“In a blow to the survival prospects of SA’s clothing industry and to ambitious job-creation targets set by the government, noncompliant clothing factories have been given 15 months to become fully compliant with minimum wages and levies or face closure”.
This is an extract from BusinessDay which published an article today by Barrie Terblanche – Minimum-wage threat to factories in which it is reported that the “Council gives clothing factories 15 months to become fully compliant with minimum wages and levies or face closure”.
Here are some further extracts but the article should be read in Business Day together with the following earlier articles: Edward West – Newcastle textile factories ‘working on minimum-wage plans’ and Decent work – Newcastle.
“The National Bargaining Council for the Clothing Manufacturing Industry’s order dashes hopes of a much-needed overhaul of the wage regime in the ailing industry. It follows the expiry in December of a moratorium on prosecution by the bargaining council against small companies struggling to meet the minimum wages set by the council.
The moratorium was called by Economic Development Minister Ebrahim Patel after an unprecedented uprising by small businesses in the Newcastle area against a bargaining-council clampdown in August last year.
Noncompliant businesses now have until the end of March to become 70% compliant with the minimum wages prescribed by the bargaining council, and until the end of the year to become 90% compliant. By April next year, they must comply fully”.