Industrial Relations in Africa MGT 4330

South Africa-Facts Population: 51 Million GDP: $390 Billion GDP per capita: $7,635 Ethnic groups: ◦ 79.2% Black African ◦ 8.9% Colored ◦ 8.9% White ◦ 2.5% Indian or Asian Nelson Mandela First universal elections in 1994

Industrial relations in South Africa The Industrial Conciliation Act 11 of 1924 (the IC Act) stood at the core of South African industrial relations and collective bargaining its name was later changed to the Labour Relations Act 28 of 1956 by the Labour Relations Amendment Act 57 of 1981.

Industrial relations in South Africa At the heart of the IC Act was the establishment of industrial councils (ICs). However, there was a fundamental flaw in the IC Act in that it excluded Black Africans from the definition of “employee”. Until 1979 when the Wiehahn Commission of Inquiry into Labor Legislation recommendation that Africans be allowed to join registered trade unions and be directly represented on industrial councils was accepted by the government

Industrial relations in South Africa ICs reached their peak in 1983, when there were 104 in operation. The councils varied enormously in size from large national councils to small local ones. Centralized collective bargaining took place in the ICs. They negotiated wages and working conditions of all the employees represented by the unions and employers’ associations.

Industrial relations in South Africa In 1995 a new Labor Relations Act (66 of 1995) was passed. It extended collective bargaining rights to almost all employees, including civil servants. It reconstituted industrial councils as bargaining councils (BCs) The number of BCs declined by more than half from 1983 to However, the number of registered employees covered by BCs more than doubled over the same period.

Industrial relations in South Africa

The dramatic rise in the number of employees covered by BCs between 1995 and 2004 was due to the establishment of four large public service bargaining councils. The bargaining unit in the public service is the Public Service Coordinating Bargaining Council (PSCBC). It co-ordinates the bargaining of all four sectoral public service bargaining councils in one forum. Trade unions must have at least members to qualify for membership of the PSCBC.

Industrial relations in South Africa

Private sector industrial councils decentralized from 1978 to During this period, the number of national and regional industrial councils declined, while the number of local and single company councils remained constant. Private sector bargaining councils centralized from 1992 to During this period, the number of regional, local and single company councils declined while the number of national councils increased.

Industrial relations in South Africa The Congress of South African Trade Unions (Cosatu) is the biggest of the country’s three main labor federations with a combined membership of 2.2- million workers grouped into 20 affiliated trade unions. The Federation of Unions of South Africa (Fedusa) is the country’s second-largest federation, claiming members organized into 18 affiliates. The National Council of Trade Unions (Nactu) is South Africa's third-largest federation, comprising about 19 affiliate unions with a combined membership of nearly

Industrial relations in South Africa The major trend in collective bargaining over the past 20 to 30 years has been an increased concentration of negotiations in bargaining councils as well as increased centralization of bargaining. After 1995, public service bargaining councils became very prominent, but their centralized bargaining unit has become too large and unwieldy to ensure harmonious and fair outcomes