Trade union's and retailers at loggerheads

By Nadia Samie
7 September 2006

The government’s decision to impose quotas on Chinese clothing and textile imports could cost the South African Revenue Service in excess of R1 billion in taxes before the end of 2006. This would be as a result of lower profits, lost sales and reduced tax collection.

At the same time, the country’s three major trade unions threw their weight behind the agreement, saying that a large amount of local jobs would be saved, and many more created.

Cosatu, Nactu and Fedusa, who together have a membership of some 2.5 million workers, issued a joint trade union statement in which they expressed disappointment that the retail sector is unwilling to embrace the quota agreement.

Meanwhile, retailers Truworths, Edcon, Woolworths, Foschini, Pepkor and Mr Price have issued their own joint press statement, in which they say that government should shift its focus to illegal imports and an uncompetitive local clothing manufacturing industry, instead of focussing on the control of what it calls recognised and ethical companies. The retailers are calling for the immediate suspension of the implementation of the China agreement.