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The process leading up to Friday's declaration was initiated by Sactwu, when it tabled a Section 77 notice of possible protest action to the National Economic Development and Labour Council (Nedlac) in August.
The notice was directed at retailers and their banks and asset managers, and argued that the sourcing decisions of retailers were resulting in job losses in the clothing, textile and leather industry, amongst other issues.
In terms of the suppliers of capital, Sactwu argued that banks and asset managers benefit from the sourcing practices of retailers, and can have leverage over their corporate behaviour.
The parties signed two declarations, one with retailers and another with the finance sector.
The retailers who signed the declaration were, Pick 'n Pay, Shoprite Checkers, Woolworths, Foschini, Pepkor and Edcon.
Retailers declared their commitment as the signatories to use their efforts, particularly their buying decisions, to promote higher levels of procurement from South African manufacturers, in an effort to create employment or save jobs in SA.
The declaration covers a period of six months, during which time the parties will continue to engage with each other with the purpose of developing a broader agreement on local procurement of apparel and in the home textile and footwear industries.
In terms of the declaration, each retailer who is currently sourcing up to 75% of its apparel products from South African manufacturers will meet with Sactwu in bilateral discussions to discuss its levels of South African procurement and ways of increasing its South African procurement.
Finance sector representatives who signed were Old Mutual Asset Management, Metropolitan Asset Management, Futuregrowth Asset Management, Independent Black Fund Managers Association, Oasis, Trilinear, Rocklands, Real Africa, Cerebral and Merit.
In terms of the declaration of Sactwu and the finance sector, the sector agreed to encourage the clothing retail sector, particularly in the application of their buying decisions, to promote higher levels of local procurement in an effort to create employment or save jobs in South Africa.
The declarations are particularly significant in that they speak directly to many of the issues contained in the Growth and Development Summit agreement, signed between business, government, labour and community in June.
In Friday's declaration, the parties agree to take all necessary steps to ensure that their apparel products carry labels reflecting the country of origin as well as ensuring that all apparel products ordered for manufacture after the date of signing of the declaration carry labels reflecting the concerned apparel product's country of origin.
