Clothing factories at war over wages

Johannesburg - A full third of South Africa's clothing industry could suddenly be wiped out in a drive against enterprises that fail to pay their employees the prescribed minimum wage.

But it is neither government nor unions spearheading this assault – it's the industry itself. Unfair wages lead to unfair competition between industry players, according to the Apparel Manufacturers of South Africa (Amsa).

The National Bargaining Council for the Clothing Manufacturing Industry, in which Amsa negotiates wages with the clothing workers' union Sactwu, has already obtained court orders to seize the assets of 385 of the 1 031 factories under its wing.

In 99% of these cases such asset seizures would mean the end of the factory, said Leon Deetlefs, the Bargaining Council's head of compliance.

The order gives the Bargaining Council the right to attach assets for sale on auction to recover arrear wages, as well as fines and levies due to the Council.

The Bargaining Council said that a total of R160m had been owed to it and to workers since the 2007/08 financial year.

This could lead to the loss of 20 000 of the 55 000 posts in the industry, and destroy businesses in rural areas, particularly in the Free State and KwaZulu-Natal.

According to Deetlefs the Council has writs against 91% of the factories in rural areas – where a lower minimal wage is applicable.

This step is the dramatic outcome of efforts by the Council – which was created in 2002 as a centralised negotiator for wages in the seriously divided clothing manufacturing sector.

All that stops the Council is a moratorium negotiated with the Free State government last week, which is valid to the end of this month. This moratorium follows the shutting down of 31 factories.

The closing of factories in the Free State and KwaZulu-Natal led to violent clashes between sheriffs of the court, factory owners and workers.

Deetlefs said that none of the targeted factories should have been surprised. They had had three chances to pay the minimum wage.

The process now leading to widespread closures has taken years and has included arbitration with the factories, he said.

From 2005 the Council has emphasised cracking down on these factories.

Members that are paying minimum wages complain that their businesses are at a disadvantage if other factories fail to do so. They demand that rectification become a priority, said Deetlefs.

He acknowledged that most of the factories under threat could probably not afford the minimum wage.

The condition, in terms of which the Bargaining Council agreed to hold back on closing the factories, was that the Council would be meeting "senior officials" of the departments of labour, trade and industry as well as economic development this week.

 - Sake24.com