Industrial Relations in Africa
MGT 4330
South Africa-Facts
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Population: 51 Million
GDP: $390 Billion
GDP per capita: $7,635
Ethnic groups:
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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.
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Industrial relations in South Africa
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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.
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Industrial relations in South Africa
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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 2004. However, the
number of registered employees covered by
BCs more than doubled over the same
period.
Industrial relations in South Africa
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 50 000
members to qualify for membership of the
PSCBC.
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Industrial relations in South Africa
Industrial relations in South Africa
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Private sector industrial councils
decentralized from 1978 to 1992. 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 2004. 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 2.2million workers grouped into 20 affiliated trade
unions.
 The Federation of Unions of South Africa (Fedusa) is
the country’s second-largest federation, claiming 375
000 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 400 000.
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Industrial relations in South Africa
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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