One operation was closed by written order and employers saw the raid and closure as an intensification of a campaign by the South African Clothing and Textile Workers' Union (Sactwu) to pressurise clothing manufacturers.
In an attempt to save jobs, the council negotiated during 2010, giving the factories a "breathing period" until March to reach 70% of the council wage rates, rising to 90% in December and 100% in February 2012. The factory that was closed in Newcastle failed to meet the 70% requirement. Employers say that the bargaining council's minimum wage rates - set to be about R550 a week next year cannot be sustained in the face of rising clothing imports. Owners complain that this level will make the South African industry uncompetitive.
Ahmed Paruk, who chairs the United Clothing and Textile Association, which represents 28 Newcastle factories, said that, if an industry-wide solution was not reached, he expected the industry to shrink further. The workforce had already declined from about 200 000 employees a few years ago to about 56 000 now. Sactwu said this week that it regarded the factory closures "as a continued act of defiance and disrespect for our country's laws". Sactwu said it will "take every possible step ... to ensure that workers' rights ... are protected."
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