It is nearly twenty-five years since the Industrial Conciliation Act
(1„24) first gave statutory recognition to Industrial Councils and the
Wage Act (1925) made provision for the statutory regulation of wages of
employees in any industry or occupation (except agriculture, domestic ser­
vice and most branches of the public sc. vice) whose wages were not regu­
lated by agreements or awards in terms of the Industrial Conciliation
Act,
Immediately the Economic and Wage Commission (1925) - was appointed
report upon wages and labour policies in the Union,
The Commissioners
were not una nimous and issued two reports one of which, signed by Pro­
fessor Henry Clay and Messrs. Martin and Mills, remains the classic on
the South African labour market.
It is interesting to re-road this report in the light of over twenty
years’ experience and to see how far its recommendations have been car­
ried out, its warnings heeded and its fears realised.
The Commissioners focussed attention on the disparity between tho ra­
tes of pay for skilled and unskilled work in South Africa r.nd recoramendod
that wage regulation should bo directed to lessening this gap, (paras, 94,
154),
They pointed out the potential dangers arising from the fact that
industrial councils workod in isolation, that thcro wss no representation
of consumers on them and no co-ordination mechanism to considor the ef­
fects of their agreements on wages in other industries and on the commu­
nity,
They wrote "Finally, it has to be remembered that any improvement
in wages or conditions, which does not result An a corresponding improve­
ment in efficiency, has to bo paid for by the consume:;, and the consumer
enjoys no representation on joint industrial councils.
The industries in
which national agreements have so far (1925) been enforced - building and
printing - arc both sheltered from foreign competition,
Ratos of wages
in these industries have risen far more than the average of wages.
There
would seem, therefore, to be a case at any rate for putting before each
industrial council the facts about wages in general.
Some measures of co­
ordination seem to be called for, sincc rates fixed in one industry in­
evitably have re-actions on other industries ... Another reason for out­
side scrutiny is that the rates of wages generally affected by industrial
council agrcomon’cs are thoso of the higher paid skilled monj
whereas, as
we endeavour to show elsewhere, it is desirable that the gap now existing
*
between skilled, and unskilled ra'Ges of wages should be lessened rather than
widened."
The Economic and Wage Commission suggesteO it would be desirable for
all agreements to be submitted to the 7/ago Board, as tlie ciiief co-ordinating authority on wage questions, L.
Economic and Wago Commission
(1925) U.G. 14, 1926 para. 94. for its comments, before agreements were
registered or extended by the Minister.
During the years that have passed since this Commission reported, suc­
cessive Commissions have endorsed the necessity for some method of co­
ordinating and reviewing industrial council agreements and have shown that
i
the forebodings of the Clay-Martin-Mills report were justified.
In 1935
the Industrial Legislation Commission considered that "Since wage regula­
tion under the existing legislation is largely in the hands of the "/age
Board and a number of industrial councils scattered throughout the coun­
try, the need for harmonizing wage rates appearing in determinations and
agreements is very real."
They considered that the fact that power to
givo legal force to recommendations of the Wage Board and agreements of
industrial councils is vested in he Minister of Labour offered an oppor­
tunity for effecting the neccss; ry co-ordination and recommended' that "the
fullest use be made of this power to bring about co-ordination".
As far as I have been able to ascertain little attention has been paid
to this recommendation and the Minister of Labour does not in practice
intervene to secure modification of agreements either to secure co-ordina—
tion with other industries and areas or to represent the interests of the
consuming public and the community.
1.
Industrial Legislation Commission. U.G. 3 7
,
1935, para. 147.
Indeed in the existing set up it would be difficult for him to do so in
the absence of expert advice on the probable consequences of agreements
submitted for ministerial approval.
Ten years after the Industrial Legislation Commission had remarked on
the need for co-ordination, the Board of Trade and Industries put its
finger on this same weakness in our system of industrial legislation.
%
Moreover it stressed the harmful effect on the community of the lack of
supervision of industrial council agreements.
I will quote what it has
to say in full as it is both extremely important and very generally over­
looked in discussions of the Union’s industrial legislation.
"Various Commissions have alrc; dy drawn attention to the wide variation
of rates of pay in different industries and areas.
Partly this must be
a s crib cd/
ascribed to differences in oho ocorio:;ic condition or different industries
and areas.
