Analysing Wage Formation in the South African Labour Market: The Role of Bargaining Councils

Description

The main objective of this study is to evaluate the role of bargaining councils in wage formation in the South African labour market. Specifically, the study aims to determine what premium is associated with Bargaining Council membership as distinct from Union
membership, for employees in the South African labour market.
Section 2 provides a brief overview of the development of institutionalised wage formation in the South African labour market, focusing on the establishment of industrial councils, the
development of a dual system of industrial relations in the country and the shift from industrial councils to bargaining councils in post-apartheid South Africa. Different forms of wage formation are then explored in Section 3. The various data sources used in our analysis and the estimation of industrial and bargaining council coverage are discussed in the Section 4.1,1 See Michaud & Vencatachellum (2001: 20) for a comparison of some of the reported wage premia in the literature. 2 while Section 4.2 provides a descriptive overview of the estimated coverage in terms of the numbers of workers as well as their associated earnings. Section 5 provides a multivariate
analysis of earnings, which allows us to account for the simultaneous impact of a range of relevant variables on earnings, in particular, isolating the impact of industrial/bargaining council and union membership on earnings. Section 6 concludes.

Information

Evaluation Number:
117
Score:
3.7
Report Approval:
01 September 2007
Published:
18 February 2013
Initiated By:
Department of Labour
Undertaken By:
Haroon Bhorat, Carlene van der Westhuizen, Sumayya Goga from the Development Policy Research Unit
Evaluation Period:
2007
Evaluation Area:
Labour issues & employment
National Outcome:
National Outcome 4: Decent employment through inclusive economic growth.
National Outcome 5: A skilled and capable workforce to support an inclusive growth path.
Commissioned By:
Evaluation Type:
Diagnostic
Evaluation Subject:
Sector
Geographic Scope:
National

Evaluation Documents

File Name
2007-09 Analysing wage formation in the SA labour market - the role of BCs.pdf 117.pdf
117 EQAT 20130320 sh_mb.pdf

Similar Evaluations

Labour Reform in South Africa: Measuring Regulation and Synthesis of Policy Suggestions

Perhaps the most prominent representation of the welfare challenges facing post-apartheid South Africa, is the economy’s unemployment rate. Hence, this is an economy although formally categorised as...
Evaluation Number:
30
Report Approval:
01 June 2007
Published:
21 February 2013
Initiated By:
Department of Labour

Diagnostic evaluation of the Military Veterans' Economic Empowerment and Skills Transferability Programme

This diagnostic evaluation sought to understand the status of Military Veterans (MVs) and to document in more detail their existing education, skills, experience as well as their employment status...
Evaluation Number:
512
Report Approval:
01 May 2015
Published:
29 September 2016
Initiated By:
DPME and Department of Military Veterans

A Gendered Review of South Africa's Implementation of the Millennium Development Goals

The Commission for Gender Equality (CGE) is an independent state institution established in terms of Section 187 of the Constitution Act no 108 of 1996 of the Republic of South Africa. The CGE is...
Evaluation Number:
100
Report Approval:
31 August 2010
Published:
10 December 2012
Initiated By:
Commission for Gender Equality (CGE)

Accelerated Shared Growth Initiative South Africa and economic growth: Implications for skills development

This document contains a sectoral analysis of the agro-processing sector in South Africa with reference to the implications for skills development. It is one of six skills development projects...
Evaluation Number:
14
Report Approval:
14 December 2007
Published:
07 February 2013
Initiated By:
Department of Labour

Information Sharing and SMME Financing in South Africa: A Survey of the Landscape

This report focuses on the current state of credit access for SMMEs in South Africa. In particular, it examines barriers to credit access and viable near-term solutions to reduce or eliminate those...
Evaluation Number:
107
Report Approval:
31 August 2008
Published:
21 February 2013
Initiated By:
National Credit Regulator