Retrenched workers, especially women, in the South African textile and clothing industry have experienced a marked decline in living standards, an Ecumenical Service for Socio-Economic Transformation (Esset) report said on Thursday.
It revealed that of the 275 204 workers ‒ 80% of them women — in the sector in 2000, an estimated 39 600 employees had been retrenched between September 2000 and February 2001.
There had been a decrease in median household income per annum, from R18 200 in September 2000 while employed to R0 in February 2001, the report said.
”This indicates that the majority of households have experienced a 100% decline in household income as a result of retrenchments.”
The Esset is a body that does research on socio-economic issues on behalf of the SA Council of Churches. Esset conducted the study in 2002 with the assistance of several international economists.
The 84-page report titled ”The impact of trade liberalisation” said the single greatest source of support named by workers was from persons within the household, with 63% of laid off employees receiving such support. External source of support, both public and private, was limited.
Only 4,9% of retrenched workers were drawing income from the Unemployment Insurance Fund (UIF) in February 2001, despite the fact that 42% reported that their employer was contributing to the fund the previous year when they were still employed.
”This figure suggests a failure to dispense UIF payments in a timely fashion, a circumstance that was discovered repeatedly among workers in the Western Cape.”
Referring to what it called the feminisation of poverty, the report said since most workers were females, women were increasingly becoming victims of retrenchment when companies lay off staff because of lack of sufficient demand for products. – Sapa