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The Purpose Of The South African Wage Agreement Is To Save Textile Work.

2011/10/17 15:33:00 18

South Africa Wage Agreement To Save Textile Work

South Africa

A legendary textile worker.

Wage agreement

It will reduce the wages of new employed workers by 30%, in order to save the country's textile industry from cheap competition in China.

The agreement is closely watched by other industries in the country, whose unemployment rate is around 25%.

According to unofficial estimates, in a broad sense,

unemployment rate

Up to 40%.

South African President Zuma promised 5 million jobs in 2020, and the government has shown that low wages are necessary to achieve this goal.

The promise of the union led to the suspicion of the labour union, which basically adopted better conditions for workers.

The business department believes that the agreement of the government will

Discouragement

The emergence of new employment.

According to the agreement, South African clothing and textile workers

union

The minimum wage for new workers is 427 RAND / week, 30% lower than the current level.

In exchange, the employer promised to generate 5000 new jobs in three years.

The Secretary General of the Federation of South African clothing and textile workers said it was an unreasonable intervention.

Under the new agreement, employers should not take advantage of low paid new hire workers to replace existing workers.

The textile industry in South Africa has been hit hard, and over the past 10 years, the number of jobs has been cut by half.

Some textile factories have migrated to cheaper neighbouring countries, such as Lesotho, and other companies threatened to follow, especially in the eastern province of Natal.

In these areas, the minimum wage for qualified workers is 200 RAND / week.

Last year, South Africa

Reduction

400 thousand workers were identified, though South Africa's economy was boosted by hosting the world cup.

For textiles, South Africa has been trapped in cheap Chinese imports. Before the quota was abolished in 2004, local textiles in South Africa accounted for 86% of the local market.

Exports of clothing in South Africa have declined, especially exports to the United States, which was dragged down by the appreciation of Rand and the economic crisis in 2008.

In addition to cost factors, South Africa has problems of capacity. With the collapse of business, South Africa's capacity has declined.

Compared with other countries, South Africa's labour force is relatively weak.

In the world economic forum's list of global competitiveness, South Africa ranks ninety-fifth in terms of labor efficiency.

The report also included South Africa's practice of hiring and firing labor into the most rigid countries in the world, making it the worst in the world.