Newcastle’s Sweatshop Problem: Blitz Reveals Exploitation Wages

• A multi-agency blitz at Newcastle Industrial Park uncovered dozens of undocumented workers living inside textile factories
• Workers were reportedly earning as little as R50 a day, with labour representatives alleging inhumane living conditions.
• Despite repeated inspection drives over the years, activists say conditions and poverty-level pay persist

KWAZULU-NATAL- A dramatic joint inspection blitz at the Newcastle Industrial Park on 6 February 2026 saw Chinese-owned clothing factories shut their doors as authorities arrived, with some owners reportedly locking themselves inside their premises and others fleeing the scene.

The multi-departmental operation uncovered dozens of undocumented workers living inside the textile factories, reigniting concerns about entrenched labour exploitation in the area.

Government cracks down on Chinese owned factories

The operation was conducted by the Department of Employment and Labour in collaboration with the South African Police Service, Newcastle Metro Police and the Department of Home Affairs. It forms part of an ongoing crackdown overseen by Parliament’s Portfolio Committee on Employment and Labour, which is now considering summoning major retail clothing chains that supply these factories to account for their business relationships.

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Workers are reportedly paid as little as R50 per day, with some earning around R300 per week, well below the national minimum wage. In many cases, a significant portion of that income goes towards transport costs, leaving workers with almost nothing to take home.

The exploitation of undocumented immigrants in sweatshops has become a recurring problem in parts of South Africa. According to labour representatives, some employers allegedly collaborate with police and immigration officials when

Unions detail exploitative working conditions

Nkosinathi Banda, a workers’ rights representative in the industrial area under the banner “Umnotho waBantu Kubantu trade union,” described conditions inside the factories as egregious.

“Some people are getting paid R300 per week, and that is not the lowest amount,” he said. “Because these are illegal foreigners, they take whatever work they can and have no idea about workers’ rights.”

He criticised the repeated inspection blitzes, saying little changes once the authorities leave.

“We have been fighting this system for years. After repeated operations and blitzes, meetings and discussions, nothing has come from that. As soon as the department leaves, it is back to work as usual.”

Worker speaks out

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Briefly News spoke to an employee at one of the factories in the industrial area, who asked to remain anonymous. She said she left after a year due to low pay and relentless stress.

“We only got paid at most R300 per week, with R175 going to transport. What was I working for?” she said.

“We spent hours on our feet. My last push was when we were paid R75 for five days.”

Despite the harsh conditions, she admitted that many workers return.

“At times we quit, but then we go back. What is the alternative in this economy and with the rate of unemployment?”

She added that it is easy for owners to replace workers with undocumented foreigners who are willing to endure inhumane treatment and extremely low wages.

Deadly fire highlights ongoing safety risks

The dangers of the working conditions were tragically highlighted almost three years ago, on 24 June 2023, when a fire broke out at one of the factories, killing four women from Lesotho. They were reportedly living in factory quarters at the time, with some accounts indicating workers endured shifts of up to 19 hours a day.

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Reports at the time alleged that workers were locked inside the factories and worked until as late as 10 p.m. The Chinese owners denied the allegations but stated that some workers voluntarily worked longer hours in the hope of earning more money.

The Portfolio Committee on Employment and Labour is now considering calling major retail clothing chains to Parliament to explain their supply chain practices and oversight mechanisms.

With numerous inspection blitzes having taken place in the industrial area over recent years, yet conditions persisting, pressure is mounting for structural intervention rather than temporary enforcement drives.

Articles on employment exploitation

• A local content creator sparked a debate after she shared a salary payslip for someone with an accounting degree. The woman posted the video on 25 November 2025 showing that a creditors clerk is earning R16,000 per month. The woman explained that the person holds a BCom in accounting, has two years of work experience, and works in finance. South Africans had mixed reactions, with some labelling it exploitation and others arguing that it depends on the company.
• Accusations of exploitation have surfaced against Cassper Nyovest after he announced unpaid internship opportunities for his upcoming Fill Up Toyota Stadium concert. The Mafikeng-born rapper, real name Refiloe Phoolo, stated that selected interns would not be paid and would need to cover their own transport and accommodation costs. The announcement sparked backlash online, with critics accusing him and his team of taking advantage of young people amid South Africa’s high unemployment rate.

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Briefly News also reported that influencer and entrepreneur Mihlali Ndamase is facing intense backlash following allegations that she abruptly terminated the contract of her boutique’s only employee. Reports suggest the unlawful dismissal was a desperate move triggered by struggling sales and a lack of traffic just weeks after the high-profile launch of her boutique. The controversy reached a breaking point when the dismissed staff member’s alleged salary was leaked online, sparking a wave of public outrage over what many describe as "exploitative" pay.

Source: Briefly News