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

Textiles | On 22nd Feb 2020

Pharr sells Pharr High Performance to Coats Group

Pharr, a provider of differentiated textile products and assorted...

Pic: Shutterstock

Textiles | On 22nd Feb 2020

TOAI highlights importance of textiles in auto industry

The first edition of the conference 'Textile Opportunities in a...

Pic: Shutterstock

Textiles | On 22nd Feb 2020

Cocona's 37.5 fibres to have new biodegradable additive

All of the 37.5 staple fibres and filament yarns by Cocona, will now...

Interviews View All

Footwear industry, Head honchos

Footwear industry
Head honchos

There is rising demand for fancy, trendy and yet comfortable footwear

Janak Dhamanwala & Sunil Dhamanwala, Jansun

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Karan Toshniwal, Orange O Tec

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Amol Bhagwati,

Amol Bhagwati

A textile finishing solution provider, Inspiron Engineering Private...

Tom Adeyoola,

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Sugandha Bhardwaj,

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Keith McMillen, Bebop Sensors

Keith McMillen
Bebop Sensors

Bebop Sensors' smart fabrics allows for a new level of interaction between ...

Daniel Kaye, RocketLife

Daniel Kaye
RocketLife

<div>RocketLife, an award-winning developer of breakthrough visual...

Georg Reinhold, Trützschler  Nonwovens & Man-Made Fibers

Georg Reinhold
Trützschler Nonwovens & Man-Made Fibers

Trützschler Nonwovens & Man-Made Fibers, a part of the Trützschler Group,...

Sneha Arora, Label Sneha Arora

Sneha Arora
Label Sneha Arora

Sneha Arora, an alumnus of National Institute of Fashion Technology,...

Sailesh Singhania, Sailesh Singhania Label

Sailesh Singhania
Sailesh Singhania Label

The Sailesh Singhania label was created to promote handwoven sarees and...

Vaanee Bhatia, Gritstones Clothing

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

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


February 2020

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


Advanced Search