country.

In 2004, national department store chain Woolworths launched the SA Designers Collection, which was a concept put forward by SA Fashion Week.

Last year saw the launch of the SA Fashion Week Designers Capsule Collections at the Melrose Arch flagship of national chain Edgars. Booyzen noted that Edgars has now expanded the concept to include three other flagships in key cities: Cavendish Square in Cape Town, Gateway in Durban and, come April, Sandton City in the upscale Johannesburg suburb of Sandton.

“What it shows me is that consumers identify with South African design very strongly. There is a definite demand for it, and Edgars has responded by increasing distribution to three other stores,” she said. “It’s great for the designers, who will have to step up their production to meet growing demand, and it’s great for Edgars, who were surprised and encouraged at how big the turnover was.”

Perhaps not wanting to be left out, AFI has forged its own retail partnership with another fashion chain, Foschini. The AFI Fastrack program is a national development platform that aims to develop and nurture Africa’s young design talent, and winners get an internship with Foschini.

“We want more of our designers to achieve success in their careers, which means giving them the necessary skills to run a profitable fashion business,” said Moloi-Motsepe. “When our designers succeed, the entire industry benefits and thus more jobs are created.”

Clothing union needs to change

2012-03-26T10:01:00.001+02:00

South Africa

According to the employer body that represents compliant clothing companies in South Africa the union needs to change its thinking if they wish to retain and build jobs.

Wage deal out of touch, says clothing industry

The executive director of the Apparel Manufacturers of SA has warned the current minimum wage model in the clothing and textile industry is out of step with the realities of the industry, and is the main reason that companies are not complying with wage agreements. [but was Apparel Manufacturers not a signatory to the deal?]

The current minimum wage model in the clothing and textile industry is out of step with the realities of the industry, and is the main reason that companies are not complying with wage agreements, says Johann Baard, executive director of the Apparel Manufacturers of SA (Amsa).

His comments on Friday came days after about 3000 members of the Southern African Clothing and Textile Workers Union (Sactwu) downed tools in protest against manufacturers in the Isithebe region of northern KwaZulu-Natal, which allegedly paid workers wages far below the stipulated minimum.

[ Each person has a choice or do they?]

Sactwu’s KwaZulu-Natal regional secretary, Dennis Maluleka, threatened a national strike, saying none of the clothing and textile companies in that region was complying with wage agreements.

Mr Baard said noncompliance with wage agreements was likely to persist despite a landmark agreement signed in October designed to boost job creation in the sector by lowering the minimum wage for new entrants by up to 30%. Amsa represented clothing manufacturers in that agreement, while Sactwu signed on behalf of workers. The minimum wage for clothing machinists is now about R550 per week.

Mr Baard said minimum wage levels would have to be reduced even further if factory closures and job losses were to be avoided. "Invariably, that Rubicon has to be crossed. Our wages, our cost of labour is simply too expensive, in terms of global competitive realities.

"And if a labour-intensive labour industry such as the clothing industry is going to contribute significantly to the government’s job-creation initiatives, we are going to have to break out of our traditional policy parameters. Labour will have to break out of its traditional policy mandate of only adding to the cost of labour. Amsa is on record that the current wage model … is out of step with the realities of supply and demand … and is not sustainable."

The industry shed more than 10000 jobs in 2010 and 14516 the year before. Last month a major clothing group, Seardel , announced plans to retrench about 1500 people due to pressure on margins.

"The fact we have such widespread noncompliance … demonstrates the market realities that our wage model is out of step with current market conditions," Mr Baard said. "There are many employers who aren’t even complying with the previous year’s agreement. The bargaining council is sitting on in excess of 480 writs of execution against companies that have not even complied with the 2010-11 agreement."

Mr Maluleka said: "We sent a memorandum to the Clothing Industry Bargaining Council to inform them about such grievances and we demanded that the council conducts inspections on all the companies and enforces the labour laws."

