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South Africa - Labor Unions

Even before apartheid restrictions were imposed during the 1950s, government policies, rather than market principles, determined many aspects of labor-management relations. From the 1950s until the early 1990s, black workers suffered systematic discrimination. A number of contradictory developments during the 1970s displayed the shaky foundations of the apartheid edifice. In 1973 wildcat strikes broke out on the Durban waterfront and then spread around the country. Because Africans were prohibited from establishing or belonging to trade unions, they had no organizational leaders to represent their concerns. Fearful of police repression, strikers chose not to identify publicly any of their leaders. Thus employers who considered negotiations had no worker representatives with whom to negotiate and none to hold responsible for upholding labor agreements.

Fearful of growing instability in South Africa, many foreign investors began to withdraw their money or to move it into short-term rather than long-term investments; as a result, the economy became increasingly sluggish. In order to cope with labor unrest and to boost investor confidence, the government decided in 1979 to allow black workers to establish unions as a necessary step toward industrial peace. This decision was a crucial step in the growing perception that apartheid would have to end. It undercut a basic ideological premise of apartheid, that blacks were not really full citizens of South Africa and, therefore, were not entitled to any official representation. It also implied an acceptance by employers, many of whom had called for the change in policy, that in order for labor relations to operate effectively, disgruntled workers would have to be negotiated with, rather than subjected to arbitrary dismissal and police arrest, as in the past.

Under this legislation, many black workers had the legal right to bargain collectively with their employers in the 1980s, and, when legally required mediation procedures failed, they had the right to strike. They exercised these rights aggressively, using both legal and illegal labor actions to press their workplace demands and to protest against apartheid. Black union membership of about 500,000 in 1980 grew to more than 2.5 million in 1990. By the early 1990s, almost 70 percent of all union members in South Africa were black, and more than one-third of all employees in mining, industry, and commerce were union members.

Newly legalized black trade unions took a leading role in the opposition, particularly by organizing strikes that combined economic and political complaints. The largest organizing effort among black workers resulted in the establishment of the Congress of South African Trade Unions (COSATU) in 1985. An umbrella organization of more than a dozen unions, COSATU had a total of 1.3 million members by 1990. COSATU affiliated with the African National Congress (ANC) and the South African Communist Party (SACP), both of which were banned. In addition to winning major financial concessions for its members, COSATU became the effective mobilizing arm of the ANC and the SACP. The number of work days lost to strikes soared to more than 5.8 million in 1987.

The origins of the hostility between COSATU and the ANC back to 1992 when COSATU was excluded from formal negotiations with the National Party government over a new Constitution. COSATU believed the crucial role it played during the anti-apartheid struggle had earned it a permanent seat at the table. The federation's resentment at being "sidelined" by the ANC was further exacerbated in 1996 when the ANC announced the market-friendly GEAR (Growth, Employment and Redistribution) policy without first consulting its labor allies. COSATU was at the forefront of the liberation struggle in the 1980s. It has always seen itself as more than a labor union. It sees itself as a political actor, too.

Demands for immediate economic improvements intensified in 1995 and 1996. Labor unions pressed demands on behalf of organized workers, many of whom feared that their interests would be ignored, lost amid the government's concerns for alleviating severe poverty and for bolstering investor confidence in a stable workforce. Many labor unions were also weakened, at least temporarily, by the loss of key leaders who were elected or appointed to government office.

The South African government has worked to remove all vestiges of apartheid-era labor legislation, emphasizing employment security, reasonable wages, and decent working conditions. Under the aegis of the National Economic Development and Labor Council (NEDLAC), government, business, and organized labor negotiate all labor laws, with the exception of laws pertaining to occupational health and safety. The law allows all workers to form or join trade unions of their choice without previous authorization or excessive requirements. Trade union membership figures are imprecise but total membership is estimated at 3.5 million people, which is 26.1% percent of the economically active population employed in the formal sector as of September 2011, a decrease of almost 5% from September 2010.

The law allows all workers with the exception of members of the National Intelligence Agency and the Secret Service to form and join unions of their choice without previous authorization or excessive requirements. The law allows unions to conduct their activities without interference and provides for the right to strike; however, workers considered to be providing essential services were prohibited from striking, and employers are prohibited from locking out essential service providers. The government characterizes essential services as (a) a service, the interruption of which endangers the life, personal safety, or health of the whole or part of the population, (b) the parliamentary service, or (c) members of SAPS.

