Home / Knowledge / News / Apparel/Garments / Govt shuts down clothing units over wage row
Govt shuts down clothing units over wage row
03
Sep '10
Yellow Street in Newcastle's Madadeni Township, was seen shrilly vacant recently as clothing factories in the street, employing around 3,000 workers, remained closed to sympathise with the closure of a couple of companies in the town, a day earlier. Both the companies were owned by Asians.

At a time when, President Jacob Zuma was on a visit to China pleading the investors there to invest in SA's manufacturing industry, manufacturing companies owned by immigrant Asians were being shutdown.

These factories mainly belong to group of "cut, make and trim" garment producers, knitwear and textile companies under the ownership of Chinese South Africans in Newcastle and, churn out three million garments, each year.

The National Clothing Manufacturing Bargaining Council, in its efforts to earn the workers the wages they deserve, intends to shut at least 47 factories across SA, of which nine are located in Newcastle. The issue here is that the Council wants that the employer's should pay their workers a minimum wage of R324 per week.

By and large, around 8,000 jobs are at stake in the area where the prevalent unemployment rate is already high at 60 percent. This main reason is that, a number of factories are finding it hard to survive and some of them are even considering to exit.

Circumstances are no different at Newcastle, with clothing industry in SA getting weaker and crushed by the low-cost imports from Far East and rising cost of production in the country.

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 23rd Feb 2017

NAFTA renegotiation puts Mexico-US jeans trade at risk

The almost imminent renegotiation of the North America Free Trade...

Rick Helfenbein (left), president and CEO of AAFA, with Juan Estrada, chief of party, Hub; Courtesy: Hub

Apparel/Garments | On 23rd Feb 2017

AAFA inks agreement for best manufacturing in East Africa

The American Apparel & Footwear Association (AAFA) has entered into a ...

Mango vice-chairman and member of the board of directors Daniel Lopez (L) with Ananth Narayanan, CEO, Myntra & Jabong. Courtesy: Myntra

Apparel/Garments | On 23rd Feb 2017

Mango awards distribution & management rights to Myntra

Mango, the Spanish fast fashion brand, has awarded its master...

Interviews View All

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search