Ref: Business Day, SBU MJIKELISO, 26 March 2012

Low pay at clothing factories irks unions

2012-03-26T09:39:00.000+02:00

South Africa

Low pay at clothing factories irks unions

Small clothing factories cannot afford to pay their workers the legal minimum wage prescribed by the Department of Labour as major clothing retailers exert pressure by demanding low manufacturing rates.

This is according to small companies’ representatives in KwaZulu-Natal after the Southern African Clothing and Textile Workers’ Union (Sactwu) marched last week against factories in the Sithebe area in the north of the province that did not comply with minimum wage agreements for the sector. About 3 500 Sactwu members demanded decent wages.

The minimum wage for a machinist working in the textile industry is about R481 a week. Non-compliant companies are paying about R340.

Alex Liu, a deputy chairman of the United Clothing and Textile Association, said about 128 of its members, mainly from Newcastle, were non-compliant. He complained that they were not given an opportunity to participate in the legal wage agreement. Liu said such businesses could not afford to pay the minimum wages unless the entire clothing industry, including retailers, realigned their price points throughout the value chain.

He said most of the factories operated as cut, make and trim (CMT) businesses that were also receiving outsourced work from complying factories at much lower prices.

“Most of these factories were not given an opportunity to participate in negotiations on the legal wages gazetted by the Labour Department and they cannot afford to pay such salaries unless retailers revise their price demand.”

Chairman of the association Ahmed Paruk said of the 30 factories in the Sithebe area, only five were compliant and the remaining companies could not afford the stated wages.

Paruk said if Sactwu continued to exert pressure on these companies, they would have to shut down and leave hundreds of people without jobs.

Depending on the design, some garments are manufactured for as little as R5 and then passed on to a smaller textile firm to be stitched or buttoned, also at a low rate. The association refused to name factories, saying they would be subject to victimisation.

Sactwu’s regional secretary in KwaZulu-Natal, Dennis Maluleka, said the non-compliant factories should not operate businesses if they could not afford to pay workers. [what an amazing response-so instead of some income rather have nothing. Freedom of choice clearly does not apply here.]

Liu disagreed, saying shutting down factories would result in unemployment and would force companies to open operations in Lesotho and Swaziland where there was less compliance.

Maluleka said the 2010 wage agreement between the Labour Department and the textile industry stipulated that companies should pay 70 percent of the minimum wage within a year of the deal. This was expected to increase to 90 percent at the beginning of this year and 100 percent by May.

Maluleka said most of these companies operated as CMT factories which carried out production mainly for big textile companies that were compliant. “These factories are getting a raw deal from the big established textile factories, who receive huge contracts with clothing retailers but do not have the manpower to service the entire contract and then outsource part of it to several of these smaller factories who do the work at a very low rate.”

He added that the big firms sometimes took on too much work with a short deadline.

He said this system had put the smaller factories under enormous pressure as they had to pay rent, electricity and operational costs.

Maluleka said small firms could apply for exemption through the bargaining council but they must be prepared to give valid reasons. Once they met the criteria they could be exempted for at least a year

Ref: Business Report, Nompumelelo Magwaza

26 March 2012

Jobs vs No Jobs

2012-03-19T11:26:00.001+02:00

When those with jobs block those without

A tragic side effect of strong unions is impractical, job-eroding policies

Herman Mashaba

IF the government does not remove the obstacles that prevent willing buyers of labour from employing willing workers on mutually acceptable terms, events elsewhere warn us that we can expect trouble. If idle people get too desperate, they will find something destructive to do.

The government and the labour unions have to recognise, once and for all, that certain provisions in the labour laws contribute to unemployment and have to change. Minimum wages, hiring and firing laws, centralised collective bargaining and bureaucracy costs are huge deterrents to employment, especially when the potential employers are individuals and SMEs. Unemployed people must be allowed to make their own decisions about their own lives, and the labour laws must change to accommodate their decisions. They must not be turned away by potential employers because labour laws create a barrier between them.

In comparing South Africa with other countries, we have to start by asking what labour laws are appropriate in a country where 7.5 million people, 36% of the potential workforce, are unemployed. There is no point comparing South Africa's labour laws with those in wealthy countries. South Africa's unemployment is four times higher than their "panic" rate, which means obstacles to employment must be removed, fast!