Most union members belong to affiliates of the Congress of South African Trade Unions (COSATU), whose membership is predominantly black. Other unions are affiliated to the Federation of Unions of South Africa (FEDUSA) or the National Council of Trade Unions (NACTU). The Federation of Unions of South Africa is the second-largest union federation in South Africa after COSATU, and most of its affiliates have a predominantly white or colored membership. The National Council of Trade Unions (NACTU) was initially a blacks-only confederation that rejected multiracial membership.

FEDUSA and NACTU formed a confederation to be known as the South African Confederation of Trade Unions (SACOTU) on November 9, 2007. FEDUSA and NACTU announced their plans to merge in September 2006, but, in the event, disparities in management style limited their amalgamation to a confederation. While both federations were apolitical, FEDUSA had run its trade union like a business, with regular financial and membership audits, whereas NACTU brought its political influence to the table. SACOTU claimed to have membership of around 900,000 trade unionists. It proposed to be an independent and non-political trade union. The ANC government had dealt preferentially with both NACTU and FEDUSA in the past, partly because of COSATU's political engagement and willingness to publicly criticize President Mbeki's government whenever the opportunity offered. The government encouraged both federations to unite, in order to create a greater working class voice beyond COSATU.

COSATU decided to support Zuma sometime during Mbeki's first Presidential term after years of disillusionment with the ANC's market-friendly economic policies and lack of labor consultation. With the ouster of Mbeki, COSATU members were near uniform in their belief that an alliance with a Zuma-led ANC, is the best way to shift South African politics leftward. The Congress of South African Trade Unions (COSATU) remained strongly allied with the ANC and the union federation's support for Zuma would make it difficult for him to dismiss organized labor in the fashion of former President Thabo Mbeki. ANC policy for years advocated pro-poor and pro-worker policies; the resolutions at the December 2007 Polokwane conference made this emphasis even more explicit. However, Thabo Mbeki's government did not take these party directives into account when making government policy -- he largely ignored the protestations of alliance partners COSATU and the South African Communist Party.

COSATU and the South African Communist Party (SACP) were members of the ANC-led tripartite alliance. These groups pressured Zuma to embrace more leftist or perhaps even populist positions in the interests of the working-class poor, and they supported the appointment of many of their members to the Cabinet. COSATU continues to push for further policy influence and has been especially vocal on issues of fiscal management, nationalization of industry, and trade liberalization. While COSATU is perhaps overreacting to issues, some labor leaders think such `sensitivity' is necessary as South Africa has no effective political opposition. They believe that they must `play the revolutionary role of the vanguard of the working classes' to ensure that the government is kept `on its toes.' Union officials concede that COSATU's strike actions are a way of `flexing their muscles' and have said that this is not objectionable because it will allow COSATU to be taken seriously.

COSATU leadership acknowledges that members are unhappy with the ANC over a poor track record of service delivery but has assessed that most members would vote for the ANC in the 2009 election while a few would abstain instead of switching support to an opposition that is perceived as anti-labor. COSATU will face a greater challenge from its members post-election when those members expect COSATU and the ANC to deliver on promises, made by General Secretary Zwelinzima Vavi, for a substantial shift in South African labor law and policy.

The breakaway Congress of the People (COPE) had difficulty in launching an affiliated trade union movement led by former COSATU President Willy Madisha, who topped the party's regional list for Limpopo province in 2009. Madisha, while noble in his cause, received little support for a parallel federation outside of his former homes -- the South African Democratic Teachers Union (SADTU) and the National Union of Mineworkers (NUM). The other twenty COSATU affiliates remained loyal. COSATU's top down and undemocratic leadership tends to quietly push out dissenting views. The law protects collective bargaining and prohibits employers from discriminating against employees or applicants due to past, present, or potential union membership or participation in lawful union activities. The law provides for the automatic reinstatement of workers dismissed unfairly for conducting union activities. The law provides a code of good practices for dismissals, which includes procedures for determining the “substantive fairness” and “procedural fairness” of a given dismissal. The constitution includes all groups of workers, including foreign residents, illegal or legal, in its worker protections. Labor laws also extend to farm workers. The National Defense Bill states that military unions cannot affiliate with any existing union federation and do not have the right to strike.