Largely, however, it is also the inevitable outcome of the
Union’s system of Y/age dot ermine,t ion.
The Board (of Trade and Industries)
lias come acioss frequent instances where ’wages have been determined bjr col­
lective agreement between employers and employees with little regard to
tho economic implications, such as the increase in cost structure and
£>ricc level, as well as the ultimata effect on production and consumption.
It would appear on the one hand, that as one could reasonably expect, la­
bour makes the most of its bargaining power, and that; on the other hand,
employers relying unduly on tariff protection do not malic any determined
effort to resist the claims of organised labour for periodic increases in
wages.
The Board views with great concern increases in tho cost structure
which tend to wo&kon the Union's competitive position vis-a-vis other
countries.
Neither can the Board view with equanimity attempts made by
any group, whether of employers or employees, to be placed in a privileged
position where it can raise the price of its services to tho rest of the
community,
"/ago determinations also often aim at securing distributive
shares which conform to the established expectation of power or status
groups.
Practically nothing has hitherto boon done to co-ordinate wage
rates, although the Wage Board has, to some extent acted as a harmonizing
factor, mostly, however, with regard to the unskilled trades”.
I
have said that the Economic and Wage Commission focussed attention on
the disparity between skilled and unskilled rates and recommended that
wage regulation should be directed to reducing this disparity.
In tho into]>-war period not much prpgross was mado in this direction. I
(Particulars of the disparity of rates in occupations for which compara­
tive statistics available to be given here).
One of tho most significant changes in tho structuro of tho labour mar­
ket has been the increasing employment of women, particularly European and
Coloured women, which has accompanied the increase in factory production,
Tho number of African women employed in factories, although increasing ra­
pidly is as yet very small.
Another innovation has been tho employment of
African men in factories on what is classed as somi-skillod operative work.
No statistics arc yet available of the numbers so employed but it is
known that during tho war years considerable numbers were employed on op*Board of Trade and Industries: P.oport No 282. 1945.
orativc/
Investigation into manufacturing Industries in tho Union of South Africa
I. Sea Board of Trade and Industries:o *d .cit. ncra.120. and
para, 156.
annexuro G-.
1
operative work in munition and other war production,
liven before the war
the steelpressing industry had begun to employ African men on operative
work.
These men receive a wa£e above the level paid for shilled work.
Thus in Johannesburg in 1946 African operatives in the stool pressing in­
dustry received a wage of £2 per week plus cost of living allowance.
Ot­
her industries arc very gradually introducing new categories between those
of unskilled labourer and artisan.
Nevertheless the pattern of the labour
market continues broadly as it was twenty to twenty five years ago and the
wage gap remains abnormally large compared to other countries.
To-day the attention of the public is being directed by industrialists
and loading business men to the ncod for increasing the efficiency of la­
bour,
Official Commissions and inquiries have repeatedly pointed out the
need for revision both of the classification of work and of the appren­
ticeship system.
Thus the Industrial and Agricultural Requirements Com­
mission was of the opinion that "the existing classification of skilled
workors in the Union is often artificial and does not take cognisance of
the fact that the greater mechanisation of industry in the Union has pro­
vided increased opportunity for the employment of semi-skilled workers in
I
numerous occupations and has reduced the period of trainin, required,''
It considered that categories of work, wage rates and periods of train­
ing should all be reviewed to ensure that industry was not burdened by
2
obsoleto rules and regulations.
In 1935 the Industrial Legislation Com­
mission had recommended that the whole position regarding apprenticeship
be- reviewed at the earliest possible date and thereafter from time to
3
time,
(in 1945 the Report of the Board of Tra.de and Industries re-iter­
ated the need for revision both of categories of work and of the appren4
ticeship system.
It a.lso recommended that "in order to obtain greater
co-ordination of wave rates in the Union, all recommendations with regard
to wage fixation, whether in respect of private or public enterprises, be
referred to the Board for report, in terms of the Board of Trade and InI
dustrios Act, as to tho possible offeet on industry,"
1 Industrial and Agricultural Requirements Commission, U.G. 40, 194
2 Ibid, para, 169
3 Industrial Legislation Commission, op.cit. para. 728,
4 Board of Trade and Industries. Report No, 282 1945 op.cit. paras.
IBor.rd of Trade and Industries, Report No, 282 p. 139
para.
