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Collective Bargaining During and After Apartheid: Economic and Social Upgrading in the Automobile Global Value Chains in South Africa

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Economic and Social Upgrading in Global Value Chains

Abstract

Collective bargaining in South Africa has received much attention against the background of the struggle by Black workers for recognition, equal treatment at work, and access to workers’ rights.

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Notes

  1. 1.

    Of which three are from Germany (BMW, Mercedes-Benz, and Volkswagen), one from the US (Ford) and three from Japan (Toyota, Nissan, and Isuzu). Isuzu took over General Motors’ manufacturing facility after the latter withdrew from manufacturing in South Africa in 2017 (Automotive Industry Export Council, 2018).

  2. 2.

    Adapted from Mashilo (2019b) based on data supplied by the National Association of Automotive Components and Allied Manufacturers and the National Association of Automobile Manufacturers of South Africa covering the components manufacturing and assembly sectors (1995–2017), with changes made using aggregate data from the Automobile Industry Export Council (2020) covering the components and assembly sectors (2018–2019), data from Barnes and Black (2014) covering the tyre manufacturing sector (1995–2012), and data from the National Association of Automotive Components Manufacturers/South African Tyre Manufacturers Conference covering the tyre manufacturing sector (2013–2019).

  3. 3.

    Semi-knockdown operations involve the assembly of vehicles imported in sets of major subassemblies, components and parts partly put together from their origin.

  4. 4.

    The Industrial Development Corporation, a South African public development finance institution, has a 35% stake in the Beijing Automotive Industrial Corporation.

  5. 5.

    The so-called self-governing territories based on ethnic groups to which the apartheid regime confined the citizenship of the Africans it deprived of permanent urban residence rights.

  6. 6.

    The merger was motivated by an organising principle called ‘One industry, one trade union’ adopted by the Congress of South African Trade Unions (COSATU), formed in 1985, a federation with which NUMSA affiliated immediately following its founding. COSATU terminated NUMSA’s affiliation in November 2014 following a dispute affecting the same organising principle (Congress of South African Trade Unions, 2014).

  7. 7.

    NUMSA general secretary (2000–2008), delegate to NUMSA’s launching congress in 1987 where the union adopted centralised collective bargaining as its strategy, and successively, NUMSA local organiser in Queenstown, regional education officer and regional secretary in the Eastern Cape (1990–2000).

  8. 8.

    Workers’ structural power refers to the power that results simply from their location within the economic system—such as the individual power that directly results from tight labour markets, and collective power resulting from their strategic location within a key industry. Workers’ associational power refers to the power that derives from their various forms of collective organisation—including trade unions, political parties, community organisations, and other forms of institutional representation (Wright, 2015).

  9. 9.

    NEDLAC is a quadripartite economic development and labour policy consultative body comprising the representatives of organised labour, organised business, community-based organisations, and the government.

  10. 10.

    Herman Ntlatleng (2020), former NUMSA national auto and tyre sector coordinator (2002–2009), Tshwane local organiser (1989–2002) and shop steward at Ford Motor Company (1979–1989), believes that more pressure on employers could have resulted, or still can result, in the creation of the automobile manufacturing industrywide Bargaining Council. In the same vein, Irvin Jim (2016), NUMSA general secretary (2008–present), Eastern Cape regional secretary (2000–2008), shop steward at Firestone Tyres (1993–2000), reaffirmed the union’s commitment towards constituting centralised collective bargaining along value chains.

  11. 11.

    The bargaining terms ‘Skills Level’, ‘Entry Rate’, and ‘Qualified Rate’ are used in the automobile assembly bargaining unit, while the bargaining terms ‘Grade’, ‘Minimum’, and ‘Maximum’ are used in the tyre manufacturing bargaining unit.

  12. 12.

    Previously, NUMSA auto and tyre sectors co-ordinator (1999–2002), worker at Nissan (1988–1999).

  13. 13.

    This settlement was concluded without a strike.

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Mashilo, A.M. (2022). Collective Bargaining During and After Apartheid: Economic and Social Upgrading in the Automobile Global Value Chains in South Africa. In: Teipen, C., Dünhaupt, P., Herr, H., Mehl, F. (eds) Economic and Social Upgrading in Global Value Chains. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-87320-2_9

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