SACTWU+Comment+on+2006+State+of+the+Nation+Address

=**Comment on State of the Nation Address- SA Clothing and Textile Workers Union.**=


 * 3 February 2006.**

The SA Clothing and Textile Workers Union (SACTWU) welcomes the commitment by President Mbeki to job creation in the clothing and textile industry.

“The President has prioritised the clothing and textile sector for accelerated growth, in recognition of its vast job potential. The sector has the highest labour intensivity in manufacturing, and can create tens of thousands of new jobs if support policies are put in place. SACTWU has worked with the Department of Trade and Industry to put an industry growth plan together,” Mr Ebrahim Patel, General Secretary of SACTWU said today.

The State of the Nation Address placed on record what is understood to be an in-principle agreement with China to save the South African clothing and textile sector. Over the past three years, more than 60 000 jobs have been lost in the sector through retrenchments, largely as a result of a massive rise in imports from China. Imports of Chinese clothing items alone rose by 335% in US dollar terms between 2002 and 2004, and rose by a further R800m during the first ten months of 2005.

SACTWU and COSATU has been involved in an active campaign against high imports, culminating in a general strike in June 2005 and provincial strikes in October 2005 over job losses in the sector. The labour movement has called for measures to be put in place to stem and reverse the level of imports from China. Total imports from China now account for about half of all local consumption, and this equates to more than 100 000 local jobs.

Union General Secretary Ebrahim Patel said that the President has raised optimism about the industry by specifically mentioning it in his address. “This can be the start of a renewal of jobs and investment. But it requires real and firm measures to reverse the flood of imports from China. The challenge will be for China to show a commitment to the quota levels and product categories required to reverse the job losses and the flood of imports,” he said.

He said that the union impression was that China initially wanted to introduce very weak measures that would fall short of real steps to save local jobs. “We will carefully study the proposals for restraints in Chinese exports, to evaluate their impact on local jobs,” he said.

“We have been assured by government that there will be consultation with the labour movement before a final agreement is reached with China. We await such discussions,” he said.

Mr Patel called on China to step up to the challenge by bringing the levels of imports down to the level of 2002, the year before the massive job losses started. “This alone will result in more than 60 000 new jobs being created”, he said.

“If however, China does not include a sufficiently wide range of products and does not set quota levels closer to 2002 import levels, the impact on jobs could be negligible.”

“President Mbeki has noted that the years of freedom have been very good for business, and they now need to invest in the expansion of freedom. We agree with his assessment. Businesses must pay workers a living wage so that millions of South Africans can benefit from the economic boom. Retailers should support the Proudly South African campaign so that local jobs can be created,” Mr Patel said.

The President referred to the balance of payment deficit, which South Africa needed to finance from foreign capital inflows.

“South Africa runs a significant deficit in its trade with China, and this is largely due to the imports of clothing, electronic goods, furniture and other consumer goods. So the frenzy of imports by the retail sector is not good for our balance of payments and is not good for job creation,” he said.

“There are opportunities in BEE and the women set-asides to promote local industry. We call on government to ensure that all set-asides have a requirement for goods and services to be made locally and under fair labour conditions. That will ensure that the benefit of empowerment is shared by workers.”

Mr Patel welcomed the President’s commitment to the outcomes of the Growth and Development Summit and to the decent work objective.


 * SACTWU is the trade union for workers in the clothing, textile and leather industry. It has 110 000 members and is an affiliate of COSATU.

Issued by the SA Clothing and Textile Workers Union (SACTWU). Telephone: 021-4474570.**

755 words