Russian author Leo Tolstoy must have had something similar to our labour laws in mind when he wrote: "I sit on a man's back, choking him and making him carry me, and yet assure myself and others that I am very sorry for him and wish to ease his lot by all possible means - except by getting off his back."

Those who talk about "decent" jobs and "exploitation" are the ones who "sit on the backs of the unemployed", choking them and telling them how sorry they are for them . It is time to get off the backs of the unemployed.

It is really unfair to blame the labour unions for the plight of the unemployed. Union officials have the task of looking after the interests of their members. Union members have every right, as long as they do not use violence or violate anyone else's rights, to object to changes in legislation intended to make it easier for the unemployed to get jobs if they believe such changes might have detrimental consequences for them.

Members of parliament of all parties must take full responsibility for the labour laws and any influence they have in preventing the unemployed from getting jobs.

The decision-makers owe this to the millions who cannot get jobs and to the entire nation to avoid the potential calamity that continued mass unemployment threatens to bring about.

Many of us have, in the past, worked for wages that would not have been considered "decent". We did it because something is better than nothing, being active is better than being idle, and you do not learn skills by sitting at home.

Loss of existing and future jobs happens when a government attempts to use a minimum wage to increase wages above what employers are paying or are capable of paying. Minimum wages generally do not differentiate between high-income and low-income employers, which results in the "Newcastle effect" and the loss of jobs, for instance, by domestic workers employed by low-income families.

The dispute between clothing factories in Newcastle in KwaZulu-Natal and the industry bargaining council, which last year again hit the headlines, provides evidence of the loss of jobs as a result of increases in minimum wages. At its peak, Newcastle's clothing industry employed about 16000 workers. By June last year, that had declined to between 6000 and 7000 and is set to decline further as a result of the forced implementation of minimum wages set by the bargaining council at above the wages agreed between employers and employees - and above what the employers say they can afford to pay, given the competition they face from foreign competitors.

In a town and district where unemployment is estimated at 60% and people are prepared to work for less than the statutory minimum, there appears to be no justification for interfering with the wishes of the workers who regard a poorly paid job as better than no job.

Minimum-wage laws are not the only culprit among the causes of unemployment. Professor WS Siebert of the University of Birmingham, in Investment, Employment and South African Labour Laws, cites the Labour Relations Act of 1995 and the Basic Conditions of Employment Act of 1997 as increasing the cost of employing labour.

Analysing the effect of strict job-security laws and especially provisions that increase the difficulty of dismissals, Siebert points out that the real level of strictness and the cost increase significantly when there are strong labour unions, such as in South Africa, to monitor the application of the laws. In South Korea, where there are strict job-security laws but weak unions, labour compliance costs are lower. Higher job security translates into lower cash wages for workers and greater difficulty in accessing jobs. Most cases coming before the Commission for Conciliation, Mediation and Arbitration are for alleged wrongful dismissal, and, not surprisingly, most involve small businesses.

Small firms in South African employ about 65% (almost nine million) of the total number of employees. South Africa should adopt policies to take account of the potential that SMEs offer to reduce unemployment. Small firms employ people who would be difficult to place with large firms - the young, old, long-time unemployed, inexperienced, low-skilled and otherwise disadvantaged jobless. It is in small firms that many receive training that allows them to later access jobs in large firms.

The Sunday Times's idea of Each One Hire One becomes a significantly practical proposition when potential employers are seen to be millions of individuals, including homeowners and small firms, mostly micro firms. However, the hiring will not happen under the current dispensation. Policies and laws will have to change to make it worthwhile for SMEs to hire more people.

A static analysis will probably suggest that unemployment reduction in South Africa cannot be carried out rapidly. Dynamic ideas tell a different story. For instance, the European Union's SME statistics reveal that the overwhelming majority of new jobs are in firms that are less than five years old. The government has to devise policies that will markedly increase the demand for labour. The most potent way of improving the hiring capabilities of SMEs would be a drastic reduction in minimum wages and compliance costs involved in hiring and retrenching, which raise the total cost of hiring job applicants above their productive value. For the sake of 7.5 million people, Mr President, tear down these barriers to employment!

