Some of South Africa’s biggest retailers are set to appear before Parliament after MPs uncovered alleged labour and immigration violations at clothing factories in Newcastle.

The Employment and Labour Portfolio Committee (ELPC), following an oversight visit to the Newcastle Industrial Zone, said several factories were operating in breach of labour legislation, municipal bylaws and health and safety standards. The committee accused large retailers of supporting manufacturers that were breaking the law.

A joint inspection by the Department of Employment and Labour (DEL), the ELPC, Home Affairs and police on 5 and 6 February led to the arrest of employers accused of hiring 34 undocumented foreign nationals. Authorities said dozens of illegal workers were found living on factory premises.

Officials reported that goods destined for major retailers — including Pick n Pay, Mr Price, Ackermans and others — were being produced and packaged at the non-compliant facilities. ELPC chairperson Boyce Maneli said most factories inspected failed to meet Occupational Health and Safety Act requirements and did not comply with minimum wage laws. Non-compliant businesses were issued with contravention and prohibition notices.

Sources who joined the visit described hazardous conditions and alleged that workers were forced to work excessive hours without overtime pay. Cosatu’s provincial secretary Edwin Mkhize said some employees from Zimbabwe, Lesotho and Eswatini were paid between R350 and R750 per week in cash after complaints of non-payment.

Patriotic Alliance MP Juliet Basson shared video footage online showing clothing with price tags linked to major retailers, describing the treatment of workers as inhumane.

Retailers respond

Pick n Pay said the factory shown in circulating videos was not approved to manufacture its clothing and had been stopped immediately. The retailer said it outsources production but not responsibility, and is investigating the supplier.

Mr Price said it supports the parliamentary inspections and does not tolerate unsafe or unethical manufacturing practices. The group confirmed its labels appeared in the footage and said it would take action if its supplier code was breached.

Edgars, owned by Retailability, said it does not use sweatshops and requires suppliers to meet strict ethical and labour standards.

Pepkor said it had launched its own investigation, stressing that its supplier code of conduct prohibits unlawful or unethical practices and reaffirming its support for responsible local manufacturing.

The ELPC said it would work with other parliamentary committees to determine further steps to ensure accountability across the retail supply chain.

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