Glo­d­ina re­sumes op­er­a­tions

More than 135 work­ers back at work fol­low­ing IDC in­ter­ven­tion

Sunday Tribune - - BUSINESS REPORT - GIVEN MA­JOLA given.ma­jola@inl.co.za

MA­JOR towel man­u­fac­turer Glo­d­ina Black La­bel Tow­elling is back in busi­ness fol­low­ing gov­ern­ment in­ter­ven­tion to save jobs.

Geoffrey Qhena, the chief ex­ec­u­tive of the In­de­pen­dent De­vel­op­ment Cor­po­ra­tion (IDC), said this week: “The own­ers said they were clos­ing it down. We looked at the op­por­tu­nity it had and the num­ber of peo­ple it em­ployed and said we could not al­low that.”

More than 135 em­ploy­ees of the 500 who were laid off last year when the com­pany closed shop had since been given their jobs back. More peo­ple would be brought in grad­u­ally, he said.

The com­pany faced clo­sure last year due to fi­nan­cial cash flow chal­lenges, which sparked fears that its 500 em­ploy­ees would lose their jobs.

Qhena said Sihle Zikalala, the pro­vin­cial MEC for Eco­nomic De­vel­op­ment, Tourism and En­vi­ron­men­tal Af­fairs (EDTEA ), had re­quested that the IDC part­nered with them to put the com­pany back on its feet.

A mul­ti­stake­holder task team com­pris­ing the EDTEA , Trade and In­vest­ment Kwazulu-natal, IDC and the SA Cloth­ing and Tex­tile Work­ers Union (Sactwu) was es­tab­lished.

The IDC in­jected R150 mil­lion into Glo­d­ina to help re­vive the busi­ness.

Qhena said one of the chal­lenges was that it had taken longer than es­ti­mated for the par­ties to agree with the sell­ers on price and sat­isfy the Com­pe­ti­tion Com­mis­sion’s re­quire­ments that they would not un­der­mine the in­dus­try.

“The high­light was see­ing the em­ploy­ees com­ing back with an op­por­tu­nity to work tire­lessly and show that they wanted to work.”

The IDC said it had in­vested more than R1 bil­lion in var­i­ous sec­tors this year, of which 25 per­cent had gone to the cloth­ing and tex­tile in­dus­try.

Zikalala said the towel man­u­fac­turer would start ex­port­ing some of its prod­ucts.

Sactwu re­gional sec­re­tary Themba Ng­cobo said it was hum­bling to see jobs cre­ated in the sec­tor, which em­ployed many peo­ple in Kwazu­lunatal.

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