It is nearly twenty-five years since the Industrial Conciliation Act (1„24) first gave statutory recognition to Industrial Councils and the Wage Act (1925) made provision for the statutory regulation of wages of employees in any industry or occupation (except agriculture, domestic ser­vice and most branches of the public sc. vice) whose wages were not regu­

lated by agreements or awards in terms of the Industrial Conciliation Act, Immediately the Economic and Wage Commission (1925) - was appointed report upon wages and labour policies in the Union, The Commissioners were not una nimous and issued two reports one of which, signed by Pro­

fessor Henry Clay and Messrs. Martin and Mills, remains the classic on the South African labour market.

It is interesting to re-road this report in the light of over twenty years’ experience and to see how far its recommendations have been car­ried out, its warnings heeded and its fears realised.

The Commissioners focussed attention on the disparity between tho ra­tes of pay for skilled and unskilled work in South Africa r.nd recoramendod that wage regulation should bo directed to lessening this gap, (paras, 94,

154), They pointed out the potential dangers arising from the fact that industrial councils workod in isolation, that thcro wss no representation

of consumers on them and no co-ordination mechanism to considor the ef­fects of their agreements on wages in other industries and on the commu­nity, They wrote "Finally, it has to be remembered that any improvement in wages or conditions, which does not result An a corresponding improve­

ment in efficiency, has to bo paid for by the consume:;, and the consumer enjoys no representation on joint industrial councils. The industries in which national agreements have so far (1925) been enforced - building and

printing - arc both sheltered from foreign competition, Ratos of wages

in these industries have risen far more than the average of wages. There would seem, therefore, to be a case at any rate for putting before each

industrial council the facts about wages in general. Some measures of co­ordination seem to be called for, sincc rates fixed in one industry in­evitably have re-actions on other industries ... Another reason for out­side scrutiny is that the rates of wages generally affected by industrial

council agrcomon’cs are thoso of the higher paid skilled monj whereas, as we endeavour to show elsewhere, it is desirable that the gap now existing *between skilled, and unskilled ra'Ges of wages should be lessened rather than

widened."

The Economic and Wage Commission suggesteO it would be desirable for all agreements to be submitted to the 7/ago Board, as tlie ciiief co-ordi- nating authority on wage questions, L. Economic and Wago Commission (1925) U.G. 14, 1926 para. 94. for its comments, before agreements were

registered or extended by the Minister.During the years that have passed since this Commission reported, suc­

cessive Commissions have endorsed the necessity for some method of co­ordinating and reviewing industrial council agreements and have shown that

ithe forebodings of the Clay-Martin-Mills report were justified. In 1935 the Industrial Legislation Commission considered that "Since wage regula­tion under the existing legislation is largely in the hands of the "/age Board and a number of industrial councils scattered throughout the coun­try, the need for harmonizing wage rates appearing in determinations and

agreements is very real." They considered that the fact that power to givo legal force to recommendations of the Wage Board and agreements of industrial councils is vested in he Minister of Labour offered an oppor­

tunity for effecting the neccss; ry co-ordination and recommended' that "the fullest use be made of this power to bring about co-ordination".

As far as I have been able to ascertain little attention has been paid

to this recommendation and the Minister of Labour does not in practice intervene to secure modification of agreements either to secure co-ordina— tion with other industries and areas or to represent the interests of the

consuming public and the community.1. Industrial Legislation Commission. U.G. 37, 1935, para. 147.Indeed in the existing set up it would be difficult for him to do so in the absence of expert advice on the probable consequences of agreements

submitted for ministerial approval.Ten years after the Industrial Legislation Commission had remarked on

the need for co-ordination, the Board of Trade and Industries put its

finger on this same weakness in our system of industrial legislation.%

Moreover it stressed the harmful effect on the community of the lack of supervision of industrial council agreements. I will quote what it has

to say in full as it is both extremely important and very generally over­

looked in discussions of the Union’s industrial legislation."Various Commissions have alrc; dy drawn attention to the wide variation

of rates of pay in different industries and areas. Partly this must bea s c rib cd/

