Illegal factories get reprieve

Johannesburg - The Bargaining Council for the Clothing Manufacturing Industry could possibly, with government’s blessing, shut down the 385-odd clothing factories that pay their workers less than the minimum wage.

Minimum-wage offenders are however given until next Wednesday to table an acceptable plan to raise the entire sector’s wages to the prescribed levels.

This ultimatum was presented in Pretoria at a meeting between the sector and the deputy directors-general of the departments of labour, trade and Industry as well as economic development, reported Leon Deetlefs, the council’s head of compliance.

Government was very forthright, he said.

The state would not tolerate minimum wage transgressions and the offenders had already been granted more than enough time.

The government officials, the council and clothing factory representatives breaking the law – particularly in non-metropolitan areas – must meet again on September 21, Deetlefs said.

Should no acceptable plan be presented, the factory closures will continue.

Last month the clothing bargaining council began a campaign to seize minimum wage offenders’ assets, a step that in practice could destroy a third of the sector and put 20 000 workers out on the street.

The campaign is intended to stop alleged large-scale unfair and illegal wage competition.

After 31 factories were closed down last month, a moratorium valid to the end of September was negotiated with the Free State government.

It is a virtual certainty that many of the factories breaking the law will not survive if they pay the minimum wage.

There is also no certainty as to how the wage dispute can be resolved, because the council has for years been attempting to force wage levels higher.

The council seizes factories’ assets to meet debts arising from wages owed to workers, as well as fines and the levies owed to the council itself.

- Sake24.com

For business news in Afrikaans, go to www.sake24.com.