168
131,
141,
industry/
J
I!
■
5.
The appointment of another coiijjission is now announced. It appears
that it is to enquire specifically into industrial legislation as was done
twelve years ago in 1935.
In the interim, as we have seen, at least two
enquiries have touched on some of the weaknesses of the present system
and shown the restrictive effect of practices such as the classification
of labour categories, unnecessary or overlong periods of apprenticeship,
and prohibition of piece work, which are supported by the present system.
It is not for lack of knowledge or suggestions that no action has been
taken to carry out the recommendations already made by the many official
bodies which have diagnosed some of the causes of the high labour costs
and Inefficiency supported by our industrial legislation.
I would suggest
that apart from the political difficulty of overcoming opposition from the
vested interests concerned, one ret.son for the lack of effective action
is the absence of suitable machinery.
The Board of Trade and Industry,
in addition to suggesting that wage agreements and recommendations be sub­
mitted to it for report, recommended that experts in scientific management
be appointed to Industrial research organisation^, the Board of.Trade and
Industries and the Department of Labour and that as soon as they had stu­
died prevailing conditions, the Labour Department should initiate discus­
sions in the various Industrial Councils with the object of reviewing the
classification of labour in order to increase the scope of operative labou
and to obtain a more efficient labour and industrial organisation in the
1
Union.
I am not fond of guessing but I am prepared to hazard a guess that
this method is not likely to be effective.
The Industrial Councils have
already had twelve years and more to reviews categories of work and I do
not think the presence of independent experts is likely to have any sig­
nificant effect on the baigaining strength or the entrenched position of
an Industrial Council, the employer members of whom may well continue in
Professor Hicks words
I would suggest that some improvement in the situation might be secured
if we studied Australian methods and experience and in particular the evolution and practice of the Commonwealth Court of Conciliation and Ar­
bitration.
I am not suggesting that the Australian system is ideal or
that we should adopt it full5r but I do think our system could be improved
by grafting onto it some of the best features of the Australian sj^stem
1. Board of Trade and Industries, op.cit, p. 139,
and,
and, because of the growing body of experience and knowledge, our p::-ao«
bice might avoid the mistakes which have admittedly been made in Australia.
Under' the Australian constitution the Federal Parliament has power to
make laws in industrial matters only for the peace, order and good govern­
ment of the Commonwealth with respect to "conciliation and arbitration
for the prevention and settlement of industrial disputes extending be*
yond the limits of any one State." The Federal power is tl.il3 severely
limited and state systems of industrial conciliation and wage regulation
exist alongside the Federal.
Nevertheless the Federal Court has become
the most influential authority as a result, in the first place, of the
growth of national trade unions, and the consequent extension of disputes
beyond one state.
Secondly, as a result of the acceptance by employers
n
of Federal rather than state regulation, and thirdly, the influence the
standards of the Federal Court have had on state authorities.
In 1934
85 per cent, of members of Australian trade unions were subject to Fede­
ral jurisdiction and it is estimated that awards of the Federal Court
directly extended to one-third of all employees in Australia.
Some em­
ployees, for instance many agricultural workers, are of course not mem­
bers of trade unions.
The Court thus lias a very important role in deter­
mining the level of money wages and conditions of work in Australian in­
dustry.
I cannot possibly even outline the whole Australian system which is ex­
tremely complicated as a result of the co-existence of state Federal
authorities and more than fortj” years legal decisions os to their relative
spheres of jurisdiction.
But first let mo disclaim any pretension to
pose as an authority on the Australian system.
My knowledge of it is con­
fined to the very few books which I have been able to procure locally.
Luckily there are some excellent books on Australian experience.
On the
particular aspect which I am here discussing three books by Mr. Foenander,
Towards Industrial peace in Australia, (1957), Solving Labour Problems in
Australia (1941) and Wartime Labour Development in Australia,
provided me with just the material for which I was looking*
Mr. Foenander
is both an economist and a barrister and nearly the whole of my descrip­
tion of the Federal Court is based on his books, although I have checked
my impressions by reference to other' works.
I came to study Australian
legislation and practice because, I have long been troubled by the powers
which our Industrial Councils in fact exercise, and the lack of any ef-
f
effectivo machinery to ensure- tiv-.t their
emulation of wares, conditions
of work and other matters is in the interests of the whole community.
