Made in China, in SA

From PAGE 8

◆ . . . keep non-compliant firms in business.”

Given the job losses and firm closures that followed the compliance drive, Sactwu and the NCBC have backed off from prosecuting non-compliant firms.

Instead, an attempt is being made to find a more constructive way for the two parts of the industry to co-exist.

In terms of the 2016/2018 substantive agreement between the majority employer associations and Sactwu, signed a few weeks ago, companies who pay between 80 percent and 100 percent of the minimum wage may apply to the NCBC for a level B compliance certification.

Compliant firms and retailers may then contract as much work as they like to these firms without falling foul of council regulations.

But if a company subcontracts to a non-compliant firm without a level B certification, the contractor and sub- contractor can be held jointly and severally liable for the assessed wage underpayment.

“We are throwing them a lifeline to create some form of co-existence,” explains Baard.

“We want to find some formula at a reasonable level of remuneration (80 percent) to legitimise and draw in a lot of firms into level B and thereby reduce the risk and prejudice to those who play by the rules.”

Labour’s willingness to compromise is remarkable, given the energy with which it led the compliance drive five years ago.

Some believe part of the reason for Sactwu’s change of heart is that it has now organised in Newcastle much more effectively than five years ago and so has a much greater stake in the survival of firms there.

Prof Jeremy Seekings, director of the Centre for Social Science Research at UCT, says: “Nicoli [Nattrass] and I were told by the former compliance manager of the bargaining council ( before he died) that the union’s general secretary would phone him to plead with him that he should desist if he and his inspectors ever threatened to shut down a factory where Sactwu had members.

“If it is true that Sactwu has now organised more thoroughly in Newcastle, and is now protecting the jobs of the union’s new members, then this is surely a good thing.”

Numerous attempts to obtain comment from Sactwu general secretary Andre Kriel were unsuccessful. - Financial Mail.