ascribed to differences in oho ocorio:;ic condition or different industries and areas. Largely, however, it is also the inevitable outcome of the Union’s system of Y/age dot ermine, t ion. The Board (of Trade and Industries) lias come acioss frequent instances where ’wages have been determined bjr col­lective agreement between employers and employees with little regard to tho economic implications, such as the increase in cost structure and £>ricc level, as well as the ultimata effect on production and consumption. It would appear on the one hand, that as one could reasonably expect, la­bour makes the most of its bargaining power, and that; on the other hand,

employers relying unduly on tariff protection do not malic any determined effort to resist the claims of organised labour for periodic increases in wages. The Board views with great concern increases in tho cost structure which tend to wo&kon the Union's competitive position vis-a-vis other countries. Neither can the Board view with equanimity attempts made by any group, whether of employers or employees, to be placed in a privileged position where it can raise the price of its services to tho rest of the community, "/ago determinations also often aim at securing distributive

shares which conform to the established expectation of power or status groups. Practically nothing has hitherto boon done to co-ordinate wage

rates, although the Wage Board has, to some extent acted as a harmonizing

factor, mostly, however, with regard to the unskilled trades”.I have said that the Economic and Wage Commission focussed attention on

the disparity between skilled and unskilled rates and recommended that

wage regulation should be directed to reducing this disparity.

In tho into]>-war period not much prpgross was mado in this direction. I (Particulars of the disparity of rates in occupations for which compara­

tive statistics available to be given here).One of tho most significant changes in tho structuro of tho labour mar­

ket has been the increasing employment of women, particularly European and Coloured women, which has accompanied the increase in factory production, Tho number of African women employed in factories, although increasing ra­pidly is as yet very small. Another innovation has been tho employment of African men in factories on what is classed as somi-skillod operative work.

No statistics arc yet available of the numbers so employed but it isknown that during tho war years considerable numbers were employed on op-*Board of Trade and Industries: P.oport No 282. 1945. orativc/Investigation into manufacturing Industries in tho Union of South AfricaI. Sea Board of Trade and Industries:o*d.cit. ncra.120. and para, 156. annexuro G-.

1

operative work in munition and other war production, liven before the war the steelpressing industry had begun to employ African men on operative work. These men receive a wa£e above the level paid for shilled work.Thus in Johannesburg in 1946 African operatives in the stool pressing in­dustry received a wage of £2 per week plus cost of living allowance. Ot­her industries arc very gradually introducing new categories between those of unskilled labourer and artisan. Nevertheless the pattern of the labour market continues broadly as it was twenty to twenty five years ago and the

wage gap remains abnormally large compared to other countries.

To-day the attention of the public is being directed by industrialists and loading business men to the ncod for increasing the efficiency of la­bour, Official Commissions and inquiries have repeatedly pointed out the

need for revision both of the classification of work and of the appren­ticeship system. Thus the Industrial and Agricultural Requirements Com­

mission was of the opinion that "the existing classification of skilled workors in the Union is often artificial and does not take cognisance of

the fact that the greater mechanisation of industry in the Union has pro­vided increased opportunity for the employment of semi-skilled workers in

Inumerous occupations and has reduced the period of trainin, required,''It considered that categories of work, wage rates and periods of train­ing should all be reviewed to ensure that industry was not burdened by

2obsoleto rules and regulations. In 1935 the Industrial Legislation Com­

mission had recommended that the whole position regarding apprenticeship

be- reviewed at the earliest possible date and thereafter from time to 3

time, (in 1945 the Report of the Board of Tra.de and Industries re-iter­

ated the need for revision both of categories of work and of the appren-4

ticeship system. It a.lso recommended that "in order to obtain greaterco-ordination of wave rates in the Union, all recommendations with regard

to wage fixation, whether in respect of private or public enterprises, be

referred to the Board for report, in terms of the Board of Trade and In-I

dustrios Act, as to tho possible offeet on industry,"1 Industrial and Agricultural Requirements Commission, U.G. 40, 194 para.2 Ibid, para, 169 1683 Industrial Legislation Commission, op.cit. para. 728,4 Board of Trade and Industries. Report No, 282 1945 op.cit. paras. 131,IBor.rd of Trade and Industries, Report No, 282 p. 139 141,

industry/

J I! ■5.

