MARIKANA AND ITS IMPLICATIONS FOR INDUSTRIAL RELATIONS

MARIKANA AND ITS IMPLICATIONS FOR INDUSTRIAL RELATIONS by John Brand Presented to the Leaders Angle 21 June 2013

Courtesy: Greg Marinovich Introduction

Courtesy: Greg Marinovich Content THE MARIKANA CONFLICT A TENTATIVE ANALYSIS Manifestations Trigger Causes Aggravators Moderators

Courtesy: Greg Marinovich Content THE BROADER INDUSTRIAL RELATIONS CONTEXT Outcomes in public sector bargaining Outcomes in private sector bargaining International comparison of strike days lost

Courtesy: Greg Marinovich Content WHAT CAN THE PARTIES INFLUENCE? WHAT CAN BE DONE?

The Marikana Conflict Dynamic Courtesy: Greg Marinovich

manifestations moderators aggravators trigger causes

manifestations DISREGARD FOR THE LAW

Courtesy: Greg Marinovich DISREGARD FOR THE LAW

Collective Agreements Dispute Procedures Labour Relations Act Unprotected Strike DISREGARD FOR THE LAW

manifestations HOSTILITY DISREGARD FOR THE LAW

HOSTILITY Courtesy: Greg Marinovich

Courtesy: Greg Marinovich Anger Defiance Revenge Solidarity HOSTILITY

manifestations VIOLENCE HOSTILITY DISREGARD FOR THE LAW

Courtesy: Greg Marinovich VIOLENCE

Courtesy: Greg Marinovich Intimidation Assault Death VIOLENCE

manifestations VIOLENCE HOSTILITY DISREGARD FOR THE LAW NEW PLAYERS

Courtesy: Greg Marinovich NEW PLAYERS

Courtesy: Greg Marinovich AMCU Workers Committee Church NEW PLAYERS

manifestations VIOLENCE HOSTILITY POLICE ACTION DISREGARD FOR THE LAW NEW PLAYERS

Courtesy: Greg Marinovich POLICE ACTION

Courtesy: Greg Marinovich Shooting Torture Arrests POLICE ACTION

manifestations VIOLENCE HOSTILITY POLICE ACTION DISREGARD FOR THE LAW NEW PLAYERS GRIEF

GRIEF Courtesy: Greg Marinovich

manifestations VIOLENCE HOSTILITY POLICE ACTION DISREGARD FOR THE LAW NEW PLAYERS GRIEF FARLAM

FARLAM Courtesy: Greg Marinovich

CONSEQUENCES - 45 deaths and growing - Hundreds injured - Lonmin workers did not get a 22% increase as a result of the strike - Actually the maximum increase at Lonmin was 7.7% to the lowest grade - The maximum actual increase to rock drillers at Lonmin was 3%

CONSEQUENCES - Lonmin workers lost ±12% of annual wages in the strike due to no work no pay - Some Lonmin workers received a R2 000 return to work bonus - ±9000 Lonmin contract workers got nothing

CONSEQUENCES - All lost more in lost wages than they got in wage increases - Direct losses in gold and platinum amounted to R10.1 billion - Coal losses R180 million

CONSEQUENCES - R15.3 billion lost across all mining sectors - There was a R12.5 billion reduction in export revenues in 2012 - GDP growth forecast down from 3% to 2.5

manifestations moderators aggravators trigger causes

trigger

2010 Two Year Deal RDO s Miners Interim Increase IMPLATS Strike Mass Dismissal

manifestations moderators aggravators trigger causes

THE MONETARY WAGE? causes

R10 000 Rock drillers earn ±R10 000 per month R3 000 The average South African worker earns ±R3 000 per month

Of the average South African worker: 59% have pension 40% have medical aid 77% have UIF few workers have all 3 rock drillers have all 3

4/10 Only 4 out of 10 adults in South Africa 7.3million Therefore only 7.3 million out of 32.9 million adults work in South Africa top 6% Therefore rock drillers are in the top 6% of adult earners in South Africa

R10 000 Rock drill operators earn more than entry level teachers in South Africa R8 392 Greek teachers earn R8 392 per month R6 000 Indian high tech employees earn R6 000 per month

