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Oliphant: Collective bargaining must change

Cape Town - Collective bargaining in South Africa is in need of change and innovation, not only due to the economic pressures faced by employers and employees in many sectors, but also because bargaining is about change and adaptation, according to Minister of Labour Mildred Oliphant.

She was the guest speaker at the annual general meeting of the Bargaining Council of the Clothing Manufacturing Industry this week.

"The effective operation of bargaining councils is very important, especially when there is a growing hostility to the extension of agreements," said Oliphant.

"In future, sectoral determinations may prescribe minimum increases of remunaration. We have in mind vulnerable sectors where pay rates settle very close to the minimum prescribed in a sectoral determination and where the determination of a minimum increase may be appropriate to enable low income earners to benefit from real increases in earnings."

She said a sectoral determination may in future prescribe a threshold of representativeness for a registered trade union to have the organisational rights of access to employer premises and deduction of trade union subscriptions in respect of workplaces covered by the sectoral determination.

Clothing industry still under pressure

At the AGM it was indicated that SA's clothing manufacturing industry is still experiencing economic pressures due to a relatively weak rand, high inflation and cheap imports from the East and countries bordering SA.

In 2010 there were 56 707 people working in SA's clothing manufacturing industry compared to 51 536 by the end of August 2013.

The regional figures are 16 500 people working in the industry in the Western Cape by the end of August 2013 (23 416 in 2010), 22 122 in KwaZulu-Natal (19 944 in 2010), 2 076 in the Eastern Cape (757 in 2010) and 10 838 in the northern part of SA (12 590 in 2010).

In 2010 there were 954 clothing establishments in SA compared to 871 by the end of August 2013.

About 85% of those working in the clothing manufacturing industry are women.   

"The clothing manufacturing sector is labour intensive and has a potential to create large employment," said Freda Oosthuysen, chairperson of the council in her report.

"At least what is encouraging is the fact that local retailers are increasing procurement from local manufacturers."

Non-compliance of the minimum conditions of employment in the clothing industry continues to remain a major challenge for the clothing manufacturing industry, she said.

She congratulated all parties involved for the constructive way the annual wage negotiations were handled this year.

Among the challenges ahead for the industry she named the Free Market Foundation's court challenge against, among others, the Minister of Labour and the council regarding collective bargaining and the council's role, continued economic pressure, and improving compliance to the minimum conditions of employment as stipulated by the council’s main agreement.

- Fin24

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