Mashaba is chairman of the Free Market Foundation
Ref: Sunday Times, 18 March 2012

An excellent fashion video

2012-03-14T16:53:00.000+02:00

I think we all need some light relief.
I came across these.

A hundred years of fashion in less than two minutes. I think it is great.

Modern Tech Old Ads

clothing union 2012 demands

2012-03-13T11:22:00.000+02:00

South Africa

SACTWU Bargaining Conference 2012 Declaration

12 March 2012

The Southern African Clothing and Textile Workers’ Union (SACTWU) held its Annual National Bargaining Conference on 9 – 11 March 2012 in Cape Town

The Conference was attended by 160 delegates and staff. Delegates were shop stewards representing 101 000 SACTWU members in the clothing, textile, leather, distribution and related sectors in all parts of South Africa

The main purpose of the Conference was to consolidate the union’s wage demands for the 2012 round of substantive negotiations. The Conference successfully completed this task by re-affirming:

Our demands for a living wage
Our determination to combat attacks on the union’s bargaining structures, such as bargaining councils
Our commitment to strengthen centralised bargaining
Our determination to stamp out the scourge of non-compliance in our industry.

The details of our consolidated demands will now first be reported to our members, after which we will submit our demands to employers and release them publicly.

The Conference applauded SACTWU members for their strong participation in the COSATU Section 77 protest action against labour brokering and e-tolling on 7 March 2012. The Conference reaffirmed its support for a total ban on labour brokers. We also compliment our Federation and its affiliates for the determined and disciplined manner in which the protest action was conducted, and we reject all attempts to interpret the general strike as an indication of division within the tripartite alliance.

The Conference received detailed reports on the state of the industry and the economic bargaining indicators for this year. We noted the significant slowdown in the rate of job losses in the industry, noted the recent announcement of large pending job losses and recommitted ourselves to combat these vigorously.

The other disease which plagues our society, corruption, was condemned by the Conference as a practice which steals from workers and the poor and robs us of opportunities to create a better life. In this regard, the Conference warmly welcomed the creation of Corruption Watch.

The Conference was pleased to be addressed by Zwelinzima Vavi, COSATU General Secretary, on the current political and organisational challenges facing the working class. We rearticulated our belief in the need for the steadfast unity of the working class, locally and internationally, and we reaffirmed our unwavering support for COSATU’s solid commitment to step up the fight against the growing wealth inequality in our society.

The Conference was also addressed by Ebrahim Patel, Minister of Economic Development, on government’s new infrastructure development plan. The Conference welcomed the report as a refreshing new road map to address our country’s developmental challenges and called for similar programs on rural development.

Regarding the recent Walmart judgement, the Conference warmly welcomed the reinstatement of over 500 dismissed retail workers affected by the Massmart-Walmart merger, and sees exciting new opportunities in the appointment of a specialist committee to develop proposals on how to mitigate the detrimental effects of the merger. We regard this as an important indication that the public interest provisions of the Competition Act cannot just be ignored.

The Conference held four specialist Commissions of its own, which developed proposals on our core Programme of Action (POA) objectives, including growing the union’s membership, creating and saving jobs, improving service delivery to members and organisational renewal.

Policy proposals emanating from the Conference will now be submitted to the union’s National Executive Committee meeting for constitutional structural consideration.

Issued by:
Andre Kriel
SACTWU
General Secretary

Coastu tells Finance Minister to keep quiet

2012-03-12T12:37:00.000+02:00

Vavi versus Gordhan

Only the minister of labour should be allowed to speak out about labour issues” – Cosatu chief.

CAPE TOWN - Cosatu general secretary, Zwelinzima Vavi, has lashed out at Finance Minister Pravin Gordhan, for calling for labour market reforms, accusing him of being out of line with his Cabinet colleagues.

“I hope President [Jacob] Zuma will give the minister a call to tell him to stop sending out these messages (about labour flexibility). Cabinet cannot afford to be sending different signals on the labour market,” Vavi said in response to a question from Moneyweb.