The appointment of another coiijjission is now announced. It appears

that it is to enquire specifically into industrial legislation as was done twelve years ago in 1935. In the interim, as we have seen, at least two enquiries have touched on some of the weaknesses of the present system and shown the restrictive effect of practices such as the classification

of labour categories, unnecessary or overlong periods of apprenticeship, and prohibition of piece work, which are supported by the present system.

It is not for lack of knowledge or suggestions that no action has been taken to carry out the recommendations already made by the many official

bodies which have diagnosed some of the causes of the high labour costs

and Inefficiency supported by our industrial legislation. I would suggest

that apart from the political difficulty of overcoming opposition from the vested interests concerned, one ret.son for the lack of effective action

is the absence of suitable machinery. The Board of Trade and Industry, in addition to suggesting that wage agreements and recommendations be sub­

mitted to it for report, recommended that experts in scientific management be appointed to Industrial research organisation^, the Board of.Trade and Industries and the Department of Labour and that as soon as they had stu­died prevailing conditions, the Labour Department should initiate discus­

sions in the various Industrial Councils with the object of reviewing the classification of labour in order to increase the scope of operative labouand to obtain a more efficient labour and industrial organisation in the

1Union.

I am not fond of guessing but I am prepared to hazard a guess that this method is not likely to be effective. The Industrial Councils have

already had twelve years and more to reviews categories of work and I do not think the presence of independent experts is likely to have any sig­

nificant effect on the baigaining strength or the entrenched position of an Industrial Council, the employer members of whom may well continue in

Professor Hicks wordsI would suggest that some improvement in the situation might be secured

if we studied Australian methods and experience and in particular the e- volution and practice of the Commonwealth Court of Conciliation and Ar­

bitration. I am not suggesting that the Australian system is ideal or

that we should adopt it full5r but I do think our system could be improved

by grafting onto it some of the best features of the Australian sj stem 1. Board of Trade and Industries, op.cit, p. 139, and,

and, because of the growing body of experience and knowledge, our p::-ao« bice might avoid the mistakes which have admittedly been made in Australia.

Under' the Australian constitution the Federal Parliament has power to make laws in industrial matters only for the peace, order and good govern­ment of the Commonwealth with respect to "conciliation and arbitration for the prevention and settlement of industrial disputes extending be-

*yond the limits of any one State." The Federal power is tl.il3 severely limited and state systems of industrial conciliation and wage regulation exist alongside the Federal. Nevertheless the Federal Court has become the most influential authority as a result, in the first place, of the growth of national trade unions, and the consequent extension of disputes beyond one state. Secondly, as a result of the acceptance by employersnof Federal rather than state regulation, and thirdly, the influence the standards of the Federal Court have had on state authorities. In 1934 85 per cent, of members of Australian trade unions were subject to Fede­

ral jurisdiction and it is estimated that awards of the Federal Court directly extended to one-third of all employees in Australia. Some em­

ployees, for instance many agricultural workers, are of course not mem­bers of trade unions. The Court thus lias a very important role in deter­

mining the level of money wages and conditions of work in Australian in­

dustry.I cannot possibly even outline the whole Australian system which is ex­

tremely complicated as a result of the co-existence of state Federal authorities and more than fortj” years legal decisions os to their relative spheres of jurisdiction. But first let mo disclaim any pretension to pose as an authority on the Australian system. My knowledge of it is con­fined to the very few books which I have been able to procure locally. Luckily there are some excellent books on Australian experience. On the particular aspect which I am here discussing three books by Mr. Foenander,

Towards Industrial peace in Australia, (1957), Solving Labour Problems in Australia (1941) and Wartime Labour Development in Australia,

provided me with just the material for which I was looking* Mr. Foenander is both an economist and a barrister and nearly the whole of my descrip­

tion of the Federal Court is based on his books, although I have checked my impressions by reference to other' works. I came to study Australian

legislation and practice because, I have long been troubled by the powers

which our Industrial Councils in fact exercise, and the lack of any ef-

f

effectivo machinery to ensure- tiv-.t their emulation of wares, conditions of work and other matters is in the interests of the whole community.

