Introduction

We, the undersigned, are small business owners in South Africa's clothing manufacturing industry. Our businesses, which operate above the current exemption threshold, are struggling to survive under the existing collective agreements set by the National Bargaining Council for the Clothing Manufacturing Industry. These agreements are tailored for large, traditional factories, leaving smaller manufacturers—especially those from disadvantaged backgrounds—at a severe disadvantage. We are calling for new provisions and collective agreements that cater specifically to the unique challenges faced by small businesses like ours.

The Issue

The current collective agreement has created an unsustainable situation for small factories. While we are too large to qualify for the exemptions provided in the agreement, we are still far too small to compete with larger factories that secure consistent work from major retailers. Small manufacturers like us face the following challenges:

• Limited access to consistent, large-scale work: Big retailers favor large factories, making it hard for smaller manufacturers to secure long-term, stable contracts.
• Seasonal and low-volume work: Many of us rely on work from individual clients or small boutiques, which is often seasonal and inconsistent, impacting cash flow and operational sustainability.
• Difficulty in compliance: The financial strain of adhering to the collective agreements, including wage rates and other obligations, is too great for businesses that do not have the consistent revenue streams of larger factories.
• Staff retention issues: Smaller factories struggle to attract and retain skilled employees due to these financial pressures, further exacerbating our competitive disadvantage.

Why This Is Not Sustainable

These provisions, while designed to protect workers, inadvertently force many small manufacturers to operate in non-compliance, hidden from enforcement authorities, just to keep their businesses afloat. This is not a sustainable way to run an industry that should be fostering growth and inclusivity, particularly for businesses from historically disadvantaged communities.

The Remedy We Seek 

We urge lawmakers to develop new rules and provisions that:

• Establish a separate collective agreement specifically for small factories above the exemption threshold but below a certain turnover and employment size.
• Introduce scaled compliance obligations that consider the financial realities of small manufacturers.
• Offer flexible wage structures, allowing small businesses to comply without crippling their operations.
• Provide specific support for small businesses to attract work from larger retailers, ensuring more stable revenue streams.

Conclusion 

We believe in fair working conditions and compliance with labour laws, but the current system forces small factories into non-compliance just to survive. We ask for a fairer, more flexible approach that allows small businesses to grow, employ more people, and contribute meaningfully to the South African economy. This is an urgent call for lawmakers to recognize the unique needs of small manufacturers and provide the necessary support through a revised, more inclusive collective agreement.