CCMA Slaps R17 Million fine on non-compliant Textiles Employer Print
Monday, 21 July 2008 17:01

PRESS RELEASE: IMMEDIATE

 

The Commission of Conciliation, Mediation and Arbitration has order a KZN-based textile company to a R17 million fine for non-compliance with the provisions of the National Textile Bargaining Council's wage provisions. This is one of, if not the highest fine imposed on a non-compliant employer.

The order was made in an arbitration award issued by CCMA Commissioner Mr Jabulani Ngwane, following an arbitration hearing held on 10 June 2008, at the Durban offices of the CCMA. The arbitration award was released on 15 July 2008.

In the arbitration award, Commissioner Ngwane finds the company (Tai Yuen Textiles (Pty) Ltd guilty of a wage underpayment of 393 employees from 12 February 2007 to 27 April 2008, amounting to R11.5 million. In addition, the Commissioner finds that the company has unlawfully failed to pay provident fund contributions and order it to pay back almost a R1 million in unpaid employer provident fund contributions. The company was also ordered to pay the workers just over R1 million in unpaid annual bonuses, to pay arrear bargaining council levies of R49 000, the union's HIV/Aids levy of just over R2 000.

The company was ordered to pay more than R5 million in interest for all the under- and non-payments (R2.9 million interest at 25% as defined in the Act for the wage underpayments and R2.3 million for the non-payment of the provident fund and other payments).

The Southern African Clothing & Textile Workers Union (SACTWU) has taken note of this important arbitration award and will engage the company on this matter, if need be.

SACTWU also calls for continued strong action against non-complaint employers whi flout our country's laws by not granting workers the rights and benefits which accrue fromcollective agreements legitimately negotiated under  and in terms of the provisions of the Labour Relations Act.


 

Issued by

Andre Kriel

SACTWU

Deputy General Secretary

If further information about the award is required, kindly contact the following people:

Mr T Erasmus, an official of OFER, an Employer Organisation and the person who represented the company at the arbitration hearing, on phone number 033 2631338 or fax 033 263 12 88

Mr J Daniel, Secretary of the Textile Bargaining Council, on 031 3071860 or fax number 031 3058447

If comment is required from SACTWU, kindly contact our National Organising Secretary, Mr Wayne van der Rheede on cell number 082 8007143 or office: 021 4474570.

A copy of the arbitration award and findings can be found here