Biggest textile employer in Border-Kei region sheds more jobs

09 Sep '10

1 min read

The Good Hope Textile Corporation, which was once a major textile employer, retrenched more than 760 jobs, i.e. over half of its workforce.

Textile, which is the oldest and biggest industry of the Border-Kei region, may get affected harshly due to such deep job cuts. Hence, government has been urged to intervene into the matter.

The company cited high operational costs and cheap foreign imports as reasons, for retrenching 761 workers out of its workforce of 1164. The company trades under the name 'Da Gama textiles' and produces the unique Shweshwe print.

Following Mercedes-Benz South Africa, Da Gama textiles has been enjoying the position of second biggest employer in the region. The news of the retrenchment surprised the South African Clothing and Textile Workers' Union (SACTWU).

As per Mr Lawrence Faku, Secretary, SACTWU, the company didn't give them any indication that it was running at a loss since 2007.

In early 2004, the company started witnessing financial issues and rendered almost 1,000 workers without job. This year in the month of July, it closed its East London spinning unit making around 100 workers jobless.

Fibre2fashion News Desk - India