The clothing industry in South Africa is seen as a conventional industry with characteristics such as labor intensive with low levels of qualification; low salaries; low potential for investment in R&D and innovation; flexible labor legislation and powerful labor unions. However, it continues to be an important sector in terms of the South African labor market with regards to job creation. The strong impact of globalization and delocalization in the organization of work is pressurizing the industry in terms of its competitiveness. Global competitiveness in terms of quality, price and supply chain management are reducing the viability of the industry. Few organizations are able to keep their positions in the marketplace without changes in the organization of work and workers. Organizations that respond to the challenges have positioned themselves for economic stability. Organizations have found different methodologies in dealing with the reality of the situation. Two distinctive paths can be identified: outsourcing production with dismissal of workers and relocation of facilities; and skilling the workforce through continual improvement. The aim of the paper is to highlight the predicament faced by the clothing industry and what could be done to change the levels of productivity in the industry. This paper presents results through qualitative research analysis from the case study conducted in Kwa-Zulu Natal on several clothing organizations in comparison to international experiences.