Labour Regulation and Enterprise Strategies in the South African Clothing Industry

Abstract

ALTMAN M. (1996) Labour regulation and enterprise strategies in the South African clothing industry, Reg. Studies 30, 387-399. This paper explores the impact of regional differences in labour regulation on the accumulation strategies of firms in the South African clothing industry. A strong positive relationship was found between dominant accumulation strategies and forms of local regulation. In the context of a footloose industry, South African clothing firms should have been able to make use of differences in labour regulation on a national space. Yet, this study found that firms took advantage of differences in labour regulation available to them in their immediate vicinity only. In particular, very few firms ventured further than a one-hour drive in their decentralizing activities. Firms in the urban areas that were not proximate to areas ensuring low cost and unorganized labour adopted new technologies and operational methods such as unit production systems. Firms with head offices in urban areas situated within a one-hour drive to areas with less democratic wage determination systems did not adopt modern operational systems. Instead, they emphasized labour cost reduction accumulation strategies. The main strategy entailed production decentralization to the regions with more stringent controls on worker organization and pay scales that were a fraction of those in urban areas. ALTMAN M. (1996) Regulation du travail et strategies d'entreprise dans l'industrie de l'habillement en Afrique du Sud, Reg. Studies 30, 387-399. Cet article examine l'impact des differences regionales de la regulation du travail sur les strategies d'accumulation des entreprises de l'industrie de l'habillement en Afrique du Sud. Il s'est avere une correlation tres positive entre les strategies d'accumulation dominantes et les diverses formes de regulation locale. Dans le contexte d'une industrie mobile, les entreprises de l'industrie de l'habillement en Afrique du Sud auraient du beneficier des differences de la regulation du travail sur le plan national. Toujours est-il que cette etude a trouve que les entreprises n'ont profite que des differences de la regulation du travail en vigueur dans l'immediat. En particulier, rares ont ete les entreprises qui ont demenage leurs activites a decentraliser a plus d'une heure de conduite. Les entreprises situees dans des agglomerations urbaines qui n'etaient pas a proximite des regions qui assuraient une main-d'oeuvre bon marche et non syndiquee, ont adopte de nouvelles technologies et methodes operationnelles telles que des systemes de production a l'unite. Les entreprises dont le siege se trouvait dans les agglomerations urbaines situees a moins d'une heure de conduite des regions ou les systemes de determination des salaires s'averent moins democratiques, n'ont pas adopte des systemes operationnelles modernes. Elles ont plutot souligne des strategies d'accumulation relatives a la reduction du cout de la main-d'oeuvre. La principale strategie a necessite la decentralisation de la production aux r...

Inner-City economic revitalisation through cluster support: The Johannesburg clothing industry

“…Moreover, new technologies, such as computer aided design, mechanized laying-up or cutting, facilitates the adoption of unit production systems, which greatly enhance efficiency. Altman's (1996) research disclosed important spatial variations across South Africa in the extent to which such changes were occurring in factory production. Overall, it was found that clothing firms based in the Johannesburg or Durban metropolitan areas "were very slow to implement process innovations or skills development" programmes (Altman, 1996, p. 393).…”

“…Like much of South African industry, the manufacture of garments is oriented towards the domestic market which "appears to operate as a buyer-driven commodity chain" with major clothing retailers assuming a critical role (McCormick, 1999c, p. 15). At the heart of the weakness of the South African clothing industry is the question of low productivity (Altman, 1994(Altman, , 1996. It is argued by Altman (1994, p. i) that the industry competitiveness of the clothing sector is depressed by what is termed "a highly traditional outlook on productivity improvement".…”

“…Estimates of total employment in the South African clothing sector vary considerably and often fluctuate dramatically from between 140-200 000, the latter figure including estimates for informal clothing (McCormick, 1999c). Although the precise statistical picture concerning the size of the national clothing industry remains somewhat murky, the general trends in the industry are relatively well-documented (Altman, 1994(Altman, , 1996October, 1996;Harrison and Dunne, 1998;House and Williams 2000). In particular, Altman's (1994) study discloses that since 1989 the South African clothing industry has been experiencing its longest downswing ever with extensive job-losses taking place in the formal clothing industry.…”

“…Overall, the clothing industry evidences a dualistic structure with both a formal and an 'informal' element of production (Altman, 1994;CloFed, 1998;House and Williams, 2000). The formal component of the industry is governed by institutionalized bargaining council arrangements and largely is concentrated in South Africa's three largest metropolitan areas (Altman, 1994(Altman, , 1996. Alongside the formal clothing industry, there is emerging a notable segment of informal production of clothing.…”

“…The key structural aspects in the contemporary South African clothing industry, major growth strategies adopted by formal clothing enterprise, and new opportunities for restructuring and improvement in enterprise competitiveness are themes addressed in writings on the national clothing industry (Altman, 1994(Altman, , 1996October, 1996;Prinsloo, 1996;Harrison and Dunne, 1998;House and Williams, 2000). Like much of South African industry, the manufacture of garments is oriented towards the domestic market which "appears to operate as a buyer-driven commodity chain" with major clothing retailers assuming a critical role (McCormick, 1999c, p. 15).…”