The right of workers to form and join unions was effectively enforced. The government effectively protected freedom of association and the right to collective bargaining, and workers routinely exercised these rights. A labor court and labor appeals court effectively enforced the right of association. The Food and Allied Workers’ Union (FAWU) alleged that in isolated instances individual employees on small farms in the Western Cape and Northwest provinces were fired for union organizing activities. No actions were brought against employers in response to these firings. Worker organizations were independent of the government and political parties. There were no known cases of government interference in union activities.

Workers frequently exercised their right to strike. "Strike Season" is the local term used for the June to August period when most wage agreements are negotiated. The South African Department of Labor’s 2011 Industrial Action report estimates that 20.6 million work days were lost to strike action in 2010, far exceeding the 1.5 million work days lost in 2009. In 2011, major strikes included labor action by workers in the public sector (garbage collection), mining, transportation, and manufacturing sectors. The transportation strike led to some shortages of petroleum products, particularly in Gauteng province. Although workers considered to be providing essential services were prohibited from striking, strikes occurred throughout the year involving these individuals. Disputes between workers in essential services and their employers that were not resolved through collective bargaining, independent mediation, or conciliation were referred to arbitration or the labor courts.

Strikes were sometimes marked by violence. Police in some instances used force to disperse demonstrators blocking main roads and blocking entrances to hospitals and schools. During the public-sector strike on 19 August 2011, police used rubber bullets, water cannons, and tear gas to disperse a strike by workers who were blocking entrances to public facilities.

The Labor Relations Act was not consistently enforced. The Congress of South African Trade Unions (COSATU) alleged that employers frequently used temporary employment services, known locally as labor brokers, to circumvent the tenets of the Labor Relations Act protecting the rights of workers to bargain collectively. There were no lawsuits filed for antiunion discrimination during the year.

COSATU and leading agricultural NGOs complained that labor conditions on farms remained harsh, including underpayment of wages and poor living conditions. Union officials stated that unionization of farm workers remained difficult. According to HRW, the government did not enforce labor laws fully in the agricultural sector. HRW cited cases in Western Cape where employers denied farm workers in the fruit and wine sector their constitutional right to unionize.

South African business argues that the labor market is rigid and over-regulation has constrained job creation and employment. Under pressure to preserve jobs in the face of Chinese competition, in October 2011, the Southern African Clothing and Textile Workers' Union (SACTWU) agreed to a novel deal that allowed for lower salaries for new hires.

Amendments to each of the four main labor laws were proposed in December 2010. The proposals were heavily criticized by business groups and analysts as making South Africa’s labor regime more rigid and discouraging job creation. The proposed amendments are being debated at the National Economic Development and Labor Council (NEDLAC). NEDLAC is a non-governmental organization that was set up by President Nelson Mandela to include South African citizens in government policy formation. NEDLAC is comprised of representatives from government, business, and labor, and it is funded through the South African Department of Labor.

South Africa's mining industry has been reeling from a series of strikes and protests since August 2012, when police opened fire on striking workers at a platinum mine and killed 34 people. The strikers, led by the break-away Association of Mineworkers and Construction Union [not associated with COSATU] had demanded a threefold pay raise, from their current $490 per month. The workers at that mine eventually won a 22 percent pay raise, spurring workers at other mines to demand better pay and work conditions. Anglo American Platinum, the world's largest platinum producer, dismissed 12,000 mineworkers in Rustenburg on 06 October 2012 for staging an illegal strike. The company said the workers from its Rustenburg mine had not shown up for disciplinary hearings related to the strike. COSATU-affiliated South Africa's National Union of Mineworkers said it would try to negotiate with Anglo American in hopes of heading off unrest.

Strikes in the country spread like wildfire, sparking violence, shortages of goods, political backlash and economic consequences. The strikes spread to other mining companies and have now hit the transport industry. The Gold Fields mining firm said 23 October 2012 it was dismissing 8,500 mineworkers who ignored an ultimatum to end an illegal strike and return to work. The strikers worked at its KDC East mine near Johannesburg. The company said the workers had 24 hours to appeal their dismissals. The previous week, Gold Fields resolved strikes at two other mining sites through ultimatums that workers must return to the job.