D.Com. (Economics) / Please refer to full text to view abstract

M.A. (Industrial Psychology) / South Africa is currently experiencing a period typified by daily changes in the labour economy and in its political structures. As a result of the critical shortage of skilled human resources, a decreasing white population and political pressure to reform, the country is under constant pressure to develop its human resources, race groups that are underdeveloped in the middle and top structures of the labour force. In this regard strategies to advance the occupational mobility of blacks are progressively being undertaken by South African companies. Given the pressing demands for human resource development the results of strategies to advance the occupational mobility of blacks are still perceived as unsatisfactory. Various contrasting views exist regarding the specific factors that inhibit black advancement as well as that which ought to be addressed in order to solve the problems underlying such advancement. In the absence of a coherent theoretical basis through which factors that inhibit the advancement of black occupational mobility can be explained and studied, the need for a suitable approach or framework to develop such a theoretical model, was identified. It was decided to study the problems underlying black advancement in South Africa by utilising a strategic-cultural approach. Before a strategic-cultural approach could be developed the nature and extent of the factors that inhibit the advancement of black occupational mobility was systematically examined. Inhibiting factors were analysed from literature through an integrated approach and it was found that the marginal position of the black labourer is fundamental to all of the contrasting views in this regard. In order to optimize the person-environment match relevant to the so-called marginal position of the black labourer it is emphasized in this study that the organisation's discemable and undiscemable structures should be changed...

The central concern of this study is to analyse how the pattern of development in South Africa has influenced the long term growth of productive employment in the economy. The approach adopted is to appply a model of economic dualism to the South African case. Chapter 1, p. 1.

M.Com. (Economics) / Inflation is the continuous, meaningful increase in the price level of an economic system. A distinction can be drawn between demand-pull factors (where demand exceeds the supply) and cost-push factors (prices are pushed higher by an increase in wages or input prices) as causes of inflation. Cost-push inflation is the result of the exercising of bargaining power by certain groups, e.g. trade unions. Prices can escalate as a result of competition between trade unions and firms for higher wages or competition between trade unions for a bigger portion of the national income. The aim of trade unions is to maintain the standard of living of their members, whose only source of income is the sale of their labour. Trade unions have a number of mechanisms, e.g. strikes and the withdrawal of co-operation, by means of which they can force an employer to meet their demands. Trade unions usually bargain collectively with employers regarding their wage demands. There are great differences of opinion among economists whether trade unions are the cause of inflation or whether they only contribute to inflation. Trade unions grouped themselves in organisations to look after the concerns of their members while employers have also grouped themselves in organisations. The government also plays an important role in the labour market, especially because' of the payment of unemployment benefits. Trade unions can contribute to inflation because wage increases are declared nationally, trade unions refuse to· accept any cuts in wages, contracts between employers and employees make provision for increases in salaries and also include a stipulation regarding cost of living adjustments. Trade unions can increase wage demands by being more militant, the spillover effect and wage imitation. The first white trade unions were established in the second half of the previous century and black trade unions in the early 1900' s. The numbers of especially the black trade unions increased considerably during the seventies and eighties, to such a degree that black trade unions have almost 3 million members and consist of 23,9 percent of the total economically active population. As a result of their great numbers, strikes have also shown an escalating tendency (there were 908 strikes per year during the period 1987 to 1992). The annual average inflation rate in South Africa reached double figures in 1974 and has not moved back to single figures since. If wage demands since 1985 are compared to this, the wage demands from 1987 to 1991 were higher each year than the inflation rate. Trade unions definitely have an influence on wages as the increase in minimum wages of unskilled labourers were mostly higher than. that of skilled workers. The increase in productivity has however, not kept up to date with the increase in wage rates.

