Weeks after xenophobic protests drove thousands of migrant workers from South Africa, rows of sewing machines stood idle at a clothing factory in Newcastle, a manufacturing hub in the eastern province of KwaZulu-Natal. The protests, led by the anti-immigrant group March and March, sought to free up jobs for South Africans, a third of whom are unemployed.
South African Factories in Crisis
Local manufacturers have struggled to fill vacancies left by foreign workers. Reuters visited three factories in late July whose owners said they had lost between 12% and 19% of their workforce during the protests. Some workers had sewing skills in short supply, the owners said, while few locals were willing to take the low-paying jobs.
Mpho Nkosi, a 29-year-old South African administrator at one of the firms, said, “People don’t want to work in factories.” Migrants typically work in sectors unappealing to locals, analysts say. It is unclear how widespread current labour shortages may be, but there have also been reports of unfilled jobs in sugarcane fields.
A Skills Gap Disputed
The March and March group claims immigrants are to blame for South Africa’s economic woes, particularly high unemployment, although researchers dispute this. It argues that employers prefer foreigners who accept lower wages. Factory owners counter that they mostly employ South Africans, while some skilled workers from neighbouring Eswatini and Lesotho are needed for their experience in the garment sector.
Alex Liu, a Newcastle factory owner, said, “We can’t immediately replace these skills with locals.” Another factory owner, Ronghua Yan, started a training course for seven local employees after losing about 40 foreign workers in June. Financial constraints do not allow him to train more, he said.
Low Wages, Fewer Orders
Most of Newcastle’s garment factories are owned by Chinese nationals who have been in South Africa for decades. They produce clothing for domestic retailers in an industry the government has championed to reduce reliance on imports and that is vital to Newcastle’s economy. But workers are typically paid per piece completed, meaning only the most productive might earn the national minimum wage of 30.23 rand ($1.83) per hour. Many earn less.
Factory owners told Reuters they could not afford to raise wages because retailers pay little for their garments. A pair of jeans starts at 11.50 rand, while a T-shirt can fetch less than half that. The industry suffered a setback in February when government inspections discovered illegal labour practices at some factories.
A Bleak Future for Newcastle Factories
Liu said his business is operating at a loss and he plans to reassess by December whether to shut down. “At the moment everybody’s wait-and-see. I think there’s a possibility we will see a lot of closures in the coming months.” The combined impact of the labour shortages and the loss of retail orders could push some factories over the edge, causing more South Africans to lose jobs than gain them. As the industry struggles to recover, the future of Newcastle’s garment factories remains uncertain.
Source: Joy Online
