Barely two weeks after the gold mining industry escaped what would have been the biggest strike in 16 years, South Africa is in for yet another revolt as wage increases and job losses within the country’s major economic sectors reach crisis point.
The South African Clothing and Textile Workers’ Union (Sactwu), the Chemical, Energy, Paper, Printing, Wood and Allied Workers’ Union (Ceppawu) and the National Union of Metalworkers of South Africa (Numsa) this week threatened to embark on indefinite strike actions.
On Thursday Sactwu and Ceppawu announced their intention to go on strike to protest against massive job losses in the clothing, textile, leather and plastic bag industries. Numsa’s main sticking point is low wage increases in the motor retail industry.
More than 1 000 jobs in the clothing, textile and leather industry are lost every month, says Ebrahim Patel, Sactwu general secretary. Between January and June this year, about 6 000 jobs have been lost.
This is on top of the loss of at least 17 000 jobs during 2001 and 2002, the union says. The figures come from a database for the clothing, textile and leather sectors maintained by the South African Labour Research Institute in collaboration with Sactwu.
“In reality,” says Patel, “the job losses are significantly higher, since our sources of information are not able to record every instance of retrenchment. The information excludes natural attrition. It records employees in the union bargaining unit, and hence excludes most white collar and managerial staff.”
Sactwu blames the retail industry for shifting its sourcing of goods to factories outside South Africa. This has resulted in more than 20 local manufactures closing down or being liquidated as they battle to sustain themselves.
The clothing, textile and leather industry is the most labour-intensive part of the manufacturing sector in South Africa.
The plastic bag industry has also experienced massive retrenchments since the government’s new regulations in May this year. Thousands more retrenchments are expected, with the demand for plastic bags having plummeted by between 80% and 90%.
According to Ceppawu, the result of the dramatic drop in demand has been that many workers have been placed on short time or unpaid leave.
“Unless charging for bags ends immediately, more jobs will be lost in the production industry,” said the union.
This week, both Sactwu and Ceppawu issued a section 77 notice to the National Economic, Development Labour Council (Nedlac), which will enable their members to take the strike action in defence of their jobs.
Patel says the notice issued by Sactwu requires the retailers to sign a code of conduct that will commit them to sourcing at least 90% of their fashion goods (clothing, textile and leather article) locally.
The union demands that the retail sector:
Promote local employment and decent jobs through actively increasing the total proportion of goods in their stores that are manufactured locally; and
Sign the code of conduct that commits to local procurement, support for the local manufacturing industry, commitment by suppliers to promote fair labour practices in their commercial contractual arrangement with manufacturers, promote job creation and job security. Its demands to suppliers of capital (banks and equity fund managers) to the retail sector include:
Bringing to the attention of retailers that their sourcing decisions are not consistent with long-term economic and social development goals;
Requiring retailers to promote local employment and decent jobs through actively increasing the total proportion of goods in their stores that are manufactured locally; and
Advising retailers that failure to sign the code of conduct will result in the termination of the commercial relationship with and/or equity holding in the retailer, its subsidiaries and holding company.
Patel said the notice issued by the union requires Nedlac to convene meetings of retailers, banks and asset managers with Sactwu to consider the union’s socio-economic demands.
The two unions’ decision to issue a notice was welcomed by the Congress of South African Trade Unions. “These job losses will aggravate poverty, and the crisis facing our communities and decisive action is needed,” said Cosatu secretary general Zwelinzima Vavi.
By the time of going to press on Thursday, Numsa was still locked in negotiations with the motor industry.