The National Bargaining Council for the Clothing Manufacturing Industry has gone to court to close down Durban-based clothing manufacturer Gemelli. Gemelli denies wrongdoing.
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- The National Bargaining Council for the Clothing Manufacturing Industry has gone to court to close down Durban-based clothing manufacturer Gemelli.
- It claims Gemelli is contracting with “sweatshops” that masquerade as cooperatives to supply big retail brands, while flouting labour laws.
- Gemelli has denied any wrongdoing.
- For more financial news, visit News24 Business.
The National Bargaining Council for the Clothing Manufacturing Industry has launched court action against Durban-based clothing manufacturer Gemelli Pty Ltd – a leading supplier of fashion apparel in South Africa – which it accuses of contracting with “sweatshops” to supply major retail brands.
The council launched similar proceedings against Pinetown-based “design house” Drake Clothing in February this year.
Both applications cite major clothing retailers as respondents but do not seek any relief against them.
In both applications, the council seeks orders that the companies be wound up, citing its intention to clean up the clothing industry. The council says these companies contract with sham co-operatives which flout labour laws.
Drake has denied any wrongdoing and is opposing the allegations. The matter is currently pending before the high court.
This week, the council filed the Gemelli application with a set-down date in the Pietermaritzburg High Court on July 22.
Gemelli’s attorney, Michael Maeso, said this would be opposed.
“The allegation, as in the Drake matter, is an attack on the use of co-operatives. But of the named entities, only two are co-operatives, the others are CTM [Cut, Make and Trim] operators, some of which Gemelli does not even engage with,” he said.
He said some of the cited retailers also did not do business with Gemelli. One confirmed this with GroundUp.
He said the company conducted inspections of the co-operatives to ensure everything was above board and had no knowledge of any non-compliance.
“If there is a compliance issue, bargaining councils can police and enforce their agreements. “That is the legal mechanism that should be used,” he said, rather than winding up a company which was not insolvent.
In her affidavit, council general secretary Chantal Naidoo described an “alarming development” in the industry in which employees were being exploited through carefully designed and layered corporate supply chain structures, often using co-operatives that knowingly and deliberately flouted labour laws to minimise costs and maximise profits.
Gemelli, she said, is one of South Africa’s leading suppliers of fashion apparel but had failed to comply with the council’s main agreement and labour laws.
“The systematic flouting of labour laws directly violates employees’ constitutional and human rights by exploiting and flagrantly abusing indigent and historically disadvantaged workers, who are vulnerable and susceptible to abuse and unfair treatment.”
Naidoo said it was in the interest of employees, the industry and the general public that “these unlawful schemes and practices are halted”.
She said while Gemelli employed a wide range of people to design and create patterns, samples, select fabric, it instructed several manufacturers which operated unlawfully to manufacture clothing orders which it, in turn, supplied to the retailers.
In essence, she alleged, design houses such as Gemelli have “interposed themselves” between the retailers and manufacturers who operate unlawfully.
She said the council had identified 12 such manufacturers.
On-site inspections had revealed that some were employing undocumented immigrants, most were not paying prescribed wages and were financially exploiting their staff. Some were registered with the council but were “non-compliant”.
Documentation – including labels – found during the inspections revealed the ties to Gemelli and the retailers, Naidoo said.
She said council agents were often stopped from taking photographs during inspections, “which indicates the unlawful behaviour and turpitude of the non-compliant factories in attempting to conceal their activities and the identities of the design houses and retailers that they manufacture garments for”.
It was “inconceivable” that Gemelli was unaware of the widespread non-compliance, Naidoo said.
“The very point of industry-wide main agreements is to level the playing field whilst ensuring that employees are provided adequate wages and benefits. The system only works if there is a high level of compliance.
“Hundreds, if not thousands, of low-income and vulnerable employees are being grossly exploited.”