WAS A POVERTY WAGE A CAUSE? causes

WORKING CONDITIONS LACK OF TRI-PARTITE DIALOGUE BARGAINING STRUCTURES POLITICIANS THE SOCIAL WAGE BARGAINING SKILLS NUM causes

THE SOCIAL WAGE Courtesy: Greg Marinovich

Courtesy: Greg Marinovich Housing Refuse Removal Electricity Security Sewerage Education Health Transport Water Roads THE SOCIAL WAGE

Source: http://www.voanews.com Housing Refuse Removal Electricity Security Sewerage Education Health Transport Water Roads THE SOCIAL WAGE

Courtesy: Greg Marinovich Housing Refuse Removal Electricity Security Sewerage Education Health Transport Water Roads THE SOCIAL WAGE

Source: Austin Andrews http://www.sequential-one.com Housing Refuse Removal Electricity Security Sewerage Education Health Transport Water Roads THE SOCIAL WAGE

Courtesy: Greg Marinovich Housing Refuse Removal Electricity Security Sewerage Education Health Transport Water Roads THE SOCIAL WAGE

WORKING CONDITIONS LACK OF TRI-PARTITE DIALOGUE BARGAINING STRUCTURES POLITICIANS THE SOCIAL WAGE BARGAINING SKILLS NUM causes

Courtesy: Greg Marinovich WORKING CONDITIONS

Courtesy: Greg Marinovich Health and Safety Migrant Labour Wage Differentials Labour Brokers Unemployment Money Lenders Garnishee Orders Recovery Attorneys Discrimination Lack of Concern Lack of Respect

WORKING CONDITIONS LACK OF TRI-PARTITE DIALOGUE BARGAINING STRUCTURES POLITICIANS THE SOCIAL WAGE BARGAINING SKILLS NUM causes

BARGAINING STRUCTURES Courtesy: Greg Marinovich

Courtesy: Greg Marinovich Organisation Rights Problems Over Centralised Lack of Tiers Unresponsive BARGAINING STRUCTURES

WORKING CONDITIONS LACK OF TRI-PARTITE DIALOGUE BARGAINING STRUCTURES POLITICIANS THE SOCIAL WAGE BARGAINING SKILLS NUM causes

Very Adversarial Not Interest Based Poor Preparation Ill-informed BARGAINING SKILLS

Claimer Claimer = MEDIOCRE MEDIOCRE Outcome

Problem Solver Problem Solver = GREAT GREAT Outcome

WORKING CONDITIONS LACK OF TRI-PARTITE DIALOGUE BARGAINING STRUCTURES POLITICIANS THE SOCIAL WAGE BARGAINING SKILLS NUM causes

NUM

Complacent Remote Ideological Bureaucratic NUM

WORKING CONDITIONS LACK OF TRI-PARTITE DIALOGUE BARGAINING STRUCTURES POLITICIANS THE SOCIAL WAGE BARGAINING SKILLS NUM causes

Courtesy: Greg Marinovich POLITICIANS

Courtesy: Greg Marinovich Poor service delivery Corrupt

Courtesy: Greg Marinovich R25billion lost to corruption in government procurement

WORKING CONDITIONS LACK OF TRI-PARTITE DIALOGUE BARGAINING STRUCTURES POLITICIANS THE SOCIAL WAGE BARGAINING SKILLS NUM causes

LACK OF TRI-PARTITE DIALOGUE Courtesy: Greg Marinovich

manifestations moderators aggravators trigger causes

PAST UNRESOLVED CONFLICT MISTRUST ILLITERACY INNUMERACY UNREALISTIC EXPECTATIONS INACCURATE PERCEPTIONS MISREPRESENTATION POOR COMMUNICATION THE MEDIA POLITICS POLITICAL OPPORTUNISTS DEMONIZING POOR POLICING POOR MEDIATION aggravators

manifestations moderators aggravators trigger causes

moderators CHURCH NEED FOR PAY

manifestations moderators aggravators trigger causes

manifestations VIOLENCE HOSTILITY POLICE ACTION DISREGARD FOR THE LAW NEW PLAYERS FARLAM GRIEF PAST UNRESOLVED CONFLICT MISTRUST ILLITERACY INNUMERACY UNREALISTIC EXPECTATIONS moderators CHURCH NEED FOR PAY INACCURATE PERCEPTIONS MISREPRESENTATION POOR COMMUNICATION THE MEDIA POLITICS aggravators POLITICAL OPPORTUNISTS DEMONIZING trigger POOR POLICING POOR MEDIATION POLITICIANS BARGAINING STRUCTURES LACK OF TRI-PARTITE DIALOGUE WORKING CONDITIONS NUM BARGAINING SKILLS THE SOCIAL WAGE causes