Other countries are facing similar problems and from the books and reports on industrial legislation which I have seen only Australia, and perhaps New Zealand ( I an afraid I have not been able to find any adequate liter­ature on New Zealand) have any adequate machinery through which the pro­blems can even be tackled.

Here I should like to repeat that I am not holding up Austraian prac­

tice as an ideal which we should follow slavishly, nevertheless their Commonwealth Court for Conciliation and Arbitration has some very desir­able features, which could, I think be adopted to provide the reviewing and co-ordinating machinery wo need.

In South Africa in 1924, following the disastrous 1922 strike on the Rand, Parliament in the desire to avoid strikes and provide machinery for industrial conciliation and arbitration gave very wide powers to Indus­trial Councils for determining wages and conditions of work in industry, subject to Ministerial approval. In practice this approval has boon con­fined largely to the legal aspects of agreements* Industrial Council a~

greements now covor some employees* The Industrial Council system is frequently eulogised as having achieved a laye measure of industrial peace

through permitting "home rule in industry". Industry, however, is not a realm apart from the community in which it is carried on, and which is de­

pendent on it both for emplojT.ient and as the consumers of its -products.I would suggest that in its desire to avoid industrial strife and misled by the slogan "home rule in industry" Parliament has ceded powers it ne­ver intended to delegate. It has unwittingly surrendered powers of in­direct taxation and so abandoned the elementary democratio principle of "no taxation without representation". Moreover it has enoorraged the for­mation of groups of producers (employers and employees) without effective safeguards regarding the use made of the powers delegated.

During the last twenty years the growth of monopolistic groups has de­monstrated the danger of such shortsightedness. The difficulty is to re­

gain democratic control of these isolated organs of government which are

exercising powers which if used at all should bo in the hands of the State

It has been suggested that wage agreements are v. private matter similar to

a marriage contract and the parties should be allowed to solve theirdifficulties/

1. Ie.

difficultios in private, I think this is a false analogy, VThere there is a freely competitive market, it is arguable that agreements of individual persons regarding the wages for which they are prepared to work, or which they are prepared to pay, ar private natters. And I might add, in'paren­thesis, that where competition is effective it has yet to be proved that the competitive solution does not give the best result in the sense that it maximises she product of labour, wages and the national income. B ut where collective bargaining prevails and the results of this collective bargaining are enforced on the community as statutory minimum standards for the industries concerned, it cannot bo argued that bargains over wage

rates and conditions of work are private matters that concern only emplo­

yees and employers in the industry controlled by the Industrial Council,It seems so me essential that the interests of the whole community, which includes other producers and all consumers, whould be considered.

Under the Australian system an attempt is made to consider the effects of industrial awards on the community. The Commonwealth Court makes a- wards and registers what are known as consent agreements, the latter are somewhat like our Industrial Council agreements. In more recent years, in making awards and orders the Court as its Chief Judge has stated re­

peatedly, has regard to the economic conditions and possibilities of in-*1

dustry and the country. The Court may make mistakes in interpreting eco­

nomic conditions and in anticipating the effects of its awards but at least it considers them from the point of view of the community and not

only from the point of view of the ival claimants. The Court has been criticised for establishing artificially high wage standards. The Tariff Board has protested that "There seemed to have grown up an unofficial col­lusive understanding enabling employers end employees to exploit the tar­iff and she principle of industrial regulation at the expense of the com— mu nits'. Unions supported the employers in their applications to the Tar­iff B oard for assistance against outside competition. Should the Cus­toms duty be enhanced as sought, the Union would appear before the Courtand cite tho new "prosperity" of the industry as the ground for a favour-2able variation of the award". It warned the community that this process

5could only load to the paralysis of industry. This shows us that the pro­

vision/1. Foenandor, O.de H. Towards Industrial Peace in Australia.