Vavi’s comments follow an article in Business Day written by Gordhan and Australia’s Deputy Prime Minister and Treasurer Wayne Swan. In it, they say “a comprehensive set of reforms that maximises job creation” is needed in South Africa.

“Labour market reforms can directly improve employment by providing flexibility and the right incentives to work, to hire workers, develop skills and become more productive,” said Gordhan in the article based on a paper submitted to G20 finance ministers ahead of their recent meeting in Mexico.

But his comments have infuriated the leader of the labour federation in a week in which Cosatu topped headlines for its strike against labour brokers and e-tolling.

Accusing the Minister of “yapping” about the labour market flexibility issue since last year, Vavi said only the minister of labour should be allowed to speak out about labour issues.

“There ought to be discussion in Cabinet. These laws did not come from the mountain. When the members of the Cabinet want to be the darlings of capitalism they try to attack the laws that government has pioneered.”

Vavi has said that labour flexibility is a complete no-no and that this week’s marches in 32 parts of the country had been a “massive demonstration of worker power that had tilted the balance in favour of the working people”.

The union head was clearly in a fighting spirit when he gave the keynote address at the National Bargaining Conference of the South African Clothing and Textile Workers Union in Cape Town this weekend.

He said Cosatu would step up its fight for labour rights and more jobs.

“We shall be engaging government to convince them that we will never come near to creating 5m new jobs if we continue with the Treasury’s cautious and conservative fiscal and monetary policies.”

Cosatu’s chief dismissed comments from Minister of Performance Monitoring and Evaluation Collins Chabane, at a cabinet briefing following the protests, that e-tolling would go ahead and that labour broking would be reviewed, but not outlawed.

He said cabinet ministers and spokespersons should not be “arrogant” enough to think that they hold all the power. “No one can afford to be arrogant after our Wednesday marches. It’s a reality that workers are at the front row of transformation and change in the country.’

Tensions have been escalating between Cosatu and government, with some commentators anticipating a split, and the DA making attempts to side with the union federation in its marches this week, a move that backfired when Cosatu said the DA’s leaders had not been invited to join in.

The DA’s Parliamentary leader, Lindiwe Mazibuko, has made some mileage out of Gordhan’s remarks on the need for labour market reforms, saying these had echoed her party’s proposals. She called for an open discussion on labour reform, saying the “government had put out too many contradictory positions in the past.”

Following his lashing of Gordhan’s statements, Vavi said Cosatu would continue to commend the government where it was due and criticise when it believes it’s out of line.

“The task of Cosatu is not to be a sweetheart union – in the name of love.

“If ANC and government officials are stealing from the poor, we must act against corruption and tender fraud. We must not massage them and assure them of our everlasting love. Then we will be lapdogs in no time. If we want to give them a blank cheque book to fill, then don’t cry when in another 20 years time, we’re still talking about corruption.”

On a roll, Vavi also turned to CEOs and the private sector, saying they had benefited from democracy at the expense of the poor.

“We have the political medals hanging around our necks. But the economic jewellery resides with white monopoly capital and their Ferraris, Porsches and jets. They have taken the best part of the country for themselves.”

He said South Africa was now the most unequal country in the world, with half of the population surviving on 8% of the national income while the other half “enjoyed” 92%.

With wage negotiation season not far off and a slew of labour laws in the pipeline, the debate on labour is sure to hot up.

As Cosatu and government thrash out their differences, employers have been advised to do their homework in the meantime, especially on the proposed changes for labour brokers.

“Businesses should be auditing their fixed term employees and labour broker numbers, preparing strategic position papers and meeting with their HR committees on how they will regulate their fixed term employees and labour broking employees in future,” says Aadil Patel, director and national employment practice head at Cliffe Dekker Hofmeyr.

“If they don’t start doing this now, they will be caught short once amendments are enacted.”

