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The political economy of labour market flexibility in South Africa

Thesis (MPhil (Political Science))--University of Stellenbosch, 2009. / ENGLISH ABSTRACT: The impact of globalisation can be found in every aspect of human life. Globalisation has
also brought about changes in the world of work, such as the call for labour market
flexibility, which has restructured the workplace. This study focuses on the implications of
labour market flexibility for workers in South Africa and for trade unions, within the context
of the introduction of a macroeconomic neoliberal policy in South Africa in 1996. The study
examines the changing nature of employment and work in a company in the South African
retail sector, namely Pick n Pay.
Labour market flexibility comes about as companies try to compete and cut costs at the
expense of workers. This implies a reduction of protection and benefits and has resulted in
the creation of a ‘working poor’ labour segment. Trade unions have been ineffective in
providing a voice and representation for the new working poor. This study argues that under
conditions of economic globalisation, trade unions are disempowered and flexible labour
market practices are introduced to cut costs in order to maintain market share and increase
competitiveness.
Economic globalisation has pressurised the South African government, and the African
National Congress (ANC), to shift gradually to the right and to adopt a neoliberal
macroeconomic policy. This has led to an increase in inequality, unemployment, new forms
of insecure jobs and the creation of an informal economy. This study found that instead of
creating jobs and alleviating poverty, the government’s Growth, Employment and
Redistribution Strategy (GEAR) has resulted in retrenchments, downsizing and restructuring.
The unemployed, retrenched and working poor find themselves in the ‘second economy’.
The retail sector in particular makes use of labour market flexibility in order to compete for
market share. Pick n Pay is an example of a retail company that increasingly makes use of
flexible labour market practices. This study found that labour market flexibility has created a
situation that trade unions find difficult to deal with, and that labour market flexibility has
been accompanied by increasing inequality, which overlaps with race and gender identities.
Furthermore, Pick n Pay maintains flexible employment under conditions of increased
productivity and contrary to labour legislation. / AFRIKAANSE OPSOMMING: Impak van globalisering kan in elke aspek van mense se lewens waargeneem word.
Globalisering het verandering in die wêreld van werk teweeggebring, soos die aandrang op
arbeidsmarkbuigsaamheid wat tot die herstrukturering van die werkersmag gelei het.
Hierdie studie fokus op die implikasie van arbeidsmarkbuigsaamheid vir werkers in Suid‐
Afrika, en die implikasie vir vakbonde in die konteks van die inwerkingstelling van ’n makroekonomiese
neo‐liberale beleid in Suid‐Afrika in 1996. Verder ondersoek die studie die
verandering in die aard van indiensneming en werk in ’n Suid‐Afrikaanse maatskappy in die
kleinhandelsektor, naamlik Pick n Pay.
Buigsaamheid in die arbeidsmag ontstaan wanneer besighede in ’n poging om kompeterend
te wees, uitgawes ten koste van werkers besnoei. Dit bring die vermindering van
beskerming en voordele mee, wat tot ’n arbeidsegment van ‘arm werkers’ lei. Vakbonde
kon nie ’n stem en verteenwoordiging aan hierdie nuwe segment van arm werkers gee nie.
Hierdie studie voer aan dat ekonomiese globalisering werkersunies magteloos laat terwyl
buigsame arbeidsmarkpraktyke aangewend word om kostes te sny ten einde markaandeel
en verhoogde kompetisie te verseker.
Ekonomiese globalisasie plaas meer druk op die Suid‐Afrikaanse regering, die African
National Congress (ANC), om ‘n verskuiwing na regs te maak en ’n neo‐liberale makroekonomiese
beleid te volg. Dit het gelei tot verhoging in ongelykheid, werkloosheid, nuwe
vorme van onsekere werksgeleenthede, en die skepping van ’n informele ekonomie. Die
studie bevind dat die regering se Groei, Indiensnemings‐ en Herdistribusiebeleid (GEAR),
wat veronderstel was om werk te skep en werkloosheid te verminder, eerder tot meer
afdankings, afskaling en herstrukturering gelei het. Die werklose, afgedankte en
armwerkerskorps bevind hulself nou in ’n ‘tweede ekonomie’. In die besonder maak die
kleinhandelsektor gebruik van arbeidsmarkbuigsaamheid om vir ’n deel van die mark te
kompeteer. Pick n Pay is ’n voorbeeld van ’n kleinhandelmaatskappy wat toenemend
gebruik maak van arbeidsmarkbuigsaamheid. Die studie kom tot die slotsom dat
arbeidsmarkbuigsaamheid ’n situasie geskep het wat vakbonde verlam het, en wat met ’n
verhoging in ongelykheid wat verder met ras en geslagsidentiteite oorvleuel, gepaardgaan.

daarby maak Pick n Pay gebruik van buigsaame indiensnemingspraktyke onder
omstandighede van verhoogde produktiwiteit, in weerwil van arbeidswetgewing

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/1532
Date12 1900
CreatorsMathekga, Mmanoko Jerry
ContributorsLeysens, A. J., University of Stellenbosch. Faculty of Arts and Social Sciences. Dept. of Political Science.
PublisherStellenbosch : University of Stellenbosch
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis
RightsUniversity of Stellenbosch

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