Quoted Foenander op.cit. p.

s.provision of the necessary machinery will not solve all our difficulties. Luch. deponc.s on tb.e abilit or tAe Court to evaluate and reconcile the con flicting claims of employers and employees, and its integrity in resist­ing the claims of either party which it does net consider to he justified. All I am suggesting is that it would be an improvement on our existing sys tem to have industrial council agreements subjected to some expert and im­partial scrutiny before they are made statutory and binding on all emplo­yers and employees. Y/e require a forum before which bodies such as the Board of Trade and. Industries could make their views known. Further, the

creation of some such tribunal would tend to remove wage disputes from the political arena and provide a permanent and expert body to act as arbitra­tors in disputes.

Ao present m the Union (in case of disputes) arbitrators ai’e appointed ad hoc for each particular dispute, and except whore the Wage Board is called in as arbitrator, they have no standards from which to work. They

have no specific injunction or obligation to consider the effects on the community of any award they may make. Apart from any principles or know­ledge which tho arbitrators happen to have, it is largely a case of judg­

ing the bargaining strength of parties and getting them to come to terms.A permanent tribunal does accumulate kno./lodge of industrial conditions and if it is impartial the public can rely on it for solving of industrial conflicts in a manner which takes into account the effect on the public.

In 1928 in Australia the Commonwealth Arbitration and Conciliation Act was amended to provide specifically that before making an award or certi­fying to any agreement the Court should consider the probable economic

effect of such an award or any agreement upon tho industry or industries

concerned and the community in general. Although the chief judge declared this clause unnecessary, as the Court always had taken the effects of its

awards into consideration, and although it was repealed in 1930 by thoLabour Government, I think some such provision useful if only because it

1calls attention to the duty of the Court in this respect.

An Industrial tribunal might also provide a way out of the present im­

passe regarding the representation of Africans in industrial conciliationmachinery. At present the situation is most unsatisfactory. Under the 1. Chief Judge: "No Judge, before the insertion of Industrial/Clause 25D ever suggested that economic effects were to be ignored, or that it was not his duty to pay regard to them but apparently the section was introduced so as to make clear to all concerned in proceedings that which was already clear to competent Judges of an industrial Court."Quoted, Poenander. op.cit. p. 245 footnote 2.

inuusurial conciliation Act, as you will know, African non subjcct to the Masters and Savants Acts, the H..tivc Labour Regulation Act and the Native (Urban Areas) Acts Cc n only be represented on industrial councils by one cepiosencati'vo, without a vote, appointed to represent then by the Depart- ment of Labour. Tho Industrial Conciliation (Natives) bill put forward onis ''b3i' to provide conciliation machinery for Africans is quite unac­ceptable to them and to many others for reasons into which I need not enter here, and I understand that this Bill has been withdrawn in its present form and is oo be submitted to the Natives Representative Council when e- lected and oho Commission on Industrial Legislation which is to be appoin­ted. If there were an industrial Court African trade unions, other ropre-

senCc.tives of Africans, or amy other group, whether organised or unorgani­

sed could appear before it end make representations. Moreover the fact that agreements would be scrutinised from tho point of view of their ef­fects on all employees in the industry would force industrial councils,

perhaps to a greater extent than at present, to take account of the inter­ests of all sections. I do not want to suggest that industrial councils are necessarily ill-intentioned. No doubt within their lights they fulfil thej.r functions admiraoly and individual members may be worthy citizens,Tne fact remains o n . t h e y form a bilateral monopoly of interested parties.

One couxd noo expect a.n Industrial Tribunal to work miracles but it might introduce some harmony into the present controlled, and yet chaotic, labour market. The Tribunal, if it was aware of economic realities, could exercise a gently suasion in the direction of loosening the stranglehold oi regulations, at present supported by statute, which retard the re—orga­nisation ox labour to suit modern productive methods a:?<2 so restrict pro­

duction and the growth of national wealth. Tho Buatralian Court, for inc.

stance, nas in general supported piece-work and on occasion has approved a1

reducoion- in the maximum hours of work on condition pieco-work was permit­ted. Again oho Federal Court was sufficiently strong and alive to economic realities oo decree and successfully enforce a ten per cent, cut in real r/agea in 1930 when Australia was badly hit by economic depression* Its

action was one of tho first steps in the reconstruction which enabled Aus­tralia to we a one:, oppression But do not think the Court is always on the

side of employers. Par from it. The Court in its operation has not pleas­ed everyone. No court could bo expected to do that. But in the course of1. Foenander op.cit. p. 91 its/

I

res work it has accuv.3ul-.tcc '.7 is dor.] rue. exr .r ience and it has cohie to be ac­

cepted increasingly as a fccibunal which attempts a rer.ednod settlement.

