MR PRICE GROUP & KEEDO INTERNATIONAL SIGN DECLARATION ON CLOTHING INDUSTRY

26 February 2004

Two national retailers, the Mr Price Group and Keedo International, have signed the 'buy local' agreement in respect of clothing products, reached between the Southern African Clothing and Textile Workers' Union (SACTWU) and a large number of leading retailers.

By signing this Declaration, the Mr Price Group and Keedo International have committed themselves to increase their local sourcing, to only source from manufacturing companies which comply with minimum legal conditions of employment and to include a label on all garments that will indicate the country in which the garments were manufactured.

The Mr Price Group has an estimated turnover of about R4 billion and has 700 stores. Keedo International has 7 stores.

Retailers Declaration

In August last year, SACTWU launched a section 77 notice against retailers at Nedlac. The notice arose from massive job losses in the clothing, textile and footwear industry. In all, more than 20 000 jobs were lost in 2003 alone.

For the next few months, SACTWU negotiated with leading retailers, to persuade them to source more of their clothing, textiles and leather goods locally. An agreement was reached in December 2003. The agreement, in the form of a Declaration, contains two parts: a series of substantive commitments for the next six months, and a procedure to put in place a longer term, comprehensive agreement beyond the six month period.

The substantive commitments affect apparel, and involve inter alia:

• A commitment to increased local sourcing of apparel
• Introduction of labels of origin in garments
• Commitments to fair labour standards in all local supplier factories
• Mechanisms of compliance to give effect to the above

The procedural commitment provides for meetings on a monthly basis to develop a broader agreement on the buy local campaign in the sector.

6 000 stores, R30 billion turnover

The addition of the Mr Price Group and Keedo International means that clothing retail holding companies with a total retail clothing, textiles and footwear turnover of R30 billion have already signed the Declaration.

To date, more than 40 retail or franchise names with over 6 000 stores are now committed to procure and promote local clothing. These 40 names include some of the country's best-known retail chains:

• Woolworths
• Foschini
• Markhams
• Exact Stores
• Retail Jeans
• Totalsports
• @Home
• Donna Claire
• Fashion Express
• Sports Scene
• Edgars
• Sales House
• Jet
• Smileys
• Supermart
• Ackermans
• Pep Stores
• Dunns
• Hang Ten
• Pick 'n Pay
• Hypermarket
• Shoprite
• Checkers
• House and Home
• OK Bazaars
• Checkers Hyper
• Carter Harris
• Polo
• Skye Products
• Truworths
• Truworths Man
• In-wear
• LTD
• Identity
  • Queenspark
• Cape Union Mart
• Keedo
• Mr Price Weekend Material
• Mr Price Home
• Sheet Street
• The Hub
• Milady's

Mr Price Group

In respect of the Mr Price Group, SACTWU and the Group also agreed to the following statement:

"The Mr Price Group and SACTWU held discussions, sharing their respective views of the development of the local clothing manufacturing industry, ways to enhance industry and promote employment, as well as the manner in which the Declaration is intended to operate.

Through that process the parties have established common ground and the Mr Price Group has now agreed to sign the Declaration. Further the parties have agreed to cooperate fully to achieve the goals of the Declaration. To this end, bilateral meetings will be set up, and the Mr Price Group will be represented at the on-going talks at Nedlac on the issues set out in the Declaration.

The parties view the Declaration as a positive contribution to promoting the socio-economic goal of decent employment in South Africa.

The parties record their intention to interpret the Declaration with due reference to all laws, including the Competition Act. However the parties believe that the Declaration, and the cooperation and conduct envisaged thereby, constitutes (and is intended to constitute) concerted conduct designed to achieve a non-commercial socio-economic objective or similar purpose. Accordingly, the parties believe that the Competition Act does not apply to the Declaration."

Ebrahim Patel, general secretary of SACTWU, welcomed the signature by the Mr Price Group and said that this represented a significant opportunity to further address local procurement and fair labour standards in the South African clothing sector.

Keedo International

Keedo International, a manufacturer and retailer of children's clothing, was one of the first clothing retailers to join the Proudly South African campaign in 2002.

Keedo opened its first store in 1993 and now has stores in Cape Town, Johannesburg, Durban and George. Outside South Africa, it has stores in Switzerland and the United States, as well as distributors in the United Kingdom and Australia.

Ebrahim Patel, general secretary of SACTWU, describes Keedo International as "an example of local procurement that many other retailers would do well to emulate. SACTWU looks forward to working with Keedo to promote quality South African manufacture."

Herbert Mkhize, executive director of Nedlac, says: "As Nedlac, we are excited that the Mr Price Group and Keedo International are on board. This gives effect to the Growth and Development Summit agreement and takes forward the Proudly South African campaign."

Enquiries: Sactwu: 021 447 4570

Nedlac: Jennifer Wilson
011 328 4211
083 652 8524