Ref: Moneyweb,

Author: Kim Cloete, 12 March 2012

Labour reform needed - Minister Pravin Gordhan

2012-03-09T07:27:00.000+02:00

Avoid protectionism and implement urgent reforms

PRAVIN GORDHAN AND WAYNE SWAN

We must make it clear to all that our collective policy action is focused on the issue that matters to people — jobs

JOBS are fundamental to people’s lives, to their expectations and ability to improve their living standards. The importance of a job lies not only in the income that is earned and the skills that are acquired but also in the intangible and invaluable benefits it provides, including dignity, independence, accomplishment and freedom.

As the International Labour Organisation has noted, the top priority for most people is to have a fair chance at a decent job. Yet we have unacceptably high unemployment across the global economy, particularly among our youth.

Despite a rebound in global gross domestic product growth to about 5% in 2010 and robust growth in developing countries last year, the recovery has failed to deliver a significant improvement in global employment levels. Annual global job creation is about 20-million below pre crisis levels. As a result, employment growth has been insufficient to reverse, or even dent, the labour market slack built up as a result of the global recession. With the global recovery looking increasingly fragile, future employment prospects are disheartening for many.

Of particular concern is the disproportionate cost borne by young people and the less skilled. The Organisation for Economic Co-operation and Development has shown that youth employment declined by 10% between 2007 and 2010 and low-skilled employment dropped by more than 9%. Youth unemployment rates in some countries are as high as 50%. For the young, the effect of starting their working life unemployed can last a lifetime and is associated with poverty, crime, violence and a loss of morale. For society, it means lower growth, political disengagement and even unrest.

SA is no exception. After a period of rapid job losses, about 520000 jobs were created between September 2010 and December last year. This has not been enough to make a serious dent in unemployment, which remains unacceptably high at 23,9%. This backdrop provides a stark reminder to Group of 20 (G-20) f inance m inisters that efforts under the Framework for Strong, Sustainable and Balanced Growth are ultimately directed at creating jobs. The success of the G-20 in the eyes of many will largely be judged by the contribution it makes to creating jobs. From Pittsburgh to Cannes, G-20 l eaders have reiterated their commitment to put jobs at the heart of the recovery. The creation of jobs must not only be a key focus of the G-20, it must be seen to be so.

The global policy-making community faces a number of choices in how to promote faster job creation. There is pressure for greater protectionism to "keep jobs at home". Superficially, this road may be tempting, but history has taught us that it is likely to lead to lower growth, lower employment and the possibility of recurrent crises. The better option is to work collectively and collaboratively to implement reforms and measures that will grow our economies, expand trade, increase investment and deliver jobs.

Credible structural reforms — particularly of labour and product markets — combined with targeted fiscal investments can provide lasting benefits to our economies and boost jobs now. This is the path that can help lift people from poverty and improve living standards for all. The framework should provide the basis for implementing the reforms needed to boost growth and job creation as well as enhancing development outcomes. The most conducive environment for maintaining employment is one in which a government’s fiscal position is, in the long run, sustainable and financial systems are stable.

The immediate challenge we face is ensuring the current situation does not deteriorate. Commitments to sustainable medium-term fiscal policies and secure financial systems will provide the platform for improved growth and employment. Credible policies that deliver medium-term fiscal consolidation and sustainability will facilitate growth and maintain access to public debt markets. Shifting public spending towards socioeconomic priorities — including infrastructure investment and job creation — will raise the rate of potential output growth in the longer term and support stronger investment. Unsustainable fiscal policies place question marks over private investment returns, discouraging growth and jobs.

We need to establish adequate firewalls to prevent contagion from the current euro-area sovereign-debt and banking crisis.

We also need to maintain our commitment to improving financial stability. All these measures are essential to boost confidence in the global financial system.

While sustainable fiscal policies and secure financial systems are necessary, they are not sufficient to stimulate growth in jobs. They forestall worse outcomes but would still leave too many unemployed for too long. Given the scale of the unemployment challenge, no single policy offers the solution. There is no panacea, no silver bullet. What is needed is a comprehensive set of reforms that maximise job creation. Product-market reforms can improve the demand for labour quickly, through facilitating and encouraging new firm creation, firm expansion, the growth of new industries or the revitalisation of old ones. They can also encourage higher investment and boost productivity, which in the long run will lead to sustainably higher employment and incomes.

