Estimated reading time: 3 minutes
On 14 July 2021, the Newcastillian – Online News reported how multiple factories situated in Madadeni had been looted and others burned. At the time of the article being published, Alex Liu, member of the Chinese Chamber of Commerce, explained that many of the owners of the affected factories did not intend to re-open, and this would potentially see between 6000 to 8000 people losing their jobs.
However, now two weeks later, the local clothing and textile industry, after various meetings, have decided to rebuild and continue operating within the Newcastle community.
Liu explains that after assessing the damages, the clothing and textile sector lost 50% of its production capacity. Furthermore, when looking at the cost of the damages, he says, “My estimation for the damages to the goods, machinery and fabric, is between R60 million to R80 million. With the damages with the buildings, I say it is more than R100 million.”
While there are extensive damages with profound financial implications, the factory owners are set to restart business.
Assisting in the process, Liu points out that the relevant parties have made commitments at Ithala. Ithala Development Finance Corporate (IDFC) manages fully integrated business activities that provide a range of financial and property services throughout KZN. Their mandate is to promote development within the province.
While the process has begun to open all the damaged and looted factories, he says a number of them will be remaining in Madadeni, while others will move their business to Riverside Industrial. “The situation will have an impact on job security and unfortunately, staff members who will now have to travel to Newcastle will have to spend more money on transport fees.”
Coming as no surprise, Liu states, the relationship between employees and their employers face a certain degree of strain as there is some distrust between the two parties. Adding fuel to the fire, Liu claims certain politicians are taking advantage of the situation, and factory owners are currently in talks with unions, ensuring employees are not misled in the future, as seen during the looting.
As Liu points out, one of the saving graces in the rebuilding of the factories is that the local clothing and textile sector plays a significant role in the national supply market. “We are now encouraging all our members to pick up the pieces and rebuild,” he says.
By doing this, Liu stresses that the fear of job loss will be minimised while the economy is rebuilt.
What are your thoughts on the matter? Share your views in the comment section below.
RELATED NEWS
