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HIV/AIDS is having an effect on KwaZulu-Natal's Clothing Companies - A Survey of South African Clothing Companies in KwaZulu-Natal - 2007
Renato Palmi. The ReDress Consultancy. 11 June 2007.
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A recent survey of clothing companies in KwaZulu-Natal revealed that HIV/AIDS is having a serious affect and effect on this industrial sector. Even though the study is exploratory and does not go into details the results of the survey warrants further investigation.
This survey was undertaken during May-June 2007 on behalf of the Durban Fashion Council, which is an initiative of the Durban Chamber of Commerce and Industry.
Acknowledgements
This telephonic survey was conducted from the premises of Durban-based Lucy Clothing by Mrs. Judy Morrison and Mr. Renato Palmi, who developed the conceptual framework for the study, designed the questionnaire and analysis tools, and synthesised the information provided in this report.
Parameters of the survey
The KwaZulu-Natal National Bargaining Council for the Clothing Manufacturing Industry list, as at May 2007, cites a total of 347 registered clothing companies as employing 26 785 persons. For the purpose of this study, a sample of companies employing a staff complement of over 50 was identified. Of these 90 companies, a total of 25 (30%) were interviewed. This equates to 7% of the overall number of registered companies in the province. Although the sample base is small, the outcomes of the survey can be regarded as a fairly representative profile of the KwaZulu-Natal clothing industry.
The telephonic interviews were based on a questionnaire with either owners or senior managers of the sampled companies. The survey consisted of 23 questions divided in three sections. The first section (Questions 1 to 9) relates to employment, production and equipment. The second section (Questions 10.1 to 10.9) relates mostly to union issues. The third section (Questions 11.1 to 11.5) relates to the issues of import quotas and pricing. The questionnaire was constructed to minimise time spent on the telephone with the respondents, and as such opens the ground for a comprehensive follow-up investigation to excavate the reasoning behind some of the answers given in this exploratory survey.
Background
The clothing and textile industries in South Africa contribute approximately 3.6% to the national GDP, generating 2.2% of sales, and generate 14.5% of employment in the national manufacturing sector. Research statistics indicate that, on average, five individuals are dependent on every person employed in this sector. Further research indicates that approximately 83% of those employed in this sector are women.
The KwaZulu-Natal National Bargaining Council for the Clothing Manufacturing Industry's July 2006 list reported 379 registered companies, employing 32 060 people, with 99 companies employing more than 50 workers. Comparing this to the May 2007 list, the following statistics can be extrapolated:
- Between July 2006 and May 2007, there is a drop of 5 275 (-120%) in employment figures.
- Thirty-two companies either closed or moved into the unregistered informal sector during this period.
- Nine fewer companies currently employ over 50 people.
From these figures, it is fair to say that there has been a downtrend in employment and in the number of registered companies in KwaZulu-Natal over a ten-month period. A 2005 report[1] indicated that there were approximately 300 CMT operations in Durban, with only 18 being registered with the KwaZulu-Natal Bargaining Council. According to owners, the large number of unregistered CMT operations is due to price demands dictated by retailers, the cost of labour and various costs associated with operating a registered company. The owners of these unregistered companies argue that to remain viable in an environment where orders are erratic and prices are being driven down, they are compelled to operate outside the ambit of the Bargaining Council. These owners claim that compliance with all the regulations dictated by the Bargaining Council and the Unions would result in closure of their operations, thereby contributing to further loss of employment in the clothing sector.
For the full report, please go here: http://redressconsultancy.blogspot.com/2007/06/survey-of-south-african-clothing.html
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