Joint+Trade+Unions+support+China+deal,+COSATU+Media+Release

COSATU Media Release, 6 September 2006
=JOINT TRADE UNION STATEMENT: SUPPORT FOR CHINA DEAL=

South Africa’s three major trade union federations today threw their weight behind the agreement on limiting clothing and textile imports from China.

COSATU, NACTU and FEDUSA, who together have a membership in excess of 2.5 million workers, drew attention to the loss of 67 000 jobs in the clothing, textile and footwear sector over the past three and a half years.

In a historic show of unity on a single industry issue, the leaders of the three federations pledged to mobilise their members in support of the agreement.

In a statement issued by the General Secretaries of COSATU (Zwelinzima Vavi), FEDUSA (Dennis George) and NACTU (Mahlomola Skosana), the three federations raised criticism of retailer responses to the bilateral agreement.

“As trade unionists and South Africans we believe that the job losses in the sector constitute a national tragedy and that urgent action is required,” they said.

“The terms of the voluntary export restraints introduced by China can save huge numbers of local jobs and create much needed new employment. It is a confidence-boost for a sector that has battled for survival in recent years,“ they said.

“We note with regret the hostile reaction of certain retailers to the proposed agreement. We are disappointed that the retail sector, who has led the drive towards a massive rise in imports in the sector, are unwilling to become partners in creating jobs for the large numbers of unemployed in the country,” they said.

“The three labour federations have attempted at NEDLAC for some period to persuade retailers to support an active Buy Local campaign and to enter into a code of conduct that would set broad targets for local procurement. These talks were characterised by endless delaying tactics and negotiation in bad faith by the retail sector. In particular the Edcon Group, Foschini, Truworths and Woolworths led the campaign against a local procurement code,” they said.

“We have noted with concern to the claims by retailers that this agreement will lead to price increases. Retails profits are at a historic high. Having had four fat years, the retail sector should tighten its belt. We believe that there is a responsibility now on retailers to moderate their mark-ups and their excessive profit-taking of recent years. The result of this will be that prices need not go up,” they said.

“We note the complaints from retailers that late notification was given of the clothing and textile bilateral agreement with China but do not believe that this complaint has substance. In February 2006, the President of the Republic of South Africa gave notice of an in principal agreement between South Africa and China on limiting imports on clothing and textiles to this country. Further, in June this year, an agreement between China and South Africa was initialled during the visit of Premier Wen Jiabao to South Africa and this was widely publicised in the media,” they said.

“The retail sector has had a significant period to reorient its procurement to South African sources and it is clear that they have bet that the authorities would not be able to put the regulations in place in time. Their bet having failed, they now seek to come across as the injured party,” they said.

“Labour and Government need to be alert however to possible loopholes that business and China may use to ensure imports continue at previous levels. These would include possibly sending imports via other countries such as Vietnam into South Africa.

“We commit ourselves and our organisational resources to a public education campaign on Proudly South African and urge consumers to support the local industry,” they said.

For further information please contact:

COSATU
//Deputy General Secretary, **Bheki Ntshalintshali**, on 082 563 6973//

FEDUSA
//General Secretary, **Dennis George**, on// //084 805 1529//

NACTU
//General Secretary, **Mahlomola Skosana**, on 082 325 4247//

Patrick Craven (National Spokesperson)** P.O.Box 1019** Tel: +27 11 339-4911/24**
 * Congress of South African Trade Unions**
 * 1-5 Leyds Cnr Biccard Streets**
 * Braamfontein, 2017**
 * Johannesburg, 2000**
 * SOUTH AFRICA**
 * Fax: +27 11 339-5080/6940/ 086 603 9667**
 * Cell: 0828217456**
 * E-Mail: patrick@cosatu.org.za**

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