South African industry and globalization: Survival in the clothing industry

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Mr. Johann Baard

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South African industry and globalization: Survival in the clothing industry. Mr. Johann Baard. Garment tariffs. Average Rand/US$ exchange rate. Indexed clothing imports. South African Clothing and Textile Production 1998 - 2010 (index 2005 = 100). Source: StatsSA. - PowerPoint PPT Presentation

Transcript of South African industry and globalization: Survival in the clothing industry

Page 1: South African industry and globalization: Survival in the clothing industry

Mr. Johann Baard

Page 2: South African industry and globalization: Survival in the clothing industry

Garment tariffs

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Average Rand/US$ exchange rate

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-

2

4

6

8

10

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2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Average Rand/US$ exchange rate

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Indexed clothing imports

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Source: StatsSA 5

South African Clothing and Textile Production 1998 - 2010(index 2005 = 100)

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South African Clothing industry employment

0

20000

40000

60000

80000

100000

120000

140000

160000

Employment in the Clothing Sector

Clothing

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R21 R207 R280

R3,600

R5,900

R7,700

R-

R1,000

R2,000

R3,000

R4,000

R5,000

R6,000

R7,000

R8,000

R9,000

Tho

usa

nd

sEstimate of Cost per Job

(R thousands)

Source: IDC,Capital-

Labour ratio (Investment required to

create 1 job): current

prices – 2009 figures

7

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A decline in output, with a greater decline in employment, indicates an increase in productivity

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ILO DECENT WORK AGENDA

The ILO has developed an agenda for the community of work. It provides support through integrated Decent Work Country Programmes developed in co-ordination with its constituents. Putting the Decent Work Agenda into practice is achieved through the implementation of the ILO’s four strategic objectives with gender equality as a crosscutting objective:

Creating jobs – an economy that generates opportunities for investment, entrepreneurship, skills development, job creation and sustainable livelihoods.

Guaranteeing rights at work – to obtain recognition and respect for the rights of workers. All workers, an in particular disadvantaged or poor workers, need representation, participation, and laws that work for their interests.

Extending Social Protection – to promote both inclusion and productivity by ensuring that women and men enjoy working conditions that are safe, allow adequate free time and rest, take into account family and social values, provide for adequate compensation in case of loss or reduced income and permit access to adequate health care.

Promoting Social Dialogue – involving strong and independent workers and employers organisations is central to increasing productivity, avoiding disputes at work and building cohesive societies.

Source: Website: http://www.ilo.org/global/about-thee-ilo/decent-work-agenda/lang-en/index.htm

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ILO Director General Juan Somavia has said that the overriding goal of the ILO is to promote "opportunities for women and men to obtain decent and productive work, in conditions of freedom, equity, security and human dignity."

Decent Work

The ILO provides this description of the meaning of 'Decent Work'

Decent work sums up the aspirations of people in their working lives. It involves opportunities for work that are productive and deliver a fair income, security in the workplace and social protection for families, better prospects for personal development and social integration, freedom for people to express their concerns, organize and participate in the decisions that affect their lives and equality of opportunity and treatment for all women and men.

Decent work should be at the heart of global, national and local strategies for economic and social progress. It is central to efforts to reduce poverty, and a means for achieving equitable, inclusive and sustainable development.

The ILO works to promote decent work through its work on employment, social protection, standards and fundamental principles and rights at work and social dialogue.

In each of these areas, people throughout the world face deficits, gaps and exclusions –  unemployment and underemployment, poor quality and unproductive jobs, unsafe work and insecure income, rights which are denied, gender inequality, migrant workers who are exploited, lack of representation and voice, and inadequate protection and solidarity in the face of disease, disability and old age.

ILO programs aim to find solutions to these problems.

At the national level, integrated decent work country programs, developed by ILO constituents, define the priorities and the targets within national development frameworks.

Source: ILO Website

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The International Labour Organisation defined decent work as "productive work for men and women in conditions of freedom, equity, security and human dignity”.

The "meaning of decent work" should include health and safety conditions of employees.

"A living wage, yes, at a later stage it's going to be part of these things.“

Oliphant said the recession had led to the loss of another million jobs, leaving about 6,4-million South Africans unemployed.

"Job creation is now an overriding priority for government, and hopefully for our social partners as well. The key test of our policies will have to be their ability to contribute to job creation.

"To put it another way, we have to ensure that our policies do not have negative consequences for employment.““The government wanted both jobs and decent work”.

Labour Minister Nelisiwe Oliphant

Source : Mail & Guardian 24 January 2011