Over 380 textile firms registered in South Africa are looking ahead to shift their production base from South Africa to other nearby countries like Lesotho and Swaziland. It is believed that the move would lead to generation of around 15,000 employment opportunities in these countries.
The textile firms in South Africa, that have avoided paying the minimum wages to the workers are now confronting closure by the Bargaining Council, as the authority has obtained execution writs against the defaulters.
Meanwhile, the South African Clothing and Textile Workers Union (SACTWU's) firmness on sustaining the current minimum wages for the sector is likely to result in retrenchment of workers, closure of the units and relocation of firms to other countries like Swaziland and Lesotho.
This development is looked upon to benefit Swaziland, as new jobs would be coming in the country. But then, it would be difficult for the country to accommodate so many companies due to lack of the basic infrastructural facilities that these companies would require, like the factory shells. According to the experts, the country can only accommodate those many firms that it is capacitated to do.
Further, almost all the textile firms in Swaziland adhere to the minimum wage regulations.
Fibre2fashion News Desk - India
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