One question wnich arises is what happens to the right to strike under such a sys'3em. Under the Australian system strikes of employees subject to the Federal Court are illegal. However, I do not think this provision is essential. In practice experience all over the world has shown that strikes do take place oven who: e they are illegal and this being so, I

think it is undesirable to outlaw strikes because laws which are not en­forceable bring tne whole system of justice into disrepute.

Injurious as strike are they are not the worst evil. In the past the right of employees to -combine and withhold their labour has been sternly contested and «xie legalisation of that right has been hailed as a great de­

mocratic advance. Now legislatures are attempting to withdraw those rights

.oi•‘.owing le'klirn statutory regulation of wages and state guarantee of minimum standards«

In South Axrxca broach of contract is already a xoenal offence for largo secu^ons of the population under the Masters and servants Acts, the Native

Labour Regulation Act, the Native (Urban Areas) Act and the Native Service Contract Act, which in practice makes strikes illegal, in terms of the

Industrial Conciliation Act workers in certain essential service are not

permitted to strike. I am not concerned hero with whether this is desirable or not, although I should like to hear employers opinions on the useful­

ness oi °hese provisions. But while we deny the right to strike to large sections of the population it ill becomes us to be touchy about withdraw- ing it from the rest. But 1 do not thirtlc it is even necessary to do this.It is, I think, Useful to insist that certain steps be taken before a strike is proclaimed, This acts as a protection to employees, as well as

employers, against unscrupulous or ill-informed agitators wfc) might mis­lead employees into hasty action not really intheir interest. I think .provided there is machinery which prevents hasty ill-considered action, an occasional strike is better than time continued exploitation of the com­munity bhrougn a rising spiral of wages, costs and prices.

In couth Africa, Wage Board Determinations are binding on employers but

not on employees, nevertheless one does not find that there are many strik­

es against them. The recent strike in the baking industry in the Cape was

exceptional in this regard and there is no doubt that the fact that theWaco/

a I

w

1 o»' JLhJ* l''0Ww<<ig;(jgoard aaa ’ /ado an i nc e. s 'u i gat ion into the industry contributed to the peaceful settlement and prevented the gross mis-representation of the is­sues and consequent ill-foolin'? and even violence which frequently accom­pany strikes.

■Many e m p l o y s and some employees..are, I understand, favourably dispos­ed to th& ;aveation.pf -a permanent Industrial: tribunal. The- problem will be to persuade certain sections that'-what is. in the lo:ng run interest of the. .whole community £s a!so: in their interest. Powers having been dele­gated, there may b;e opposition to their, withdrawal -or the supervision of ohe manner in '•(hi:ch they are exercised. But where Parliament gives' statu­tory sanction to the decisions of statutory bodies suili as-: industrial councils and -he Courts enforce these decisions on all employers and Jrn*» ploy see, it is not only Parliamentf s rig-Sat but its duty to ensure that the regulations made are not opposed to the welfare and progress of the com­munity. I suggest that an Industrial tribunal on the lines of the Austra­

lian Commonwealth Court of Conciliation and Arbitration should be created and should have power to supervise and review Industrial council agreements to ensure that they do not conflict with the public welfare*

SHEILA T. VAN DER HORST.

