There are fears the deep job cuts may sound the death knell of one of the region’s oldest and biggest businesses, and calls have been made for government intervention.

The company, which produces the unique Shweshwe print, released a statement yesterday saying that high operational costs and cheap foreign imports had left them with no choice but to retrench 761 of its 1164 staff complement at its Zwelitsha factory.

The company – known as the “The Good Hope Textile Corporation” but trading under the name Da Gama Textiles – informed employees of its intention to lay off staff on Tuesday afternoon.

Da Gama has been the second biggest employer in the Border-Kei region after Mercedes-Benz South Africa.

Since the announcement, the Dispatch has been inundated with calls from distressed employees who say they face a bleak future. “We were not given any warning, they just put up a notice on the notice board.

“None of the managers came to speak to us – there was no discussion,” said one employee.

The South African Clothing and Textile Workers’ Union (Sactwu) said news of retrenchments had also taken them by surprise.

“We were shocked, we were not expecting this kind of retrenchment. There was no indication from the employer that they were running at a loss that dates back to 2007,” said Sactwu Border-Kei branch secretary Lawrence Faku.

The union intends taking the matter to the national Department of Economic Development and the Commission for Conciliation, Mediation and Arbitration (CCMA).

The company’s financial woes began as early as 2004, when it retrenched almost 1000 workers, and in July this year, it closed down its East London spinning unit. That decision saw almost 100 employees lose their jobs.

After the next round of retrenchments, the company will be left with just over 400 employees.

An employee, who asked to remain anonymous, said he had worked in the textile industry all his life – there were no alternatives for him if he was one of the 761 retrenched. “I am absolutely devastated. I am useless to my family without this job. I have been through this before,” he said.

Another employee said he had a son at university and would have to consider pulling him out if he was one of the casualties. “I have four children and a wife to consider. I feel very sad.

“When I took the job they told me the company would be around for another 20 to 30 years.”

Da Gama’s managing director Kelvyn Breetzke said retrenchment was the last resort.

“The proposed retrenchment has been an extremely difficult decision to take and every possible avenue has been explored,” he said.

Breetzke said the company would explore a “compact business model” that would reduce its production by half.

He allayed fears that the company would stop printing the Shweshwe print, which has become internationally recognised for its authentic African feel.

Breetzke explained that through the new model the company would focus its attention on its niche-branded products such as the Shweshwe fabrics. — By LOIS MOODLEY, loism@dispatch.co.za

www.dispatch.co.za/article.aspx

9/6/10