Home / Knowledge / News / Apparel/Garments / Clothing firms resort to layoffs to shoulder wage hikes
Clothing firms resort to layoffs to shoulder wage hikes
25
Apr '11
Alex Liu, Chairman of Newcastle Chinese Chamber of Commerce said that, Newcastle based clothing units, which are under pressure from the government to adhere to the minimum wage legislation, have started to lay off workers to make it possible for them to adhere to new pay specifications.

The recent move is an intensification of the row over compliance with the new minimum wage structure, which was introduced around eight months back.

Though, Liu did not provide any specific number, nor had not undertaken any survey. However, he said that he knew of factories which have started retrenching workers.

He substantiated the fact that, his company Simunye, too was close to shut down, as they intended to re-start with fewer numbers of workers. According to him, around 100 to 120 of the present concentrated workforce of 160 could be re-employed.

He further stated that, as they are streamlining, all the workers would be retrenched, and only skilled workers would be hired in the new restructured firm, a majority of whom would be from the retrenched employees.

The Newcastle based clothing firms employ around 8,000 workers. During March, the minimum wages were hiked to R336 per week, and are set to touch R465 by year-end and R516 by April 2012.

Majority of the firms are finding it difficult to comply with the minimum wage structure as there has been no alteration in the prices that they get from the retailers, Liu said and added that, it seems hardly possible for these firms to raise wages, unless the retailers agree to pay higher prices.

However, as stated by Wayne van der Rheede, Deputy General Secretary of Southern African Clothing and Textile Workers' Union (SACTWU), no retrenchment notice has been received from any of the firms.

The Bargaining Council for the Clothing Manufacturing Industry has recently started assessing the wage structures of 416 non-compliant firms, to check if these firms have upgraded to the 70 percent compliance level in minimum wages set to be achieved at start of the current month.

Fibre2fashion News Desk - India


Must ReadView All

Apparel/Garments | On 27th Jun 2017

Vietnam to build fashion, textile, trading centres

Vietnam's Ho Chi Minh City will build large centres for designing...

Textiles | On 27th Jun 2017

Barcelona’s Unitin develops recycled Indigo yarns

Unitin, a trademark of Industrias Morera SA and a leading textile...

Information Technology | On 27th Jun 2017

ThreadSol to bring fabric solutions to Thailand

ThreadSol, an enterprise material management provider for the sewn...

Interviews View All

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Suresh Patel
Sidwin Fabric

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

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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

news category


Related Categories:
July 2017

July 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search