Home / Knowledge / News / Apparel/Garments / South African apparel giant Seardel to layoff workers

South African apparel giant Seardel to layoff workers

06
Feb '12
Seardel Investment Corporation Ltd., the largest clothing and textile manufacturer in southern Africa, plans to retrench around 1,500 workers at its Western Cape and KawZulu-Natal factories, in its effort to battle low margins.

Currently Seardel has started the consultation process with Southern African Clothing and Textile Workers Union (SACTWU), as required by section 189 of the Labour Relations Act.

The consultation process, which is expected to last about 60 days, would decide on dismissal of 1,000 workers from the company's Western Cape factories and another 500 workers from the KwaZulu-Natal based Ladysmith manufacturing unit.

The consultation would also decide on compensation to retrenched workers, in addition to retirement benefits.

Seardel's move to layoff workers has come at a time when the South African Government is making efforts to save and create jobs in the country.

For the six months to September 2011, Seardel registered an operating loss of 50 million rands in its clothing operations, compared to its loss of 20 million rands recorded during the same period in 2010.

It is for the second time that Seardel has run into financial difficulties. Earlier in 2008, Seardel was rescued by Hosken Consolidated Investments (HCI), but it still had to lay off 4,000 workers and shut some divisions.

Stuart Queen, Seardel CEO, said the company has informed the workers' union that it proposes to downsize the number of workers owing to margin pressures.

He said the firm's clothing division has continued to run into loss and this has affected its input costs. Hence, the company has decided to analyse and remove low-margin manufacturing across the board, he added.

He revealed that the retrenchment move would also help in balancing the company's order books.

South African textile and garment industry is currently facing difficult trading situation with increasing cost of raw materials and retailers preferring imports to locally made goods.

In 2009, the Industrial Development Corporation had rejected the application of HCI seeking financial distress relief funds for Seardel.

Fibre2fashion News Desk - India


Must ReadView All

Pic: Shutterstock

E-commerce | On 6th May 2021

UK digital commerce spending to reach $11.6 trillion in 2021: Report

UK digital retail spending will rise to over $11.6 trillion by the...

Pic: Compo-SiL

Textiles | On 6th May 2021

Taiwanese company GS to produce plastic-free vegan leather

Taiwanese silicone product manufacturer General Silicones (GS) has...

Pic: Shutterstock

Textiles | On 5th May 2021

EURATEX welcomes revamped EU Industry Strategy

EURATEX, the voice of the European textile and apparel industry, has...

Interviews View All

International apparel brands, Head honchos

International apparel brands
Head honchos

Launched first collection at onset of Covid

Textile Industry, Head honchos

Textile Industry
Head honchos

Main challenges are breakdown of supply chain and shrinkage of manpower

Textile Industry, Head honchos

Textile Industry
Head honchos

Marry craft and utility

Chendhuran Sundar,

Chendhuran Sundar

Headquartered at Singapore, Crocodile is a global fashion and lifestyle...

Yawer Ali Shah,

Yawer Ali Shah

Synthetic colours and dyes were all the rage till the very first ban on...

Benedetta Terraneo,

Benedetta Terraneo

Miko Srl, a subsidiary of US-based Sage Automotive Interiors and a member...

Asif Rahman, MIP

Asif Rahman
MIP

MIP is a manufacturer and distributor of high-performance textiles and...

Jacques Prigneaux, EDANA

Jacques Prigneaux
EDANA

EDANA has been the leading global association and voice of the nonwovens...

Ian Russell, Pireta

Ian Russell
Pireta

UK-based Pireta has developed a unique free-form process to add durable,...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Anjali Bhaskar has an experience of 12 years in the fashion industry. She...

Abhishek Bajaj & Samiksha Bajaj, Samshek

Abhishek Bajaj & Samiksha Bajaj
Samshek

Samshek is a fashion forward tech brand which combines digital experience...

Vidur Adlakha & Riccardo Bennidini, La Fuori

Vidur Adlakha & Riccardo Bennidini
La Fuori

With an active presence in US, Italy and India, clothing brand La Fuori...

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

Leave your Comments


April 2021

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


Advanced Search