Sports Trader
Titles published by Rocklands Communications:
May2010 • Issue 49



World Cup merchandise ensure 70 000 SA jobs

Paul Zacks
There are about 67 500 South Africans employed in the manufacturing and distribution of Official Licensed Products (OLP) for the 2010 FIFA World Cup, and an additional 1 500 – 2 000 people will be employed in the Global Brands on-site programme (selling merchandise around stadiums, Fan Fests etc), Paul Zacks, Global Brands South Africa CEO, said in response to an allegation by COSATU Western Cape that “the clothes and mascots (for the World Cup) are being made in sweat shops in China”.

Zacks says that 38 of the official licensees are from SA-registered companies - many of them also use other SA sub-contractors to help them manufacture. Therefore, there are at least more than 90 SA companies directly/indirectly involved with the manufacturing of OLP, which accounts for 128 different licensed products and categories.

This resulted in employment for more than 70 000 South Africans – without taking into account people employed to sell the products, e.g. the extra 800-2 000 people Sneakers aims to employ to sell to the hospitality industries.

Zacks also said that an audit by independent verifying company Intertek (www.intertek.com) found that allegations that the Chinese factory manufacturing the plastic Zakumi desk figurine was a sweat shop using child labour, was false. The license for manufacturing this figurine as a FIFA OLP, which was suspended pending the outcome of the investigation, has been reinstated – although it might be too late for the licensee to derive benefits from sales.

In their press statement COSATU WC called on the SA government to “negotiate new agreements with FIFA that promotes SA jobs and SA economy”. They also said that they “will be calling on Nedlac to convene a meeting of FIFA, Cosatu and Government in the W Cape to set the terms of procurement for the W Cape World Cup Related activities.”

Following a meeting with the 2010 FIFA World Cup Organising Committee (OC)on Thursday (13 May), COSATU adopted a much more reconciliatory approach and did not repeat their earlier threats to march on FIFA offices. They issued a joint statement, urging all South Africans to get behind the World Cup and promote local procurement. They expressed concern that fake World Cup merchandise worth more than R88m have been seized since November 2009, which also contributes to job losses.


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