Other countries are facing similar problems and from the books and reports
on industrial legislation which I have seen only Australia, and perhaps
New Zealand ( I an afraid I have not been able to find any adequate liter­
ature on New Zealand) have any adequate machinery through which the pro­
blems can even be tackled.
Here I should like to repeat that I am not holding up Austraian prac­
tice as an ideal which we should follow slavishly, nevertheless their
Commonwealth Court for Conciliation and Arbitration has some very desir­
able features, which could, I think be adopted to provide the reviewing
and co-ordinating machinery wo need.
In South Africa in 1924, following the disastrous 1922 strike on the
Rand, Parliament in the desire to avoid strikes and provide machinery for
industrial conciliation and arbitration gave very wide powers to Indus­
trial Councils for determining wages and conditions of work in industry,
subject to Ministerial approval.
In practice this approval has boon con­
fined largely to the legal aspects of agreements*
greements now covor some employees*
Industrial Council a~
The Industrial Council system is
frequently eulogised as having achieved a laye measure of industrial peace
through permitting "home rule in industry".
Industry, however, is not a
realm apart from the community in which it is carried on, and which is de­
pendent on it both for emplojT.ient and as the consumers of its -products.
I would suggest that in its desire to avoid industrial strife and misled
by the slogan "home rule in industry" Parliament has ceded powers it ne­
ver intended to delegate.
It has unwittingly surrendered powers of in­
direct taxation and so abandoned the elementary democratio principle of
"no taxation without representation".
Moreover it has enoorraged the for­
mation of groups of producers (employers and employees) without effective
safeguards regarding the use made of the powers delegated.
During the last twenty years the growth of monopolistic groups has de­
monstrated the danger of such shortsightedness.
The difficulty is to re­
gain democratic control of these isolated organs of government which are
exercising powers which if used at all should bo in the hands of the State
It has been suggested that wage agreements are v. private matter similar to
a marriage contract and the parties should be allowed to solve their
difficulties/
1. I
e.
difficultios in private,
I think this is a false analogy,
VThere there is
a freely competitive market, it is arguable that agreements of individual
persons regarding the wages for which they are prepared to work, or which
they are prepared to pay, ar private natters.
And I might add, in'paren­
thesis, that where competition is effective it has yet to be proved that
the competitive solution does not give the best result in the sense that
it maximises she product of labour, wages and the national income.
B ut
where collective bargaining prevails and the results of this collective
bargaining are enforced on the community as statutory minimum standards
for the industries concerned, it cannot bo argued that bargains over wage
rates and conditions of work are private matters that concern only emplo­
yees and employers in the industry controlled by the Industrial Council,
It seems so me essential that the interests of the whole community, which
includes other producers and all consumers, whould be considered.
Under the Australian system an attempt is made to consider the effects
of industrial awards on the community.
The Commonwealth Court makes a-
wards and registers what are known as consent agreements, the latter are
somewhat like our Industrial Council agreements.
In more recent years,
in making awards and orders the Court as its Chief Judge has stated re­
peatedly, has regard to the economic conditions and possibilities of in-*
1
dustry and the country. The Court may make mistakes in interpreting eco­
nomic conditions and in anticipating the effects of its awards but at
least it considers them from the point of view of the community and not
only from the point of view of the
ival claimants.
The Court has been
criticised for establishing artificially high wage standards.
The Tariff
Board has protested that "There seemed to have grown up an unofficial col­
lusive understanding enabling employers end employees to exploit the tar­
iff and she principle of industrial regulation at the expense of the com—
mu nits'.
Unions supported the employers in their applications to the Tar­
iff B oard for assistance against outside competition.
Should the Cus­
toms duty be enhanced as sought, the Union would appear before the
Court
and cite tho new "prosperity" of the industry as the ground for a favour2
able variation of the award". It warned the community that this process
5
could only load to the paralysis of industry. This shows us that the pro­
vision/
1. Foenandor, O.de H. Towards Industrial Peace in Australia.
Quoted Foenander op.cit. p.
s.
provision of the necessary machinery will not solve all our difficulties.
Luch. deponc.s on tb.e abilit
or tAe Court to evaluate and reconcile the con
flicting claims of employers and employees, and its integrity in resist­
ing the claims of either party which it does net consider to he justified.