Unemployment is one of the greatest and most complex challenges facing South Africa. Just like most developing countries, South Africa has been using the fiscal policy framework as a tool to alleviate the high rates of unemployment. This study examined the impact of fiscal policy on unemployment in South Africa. The study used annual time series data for the period 1980 to 2010. A vector error correction model was used to determine the effects of fiscal policy aggregates on unemployment in South Africa. The fiscal policy aggregates considered in this study were government investment expenditure, government consumption expenditure and tax. Results from this study revealed that government consumption expenditure and tax have a positive impact on unemployment while government investment expenditure negatively affects unemployment in South Africa. Policy recommendations were made using these results.

Work is a key component of people's lives and most people aspire to have work that is sufficient to provide a living wage so as to lift them out of poverty and social exclusion and also that is secure enough to guarantee a decent livelihood. The Decent Work Agenda has gained much popularity in recent years and proposes an approach to development that emphasizes fair and sustainable working opportunities that include principles of rights at work, social protection and social dialogue. Various issues have been raised in this study. Firstly, the decent work concept needs to be understood comprehensively as there is misconception about what the concept implies and what it can achieve. Secondly, it is acknowledged that there are huge decent work deficits in South Africa especially in the informal sector which impede on the advancement of people‟s conditions of living, cause people to live lives of poverty as well as deprive people of a life of dignity. This is despite decent work having a solid basis in labour legislation and also South Africa being bound by international law and principles concerning decent work. The study observes that reform in labour legislation is recommended to help overcome the decent work deficits. The ILO has proposed the Decent Work Country Programmes to help countries align their economic development goals with the international goal of the achievement of Decent Work for all. South Africa also has its own solutions such as the New Growth Path as well as other policies. The main issue however is how these policies can be implemented effectively and how decent work can be achieved against a backdrop of the socio – economic challenges that South Africa faces.

Income inequality is prevalent in both developed and developing countries. In all of these countries there are workers who are highly paid while others are given very low wages. The disgruntled low-paid workers in these countries usually force their governments to intervene in the labour market and introduce the redistributive policies like the minimum wage policy. Governments usually accede to these demands of low-paid workers because they do not want to invite political troubles. That led to an increase in the number of countries using minimum wage policy as redistributive mechanism in the late 20th century and the beginning of the 21st century. Minimum wage policy is, however, a very controversial issue. Supporters of minimum wages regard the policy as ideal because it provides social protection to un-unionised and low-paid workers with little or no bargaining power. The opponents of the policy on the other hand argue that wages in the labour market should be determined by the forces of demand and supply. It is argued that wages that are artificially determined lead to the rationing of jobs and displacement of the very same low-paid workers that the policy is intended to protect, as employers are forced to replace unskilled workers with skilled workers and machines. South Africa’s agricultural sector workers were among some of the least paid workers in the country. Employers were able to exploit these workers because they were not protected by any labour legislation that workers in other sectors were afforded. Farm workers were only protected by common law. It was only in the 1990s that labour legislations like Basic Conditions of Employment Act, Labour Relations Act, Employment Equity Act, Extension of Security Act and Tenure Act and Skills Development Act were extended to the agricultural sector in an attempt to protect the working conditions of vulnerable workers. These acts as well failed to improve the working conditions of the agricultural sector workers and that prompted the Minister of Labour to instruct the Director-General of Labour to conduct the necessary investigations to see if it could be necessary to introduce minimum standard of employment in the sector, including minimum wages. That led to the adoption of Sectoral Determination 8 of 2003 which introduced sectoral minimum wage in the sector. The sectoral minimum wage which came into effect in 2003 was increased annually by the rate of inflation plus one per cent. It was only in 2013, after the Western Cape farm workers went on strike for higher wages, that the minimum wage was raised by 52 per cent. As argued by the opponents of minimum wages, job losses occurred among unskilled workers. The implementation of minimum wage policy in the agricultural sector was problematic, as the policy was not properly complied with due to several compliance concerns. Apart from there being insufficient inspectors to monitor and investigate cases of non-compliance, inspectors were under-trained and under-equipped. Fines imposed on offenders were too small, which further encouraged disregard for the policy. / Economics / M. Com. (Economics)