1 115 LOSE JOBS AS UNION INDUSTRIAL SHUTS DOWN

MATSAPHA – A total of 1 115 textile workers have joined the unemployment pool as Union Industrial Washing Factory has closed down.

The company, which is a sub-factory of Tex Ray Group of Companies, closed down and retrenched all the 1 115 EmaSwati who were employed there last Thursday. The latest developments were confirmed by Union Washing Industrial Factory Human Resources Manager Gcina Mamba. He said the company closed down as a result of the collapsing market in South Africa, hence orders dwindled. “Management has tried all to avert the unfortunate situation but all proved futile and, as result, the company failed to further its production objectives,” Mamba said. He said initially, they had proposed to close on Friday June 8, 2018 but because there were no orders, they eventually ended business on Thursday June 7, 2018. He said this was because it was pointless to continue with production on Friday because there were totally no orders.

However, Mamba said the workers were paid for the day they did not work because the agreement was that their last day at work would last Friday. The manager said as a company, they followed the laid down procedures when closing as they wrote a notice to the Ministry of Labour and Social Security on May 2, 2018 in terms of Section 40 of the Employment Act of 1980 as amended, and a copy was given to the employees. After several inspections by the Ministry of Labour and Social Security, the office of the Labour Commissioner gave the company a green light to shut down. According to the letter, which was signed by principal labour officer, who was only identified as Bennett, the ministry said following consultations with the employee representatives and perusal of the calculations supplied by the company, the factory was advised that all statutory requirements had been met. “This office has no objection to the exercise,” reads part of the notice. Meanwhile, an officer at the Ministry of Labour and Social Security Vumani Tshabalala, asked to be contacted today to give full details of the matter.  

Painful

On another note, Mamba said it was painful to see all their staff members losing their jobs because this would have a negative impact on their lives and families. He made an example that as a company, they were assisting workers with interest-free educational, emergency and special loans. He said from time to time, the company donated stationery to their staff members and all these benefits would not be available because the company was going to shut down for an indefinite period. “The closure of the factory means that the workers will also lose all the above benefits,” he said. However, on a positive note, Mamba assured the workers that once the situation normalises, the company would resume its full operations. He said they would re-engage most of the retrenched employees and offer them new contracts. Some of the former workers who were contacted yesterday confirmed the matter by saying the company closed on Thursday, a day before the proposed closing date but they were paid for the day. They also confirmed that they were engaged in calculating their terminal benefits, which were also paid with their last salary on Thursday.

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: