South African retailers face sweatshop allegations

Union signals legal action over abuses

South African retailers face sweatshop allegations

Some of South Africa’s largest clothing retailers are facing allegations of sourcing garments from factories in KwaZulu-Natal where workers were paid as little as R350 a week, kept in unsafe conditions and were predominantly undocumented, following a government inspection blitz that led to arrests and enforcement actions in February.

A joint operation led by the Department of Employment and Labour (DEL), overseen by Parliament’s Employment and Labour Portfolio Committee (ELPC), swept through the Amajuba district on 5 February. The multi-agency team included the South African Police Service (SAPS), Newcastle Metro Police, and the Department of Home Affairs.

During the inspections, authorities reported widespread violations of labour and immigration laws, blocked fire escapes, unsanitary conditions and evidence that some workers were living inside the factories. Business owners in the Riverside Industrial area were arrested after allegedly employing foreign nationals on holiday visas since 2018, according to the Department of Employment and Labour. Some factory owners reportedly locked themselves inside their premises or fled as authorities arrived, according to Briefly.co.za.

Inspection blitz uncovers violations

Investigations in KwaZulu-Natal found workers paid as little as R12 to R17 per hour, according to Daily Maverick, while some piece-rate workers received only 20 to 30 cents per garment completed.

COSATU provincial secretary Edwin Mkhize, who was part of the oversight visit, said some employees were undocumented immigrants from Zimbabwe, Lesotho, and Eswatini who complained about not being paid.

“We then told the employers to pay them immediately. To our shock those workers were paid in cash an amount of R750 per week while others were paid as little as R350 per week,” Mkhize said.

Juliet Basson, a member of the ELPC, described the conditions she witnessed as “slavery”-like, and said she filmed the factories because she believed the public would not otherwise believe the accounts.

“When we entered the first premises, my heart felt that this was wrong. This is something South Africa needs to see. This is morally (wrong), I cannot keep this to myself. The truth needs to be told,” Basson told Independent Online.

“My heart just said to me, ‘Take out your phone and show South Africa what’s going on’ because if you tell the story, no one’s going to believe you,” she said.

Basson also said the sweatshops could only operate because retailers provided demand.

“We have just busted four more sweatshops. These sweatshops have a market and are in high demand because our retailers are buying from them. These sweatshops have a market due to South Africans,” she said.

Retail supply chains under scrutiny

The Southern African Clothing and Textile Workers’ Union (SACTWU) later condemned the conditions at its national bargaining conference in Cape Town in March. General secretary Bonita Loubser confirmed that most workers found in the factories were undocumented and said the union was pursuing legal action through the courts and bargaining councils to enforce compliance with national labour laws.

The Business and Human Rights Resource Centre wrote to five retailers – Mr Price, Pick n Pay, Ackermans, Pepkor, and JET – seeking responses. Only Mr Price and JET, which trades under The Foschini Group (TFG), replied to the centre’s request.

TFG said it was investigating how its branded products and tags were found at the Newcastle premises, including whether unauthorised production had occurred or branding had been misused.

“TFG takes allegations of labour rights violations extremely seriously. All suppliers are contractually required to comply with the TFG Merchandise Supply Chain Code of Conduct, which includes clear standards relating to labour practices, health and safety, and working conditions,” the company said.

The retailer added it conducts both announced and unannounced audits of supplier sites and may impose penalties, terminate relationships, or blacklist factories where breaches are found.

Pepkor, in a separate statement issued before the centre’s deadline, said it had become aware of compliance concerns following the February inspections and had launched an investigation.

“Pepkor and its retail brands do not condone any form of unlawful or unethical conduct and require suppliers to comply with the group’s supplier code of conduct,” it said.

Drake Clothing, a supplier to several retailers, is facing legal action, Eyewitness News reported. The National Bargaining Council for the Clothing Manufacturing Industry filed an application in the Pietermaritzburg High Court in March seeking its liquidation, alleging it contracted with “sham co-operatives” where labour laws were flouted. Managing director Roger Drake denied the claims.

“The application makes unsubstantiated, highly defamatory allegations based on inadmissible hearsay evidence and unfounded speculation,” he said.

The ELPC said it would summon major retailers to appear before Parliament to account for their business relationships with the factories, citing potential breaches of labour laws, municipal by-laws, and human rights standards.

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