The broader industrial relations context OUTCOMES IN RECENT PUBLIC SECTOR BARGAINING

Public Sector Strike 2010 Municipal Strike 2011 Duration of strike 21 days Wages lost No work no pay [2% per week] 6% ANNUAL SALARY LOST Duration of strike 16 days Wages lost No work no pay [2% per week] 4.2% ANNUAL SALARY LOST Apparent gain/loss suffered [difference between employer offer at start of strike and settlement] (7.5 6.5) = 1% "GAINED" 0.0% Actual gain/loss [difference of wages lost and apparent gain] (1 6) = 5% LOST (0 4.2) = 4.2% LOST

Public Sector Strike 2010 Number of weeks for workers to recover actual loss using apparent gain 156weeks Municipal Strike 2011 Number of weeks for workers to recover actual loss using apparent gain Never Reported violence INTIMIDATION, RUBBER BULLETS, WATER CANNONS, DEATH, DISMISSAL SERVICE INTERRUPTION, DESTRUCTION OF PROPERTY, INTIMIDATION Reported cost to employer ESTIMATED COST TO SOUTH AFRICAN ECONOMY R1 BILLION PER DAY

OUTCOMES IN RECENT PRIVATE SECTOR BARGAINING

National Road Freight Strike 2011 Metal Industry Strike 2011 Chemical and Petroleum Industry Strike 2011 Mining Industry Strike (Diamond) 2011 Mining Industry Strike (Coal) 2011 Mining Industry Strike (Gold) 2011 Cleaning Sector Strike 2011 Bus Strike 2013 Duration of strikes 6 Days 14 Days 21 Days 14 Days 10 Days 4 Days 21 Days 21 Days % Wages lost [no work no pay] -2.1-4.0-6.0-4.0-2.3-2.0-6.0-6.0

National Road Freight Strike 2011 Metal Industry Strike 2011 Chemical and Petroleum Industry Strike 2011 Mining Industry Strike (Diamond) 2011 Mining Industry Strike (Coal) 2011 Mining Industry Strike (Gold) 2011 Cleaning Sector Strike 2011 Bus Strike 2013 Apparent gain % [difference between employer offer at start of strike and settlement] +1.5 +1.0 +1.5 +0.5 +4.5 +0.5 +2.0 +3.0 Actual gain/loss % [difference of wages lost and apparent gain] -0.6-3.0-4.5-3.5 +2.2-1.5-4.0-3.0

National Road Freight Strike 2011 Metal Industry Strike 2011 Chemical and Petroleum Industry Strike 2011 Mining Industry Strike (Diamond) 2011 Mining Industry Strike (Coal) 2011 Mining Industry Strike (Gold) 2011 Cleaning Sector Strike 2011 Bus Strike 2013 Reported violence Petrol bombs Property damage Intimidation Assault Rubber bullets Arrests Injury Blockades Fuel shortages Violence Service interruption Stone assault Malicious damage

National Road Freight Strike 2011 Metal Industry Strike 2011 Chemical and Petroleum Industry Strike 2011 Mining Industry Strike (Diamond) 2011 Mining Industry Strike (Coal) 2011 Mining Industry Strike (Gold) 2011 Cleaning Sector Strike 2011 Bus Strike 2013 Reported cost of employer Fuel retailers Taxi industry R2 billion R35 million Output lost $25 million per day