All I am suggesting is that it would be an improvement on our existing sys
tem to have industrial council agreements subjected to some expert and im­
partial scrutiny before they are made statutory and binding on all emplo­
yers and employees.
Y/e require a forum before which bodies such as the
Board of Trade and. Industries could make their views known.
Further, the
creation of some such tribunal would tend to remove wage disputes from the
political arena and provide a permanent and expert body to act as arbitra­
tors in disputes.
Ao present m
the Union (in case of disputes) arbitrators ai’e appointed
ad hoc for each particular dispute, and except whore the Wage Board is
called in as arbitrator, they have no standards from which to work.
They
have no specific injunction or obligation to consider the effects on the
community of any award they may make.
Apart from any principles or know­
ledge which tho arbitrators happen to have, it is largely a case of judg­
ing the bargaining strength of parties and getting them to come to terms.
A permanent tribunal does accumulate kno./lodge of industrial conditions
and if it is impartial the public can rely on it for solving of industrial
conflicts in a manner which takes into account the effect on the public.
In 1928 in Australia the Commonwealth Arbitration and Conciliation Act
was amended to provide specifically that before making an award or certi­
fying to any agreement the Court should consider the probable economic
effect of such an award or any agreement upon tho industry or industries
concerned and the community in general.
Although the chief judge declared
this clause unnecessary, as the Court always had taken the effects of its
awards into consideration, and although it was repealed in 1930 by tho
Labour Government, I think some such provision useful if only because it
1
calls attention to the duty of the Court in this respect.
An Industrial tribunal might also provide a way out of the present im­
passe regarding the representation of Africans in industrial conciliation
machinery. At present the situation is most unsatisfactory. Under the
1.
Chief Judge:
"No Judge, before the insertion of Industrial/
Clause 25D ever suggested that economic effects were to be ignored, or
that it was not his duty to pay regard to them but apparently the section
was introduced so as to make clear to all concerned in proceedings that
which was already clear to competent Judges of an industrial Court."
Quoted, Poenander. op.cit. p. 245 footnote 2.
inuusurial conciliation Act, as you will know, African non subjcct to the
Masters and S a v a n t s Acts, the H..tivc Labour Regulation Act and the Native
(Urban Areas) Acts Cc n only be represented on industrial councils by one
cepiosencati'vo, without a vote, appointed to represent then by the Department of Labour.
Tho Industrial Conciliation (Natives) bill put forward
onis ''b3i' to provide conciliation machinery for Africans is quite unac­
ceptable to them and to many others for reasons into which I need not enter
here, and I understand that this Bill has been withdrawn in its present
form and is oo be submitted to the Natives Representative Council when elected and oho Commission on Industrial Legislation which is to be appoin­
ted.
If there were an industrial Court African trade unions, other ropre-
senCc.tives of Africans, or amy other group, whether organised or unorgani­
sed could appear before it end make representations.
Moreover the fact
that agreements would be scrutinised from tho point of view of their ef­
fects on all employees in the industry would force industrial councils,
perhaps to a greater extent than at present, to take account of the inter­
ests of all sections.
I do not want to suggest that industrial councils
are necessarily ill-intentioned.
No doubt within their lights they fulfil
thej.r functions admiraoly and individual members may be worthy citizens,
Tne fact remains o n . t h e y form a bilateral monopoly of interested parties.
One couxd noo expect a.n Industrial Tribunal to work miracles but it
might introduce some harmony into the present controlled, and yet chaotic,
labour market.
The Tribunal, if it was aware of economic realities, could
exercise a gently suasion in the direction of loosening the stranglehold
oi regulations, at present supported by statute, which retard the re—orga­
nisation ox labour to suit modern productive methods a :?<2 so restrict pro­
duction and the growth of national wealth.
Tho Buatralian Court, for inc.
stance, nas in general supported piece-work and on occasion has approved a
1
reducoion- in the maximum hours of work on condition pieco-work was permit­
ted.
Again oho Federal Court was sufficiently strong and alive to economic
realities oo decree and successfully enforce a ten per cent, cut in real
r/agea in 1930 when Australia was badly hit by economic depression*
Its
action was one of tho first steps in the reconstruction which enabled Aus­
tralia to we a one:, oppression
side of employers.
But do not think the Court is always on the
Par from it.
