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Clothing wage cut may fit other industries: Sacci

13 Oct 2011

The SA Chamber of Commerce and Industry (Sacci) said that the lowering of the minimum wage in the clothing and textile industry can serve as a model to other industries. The Apparel Manufacturers of SA, part of the SA Clothing and Textile Workers' Union, and Textile industry employers signed a deal recently, offering new employees 30% lower wages.

"The agreement to lower the minimum wage by 30 percent within the clothing and textile industry is a model that can be implemented to increase South Africa's competitiveness and employment creation," Sacci president Chose Choeu said in a statement, inviting other industries to "seriously consider the brave example of the clothing and textile industry when tackling the significant problem of unemployment in South Africa". Choeu said the agreement had not only saved jobs, but already led to the creation of new jobs.

Business Day reported last week that Cape Town-based manufacturer Peter Blond & Associates announced that they will increase their workforce by 25 percent - creating 5000 new jobs - within the next three years. In the past decade, the industry had lost 50,000 jobs, as the sector struggled to compete with cheap Chinese imports, according to the report. Choeu said the agreement "clearly shows a relatively quick and red-tape-free method of creating jobs".

Read the full article on www.timeslive.co.za.