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Job losses slow down in textile sector
06
Oct '10
According to the South African Clothing and Textile Worker's Union, job losses have slowed down to a great extent during the last three years, in the textile, clothing as well as footwear sectors.

As per the database, about 29,500 job losses have been registered from July, 2007 to June, 2010 due to the closing down of industrial units, retrenchment as well as insolvency. This estimate is 23 percent lower than the prior three-year figure.

Around 45% of the job losses have been recorded in KwaZulu-Natal. It has been followed by the Western Cape region which has recorded about 29% of the total job losses.

The reduction in job losses has been due to the imposition of quotas, on several Chinese clothing material and textile items in 2007 and 2008 as well as the introduction of some measures, which have supported the industrial and trade activity in the country.

According to union reports, an average number of five factories have shut down every month in the period from July, 2007 to June, 2010.

Of the five biggest instances of factory closures during the above mentioned period, three belonged to the clothing sector alone. These units were located in the most lowly paid areas of South Africa.

Fibre2fashion News Desk-India


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