Jacquie Golding-Duffy
IN the next five years, the effect of strikes in the clothing industry will be minimal as the clothing sector will have collapsed. South Africa will be forced to embrace imports, argues Econometrix economist Tony Twine.
Twine says the economy, while in a transitional phase, will not benefit from a strike in the already declining sector. However, neither will management or workers benefit from such a strike, he says. Twine cites the example of the motor industry strike two years ago. Workers’ demand for a wage increase was met by employers after nearly six weeks of striking, but workers were then forced to waive any claims for further increases for the next two years, until production caught up again.
Twine adds that while there is sympathy for industries that are declining owing to holes in the customs net, the move towards lowering import tariffs will benefit the economy in future.
But Peter Cragg, executive director of the Cape Clothing Manufacturers’ Association, an employers’ body, says the industry can “definitely be saved” by, among other things, developing competitive goods for niche markets and containing input costs.
Twine’s view, he says, is clinical and certainly not a model of encouragement for manufacturers.
The strike, argues Cragg, is about containing input costs. “This is not just the union asking for a marginal increase, it’s about a total cost perspective, which means consumers will feel the pinch and they are the ones who will ultimately decide the industry’s future.”
Jabu Ncgobo, general secretary of the South African Clothing and Textile Workers Union (Sactwu), says he is aware of problems in the industry, but meeting workers’ demands for a 10% increase will not bring it to its knees. “It is going downhill owing to a number of factors, including the lowering of tariffs and the skipping of customs and import duties. Our demands will not cause the industry to collapse any further.”
The strike by Sactwu has allowed employers to exercise their right to lock-out and has generated support among employers for “selective and partial” lock-out action, intended to bring pressure on strikers, while not prejudicing workers who refuse to support the strike.