Johannesburg — Both the union and factory owners in Newcastle call for emergency government intervention after owners close factory doors citing unreasonable demands by the National Bargaining Council

The SA Clothing & Textile Workers' Union and local company owners in Newcastle have called for government intervention after around 80 textile factories were closed by management.

Local factory owners have told Business Day that they can't afford the National Bargaining Council wage increase demands, and took a decision to shut their factories and call for government intervention to solve the impasse.

At the same time, SACTWU says it has has taken note of the decision by the Newcastle Chinese Chamber of Commerce to close its member factories in the Newcastle, KZN area, in response to the compliance drive by the National Bargaining Council for the Clothing Manufacturing Industry.

The union has served papers on the owners of around 80 factories saying the action is illegal and will be challenged in court.

SACTWU General Secretary, Andre Kriel, has written to the KZN MEC for Economic Development, Michael Mabuyakhulu calling for intervention.

"We write to advise that SACTWU is very concerned about this state of affairs and its impact on the creation and protection of jobs in the KZN Province, and nationally. Accordingly, we would not be opposed to a tri-partite engagement on the matter, " he said.

Chinese owners say they're not paying low wages, but the Bargaining Council was, in their words, totally unreasonable during the recent round of wage discussions.

According to industry expert, Renato Palmi, owners say they can no longer afford to operate to force the union and bargaining council to the table.

"What they're saying is really a turnaround on the labour action being unreasonable and not listening and so fine everyone is unemployed temporary," he told Business Day.

"The clothing, textile, leather and footwear industry is a vulnerable sector needing special support measures and, given its labour intensive nature, that steps must be taken to secure its future sustainability and growth," says Kriel.

Newcastle factory owner, Alex Liu, says a number of factories in the region are closing their doors as they face what he calls an unrealistic demand over wages.

"We're already seeing a ripple effect with between 60 and 80 factories now shut, and seeing this effect into the Free State. We are asking for government intervention," he told Business Day.

He denied paying sweatshop wages "Most important no-one advocating sweatshop wages or exploitation - its saying that the wage structure out of synch with the current situation in the country."

The shutdown comes as factories prepare their manufacturing for Christmas, and owners say they're going to be forced to shift production off shore if the impasse is unresolved.