South Africa needs to tackle the “woeful and complete lack of economic literacy” among its working population, including mineworkers, says veteran labour economist Andrew Levy.
“Until workers understand economic reality, they are going to continue making unrealistic wage demands because they believe it’s attainable,” he told delegates at the twenty-sixth Annual Labour Law Conference, which ran from July 30 to August 1 at the Sandton Convention Centre, in Johannesburg.
At the conference, he stated that the trade union movement had helped create a culture of distrust of mine management by mineworkers, which was not conducive to a sustainable working environment and, compounded with economic illiteracy, would continue to result in strikes.
“South Africa has very little time left to maintain a mining industry with any chance of sustaining jobs and investment. This, in turn, will reflect on South Africa’s status as one of the Brics (Brazil, Russia, India, China and South Africa) nations and its status as a nation, which has favoured inward investment. This will affect the well- being of every South African,” said Levy, who described the situation as a ‘last chance saloon’ for the country.
Further, he told delegates that, while South Africa had a positive reputation among global investment houses and bankers, compared with alternative mining destinations – owing to adequate infrastructure and established regulations – investors were still weary of South Africa because of instability in the labour sector.
Levy warned stakeholders that, without political will and “reasonably informed views and opinions” on what needed to be done to prevent further labour unrest in South Africa, the mining industry was headed for a downfall similar to that of Britain’s coal industry.
He explained that England, at the start of the watershed UK Miners Strike in 1984, was a major coal exporter, with 35 collieries countrywide. However, the unprotected strike, which thereafter defined the country’s industrial relations, resulted in only two collieries being left when the strike ended with the miners’ defeat in 1985.
Levy said South Africa was on the brink of a similar watershed moment, which needed to be recognised by government, unionists and mining companies.
Levy further reported that South African wage earners had enjoyed steadily increasing standards of living in recent years, with mineworkers topping the log among labourers.
He added, however, that labour costs had also been on the increase, which stressed the importance of finding ways to sustain wage increases through more efficient production.
“Productivity does not mean job loss or that gains are not shared. You make society richer, bring benefits to everyone and increase welfare by focusing on skills and increasing productivity,” Levy concluded.