The Court in its operation has not pleas­
ed everyone. No court could bo expected to do that.
1. Foenander op.cit. p. 91
But in the course of
its/
I
res work it has accuv.3ul-.tcc '.7is dor.] rue. exr^.r ience and it has cohie to be ac­
cepted increasingly as a fccibunal which attempts a rer.ednod settlement.
One question wnich arises is what happens to the right to strike under
such a sys'3em.
Under the Australian system strikes of employees subject
to the Federal Court are illegal.
is essential.
However, I do not think this provision
In practice experience all over the world has shown that
strikes do take place oven who: e they are illegal and this being so, I
think it is undesirable to outlaw strikes because laws which are not en­
forceable bring tne whole system of justice into disrepute.
Injurious as strike are they are not the worst evil.
In the past the
right of employees to -combine and withhold their labour has been sternly
contested and «xie legalisation of that right has been hailed as a great de­
mocratic advance.
.oi•‘.owing
Now legislatures are attempting to withdraw those rights
le'klirn statutory regulation of wages and state guarantee of
minimum standards«
In South Axrxca broach of contract is already a xoenal offence for largo
secu^ons of the population under the Masters and servants Acts, the Native
Labour Regulation Act, the Native (Urban Areas) Act and the Native Service
Contract Act, which in practice makes strikes illegal,
in terms of the
Industrial Conciliation Act workers in certain essential service are not
permitted to strike.
I am not concerned hero with whether this is desirable
or not, although I should like to hear employers opinions on the useful­
ness oi °hese provisions.
But while we deny the right to strike to large
sections of the population it ill becomes us to be touchy about withdrawing it from the rest.
But 1 do not thirtlc it is even necessary to do this.
It is, I think, Useful to insist that certain steps be taken before a
strike is proclaimed,
This acts as a protection to employees, as well as
employers, against unscrupulous or ill-informed agitators wfc) might mis­
lead employees into hasty action not really intheir interest.
I think
.
provided there is machinery which prevents hasty ill-considered action,
an occasional strike is better than time continued exploitation of the com­
munity bhrougn a rising spiral of wages, costs and prices.
In couth Africa, Wage Board Determinations are binding on employers but
not on employees, nevertheless one does not find that there are many strik­
es against them.
The recent strike in the baking industry in the Cape was
exceptional in this regard and there is no doubt that the fact that the
Waco/
»'
1
oJ*
JLh
l''0
Ww<<ig;(jgoard aaa ’/ado an i nc e.s'uigat ion into the industry contributed to the
peaceful settlement and prevented the gross mis-representation of the is­
sues and consequent ill-foolin'? and even violence which frequently accom­
pany strikes.
■Many e m p l o y s and some employees..are, I understand, favourably dispos­
ed to th& ;aveation.pf -a permanent Industrial: tribunal.
The- problem will a I
be to persuade certain sections that'-what is. in the lo:ng run interest of
the. .whole community £s a!so:in their interest.
Powers having been dele­ w
gated, there may b;e opposition to their, withdrawal -or the supervision of
ohe manner in '•(hi:ch they are exercised.
But where Parliament gives' statu­
tory sanction to the decisions of statutory bodies suili as-: industrial
councils and -he Courts enforce these decisions on all employers and Jrn*»
ploy see, it is not only Parliamentfs rig-Sat but its duty to ensure that the
regulations made are not opposed to the welfare and progress of the com­
munity.
I suggest that an Industrial tribunal on the lines of the Austra­
lian Commonwealth Court of Conciliation and Arbitration should be created
and should have power to supervise and review Industrial council agreements
to ensure that they do not conflict with the public welfare*
SHEILA T. VAN DER HORST.
,!\y
q
t
■
V
H0TS3 u i
.
m a rxa g B o f
^ r - ■mjamz.
muranmj.
cmawicm,
Purpose of Institute*
reason for its interest in industrial legislation.
X.
