Wage Effects of Union and Industrial Councils in South Africa PDF Download

Author:
Publisher: World Bank Publications
ISBN:
Category :
Languages : en
Pages : 56

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Author: Kristin F. Butcher
Publisher:
ISBN:
Category : Labor unions
Languages : en
Pages : 30

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Author: Kristin F. Butcher
Publisher:
ISBN:
Category :
Languages : en
Pages : 56

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Book Description
Do union workers earn higher wages than nonunion workers in South Africa? (Yes, but less so than previous estimates would suggest.) And do industrial council agreements extend these premia to nonunion workers? (On the surface, yes, but the effects are too small to be the primary reason for South Africa's vast unemployment.)In South Africa unions, which played a crucial role in the country's transition from apartheid, are coming under fire. Some argue that a high union wage premium and the industrial council system are important causes of inflexibility in South Africa's labor market.Butcher and Rouse analyze unions' direct effect on workers' wages (including the time-honored question about whether the union wage gap is real or reflects the fact that workers who are members of unions differ from those who are not) and ask whether there is evidence that industrial council agreements force affected employers to pay union wages for nonunion workers.They estimate that among Africans union members earn about 20 percent more than nonmembers, while among whites union workers earn 10 percent more than nonunion workers.They find that African nonunion workers who are covered by industrial council agreements receive a premium of 6 to 10 percent; the premium is positive but not statistically significant for whites.In addition, the union gap is smaller inside the industrial council system than outside the system for Africans, implying that the total union premium for union members covered by an industrial council agreement is similar to the union premium outside the industrial council system.Among Africans, the industrial council and union wage gaps are greatest among low-wage workers.To increase employment, policies in South Africa should focus on increasing competition among employers within sectors, rather than increasing competition among workers by trying to reduce union power.This paper - a product of Poverty and Human Resources, Development Research Group - is part of a larger effort in the group to understand the impact of labor market policies and institutions on economic performance. The study was funded by the Bank's Research Support Budget under the research project quot;The Impact of Labor Market Policies and Institutions on Economic Performancequot; (RPO 680-96). The authors may be contacted at [email protected] or [email protected].

Author: Kristin F. Butcher
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Using data for 1995, the authors estimate union wage premia of about 20% for African workers and 10% for white workers - roughly similar to estimates reported for other countries, including the United States. African nonunion workers who were covered by industrial council agreements received a premium of 6-10%; the premium was positive but not statistically significant for whites. Although the union/nonunion wage gap was smaller inside the industrial council system than outside it for Africans, the total union premium for union members covered by an industrial council agreement was similar to the union premium outside the industrial council system. Among Africans, the industrial council and union wage gaps were largest among low-wage workers. These findings, the authors conclude, do not support the common claim that a high union wage premium and the industrial council system are important causes of inflexibility in the South African labor market.

Author: Toke Aidt
Publisher: Directions in Development
ISBN:
Category : Business & Economics
Languages : en
Pages : 188

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This book offers an extensive survey and synthesis of the economic literature on trade unions and collective bargaining and their impact on micro-and macro-economic outcomes. The authors demonstrate the effects of collective bargaining in different country settings and time periods. A comprehensive reference, this book will be of interest to students and scholars of labor policy as well as to policy makers and anyone with an interest in the economic consequences of unionism.

Author: Richard B. Freeman
Publisher: Basic Books
ISBN: 9780465091324
Category : Political Science
Languages : en
Pages : 308

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Study of the impact of trade unions on working conditions and labour relations in the USA - based on a comparison of unionized workers and nonunionized workers, examines wage determination, fringe benefits, wage differentials, employment security, labour productivity, etc.; discusses trade union power and incidence of corruption among trade union officers; notes declining rate of trade unionization in the private sector. Graphs and references.

Author: Rahul Anand
Publisher: International Monetary Fund
ISBN: 1475533675
Category : Business & Economics
Languages : en
Pages : 37

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Book Description
This paper analyzes the determinants of high unemployment in South Africa by studying labor market dynamics using individual level panel data from the Quarterly Labor Force Survey. While prior work experience and gender are found to be important determinants of the job-finding rate, education attainment and race are important determinants of the job-exit rate. Using stock-flow equations, counterfactual exercises are conducted to quantify the role of these different transition rates on unemployment. The paper also explores the contribution of unemployment towards inequality. Reducing unemployment is found to be important for reducing inequality – estimates suggest that a 10 percentage point reduction in unemployment lowers the Gini coefficient by 3 percent. Achieving a similar reduction solely through transfers would require a 40 percent increase in government transfers.

Author: Susan Hayter
Publisher:
ISBN: 9789221316091
Category : Collective labor agreements
Languages : en
Pages : 0

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Collective bargaining involves a process of negotiation between one or more unions and an employer or employers' organisation(s). The outcome is a collective agreement that defines terms of employment - typically wages, working hours and in-work benefits. The agreement affords labour protection: minimum wages, regular earnings; limits on working hours and predictable work schedules; safe working environments; parental leave and sick leave; and a fair share in the benefits of increased productivity. The International Labour Organization (ILO) Collective Agreements Recommendation 1951 (No. 91) considers, where appropriate and having regard to national practice, that measures should be taken to extend the application of all or some provisions of a collective agreement to all employers and workers included wthin the domain of the agreement. The extension of a collective agreement generalises the terms and conditions of employment, agreed between organised firms and workers, represented through their association(s) and union(s), to the non-organised firms within a sector, occupation or territory. The collection of chapters in this volume are about the extension of collective agreements as an act of public policy.

Author: Nicolas Pons-Vignon
Publisher: International Labor Office
ISBN:
Category : Business & Economics
Languages : en
Pages : 144

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The unfolding economic crisis has unequivocally proved that neoliberal policies were no better for growth than for social progress. As poverty and inequality are rising to alarming levels in Europe, the old continent seems at a loss to respond. Political leaders seem content to liquidate the social gains made by workers' struggles. A small minority, possibly even smaller than 1 per cent, associated with the financial sector, stands to benefit from a deepening of neoliberalism. This new anthology of essays from the Global Labour Column explores Europe's turmoil and challenges the deep-rooted consequences of neoliberalism in the North and the South. It sheds light on new movements and ideas which are emerging to defend and mobilise workers, and points to encouraging new policies and directions which could lay the foundations of a new order that would put decent work and life at its core. A number of these come from the South, from which the North may have much to learn. [ILO website]

Author: Anthony Black
Publisher: Juta and Company (Pty) Ltd
ISBN: 1775820076
Category : Business & Economics
Languages : en
Pages : 397

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Book Description
South Africa’s high rate of unemployment (26.4%) makes it a complete outlier compared with other middle-income countries. Indeed, the unemployment rate rises to 36% if discouraged workers are taken into account. It underpins extreme poverty and inequality and is a major contributor to social dislocation. If it were not for increased social payments, poverty would have continued to increase since the advent of democracy in 1994. Unemployment also represents a huge cost to growth. This book focuses on the growth path of the economy. The starting point is that while more rapid economic expansion is an important objective, at any given level of growth, the economy as a whole needs to become more labour-absorbing. The central question posed is how to bring about changes in the economic structure and pattern of development, which would lead to the attainment of this objective. The authors argue that employment needs to be much more centrally positioned within the economic and social policy arena. They emphasise innovative approaches within a broader focus on the growth path, and employment-intensive growth. And they posit that the negative impact of previous ‘distortions’ requires much more than a levelling of the playing field via market-based reforms. Apart from presenting an alternative growth path which could start to shift the economy in new directions, the book tackles themes which have received only limited attention, such as wage subsidies, youth unemployment and employment growth in rural areas.