The problematic clothing and textile factories in the area of Newcastle has shown a paltry eight percent compliance rate with the country's labour laws, said Employment and Labour Minister Thulas Nxesi.

The Minister said to address the issues of high levels of worker exploitation in the clothing and textiles factories in Newcastle, a team of inspectors from various Labour Centre's, the Bargaining Council, the Department of Home Affairs and SAPS conducted Blitz Inspections of factories in Newcastle and Madadeni Industrial Park from 14 to 18 November 2022.

“A total of 70 factories, employing a total 30 539 employees, were inspected during the campaign with 6 night inspections conducted. The compliance rate was disappointingly low at only 8% of the inspected factories.

“A total of 100 illegal foreign nationals were arrested by Immigration Officers i.e. 73 - Lesotho, 18 - Swazi, 2 - Malawians, 1 -  Zimbabwean, 1 - Mozambiquan nationals and 5 - Chinese employers. One fraudulent case of misrepresentation in terms of Section 61 of the EEA (Employment Equity Act) was opened at SAPS. A total of over R148 million was claimed through the enforcement notices that were served," Nxesi said.

The clothing and textile factories of Newcastle have developed a reputation for employing illegal foreigners workers and allegedly  subjecting workers to working conditions resembling what is termed “modern-day slavery".

The Minister said government will have no option but to close some of these factories for not complying.

Nxesi was addressing the community of Newcastle at the Amajuba TVET Stadium – Centre for People Development Campus Madadeni 3. His visit is part of an oversight as a “champion" of Amajuba. Nxesi was selected to oversee development as part of District Development Model (DDM). DDM is a programme of government to bring together resources and services from all levels of government – national, provincial and local. The aim is to take the resources and services to where the people are.

Amajuba district includes the areas of Newcastle, Dannhauser, and eMadlangeni local municipalities. It is located in the North West corner of KwaZulu-Natal.

The organisation's and departments that were part of Amajuba District Development Model (Taking services to the people) campaign included: the Department of Employment and Labour and its entities (Supported Employment Enterprises, Unemployment Insurance Fund, Compensation Fund), Amajuba District Council, Newcastle Local Municipality, national Departments of Social Development, Health, Economic Development, Home Affairs, SAPS and COGTA, provincial departments, SETA's financial institutions such as Nedbank and Standard Bank.  

During the interaction with the communities, the communities raised issues of student accommodation, the training of artisans, the ill-treatment of workers at local factories, drug abuse, and unemployment.

Nxesi said Covid-19 nearly “burnt" the UIF. He said the follow the money campaign to audit Temporary Employer/Employee Relief Scheme (TERS) payments will be intensified.

Department of Employment and Labour Chief Director: Provincial Operations Mncedisi Khambula said the Department acknowledges that the clothing and textile factories were posing a 'headache' when it comes to compliance. Khambula noted a new practice of employers re-registering their factories as new operations at the expense of exploitation of workers.

Khambula said the programme to ensure compliance will continue unabated with further inspections.

For more information, contact:

Sabelo Mali

Ministerial Liaison Officer

082 729 5804

Sabelo.Mali@labour.gov.za

or

Teboho Thejane

Departmental Spokesperson

082 697 0694

Teboho.Thejane@labour.gov.za

-ENDS-

Issued by: Department of Employment and Labour​

​​​