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Lu Jean Clothing, closed its operations, resulting in a further 360 people in the same district becoming unemployed (Inggs, 2006e). The reason given for these closures was that the business-owners were unable to pay the additional cost of labour including back-pay from July 2005, in accordance with the new wage labour regulations in non-Metro areas. This localised example indicates the complex dynamics of this sector of South Africa’s manufacturing industry, with the government having introduced pro-worker policies, being countered with business-owners claiming that such actions leave them with little choice but to close down operations, as the extra expense of retaining labour exceeded their profit margins and financial resources. 24
CHAPTER FOUR South African Clothing and Textile Industries post-1994 4.1 South Africa’s Industry post-1994 The current crisis in South Africa’s clothing industry exemplifies the trajectory of industrial development internationally, as it can be traced to result from the influx of cheaper apparel from Asia and the means by which local industry role-players are attempting to deal with global neo-liberal economic policy applications. The challenge facing the clothing sector in South Africa is not only a result of the new economic policies undertaken by the post-1994 government, but is a legacy of the previous regime’s protectionist policy towards this sector. Policies such as import substitution, the export promotional policy through the General Export Incentive Scheme and initiatives relating to location, employment and wages, still contribute to the current volatility of the industry. The 1990s saw a “shift to conservative policies by the African National Congress”, and the creation of the government’s macro-economic policy in the form of the Growth, Employment and Redistribution (GEAR), which was adopted in 1996. The policy of GEAR failed, as some million jobs were shed between 1995 and 2002 (Westhuizen, 2003:32). Post-apartheid trade policies shifted from an “inwardly- to an outwardly-orientated, export- promoting economy” (Barnes et al, 1997). The current government formulated policies in line with WTO commitments tariff reductions, often faster than was required by the General Agreement of Tariffs and Trade (GATT), by reducing tariffs over a period of eight years instead of the prescribed 12 years, as agreed at the 1994 Uruguay Round of GATT (Gov. of SA, 1996; Valodia, 1997; DTI, 2005). The aim of this agreement was to integrate the South African economy into the global economy (Adelzadha, 1996; Padayachee and Michie, 1997; Valodia, 2001 cited in Ince, 2003: 4, and expanded by Rogerson, 2001; Harrison and Dunne, 1998). Linked to the reduction of tariffs was the agreement by South Africa with the WTO to phase out the General Export Incentive Scheme which promoted exports by offering tax concessions over three years, starting from 1995, because it was not in line with WTO regulations (Visser, 1998:16). 25
Page 2 and 3: Declaration This study represents t
Page 4 and 5: Abstract A fundamental change in th
Page 6 and 7: 8.10 Comments on the Clothing Indus
Page 8 and 9: CHAPTER ONE Introduction A Sicilian
Page 10 and 11: esearch on the global clothing and
Page 12 and 13: 2.2 The Global Industry - post-2005
Page 14 and 15: they are starting to go back home,
Page 16 and 17: Fashion is acknowledged as a vital
Page 18 and 19: fashion designers cope with these u
Page 20 and 21: natural fibres: wool and cotton; ot
Page 22 and 23: By the 1950s, Durban was the specia
Page 26 and 27: Due to South Africa being a middle-
Page 28 and 29: pivotal role in sustaining and deve
Page 30 and 31: This table shows that there are far
Page 32 and 33: Late in 2004, SACTWU reported that
Page 34 and 35: Basic Conditions of Employment Act
Page 36 and 37: environments, the erratic payment o
Page 38 and 39: A feature that is advantageous to C
Page 40 and 41: (Mokopanele, 2006). Deputy Minister
Page 42 and 43: Figure Three Profits before tax R m
Page 44 and 45: Further import figures collaborate
Page 46 and 47: share the space, none showed any in
Page 48 and 49: CHAPTER FIVE The South African Fash
Page 50 and 51: eiterated the need for local manufa
Page 52 and 53: women owners of the South African l
Page 54 and 55: 5.4 China’s entry into high-end f
Page 56 and 57: 6.1 Introducing the Value Chain CHA
Page 58 and 59: developed. Apparel operations can u
Page 60 and 61: “ripple effects back into manufac
Page 62 and 63: Rogerson endorses this view thus: T
Page 64 and 65: in their designs. Embellishment als
Page 66 and 67: een very little formal research on
Page 68 and 69: The owner of a new retail outlet in
Page 70 and 71: critical resource for profiling Dur
Page 72 and 73: 8.1 Introducing the Designers CHAPT
Page 74 and 75:
In addition, they have not embraced
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from international magazines and ev
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Peter Bosman (Interview: 3/7/06) Bo
Page 80 and 81:
Another critical success factor is
Page 82 and 83:
with fabric, and colour co-ordinati
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dictated by the buyers. This behavi
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to protect their own business inter
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clothing designs, and questions how
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manufactured off-shore and resellin
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Iqbal (Interview, 18/7/06) was outr
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These events run concurrently betwe
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support from buyers for retail outl
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formulate collective approaches to
Page 100 and 101:
can advertise their latest designs
Page 102 and 103:
due to their ability to manufacture
Page 104 and 105:
and textile suppliers need to focus
Page 106 and 107:
With regard to suppliers and the ma
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divisive environment prevails in th
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9.2 Suppliers Policy Recommendation
Page 112 and 113:
9.5 Cluster Initiatives The cluster
Page 114 and 115:
would also create business opportun
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shackled to either the large retail
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Appendix One Letter by the research
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endorsement by economic giants such
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Primary Interviews with Designers S
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"There should also be more engageme
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References Ascol, Nina. 2004. The G
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Fakude, Gordon. 2000. ‘Informalis
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Naidu, Sanusha. 2005. ‘South Afri
Page 132 and 133:
Vlok, Etienne. 2006. ‘The Textile
Page 134 and 135:
Robbins, Tom. 2006. ‘SA fashion d
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