Sactwu, employers, in historic managed shut-down agreement 29-07-08

Labour and business reach historic agreement on managed shutdown of Western Cape clothing industry for 6 August 2008 COSATU protest action

In a first for the clothing industry and the country, the Southern African Clothing and Textile Workers Union (SACTWU) and the Cape Clothing Association (CCA), have agreed upon a

disciplined MANAGED shutdown of the industry. This follows negotiations between the two organizations in preparation for next week’s national protest action by COSATU against the continuing electricity crisis facing South Africa.

The collective agreement, signed yesterday 28 July 2008 by Andre Kriel, the Deputy General Secretary of SACTWU, and Johann Baard, the Executive Director of the CCA, sees both organizations agree that if our country’s electricity crisis is not resolved, it could have severe negative consequences for the clothing industry, in particular on employment levels and on the future sustainability of the industry.

Through the agreement, the CCA has committed its member companies to take all reasonable measures, in consultation with SACTWU, to avoid any job losses arising from the electricity crisis. While both organizations recognize that an unplanned closure could have deleterious effects upon the already vulnerable industry, they also share the view that it is necessary to protest against the electricity crisis. With this in mind, SACTWU and the CCA have agreed to jointly manage the shutdown of the industry on the day of the protest action with the least disruption and in a manner that allows the industry’s supply commitments to its customers to be met.

In terms of the agreement, all CCA member companies will shut down by 10:30am on 6 August 2008, to allow clothing workers to participate in the COSATU protest action.

The agreement commits the union and the employers to co-operatively seek solutions to any problems that may be presented on the day of the strike in a co-determinative problem solving manner – instead of a disciplinarian manner.

The key significance of the agreement is that it establishes a MANAGED shutdown of the industry, for the first time in the history of the industry.

The parties expect to submit the agreement for ratification to the clothing industry bargaining council’s Western Cape Chamber, at its meeting scheduled for later today.

There are 26 500 clothing workers registered with the clothing bargaining council in the Western Cape. Of this number, 23 284 (or 89%) are SACTWU members and 20 628 (or 78%) are employed in CCA member companies.

Issued as a joint press statement by SACTWU and the CCA, by:

Andre Kriel (SACTWU Deputy General Secretary) and Johann Baard (CCA Executive Director)

If further comment is required, kindly contact Andre on (021) 4474570 and Johann on 083 4444069

If needed, a copy of the actual agreement is available from Derek Adams on phone number 021 4474570