Ill-foellng among ftton-iuropoanu caused by discrl. <lnatioa*
2*
Poverty and frustration arising from closing of opportunities to
^Io d — mropeana*
Broadly the purpose of industrial legislation is to protect
employees by laying down minimum standards concerning conditions of
eayloynwnt, frequently nowadays including hours of work and wage-rates,
and by making provision, in addition to those available under the common
law, for condensation in case of accident, ill-health and/frequently
to-day,in case of unemployment*
Thaoo latter might be teraad social
eccurity provisions of industrial legislation*
Industrial legislation especially as it affects eon-Europeans raay be
discussed under tiio headings t
1, social Security Provisions*
2* draining and adriission in industry*
3* Collective Bargaining k Regulation of \ ages and Conditions of Work*
h. Industrial Legislation & Agricultural Labour*
v
5* statutory Restriction of Bight to strike*
.
i/orkmon1a Compensation;
Silicosis Caroonaatlonj
Unemployment insurance (Unemployment Insurance Act, Registration for
Tiaploymont Act)
Parts of Factories Act;
Parts of IJative Labour P.ogulation Act*
In nearly all these measures there Is discrimination In the treatment
of Kurppeans and Moo-L'uropeans and also In many instances discrimination
.
--■Zu/u-jL*v*'.
in the treatment of different racial groups.
Discrimination of two types; statutory and administrative*
Statutory discrimination: different rates of payment for different
racial groups*
Lump sum payments instead of pensions*
Continued Page 2/..,
_
! .___ _
Extent to which owah discrimination is justified.
Adninistratlfe tiiscrininaion.
T’allure to provide labour
1L
exchanges for Africans end usually for other pon- Europeans, administration
of unemployment insure nee*
2. Mmlnlnn and
<nt.» m d i m t w .
Appren ticoohlp aystota#
Statutory discriiiiination not allowed*
In practice oysters diacrininates against fton—Europeans •
Difficulty of hon-Juropeana in getting apprenticed, lack of facilities
for training them in m n y towns,
nuabor of qon- ;uropoon apprentices.
Differences in practice between differont towns.
In addition to its discriminatory effects oystaa obsolete - Restriots
production and growth of national income In many instances.
(It would be interesting to Bee to what extent apprenticeship committees
and industrial councils are composed of the same individuals).
social effect of restrictive practices e.g. building industry tshortage of housing.
Ho need to recapitulate «£e. social dangers arising
from crowded conditions anti shanty towns, disease, ill-feeling, crime*
Experience of C.O.2.T. systen lias shown
3 . n«ni— ti—
« « « m i »
A. position of jfron-r.uropoan in Industrial council Systen in different
parts of the Union.
position of African under Industrial Conciliation Act,
1957.
1930,
Adralnistmtive action taken by labour Jepartnent.
Dissatisfaction of Africans (and other non-Europeans?) with leak of
representation•
Industrial Conciliation (natives) bill.
Objections to bill in its
present forta.
Weakness of industrial Council system frees point of view of the
ccmunity*
(Extent to which industrial Council system perpetuates Colour-bar in
industry).
Possible improvements in existing system.
Continued Page 3/*» **<
Heed for an Industrial Court*
B* r3ie flage Board and non-i^uropeans.
C* segregation c*g* regarding cloak room facilities,
ining & rest roans,
in terms of P.agulationfi under Factories Act tends to raise costs and
maintain status quo *
%• in&MteiMl
and Agricultural labour. luclodlag ec^oasd
labour (sugar)9 fruit packers etc#
5. iitatutojaL iftg »r*c.tlon of
to strike.
Industrial Conciliation Act*
Piasters and Ciervants Lava.
Native labour Regulation Act*
Urban Areas (Natives) Act*
Native ;;orvice Contract Act*
****?********«***%*********
SUMMARY OF INSTITUTE’S PROPOSED EVIDENCE TO THE INDUSTRIAL
LEGISLATION COMMISSION LAID BEFORE COUNCIL, JANUARY, 1949,
I have be n asked to outline the main points of the
evidence which it is proposed that the Institute present to the
Industrial Legislation Commission which was appointed in Ootober
and which will be taking evidence shortly.
The terms of reference oover the working and admini­
stration of the Industrial Conciliation Act, the Wage Act, the
Shops and Offioea Act and the Factories Aotj
the desirability of more control Employers associations and
trade unions^
the desirability of defining the funotions of trade unions and
preventing them from e.g. engaging "in propogating the dootrine
of a particular economic system."
as separate items the terras of reference cover
the desirability...of bavin,,p separate trade
and employers
organisations for European^, Coloured and Asiatics respectively;
the functioning of Native trade unions and the desirability of
reguLating them and determining the roll they should play in
industrial legislation}and finally tho setting up of industrial
conciliation maohinery for Natives.
