Major retailers The Foschini Group (TFG) and Pick n Pay Clothing have responded after a video circulating on social media allegedly exposed Chinese-run sweatshops operating in Newcastle, reports the Northern Natal News.

The Portfolio Committee on Employment and Labour conducted a blitz oversight inspection alongside the Department of Employment and Labour, Cosatu, SAPS, Newcastle Metro Police and the Department of Home Affairs from February 2 to February 6.

During the inspections, several factories were found to lack basic health and safety measures.

Authorities also reported breaches of South African labour laws and the employment of undocumented foreign nationals.

Juliet Basson exposes major retailers

The video was recorded by Patriotic Alliance Member of Parliament Juliet Basson during one of the Riverside raids conducted last week.

Basson serves on the Parliamentary Portfolio Committee on Employment and Labour.

In the footage, Basson points to hundreds of boxes containing clothing labelled with well-known South African retail brands. She alleged that the goods were being packaged and distributed to major retailers across the country.

Basson criticised consumers for supporting businesses accused of exploiting vulnerable workers, including pregnant women and children.

She claimed some workers were forced to work long hours for wages far below the legal minimum, with some reportedly earning as little as R8 an hour.

She also highlighted poor living conditions and inadequate ablution facilities, saying workers’ livelihoods were severely affected by sweatshop operations allegedly linked to major retailers.

TFG and Pick n Pay respond

In response to a media enquiry, TFG said it takes allegations ‘extremely seriously’.

“TFG takes allegations of labour rights violations extremely seriously. All suppliers are contractually required to comply with the TFG Merchandise Supply Chain Code of Conduct, which includes clear standards relating to labour practices, health and safety, and working conditions,” said TFG.

It added that as part of TFG’s compliance programme, suppliers are required to declare all manufacturing sites intended to be used for the production of TFG merchandise, and declared sites are subject to ongoing monitoring aligned to internationally recognised social and ethical standards.

“TFG conducts both announced and unannounced audits of supplier production sites to monitor compliance. We are currently investigating the circumstances under which TFG-branded products and tags were found at the premises referenced in Newcastle, including whether any unauthorised production may have occurred or whether TFG branding may have been misused without approval,” said TFG.

It added that where suppliers are found to have breached our requirements, TFG takes firm action, which may include financial penalties, corrective measures, termination of relationships and factory blacklisting.

“TFG will take all appropriate steps based on the outcome of the investigation,” TFG added.

Pick n Pay also confirmed that it is investigating the matter.

“There has been an extremely concerning video circulating about conditions at a production facility that was manufacturing clothing for some of South Africa’s largest clothing retailers, including, unfortunately, Pick n Pay. The factory shown in the video was not approved to produce Pick n Pay Clothing and has been stopped with immediate effect,” said Pick n Pay.

It added that in its business, it relies on manufacturers and has strict protocols governing all suppliers, including the contracts it holds with factories.

“These hold our suppliers accountable for meeting our high ethical standards, and this supplier simply didn’t follow them. We outsource production but never our integrity or responsibility. We are investigating the matter in full, and decisive action will be taken against the supplier based on the outcome,” added Pick n Pay.

Watch Juliet Basson exposes ‘sweat shop’ operations

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