INTERNATIONAL COMPARISON OF WORKING DAYS LOST

THE FREQUENCY AND EXTENT OF STRIKE ACTION IN EUROPE Working days lost through industrial action per 1 000 employees, annual average 2005-2009. Denmark France Belgium Finland Spain EU 15 and Norway Cyprus Ireland Italy All countries Malta UK Norway Slovenia Portugal NMS 12 Lithuania Poland Germany Seden Romania Hungary Netherlands Luxembourg Slovakia Latvia Estonia Austria 43.6 39.3 38.5 34.8 30.6 24.6 23.8 20.4 16.9 11.3 11 8.1 6.5 6.2 6.2 6 5.8 5.7 4.1 2 0.8 0.1 0 60.4 78.8 72.9 132 159.4 Source: EIRO

All European countries 2005-2009 South Africa 2006-2011 Average working days lost per 1 000 employees 30.6 507 Maximum 159.4 1 593 Minimum 0 36

South Africa 2006-2011 International comparison of working days lost HIGHEST IN THE WORLD MOST VIOLENT IN THE WORLD

2011 STRIKE STATISTICS

2007 2008 2009 2010 2011 NUMBER OF WORK STOPPAGES 51 57 67 75 74 TRENDS IN THE NUMBER OF WORK STOPPAGES IN SOUTH AFRICA, 2007-2011 80 Source: Department of Labour, Strikes Statistics 70 60 50 40 30 20 10 0 YEAR

2007 2008 2009 2010 2011 AMOUNT IN RANDS WORKING DAYS LOST PER 1 000 EMPLOYEES DUE TO STRIKES, 2007-2011 Source: Department of Labour, Strikes Statistics 1,800.0 1,600.0 1,400.0 1,200.0 1,000.0 800.0 600.0 400.0 200.0 0.0 753 36 119 1593 208 YEAR

2007 2008 2009 2010 2011 AMOUNT IN RANDS WAGES LOST DUE TO WORK STOPPAGES IN SOUTH AFRICA, 2007-2011 Source: Department of Labour, Strikes Statistics 1,200,000,000.0 1,000,000,000.0 800,000,000.0 1073109003 600,000,000.0 400,000,000.0 316659385 407082302 200,000,000.0 235458414 0.0 47705846 YEAR

DISTRIBUTION OF WORKING DAYS LOST PER 1 000 EMPLOYEES BY INDUSTRY, 2010 AND 2011 Source: Department of Labour, Strikes Statistics INDUSTRY TIME-LOSS RATIO 2010 2011 AGRICULTURE 0.2 25.5 MINING 1 191.8 1 132.9 MANUFACTURING 224.7 461.8 ELECTRICITY 77.6 0.8 CONSTRUCTION 3.5 26.5 WHOLESALE, RETAIL TRADE 133.9 16.4 TRANSPORT 828.9 30.8 FINANCIAL INTERMEDIATION 9.4 0.6 COMMUNITY SERVICES 7 045.0 503.5

PERCENTAGES OF WORK STOPPAGES 2011 2010 DURATION OF WORK STOPPAGES, 2010 AND 2011 Source: Department of Labour, Strikes Statistics 52.3 13.2 12.9 14.6 0.5 3.8 1.2 1.4 6.2 20.8 44.4 15.7 3.9 4.5 1.1 3.4 >1 1 5 6 10 11 15 16 20 21 30 3 40 >40 DURATION IN DAYS

2012 STRIKE STATISTICS

2012 STRIKE STATISTICS - 17 290 552 working hours lost to unprotected strikes alone up from a total of 2 806 656 in 2010-16 503 206 working hours lost to unprotected strikes in mining - 99 strikes in total up from 67 in 2010 and from a maximum of 75 in 2007-45 strikes out of 99 unprotected.

WHAT CAN BE DONE? - Consider what can be done about workers living conditions the social wage - Implement minimum wages appropriately - Address workers working conditions as close to source as possible

WHAT CAN BE DONE? - Improve industrial democracy, particularly access to that democracy organisational rights negotiation in appropriate bargaining units engagement with appropriate communities of interest

WHAT CAN BE DONE? - Reform centralised bargaining - Improve collective bargaining skills - Encourage social dialogue

WHAT CAN BE DONE? - Encourage improved mediation - Moderate worker expectations and perceptions - Address illiteracy and innumeracy - Address unresolved conflict when possible

WHAT CAN BE DONE? - Communicate effectively and understandably - Correct media inaccuracies - Manage manifestations effectively - Introduce moderators

Thank you Special thanks and acknowledgement to Greg Marinovich for use of his photographs