Home / Knowledge / News / Textiles / Workers lose jobs with closure of yarn plant

Workers lose jobs with closure of yarn plant

08
Jul '10
Closure of Da Gama's spinning unit in East London during the last week, has rendered over 100 workers jobless. The unit that spun yarn for fabric production in the Zwelitsha factory, suffered on account of financial adversities encountered by the textile industry.

Officials at the plant stated that, they experienced adverse trading conditions as the costs of raw materials went high, as also huge volumes of imported textile entered the domestic markets. Unluckily, all these factors together affected the margins, which along with high cost of production, headed the company to a point where it was required to reconsider its future production strategies.

Employees and the South African Clothing and Textile Workers' Union (Sactwu), two months back, in the month of April, were notified regarding this decision. Pursuant to this, 99 employees were sacked during the last month, whereas 16 of them were shifted to Zwelitsha.

The company that, retrenched about 1,000 workers in 2004, bestowed its 1,600 employees with a stake of R 45million in the company, thus converting the foreign-owned company to an employee-owned undertaking with employee's holding 45 percent of the stake. The company was the first one in the South Africa's textile industry to initiate such an employee share ownership programme.

Though, several employees of the company did agitate that, as they left the company the previous week, they were not handed over their shares, nor do they have any clue as regards the prevailing circumstances.

According to the employees, anything in this regards that they last heard of was at the time of announcement and then a year after, when they were each paid a dividend of R 300.

Also they were told that, another R 300 had been reserved in a trust fund on behalf of each of the employee. Thus, families of these employees as well the society were under an impression that they were a wealthy lot then, but that now they are all jobless, they are hoping if something turns out of this agreement.

Fibre2Fashion News Desk - India


Must ReadView All

Pic: humphery / Shutterstock.com

Textiles | On 18th May 2021

China's textile sector shows strong performance in Q1 2021

China's textile industry showed strong performance in the first...

Pic: Shutterstock

Retail | On 18th May 2021

Retail stores in Ireland open after 4 months of lockdown

Over 280,000 employees in Ireland’s retail sector returned to work as ...

Pic: Shutterstock

Textiles | On 18th May 2021

Prime Content| Organic cotton fibre prices in India expected to rise: TexPro

The price of organic cotton fibre in India is expected to increase in ...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Strike a balance between handmade in India and 'Make in India'

Textile Industry, Head honchos

Textile Industry
Head honchos

Blockchain is not a silver bullet for each and every problem in supply...

Textile Industry, Head honchos

Textile Industry
Head honchos

Marry craft and utility

Ritu Oberoi,

Ritu Oberoi

Mumbai-based Forsarees is a socially driven business enterprise, working...

Rishav Bajoria & Subham Sengupta,

Rishav Bajoria & Subham Sengupta

Launched in October 2020, the Gumti app could not have come at a more...

Barry Goodwin,

Barry Goodwin

UK based Amba Projex Ltd designs, manufactures, and installs industrial...

Jacques Prigneaux, EDANA

Jacques Prigneaux
EDANA

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

Kevin Young & Tom Lucas, Web Industries

Kevin Young & Tom Lucas
Web Industries

Web Industries is a precision formatter of nonwoven materials used in baby ...

Suresh Patel, Non Woven Federation of India

Suresh Patel
Non Woven Federation of India

The Non Woven Federation of India (NWFI), representing the regional...

Abhishek Bajaj & Samiksha Bajaj, Samshek

Abhishek Bajaj & Samiksha Bajaj
Samshek

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

Seema Gujral, Label Seema Gujral

Seema Gujral
Label Seema Gujral

<b>Seema Gujral</b>'s designs for her eponymous label revolve around...

Ramya Rao & Kavea R Chavali, Kalaneca

Ramya Rao & Kavea R Chavali
Kalaneca

<div>The journey of Kalaneca (kala-Art, Neca- Nikaah) formally began in...

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


May 2021

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


Advanced Search