The Purpose Of The South African Wage Agreement Is To Save The Textile And Garment Industry.

South Africa Spin A legendary wage agreement for garment workers will reduce the wages of newly hired workers by 30%, in order to save the country's textile and garment 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, the unemployment rate is 40% in a broad sense.

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 be discouraged. Obtain employment Generation.

According to the agreement, the South African clothing and textile workers' Union agreed that 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 moved to cheaper neighbouring countries, such as Lesotho, and other companies are threatening to follow suit, especially in the eastern province of Natal.

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

Last year, South Africa laid down 400 thousand workers, though South Africa. Economics It was promoted 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.