, ! \ y q t V ■ .H0TS3 u i m arxagB of ^ r - ■mjamz.

m u r anmj. c m a w i c m ,

Purpose of Institute*reason for its interest in industrial legislation.X. Ill-foellng among ftton-iuropoanu caused by discrl. <lnatioa*2* Poverty and frustration arising from closing of opportunities to

Iod— mropeana*Broadly the purpose of industrial legislation is to protect

employees by laying down minimum standards concerning conditions of eayloynwnt, frequently nowadays including hours of work and wage-rates, and by making provision, in addition to those available under the common law, for condensation in case of accident, ill-health and/frequently to-day,in case of unemployment* Thaoo latter might be teraad social eccurity provisions of industrial legislation*Industrial legislation especially as it affects eon-Europeans raay be discussed under tiio headings t 1, social Security Provisions*2* draining and adriission in industry*3* Collective Bargaining k Regulation of \ ages and Conditions of Work* h. Industrial Legislation & Agricultural Labour* v5* statutory Restriction of Bight to strike*.

i/orkmon1 a Compensation;Silicosis CaroonaatlonjUnemployment insurance (Unemployment Insurance Act, Registration for

Tiaploymont Act)Parts of Factories Act;Parts of IJative Labour P.ogulation Act*

In nearly all these measures there Is discrimination In the treatment of Kurppeans and Moo-L'uropeans and also In many instances discrimination

. - -■Zu/u-jL* v*'.in the treatment of different racial groups.

Discrimination of two types; statutory and administrative*Statutory discrimination: different rates of payment for different

racial groups*Lump sum payments instead of pensions*

Continued Page 2/..,! .___ _ _

Extent to which owah discrimination is justified. Adninistratlfe tiiscrininaion. T’allure to provide labour

1Lexchanges for Africans end usually for other pon- Europeans, administration of unemployment insure nee*

2. Mmlnlnn and <nt.» mdimtw.

Appren ticoohlp aystota# Statutory discriiiiination not allowed*In practice oysters diacrininates against fton—Europeans •Difficulty of hon-Juropeana in getting apprenticed, lack of facilities for training them in m n y towns, nuabor of qon- ;uropoon apprentices.Differences in practice between differont towns.In addition to its discriminatory effects oystaa obsolete - Restriots

production and growth of national income In many instances.(It would be interesting to Bee to what extent apprenticeship committees and industrial councils are composed of the same individuals).

social effect of restrictive practices e.g. building industry - tshortage of housing. Ho need to recapitulate «£e. social dangers arising from crowded conditions anti shanty towns, disease, ill-feeling, crime*

Experience of C.O.2.T. systen lias shown

3 . n«ni— ti— « « « m i »

A. position of jfron-r.uropoan in Industrial council Systen in different parts of the Union.

position of African under Industrial Conciliation Act, 1930,1957. Adralnistmtive action taken by labour Jepartnent.

Dissatisfaction of Africans (and other non-Europeans?) with leak of representation•

Industrial Conciliation (natives) bill. Objections to bill in its present forta.

Weakness of industrial Council system frees point of view of the ccmunity*(Extent to which industrial Council system perpetuates Colour-bar in industry).

Possible improvements in existing system.

Continued Page 3/*» **<

Heed for an Industrial Court*B* r3ie flage Board and non-i^uropeans.C* segregation c*g* regarding cloak room facilities, ining & rest roans, in terms of P.agulationfi under Factories Act tends to raise costs and maintain status quo*

%• in&MteiMl and Agricultural labour. luclodlag ec^oasdlabour (sugar)9 fruit packers etc#

5. iitatutojaL iftg »r*c.tlon of to strike.

Industrial Conciliation Act*Piasters and Ciervants Lava.Native labour Regulation Act*Urban Areas (Natives) Act*Native ;;orvice Contract Act*

****?********«***%*********

SUMMARY OF INSTITUTE’S PROPOSED EVIDENCE TO THE INDUSTRIAL LEGISLATION COMMISSION LAID BEFORE COUNCIL, JANUARY, 1949,

I have be n asked to outline the main points of the evidence which it is proposed that the Institute present to the Industrial Legislation Commission which was appointed in Ootober and which will be taking evidence shortly.

The terms of reference oover the working and admini­stration of the Industrial Conciliation Act, the Wage Act, the Shops and Offioea Act and the Factories Aotj the desirability of more control Employers associations and trade unions^the desirability of defining the funotions of trade unions and preventing them from e.g. engaging "in propogating the dootrine of a particular economic system." as separate items the terras of reference cover the desirability ...of bavin,,p separate trade and employersorganisations for European^, Coloured and Asiatics respectively; the functioning of Native trade unions and the desirability of reguLating them and determining the roll they should play in industrial legislation}and finally tho setting up of industrial conciliation maohinery for Natives.

