The COSATU-affiliated Southern African Clothing & Textile Workers’ Union (SACTWU) has applauded the newly published textile rebate. As pr the union, this is an important concrete implementation component flowing from the signature of the Retail, Clothing, Textile, Footwear & Leather (R-CTFL) Masterplan which was signed by the industry's social partners on November 6, 2019, at the 2nd Presidential Investment Conference.
The rebate provision was published by the Deputy Minister of Finance on February 5, 2021. The publication was preceded by an intense four-month period of industry bilateral negotiations between SACTWU and other stakeholders in our industry pipeline. This process culminated in a historic agreement between the parties, which decisively resolved a over four decade deadlock on this matter.
The rebate provides woven fabric to be imported duty free for the local manufacturing of garments, provided that procurement commitments are made to local textile producers. Such imported fabric can only be used by companies that are signatories to the R-CTFL Masterplan and are compliant with minimum labor standards.
The employer association signatories to this agreement represent more than 75 per cent of SMME companies in the clothing manufacturing industry, and labor (SACTWU) represents 90 per cent of workers employed in these SMMEs.