The Free State provincial government has requested an urgent meeting with the National Bargaining Council (NBC) for clothing manufacturers to discuss the impact of a compliance drive on factories that are not paying minimum wages.

About 50 companies nationwide have been identified by the NBC as priority cases, with backpay owed to employees totalling R40.3-million. More than 4400 workers are employed at the priority factories, including at Free State towns such as Botshabelo, Qwa Qwa and Thaba Nchu.

The Free State government requested the NBC to stop the attachment of assets of non-compliant factories until a meeting, scheduled for tomorrow in Bloemfontein, has taken place.

The provincial government "wished to avoid (job losses) at all costs", the letter stated.

It indicated that legal support could be provided to affected factories, should the government and NBC fail to "resolve this matter amicably".

Factories in Newcastle shut their doors this week to show their dissatisfaction with the compliance drive, following the closure of one factory by a sheriff this week. The companies simply cannot afford to pay the minimum wage set by the council, Newcastle Chinese Chamber of Commerce chairman Alex Lui said.

An estimated 8000 jobs are threatened in Newcastle alone, where 47 companies are not compliant.

While any job losses in the industry are to be avoided, the non-compliant factories are threatening the 35000 jobs at compliant factories, as non-compliant manufacturers can undercut those who pay the minimum wages, the NBC said.

Sactwu national organising secretary Wayne van de Rheede said the council should prioritise companies that are "clearly exploiting labour" and who are paying "way, way below the minimum wage".

The union will not be interested in negotiating lower wage levels - manufacturers say a reduction of 30% will significantly boost the local industry's ability to compete with cheap imports from China - or a lower entry-level wage.

"We can't expect employees to work for lower wages. There are many other ways to help the industry," Van de Rheede said, highlighting government incentive schemes.

"We are not prepared to change our viewpoint."

Nimrod Zalk, deputy director-general of trade and industry, said while the dispute is "essentially a labour issue", the department is following it closely. The clothing and textiles industry, together with the automotive industry, receive the bulk of the department's industrial support budget.

The department's view is that it "is problematic to have companies not complying with minimum labour standards", Zalk said.

While no meetings have been requested with the parties, the department is "open to any engagement with the unions or bargaining council", he said.