In addition to the terms of reference the Commission has issued a questionnaire which shows that, at least the drafter of the questionnaire, is alive to 64me of the possible consequenoes of statutory fixation of wages.rates.

There is not time to go through the whole questionnaire and discuss the Institute's evidence point by point.

Your Executive spent two and a half hours on that job on Monday night and prior to tfaht a sub-committee consisting of Mr. Holteno, Dr. Simons, Hr. Horwitz and myself met on several oocasions to oonsider the lines the evidence should take.

The Director and Mr. Kheinallt Jones are also members of the sub-committee but unfortunately could not be present at the discussions as they were not in Cape Town.

The best I can do In the time available is to outlinethe lines we consider the evidence should take.INDUSTRIAL OONOTT.IA.TTON APT.

With regard to the Industrial Conciliation Act we have pointed out that the present industrial council system does not take into sufficient account the interests of non-Europeai» and the general public.

That in many oases it is possible for Industrial Counoils to raise wage rates at the expense of the whole community and for the employers to pass the cost on to the public. The worst sufferers under this policy are the poorer seotions of the community who have to pay higher prioes for the goods they buy but get no seotional benefit from the higher money wages established by the Industrial Counoil.

To iraprove the situation we have proposed that an Industrial Tribunal be created/au \at this tribunal should exercise some of the functions at present exercised by the Vinister of Labour with regard to the supervision of Industrial Council and*Wage Board Agreements.

The Tribunal should have clearly defined principles laid down to guide it. These should inolude the effect of Industrial Council Agreements on prices and employment,

With reaard to the ’"afe-e Act we suggest the ohief disadvantage has been delay in particular enquiries and suggest that if an Industrial Tribunal be established with definite guiding principles it might be possible for several wage boards to operate subordinate to the central tribunal,

■le D.rQPQ9e that tils Institute .should not tender evidence on the Jjfa-Q-Qg ..and Offices or Factories Acts 08 as not to diversify our evidence too much and because we do not regard their operation in the past as having bee*$articularly significant from the point of view of raoe relations.

There are points such as the inoreased cost due to the segregation provisions of the factories hot but we do not see much

point/........

point in opposing them at this stage, although it might be• worthwhile to point out the restrictive effeot in production of attempts to completely separate workers in their work as well as in oloak room facilities etc,

Thft,°.gn33Aeio,r\l.B, rf£r..gng<?lficallg to .the desirability of^c^roxdiirailn?: wagea ..and.o.thejL_Q.QnditlanaQt 9fflBlQ.YlSS.flt.

On th#> question your Executive had a lengthy discussion.On the one hand some of us felt that co-ordination

oould not be considered without taking into consideration rural and mine wages, We felt that pushing up the money wages of certain groups in the towns might re-act unfavourably on the masses who are not included in wage regulation by raising prices to them.

Further, that It might increase townward migration and lead to further measures of arbitrary exclusion from towns and the hardships resulting. That a better way to tackle the situ­ation ^as to raise rural wages and increase the efficiency of rural labour and production and so attack the evil at the source and secure co-ordination by harnessing economic forces.

Others felt that the Institute in the past had advocated the extension of wage regulation and that the benefit it gave to the seotions included outweighed the loss to those excluded.(Your Chairman may amplify if he considers 1 have misrepresented points of view).

It was pointed out that beside the regulation upwards of money wage rates by the Wage Board and by the Industrial Councils, there existed combinations to keep wages down.

The roost outstanding combinations were those of the Witwatersrand gold and coal mining companies and of farmers in agricultural associations.

Finally, after prolonged disoussion, I was asked to draft evidence calling attention to this fact of combinations to keep wages down and to suggest that the Industrial Tribunal we

have/,.....

Collection Number: AD1715

SOUTH AFRICAN INSTITUTE OF RACE RELATIONS (SAIRR), 1892-1974

PUBLISHER: Collection Funder:- Atlantic Philanthropies Foundation

Publisher:- Historical Papers Research Archive

Location:- Johannesburg

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