Labour-market reforms can directly improve employment by providing flexibility and the right incentives to work, hire workers, develop skills and become more productive. Employment outcomes can be further enhanced through active labour-market policies that improve job search, job matching, training and entry into the labour market. In countries with skills shortages, it is crucial to implement reforms to improve the quality of education and skills development.

Of course, there must be a credible and sustainable safety net and social protection systems for those unable to adapt or who are in weak bargaining positions. This is particularly the case in emerging markets and developing countries, where poverty remains high and income support needs to be targeted at those who need it most. We must not step away from commitments to the rights of workers. People should not be seen as simply commodities in a free market for labour. The design of these systems is critical and can also contribute to improved labour outcomes through influencing the incentives to work and formal employment.

There is also a role for sensible fiscal investments for countries with the available fiscal capacity to do so. Particularly beneficial is spending, which can provide long-run productivity benefits and raise the rate of potential growth. Spending on infrastructure, education and skills development, or appropriate tax reforms, can assist in boosting current demand while also enhancing the structural shifts in the world economy.

It is the responsibility of the G-20 to show leadership. We must work together and ensure we make the right policy choices. We must implement the reforms needed to boost confidence, lift growth and create more employment opportunities for all. We must avoid the mistakes of the past in resorting to protectionism and delaying reforms.

And we must make it clear to all that our collective policy action is focused on the issue that matters to people — jobs.

• Gordhan is Finance Minister. Swan is Australia’s Deputy Prime Minister and Treasurer. This article is based on a paper Swan and Gordhan submitted to G-20 finance ministers ahead of their recent meeting in Mexico.

DA backs Gordhan's labour market reform

March 7 2012, Business Report

Finance Minister Pravin Gordhan's call for “a comprehensive set of reforms to maximise job creation” has been welcomed by the opposition Democratic Alliance.

On Wednesday, Gordhan said in an op-ed in Business Day that reforms should include cutting red tape for small companies and introducing policies to improve job searches, job matching, training and entry into the labour market.

“The Minister explains how appropriate fiscal interventions by National Treasury, coupled with labour market reforms that promote labour market flexibility, can help South Africa to create jobs at a faster rate,” Shadow Minister of Finance Tim Harris said.

“The DA has been saying this for many years. We know that the best way to tackle poverty and inequality is to ensure that many more unemployed South African have access to job opportunities,” Harris added.

Harris would be submitting a series of parliamentary questions to Gordhan to ascertain how the DA could help make these proposals a reality.

Harris stressed that it had to be ascertained when and how the youth wage subsidy would be implemented given that Cosatu was allegedly refusing to discuss it at Nedlac as well as whether the Minister would oppose the draft labour legislation currently at Nedlac, which would take SA in the opposite direction to his proposals.

He would also ask Gordhan whether he would table amendments to existing laws to improve the flexibility of the labour market; whether he supported DA proposals to ease restrictive hiring and firing practices for small businesses; whether he supported DA proposals to promote temporary employment as a gateway to permanent employment; and whether he supported the opposition's proposals to limit the right to strike for important categories of workers such as teachers.

“The DA recognises the need to reform our labour market to be more inclusive and more responsive to the skills of the unemployed and the needs of employers. It seems that Minister Gordhan is now supporting us in this.

“I hope his replies to my questions will shed light on how he intends taking this programme forward,” Harris said.

SA Clothing Union wins

2012-03-06T15:34:00.001+02:00

South Africa
The South African Clothing Union Sactwu wins legal case
SACTWU wins case that could have dismantled the NBC

News
Thursday, 01 March 2012
On 29 February 2012, the Labour Court ruled in favour of SACTWU and the National Bargaining Council for the Clothing Industry in a case that sought to dismantle the Bargaining Council system. This was the second such attempt by Western Cape manufacturers Sgt Pepper's Knitwear and Abbey Road Fashions to shut down the NBC.

