DECLARATION OF THE RETAILERS AND SACTWU ON THE APPAREL INDUSTRY

1. Preamble
   1. The parties acknowledge that the apparel industry currently faces increasing job losses due to a range of factors, including but not limited to the strengthening value of the South African currency and the reduction of tariffs on imported goods.
   2. Each retailer who is a signatory to this declaration recognises that there is a need to support and find ways to enhance the buy local campaign in respect of products in the apparel manufacturing industry.
   3. The parties recognise that the job losses in the apparel manufacturing industry constitute a serious crisis and accept that there is an urgent need to take immediate action to stop the consequent rampant unemployment.
   4. The parties recognise that there is need to have a solid and stable South African apparel manufacturing industry from which retailers can source their apparel.
   5. The parties recognise the need to address the quality of manufactured apparel products and delivery times.
   6. Each retailer commits to use its efforts, particularly its buying decisions, to promote higher levels of procurement from South African manufacturers in an endeavour to create employment or save jobs in South Africa.
   7. The parties agree to enter into this declaration for a period of six months, calculated from the last date a retailer signs this declaration, which shall not be later than 5 December 2003, during which time they will continue to engage with each other. The parties will use their best endeavours to ensure the involvement of South African manufacturers.
2. Parties

   The Parties to this declaration are those that have signed below.

3. Purpose of the Declaration
   1. During the currency of this declaration the parties will continue to engage with each other in good faith, under the auspices of NEDLAC, with the purpose of developing a broader agreement on local procurement of apparel.
   2. In addition and within the same period the parties will also discuss developing a broader agreement on procurement for the home textile and footwear industries from South African manufacturers.
   3. These engagements will consider ways of strengthening and enhancing these South African manufacturing industries and will attempt to incorporate relevant stakeholders.
   4. Each signatory to this declaration will nominate representatives to represent it in the discussions referred to in clauses 3.1 and 3.2.
   5. NEDLAC will convene the meetings, which will take place at least once per month, and provide the necessary secretarial services to such meetings. The first meeting will take place in January 2004.
   6. The Executive Director of NEDLAC will nominate a person to chair these meetings.
   7. The Executive Director of NEDLAC will approach relevant stakeholders to participate in these discussions.
4. Commitments

   Note: Any reference to apparel products procured from a South African manufacturer means that the applicable apparel products have been manufactured in South Africa.

   1. Each retailer commits to buy South African produced apparel products wherever possible and will invite South African manufacturers to quote on producing such apparel products where practical.
   2. Each retailer commits to support decent work and fair labour practices in the terms of their procurement policies;
   3. Each retailer commits to procure its apparel products from South African manufacturers who comply with South African employment laws and applicable minimum employment conditions.
   4. The parties agree to work towards increasing the levels of apparel products that are procured from South African manufacturers and produced in South Africa.
   5. The parties commit to assisting South African manufacturers to improve their performance and to develop the South African manufacturing industry. For this purpose and with reference to clauses 1.1 and 1.5, the parties undertake to work in co-operation with the South African manufacturing industry.
   6. Subject to clause 6.2, each retailer will work towards ensuring that all apparel products carry a country of origin label.
   7. Each retailer undertakes to make resources available for marketing and in-store promotion of South African produced apparel products in accordance with each retailer's unique marketing strategy.

1. Protest Action

   The Southern African Clothing and Textile Workers Union ('SACTWU') will not embark upon any protest action, during the currency of the declaration, in relation to the dispute referred to NEDLAC in terms of section 77 of the Labour Relations Act, No 66 of 1995 as amended, against the retailers who are signatories to this declaration.

2. Compliance and Measurement
   1. Compliance with employment conditions:
      1. Each retailer will require its buying departments, agents, sub-contractors and suppliers to confirm that its apparel products are procured from South African manufacturers that comply with clauses 4.2 and 4.3. To this end:
         1. A retailer may conduct an audit of a South African manufacturer to determine whether such manufacturer complies with South African employment standards. This audit will be undertaken by independent persons; or
         2. SACTWU will bring to a retailer's attention any manufacturer operating in South Africa whom it believes is not complying with South African minimum employment standards, including as identified by an applicable bargaining council. A retailer who is notified by SACTWU will verify the accuracy of the information and if it finds that the manufacturer is not complying with South African employment standards, will give the manufacturer an opportunity to rectify, failing which the retailer will not procure further apparel products from such manufacturer until such time as the manufacturer complies.
      2. Any purchasing agreement in respect of apparel products entered into after the coming into effect after the signing of this declaration will contain provisions for the cancellation of the purchasing agreement should:
         1.  
            1. a false declaration have been made in relation to clause 4.3; or
            2. apparel products have been falsely claimed to be manufactured in South Africa.
   2. Compliance with promoting South African manufactured products
      1. Each retailer will take all necessary steps to ensure that its apparel products carry labels reflecting the country of origin;
      2. Each retailer will ensure that all apparel products which it orders for manufacture after the date of signing of this declaration will carry labels reflecting the concerned apparel product's country of origin.
   3. Compliance with procuring more apparel products from South African manufacturers
      1. Each retailer who is currently sourcing up to 75% of its apparel products from South African manufacturers will meet with SACTWU in bilateral discussions to discuss its levels of South African procurement and ways of increasing its South African procurement. SACTWU undertakes to respect the confidentiality of any information disclosed in terms of this declaration.
      2. Each retailer who currently sources more than 75% of its apparel products from South African manufacturers will continue to remain above 75%. SACTWU undertakes to respect the confidentiality of any information disclosed in terms of this declaration.
   4. In order to give effect to the terms of this declaration it is acknowledged that individual retailers may need to negotiate with SACTWU on a bilateral basis to deal with such retailer's specific issues.
3. Disputes

   Any party that is aggrieved by the actions of another party in relation to the contents of this declaration will bring this to the attention of the Executive Director of NEDLAC, who will determine a procedure to resolve the complaint.

   Signed at Cape Town on 5 December 2003

   ______________________________ ___________________

   The Southern African Clothing and Textile Workers Union Witness

   Signed at Cape Town on 5 December 2003