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Wage cut for new workers in textile sector
Employers in the textile industry have reached a landmark agreement with workers that will see new staff getting paid 30% less than more experienced staff in a bid to create more jobs in the sector.
Business Day reports that the agreement was negotiated by employers and the Southern African Clothing and Textile Workers' Union (Sactwu). It is hoped that this agreement will boost Cape Town's depressed garment industry, which has taken a beating from cheap Chinese imports of clothing.
The local clothing industry wants to create at least 5 000 new jobs over the next three years and Sactwu says the deal will incentivise employers to hire more people and create opportunities for new entrants into the textile industry.
At least 50 000 jobs have been lost in the textile industry over the past ten years.
It comes amid complaints from Chinese clothing companies in Newcastle who allege that South African workers are unproductive and demand too much money for the work they do. Several Chinese companies have been hit with hefty fines and some have been closed down after an impromptu inspection by the Labour Department's inspectors.
Chinese employers have been accused of exploiting workers, making them work in appalling conditions and paying them less than the minimum wage for work done.
Read the full article on www.businessday.co.za.
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