South Africa’s wage-setting machinery were historically used to protect white workers. Today, they protect the wages of all employed ‘insiders’ – but in a context where little, if any, support is provided to unemployed ‘outsiders’. This creates social problems pertaining to poverty and alienation, but has also given rise to new challenges to the legitimacy of the bargaining council system itself. For example, small employers in the clothing industry in Newcastle (KwaZulu-Natal) are contesting the extension of collective agreements to them, and many firms and their workers are shifting to co-operative structures to avoid the labour legislation.
These social and political aspects of labour-market institutions and unemployment are neglected areas of research. This focus area of the Sustainable Societies initiative seeks to address this lacuna – notably by researching different understandings of the role of labour legislation in shaping the growth path, the emerging contestation of aspects of the legislation, and the social contours and consequences of unemployment. Our objective is to combine quantitative and qualitative research methods.
The rapidly changing position of commercial agriculture in the new South Africa is an exciting challenge, as minimum wage legislation both helped the rural poor and endangered their livelihoods. Beatrice used her farm background to survey local wine farmers and compile a unique data to investigate the likely impacts on employment. Familiarity with the social and economic reality and conditions of staff and their families on fruit and wine farms is an essential part of this work and the survey and interview data gave her a detailed knowledge of their problems. During a sabbatical at Bournemouth University in 2016 modern estimation techniques were applied to this and other wine industry datasets to update South Africa very small set of farm wage elasticities.