Yesterday's meeting was to have been the fourth and final meeting as required by the LRA toward the implemention of 'short time' (reduced work hours and wages) and the ultimate disposal of the company. However both the Company and Management agreed early in the meeting to postpone this to Thursday, pending a consultation with the Premier. They subsequently agreed to further postpone the fourth meeting in terms of the LRA in order to use this Thursday's meeting to rather engage around potential new ownership by a BEE consortium.
The Premier emerged from the meeting late yesterday afternoon saying: "The concrete outcome of today's meeting is that both parties have suspended their fourth and final meeting as it would have been today, which would effectively have bought down the curtain on Rex Trueform. This positive sign of goodwill does not necessarily mean that the fourth LRA meeting cannot be invoked if necessary, but has changed the terms of engagement.
"The clothing and textile industry is in a very difficult phase currently. I have noted the signals from National Government regarding their understanding of the issue of Chinese imports and limiting these. This however does not remove our difficulties. We must wrestle with the challenges together with workers and owners to create a viable industry that responds to niche markets and that is effectively re-engineered.
"Both parties, with the Task Team instead decided to use this meeting as an opportunity to fully explore possible alternative ownership of Rex Trueform in Salt River. A solid offer is already being explored and discussions will now centre on the long term viability of Rex Trueform under alternative ownership.
"Towards this, the Company has agreed that any sale to a Black Economic Empowerment consortium should be based on preferential conditions such as continued supply to Queenspark, initial rent free occupation of buildings and the use of machinery.
"The Premier's Task Team, the Company and the Union will start discussions with a potential BEE buyer on Thursday.
"As Government we have indicated our preparedness to strengthen a BEE consortium by helping to secure the necessary capital and expertise needed for a turn-around strategy to ensure the long term viability of the Salt River Factory.
"In the spirit of goodwill that prevailed at the meeting, the Union agreed to suspend any pending court actions and the company's management agreed not to implement 'short time' which would have meant that workers take home less money than currently.
Premier Rasool added: "I want to place on record my deep appreciation to both Management and the Union for allowing me to play a part in the future of Rex Trueform and for the important concessions that both have made. I left the meeting believing that both parties have acted in the best interests of the workers and the industry and that, if this approach prevails, a win-win solution will certainly be found.
"At the end of the day it is my sincere wish that we can develop a situation in which the expertise built up over many years at Rex Trueform is not lost; where those workers that want to continue to provide for their families can find employment and where those who want to retire can do so."
