Introduction of textile rebates, SACTWU

17 Jun '09

2 min read

The SA Clothing and Textile Workers' Union (SACTWU) has taken note of the recent introduction of rebates on certain fabrics used in the manufacture of clothing that has the effect of removing the import duties on these fabrics.

This development is not unexpected.It is envisaged in the 'Rescue package for clothing and textiles', an agreement concluded in February this year, between SACTWU, clothing and textile employers' organisations party to the National Bargaining Council for the Clothing Manufacturing Industry and the National Textile Bargaining Council, and the Department of Trade and Industry. This Rescue Package was developed by the industry under the industrial policy powers of bargaining councils as set out in the Labour Relations Act.

The Rescue Package was developed as a direct consequence of the 'Framework for South Africa's Response to the International Economic Crisis', agreed to by stakeholders at Nedlac. This Framework Agreement tasks government, labour and business to develop rescue packages for vulnerable sectors, such as clothing and textiles, using a combination of trade,industrial and social policy measures.

While we generally welcome the urgency with which the new Minister of Trade and Industry deals with matters concerning our industry, SACTWU has noted that certain of the new rebates have been introduced more broadly than anticipated in the Rescue Package, despite concerns raised by the union and other parties about the possible negative impact on some local textile mills and jobs. The union will take this matter up directly with the International Trade Administration Commission (ITAC) and the Department of Trade and Industry.

SA Clothing and Textile Workers' Union

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