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Trade Unions In An Emerging Economy: The Case Of South Africa

Author

Listed:
  • Haroon Bhorat
  • Karmen Naidoo
  • Derek Yu

    (Development Policy Research Unit
    Director and Professor)

Abstract
This paper provides a historical overview of the South African trade union movement, followed by a brief discussion of the labour market legislation and institutions formed since 1994. Thereafter, a detailed evaluation of the impact of trade unions, legislation, and institutions on labour market outcomes in South Africa is provided, and it is found that despite a long history, trade union membership levels, their impact on average wage levels, and their pursuit of strike action, has resulted in relatively benign economic impacts within country and relative to other economies around the world. The political-economy effects shaping the country’s employment relations are then discussed.

Suggested Citation

  • Haroon Bhorat & Karmen Naidoo & Derek Yu, 2014. "Trade Unions In An Emerging Economy: The Case Of South Africa," Working Papers 201402, University of Cape Town, Development Policy Research Unit.
    • Handle: RePEc:ctw:wpaper:201402
    as

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    References listed on IDEAS

    as
    1. World Bank & International Finance Corporation, 2006. "Doing Business in 2006 : Creating Jobs," World Bank Publications - Books, The World Bank Group, number 7421.
    2. Card, David & Krueger, Alan B, 1994. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania," American Economic Review, American Economic Association, vol. 84(4), pages 772-793, September.
    3. Murray, Justin & van Walbeek, Corne, 2007. "Impact of the Sectoral Determination for Farm Workers on the South African Sugar Industry: Case Study of the KwaZulu-Natal North and South Coasts," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 46(1), pages 1-19, March.
    4. Haroon Bhorat & Elne Jacobs & Carlene van der Westhuizen, 2013. "Do Industrial Disputes Reduce Employment? Evidence from South Africa," Working Papers 13161, University of Cape Town, Development Policy Research Unit.
    5. Haroon Bhorat & Ravi Kanbur & Natasha Mayet, 2013. "The impact of sectoral minimum wage laws on employment, wages, and hours of work in South Africa," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-27, December.
    6. World Bank, 2013. "World Development Report 2014 [Informe sobre el desarrollo mundial 2014, Riesgo y oportunidad : la administración del riesgo como instrumento de desarrollo - Panorama general]," World Bank Publications - Books, The World Bank Group, number 16092.
    7. Halton Cheadle, 2006. "Regulated Flexibility and Small Business: Revisiting the LRA and the BCEA," Working Papers 06109, University of Cape Town, Development Policy Research Unit.
    8. Kristin F. Butcher & Cecilia Elena Rouse, 2001. "Wage Effects of Unions and Industrial Councils in South Africa," ILR Review, Cornell University, ILR School, vol. 54(2), pages 349-374, January.
    9. Conradie, Beatrice, 2005. "Wages and wage elasticities for wine and table grapes in South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(1), pages 1-19, March.
    10. Paula Armstrong & Janca Steenkamp, 2008. "South African Trade Unions: an Overview for 1995 to 2005," Working Papers 10/2008, Stellenbosch University, Department of Economics.
    11. Servaas van der Berg & Haroon Bhorat, 1999. "The Present as a Legacy of the Past: The Labour Market, Inequality and Poverty in South Africa," Working Papers 99029, University of Cape Town, Development Policy Research Unit.
    12. Richard B. Freeman, 2009. "Labor Regulations, Unions, and Social Protection in Developing Countries: Market distortions or Efficient Institutions?," NBER Working Papers 14789, National Bureau of Economic Research, Inc.
    13. Haroon Bhorat & Sumayya Goga & Carlene Van Der Westhuizen, 2012. "Institutional Wage Effects: Revisiting Union And Bargaining Council Wage Premia In South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 80(3), pages 400-414, September.
    14. Haroon Bhorat & Carlene van der Westhuizen & Sumayya Goga, 2009. "Analysing Wage Formation in the South African Labour Market: The Role of Bargaining Councils," Working Papers 09135, University of Cape Town, Development Policy Research Unit.
    15. Haroon Bhorat & Ravi Kanbur & Benjamin Stanwix, 2014. "Estimating the Impact of Minimum Wages on Employment, Wages, and Non-Wage Benefits: The Case of Agriculture in South Africa," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(5), pages 1402-1419.
    16. Lawrence, Sophia. & Ishikawa, Junko., 2005. "Trade union membership and collective bargaining coverage : statistical concepts, methods and findings," ILO Working Papers 994858633402676, International Labour Organization.
    17. repec:ilo:ilowps:485863 is not listed on IDEAS
    18. Haroon Bhorat & Carlene van der Westhuizen, 2013. "Non-monetary dimensions of well-being in South Africa, 1993--2004: A post-apartheid dividend?," Development Southern Africa, Taylor & Francis Journals, vol. 30(3), pages 295-314, September.
    19. Haroon Bhorat & Kalie Pauw & Liberty Mncube, 2009. "Understanding the Efficiency and Effectiveness of the Dispute Resolution System in South Africa:An Analysis of CCMA Data," Working Papers 09137, University of Cape Town, Development Policy Research Unit.
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    Cited by:

    1. Sue Ledwith & Janet Munakamwe, 2015. "Gender, union leadership and collective bargaining: Brazil and South Africa," The Economic and Labour Relations Review, , vol. 26(3), pages 411-429, September.
    2. Haroon Bhorat & Safia Khan, 2018. "Structural Change and Patterns of Inequality in the South African Labour Market," Working Papers 201801, University of Cape Town, Development Policy Research Unit.
    3. Dieter von Fintel, 2017. "Institutional wage-setting, labour demand and labour supply: Causal estimates from a South African pseudo-panel," Development Southern Africa, Taylor & Francis Journals, vol. 34(1), pages 1-16, January.
    4. Mohimont, Jolan, 2022. "Welfare effects of business cycles and monetary policies in a small open emerging economy," Journal of Economic Dynamics and Control, Elsevier, vol. 136(C).

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    More about this item

    Keywords

    Trade unions; labour market efficiency; wage premium; strikes; political economy; South Africa;
    All these keywords.

    JEL classification:

    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation

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