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Late in 2004, SACTWU reported that 149 000 jobs in the industry had been lost since 1995
(Morris, 2004), and at least 50 000 jobs were lost in the clothing and textile industry in 2005
(D’Angelo and Bloomberg, 2005). In May 2005, a media article (Mthembu, 2005) reported
that the industry in Durban shed 1 200 jobs in two weeks alone; in late 2005 reports
indicated that over 14 000 jobs were lost in the KZN industry during the course of 2005
(Inggs, 2005). According to a 2005 Clothing Trade Council Report, 37 723 formal jobs were
lost between 2002 and 2005 (Westhuizen, 2006:7).
A further factor generating a degree of vagueness around these unemployment levels is
the argument that many of the individuals who have lost their jobs in the formal sector
have moved into the informal sector (Williams and Hanival, 1999:74; Rogerson, 2000:693)
and are still involved in the clothing industry.
Interestingly while the unions fight for the survival of the industry and retention of jobs they
themselves contribute to the erosion of the industry. In 2005, it was reported in the press
(Masemola, 2006) that Cosatu had T-shirts made to celebrate its 20 th Anniversary and some
of the shirts it was discovered had been made in China. Cosatu leadership could not
provide any plausible response when questioned about the decision to have the shirts
made in China.
Although there is some disagreement on the exact number of people having lost their jobs
in the clothing and textile industries, what is indisputable is that there have been substantial
formal sector job losses.
4.3 The Informal Economy
The restructuring of the clothing industry in South African has resulted in the migration of
parts of its labour force from formal sector employment to informal employment. However,
there is little empirical evidence to show that while there is an inflow of individuals into the
informal economy, there is the likelihood of an outflow, as the informal businesses
themselves have to either downsize or close in the face of increased competition between
informal industries themselves seeking ways to meet the price demands dictated by the
buyers of the large retail outlets and the consumers.
Many commentators recognise that the loss of jobs in the formal sector of the clothing
industry is distressing, and that many of those retrenched from the formal sector enter the
informal economy and take up positions in the informal economy (Rogerson, 2000: 693).
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