In the first attempt, the Labour Court dismissed the case because Sgt Pepper and Abbey Road did not have the right bring the specific matter to the Labour Court. In this second attempt, the companies tried to be clever by relying on a constitutional argument to give them the right to bring this matter to Court.

The argument brought by the two companies had three legs, one resting on the other: (1) SACTWU is not an independent trade union because it controls a major clothing manufacturer, Seardel; (2) SACTWU therefore sits on both sides of the Bargaining Council, by being both the sole representative of labour and a major employer; so because of that (3) the NBC is not a true or genuine Bargaining Council, and its Main Agreement and compliance orders are invalid and without legal force. In this way, the two companies sought to dismantle our Bargaining Council system.

These legs of argument failed. The Labour Court said that if the constitutional argument was accepted and that Sgt Pepper and Abbey road had the right to bring the matter to the labour court, they would fail anyway on the first leg of their argument. This is so because the companies did not demonstrate that SACTWU was not an independent trade union. Section 95(2) of the LRA defines an independent trade union along two bases: as one that is “not under the direct or indirect control of any employer or employers organisation” or “free of any interference or influence of any kind from any employer or employers’ organisation”. The companies did not argue any of these two bases. What they did argue was that an employer is controlled by trade union, but that has nothing to do with the independence of the trade unions according to the LRA. Because of this failure on the first leg, the other two legs had no basis, so the entire case fell apart. It would have fallen apart even if they had the constitutional right to bring the matter to court.

Like in the first case, the Labour Court slapped the two companies with an order to pay SACTWU’s and the NBC’s costs of the suite.

THE FINAL JUDGEMENT CAN BE FOUND BY CLICKING HERE

Mass stay away but SA "economically stable" Deputy President

2012-03-05T17:44:00.000+02:00

South Africa, on the eve of a national stay away where workers are given no choice the Deputy President said, "South Africa is politically and economically stable and investors should not be put off ...."

Below is the full statement from the SA government news service.

SA a stable democracy: Motlanthe

5 March 2012

South Africa is politically and economically stable and investors should not be put off by debate about the country's policies, which is natural in a fledgling democracy, says Deputy President Kgalema Motlanthe.

Addressing the Ernst and Young Strategic Growth Forum Africa at the Westin Hotel in Cape Town on Friday, Motlanthe said it was "normal in a fledgling democracy that you will have a plethora of views, but we think we are doing very well in terms of national cohesion".

The country has been alive with debates on nationalisation, land reform and labour policies in recent months. "We come from a [past] where views were not tolerated, views were suppressed, so we have to open up space for people to ventilate their views in public," Motlanthe said.

"The trick is knowing which views influence policy processes and how policy is adopted," he told business leaders and government officials from across the continent. South Africa is a constitutional democracy owing its allegiance to the Constitution.

"Certainly as the executive we know we have to work in a co-operative fashion with the other two arms of the state [the judiciary and and legislature] and that we are held accountable to the Constitution," Motlanthe said. South Africa remains an attractive investment destination - it has a predictable investment environment, is politically stable, has a stable banking system and offers many investment opportunities, the Deputy President said.

The country also enjoys goodwill with neighbouring countries, which bodes well for investors looking to expand across Africa. Motlanthe said the country's response to the 2008-09 global financial crisis - which brought the government, labour, civil society and business together in a national dialogue - was even adopted as a model by the International Labour Organisation (ILO).

Earlier last week, Motlanthe said the Cabinet would be considering amendments to the country's Labour Relations Act over the coming months, as part of a range of measures to ensure that more jobs are created.Responding to a question in Parliament from leader of the opposition Lindiwe Mazibuko on Wednesday, Motlanthe added, however, that South Africa's current labour legislation was flexible enough to allow for competition in the labour market.

He said the improvement of the country's tertiary colleges and training institutions, mooted in the recently released Green Paper on Post-School Further Education and Training, would accelerate efforts to build a capable labour force. Turning to what was being done to ensure that economic growth was being led by the private sector, Motlanthe said the private sector played a major role, but that there would also be a role for government to create an enabling environment for growth.

Source: BuaNews, 5 March 2012