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Bid Appeals Tribunal for Kwa Zulu Natal' judgement PDF Print E-mail
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Wednesday, 20 May 2015 16:49

Press Release: Immediate

Non-compliant laundry company loses tender, Great Victory for SACTWU and decent jobs

The Southern African Clothing and Textile Workers' Union (SACTWU) is pleased to announce that a company in Kwa-Zulu Natal has lost the appeal it made after it was not awarded a tender to manufacture bed linen and patient clothing that would be supplied to various hospitals in KZN.

It lost its appeal to the Bid Appeals Tribunal, which ruled that it was a requirement for a company to be compliant with bargaining council conditions, including registration with bargaining councils. In summary:

The bid appeal committee of KZN Treasury has ruled in favour of a hospital tender won by Kingsgate Clothing. This tender award was challenged early this year by a non-compliant company on the basis of price. The KZN ruling defends the fact that labour compliance matters in government tender work.

This is a victory for compliance promotion.

The appeal started in the awarding of tenders to Kingsgate, Indabenhle and Amandletokozo for them to supply linen and patient clothing to hospitals in KZN, LSS Laundry and Supplies, trading as Indlovu Manufacturers. These tenders were advertised in the Government Tender Bulletin in April last year, the outcome of both tenders were then published in December last year. Indlovu Manufacturers then challenged the awards in December 2014 based entirely on price, it claimed that it offered the lowest price and should have been awarded the tender.

After the Department of Health received notice of Indlovu Manufacturers appeal, it addressed a letter to them which stated that only 7 bidders had complied with the criteria and that Indlovu was not one of them. The letter also stated that in terms of the Special Terms and Conditions, Clause 14.3, a site inspection was conducted on 10 October 2014 by the Departmental Staff, as well as officials from the National Bargaining Council for Clothing Manufacturing Industry and SACTWU, the following was discovered:
that Indlovu Manufacturers was non-compliant for failing to register as an employer with the National Bargaining Council for the Clothing Manufacturing Industry, for failing to have its employees registered, for failing to pay the employees the correct wages and failing to comply with all other obligations of the Provident Fund Agreement. Indlovu also failed to submit samples for evaluation and was eliminated from the bidding process.

The matter was concluded this year March and was ruled that Kingsgate, Indabenhle and Amanletokozo retain their tenders. This is a great victory for SACTWU as we do not stand for non-compliance and failure to pay workers the legal wage. We commend the Tribunal for their decision. It is a precedent setting, and a great advance for our  "decent work agenda". It is a historic "first".

We are still studying the judgement for the nuances and to determine whether it is applicable in all other tenders, or whether it is limited to the particular conditions of this particular tender. Nevertheless, this judgment is a major boost for our campaign to secure tenders for labour compliant companies only.

A copy of the Tribunal's written decision is attached HERE.

Issued by
Andre Kriel
General Secretary

For comment Kindly contact SACTWU Deputy General Secretary, Chris Gina, on cell number 082 940 9456 or office number 031 3011 3510