NEWCASTLE – Government enforcement agencies are probing garment manufacturers in Newcastle, KwaZulu-Natal, following allegations of labour violations and unsafe working conditions.
A joint inspection blitz earlier this month at the Newcastle Industrial Park led to the arrest of two Chinese employers for hiring 34 illegal foreigners working without valid documents. The operation involved the Department of Employment and Labour, the South African Police Service, Newcastle Metro police and the Department of Home Affairs.
The inspection, overseen by the Parliamentary Employment and Labour Portfolio Committee, resulted in a prohibition notice being served to Qing Xiu Clothing for multiple violations including unsafe electrical installations, failure to register and produce a steam generator certificate, and non-compliance with the Unemployment Insurance Act and Compensation for Occupational Injuries and Diseases Act.
Workers who had been provided with on-premises accommodation in the factory were ordered to vacate the premises. Inspectors found the workers’ quarters to be unhygienic and susceptible to fire risk.
Of six manufacturers inspected during the blitz, six were found non-compliant with the Unemployment Insurance Fund, five with Occupational Health and Safety regulations, and five with COID requirements. Four were compliant with the Basic Conditions of Employment Act.
Media reports have claimed that workers at these facilities are paid as little as R50 per day whilst working extended shifts in poor conditions.
Major retail chains have been linked to the operations through supply chain connections, though they have denied the allegations and announced they will conduct full internal investigations into their supplier networks.
The Deputy Minister of Trade, Industry and Competition, Alexandra Abrahams, confirmed this week that investigations are under way into alleged non-compliant operations in the area.
“It is appropriate that these processes be allowed to proceed without interference. The matter raises broader systemic questions about supply-chain accountability, responsible sourcing, and the integrity of South Africa’s clothing and textile value chain,” Abrahams said in a statement.
The Deputy Minister stressed that economic growth cannot be built on illegal operations. “Factories that evade labour standards distort competition, undermine compliant businesses, and expose vulnerable workers to unacceptable conditions,” she said.
Abrahams noted that whilst the Department of Trade, Industry and Competition does not directly enforce labour, immigration or occupational health and safety legislation, it has a clear policy interest in preventing illegal operations from undermining the domestic manufacturing base.
She said the incident highlights the need for retailers and brand owners to exercise meaningful due diligence in their procurement practices. “Demand-side actors, particularly large retailers and brand owners, carry a corresponding responsibility to exercise meaningful due diligence in their procurement and supplier management practices,” Abrahams said.
The Deputy Minister plans to engage the Retail Clothing, Textile, Footwear, and Leather Masterplan Executive Oversight Committee to discuss the implications and identify steps to strengthen supply-chain accountability.
Department of Employment and Labour Provincial Chief Inspector Mlungisi Zondi said there is a need to conduct further sustained intensive inspection blitzes across all sectors in the area.
“The dtic remains committed to promoting formalisation and compliance across the value chain and creating an enabling environment for a competitive, inclusive, and labour-absorbing clothing and textile industry,” Abrahams said.