In addition to the terms of reference the Commission
has issued a questionnaire which shows that, at least the drafter
of the questionnaire, is alive to 64me of the possible consequenoes
of statutory fixation of wages.rates.
There is not time to go through the whole questionnaire
and discuss the Institute's evidence point by point.
Your Executive spent two and a half hours on that
job on Monday night and prior to tfaht a sub-committee consisting
of Mr. Holteno, Dr. Simons, Hr. Horwitz and myself met on several
oocasions to oonsider the lines the evidence should take.
The Director and Mr. Kheinallt Jones are also members
of the sub-committee but unfortunately could not be present at
the discussions as they were not in Cape Town.
The best I can do In the time available is to outline
the lines we consider the evidence should take.
INDUSTRIAL OONOTT.IA.TTON APT.
With regard to the Industrial Conciliation Act we
have pointed out that the present industrial council system does
not take into sufficient account the interests of non-Europeai»
and the general public.
That in many oases it is possible for Industrial
Counoils to raise wage rates at the expense of the whole community
and for the employers to pass the cost on to the public.
The
worst sufferers under this policy are the poorer seotions of the
community who have to pay higher prioes for the goods they buy
but get no seotional benefit from the higher money wages established
by the Industrial Counoil.
To iraprove the situation we have proposed that an
Industrial Tribunal be created/au^\at this tribunal should exercise
some of the functions at present exercised by the Vinister of
Labour with regard to the supervision of Industrial Council and
*
Wage Board Agreements.
The Tribunal should have clearly defined principles
laid down to guide it.
These should inolude the effect of
Industrial Council Agreements on prices and employment,
With reaard to the ’"afe-e Act we suggest the ohief
disadvantage has been delay in particular enquiries and suggest
that if an Industrial Tribunal be established with definite guiding
principles it might be possible for several wage boards to operate
subordinate to the central tribunal,
■le D.rQPQ9e that tils Institute .should not tender evidence
on the Jjfa-Q-Qg ..and Offices or Factories Acts 08 as not to diversify
our evidence too much and because we do not regard their operation
in the past as having bee*$articularly significant from the point
of view of raoe relations.
There are points such as the inoreased cost due to the
segregation provisions of the factories hot but we do not see much
point/........
point in opposing them at this stage,
although it might be
• worthwhile to point out the restrictive effeot in production
of attempts to completely separate workers in their work as well
as in oloak room facilities etc,
Thft,°.gn33Aeio,r\l.B,
rf£r..gng<?lficallg
to .the desirability of^c^roxdiirailn?: wagea ..and.o.thejL_Q.Qnditlana
Qt 9fflBlQ.YlSS.flt.
On th#> question your Executive had a lengthy discussion.
On the one hand some of us felt that co-ordination
oould not be considered without taking into consideration rural
and mine wages,
We felt that pushing up the money wages of
certain groups in the towns might re-act unfavourably on the
masses who are not included in wage regulation by raising prices
to them.
Further, that It might increase townward migration
and lead to further measures of arbitrary exclusion from towns
and the hardships resulting.
That a better way to tackle the situ­
ation ^as to raise rural wages and increase the efficiency of rural
labour and production and so attack the evil at the source and
secure co-ordination by harnessing economic forces.
Others felt that the Institute in the past had advocated
the extension of wage regulation and that the benefit it gave
to
the seotions included outweighed the loss to those excluded.
(Your Chairman may amplify if he considers 1 have misrepresented
points of view).
It was pointed out that beside the regulation upwards
of money wage rates by the Wage Board and by the Industrial Councils,
there existed combinations to keep wages down.
The roost outstanding combinations were those of the
Witwatersrand gold and coal mining companies and of farmers in
agricultural associations.
Finally, after
prolonged disoussion, I was asked to
draft evidence calling attention to this fact of combinations to
keep wages down and to suggest that the Industrial Tribunal we
have/,.....
Collection Number: AD1715
SOUTH AFRICAN INSTITUTE OF RACE RELATIONS (SAIRR), 1892-1974
PUBLISHER:
Collection Funder:- Atlantic Philanthropies Foundation
Publisher:- Historical Papers Research Archive
Location:- Johannesburg
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