South Africa: Wage Cut In Clothing Industry

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South Africa: Wage Cut In Clothing Industry

Even as the Asian garment industry workers are clamoring for wage increases, the South African garment industry workers have agreed to a 30% wage cut. The South African Chamber of Commerce and Industry (SACCI) has welcomed the wage cut agreement in clothing and textile industry of South Africa.

Chose Choeu, President of SACCI said, “The agreement to lower the minimum wage by 30% within the clothing and textile industry is a model that can be implemented to increase South Africa’s competitiveness and employment creation. SACCI is committed to job creation and would like to extend an invitation to stakeholders in other industries to seriously consider the brave example of the clothing and textile industry when tackling the significant problem of unemployment in South Africa. SACCI congratulates the parties to the negotiation in striking an agreement that has not only saved jobs but has already led to a workforce expansion in the industry. This agreement is a significant economic development since it clearly shows a relatively quick and red-tape-free method of creating jobs.”

The almost immediate announcement by Cape Town based manufacturer Peter Blond & Associates that they will increase their workforce by 25% thanks to the agreement indicates that the South African manufacturing industry is eager to expand its workforce given the right conditions.

At its Annual Convention held in Sandton, SACCI proposed that it engage with government and labor in an “economic codesa” towards an improved economic direction in order to mitigate job losses. SACCI believes that by working together the stakeholders can find a solution that will improve economic growth and create jobs.