Sactwu buys out Seardel
The union says it is buying the company in order to save 2,000 jobs.
CAPE TOWN - The South African Clothing and Textile Workers' Union (Sactwu) on Thursday revealed it will be buying manufacturing business Seardel.
Seardel is one of the biggest apparel manufacturing concerns in the country.
The buyout will result in workers owning the business where they work.
Sactwu General Secretary Andre Kriel said they bought the company in order to save jobs.
"We were given notice for Seardel's intention to close its Cape Town and Durban operations. That would have meant over 2,000 clothing workers would have landed on the streets. We couldn't just stand by and let that happen.
"The second reason is that as a union, we cannot stand aside and just watch the industrial capacity being eroded bit by bit."
Kriel said this acquisition did not make the union capitalists.
"We did not enter into this arrangement to make profit, which is the ultimate driver of capitalism. We entered for a different reason and that is to save jobs and to grow income and stability in our economy. Most importantly, we are taking this initiative knowing it's going to be tough."
Sactwu will fund the transaction with a loan from Seardel.