An Analysis into the Impact of Globalization on the Clothing Industry in Conjunction with the Clothing Industry in South Africa

Abstract

The clothing industry in South Africa is seen as a conventional industry with characteristics such as: labour intensive with low levels of qualification; low salaries; low potential for investment in research and development and innovation; flexible labour legislation and powerful labour unions. However, it continues to be an important sector in terms of the South African labour market with regards to job creation. The strong impact of globalisation and delocalization in the organization of work is pressurizing the industry in terms of its competitiveness. Global competitiveness in terms of quality, price and supply chain management are reducing the viability of the industry. Few organisations are able to keep their positions in the marketplace without changes in the organisation of work and workers. Organisations that respond to the challenges have positioned themselves for economic stability. Organisations have found different methodologies in dealing with the reality of the situation. Two distinctive paths can be identified: outsourcing production with dismissal of workers and relocation of facilities; and skilling the workforce through continual improvement. The aim of the paper is to highlight the predicament faced by the clothing industry and what could be done to change the levels of productivity in the industry. This paper presents results through qualitative research analysis from the case study conducted in Kwa-Zulu Natal on several clothing organisations in comparison to international experiences.