The roots of the industrial conflict in the North West province platinum mining belt in 2012 that led to the Marikana massacre cannot be found in the normal narrative of low wages and circular migrant labour entrenched under apartheid. Although South African miners earned far less than their equals in industrialised economies, their median wage was around twice as high as in other sectors in South Africa. Moreover, the miners’ migration to the North West platinum mines in the past decade differed significantly from the historic oscillating migrancy enforced by apartheid legislation before 1994. 

This paper assesses the factors behind the prolonged strikes in 2012 and 2014. It finds that the key issues were:

• The failure to provide human settlements to accommodate the influx of miners as the mines expanded rapidly during the commodity boom,
• The levelling out of pay increases when the commodity boom came to an end in 2011, combined with profound inequalities in work organisation and remuneration which meant the miners did not believe the mines faced a squeeze, and
• The failure systematically to re-organise supervisory practices and work organisation in mining to deal with the oppression, poor communications and unjustified inequalities entrenched under apartheid.

To a large extent, the experience of the platinum belt paralleled challenges faced worldwide, as the surge in metals prices that lasted from the early 2000s through 2011 led to rapid growth in many mines in relatively remote rural areas. In the North West however, responses to these challenges by employers, workers, communities and the state built on practices and perceptions developed as part of the colonial and apartheid migrant labour system that historically centred largely on mining. Taken together, these responses failed to create living and working environments able to support either sustainable growth in platinum mining or secure, decent work and vibrant communities. 

Neva Makgetla is a Senior Economist at TIPS. She has undertaken extensive research into South African economic issues, published widely, and contributed to a number of national economic policy processes and debates from 1994. Until 2015, she was Deputy Director General for economic policy in the Economic Development Department. Before that, she was Lead Economist for the Development Planning and Implementation Division at the Development Bank of Southern Africa. She has worked at a senior level in the Presidency and other government departments, and for seven years was head of the COSATU Policy Unit. She has a PhD in economics and before 1994 worked for over 10 years as an economics lecturer.

Faizel Ismail has a PhD (Manchester, UK), MPhil (IDS, Sussex, UK), LLB (UKZN-Pietermaritzburg) and a BA (UKZN-Pietermaritzburg). His PhD for which he obtained an A grade pass is titled: An Empirical Analysis of Apartheid South Africa in the GATT: 1947 to 1994.

Faizel is currently an Adjunct Professor at the UCT School of Economics. He is also an advisor/consultant (part-time) to the Department of Trade and Industry on International Trade and a Special Envoy on the African Growth and Opportunity Act (AGOA). He was appointed as the Chairperson of the International Trade and Administration Commission (ITAC) for a three-year term (2015-2018).

He has served as the Ambassador Permanent Representative of South Africa to the WTO (2010-2014). Prior to this he was the Deputy Director General for International Trade and Economic Development (ITED) in the Department of Trade and Industry. As South Africa’s Chief Trade Negotiator, since 1994, he led the new democratic South Africa’s trade negotiations with the European Union (EU), Southern African Development Community (SADC), Southern African Customs Union (SACU) and several other bilateral trading partners including the US, India, and Brazil. He has led South Africa’s negotiations in the WTO from 2002 to 2014.

He has served as the Chair of the WTO Committee on Trade and Development negotiating group (CTDSS) for two years (2004-2006), the Chair of the WTO Committee on Trade and Development (CTD) for one year (2006/7) and the Chair of the WTO Committee on Trade, Debt and Finance (WGTDF) for two years (2012-2014). He has also served as Chair of the Annual Meeting of the International Trade Centre (ITC), Geneva.

He is the author of two books on the WTO: Mainstreaming Development in the WTO. Developing Countries in the Doha Round (2007) and Reforming the World Trade Organization. Developing Countries in the Doha Round (2009). The latter book has been translated into Chinese (2011). He has published over 50 articles, chapters and working papers in international journals and books on economic development and trade and development issues.

Nimrod Zalk is Industrial Development Policy and Strategy Advisor at the South African Department of Trade and Industry (the dti). Prior to this he was Deputy Director-General of the Industrial Development Division of the dti. He also sits on the board of the South African Industrial Development Corporation.

Nimrod holds an MSC in Economics (with reference to Africa) from the University of London’s School of Oriental and African Studies (SOAS).

He has been involved in a range of processes related to South African and African industrial development including:

• Development and implementation of South Africa’s National Industrial Policy Framework (NIPF) and Industrial Policy Action Plans (IPAP)
• Design and implementation of key industrial policy initiatives including various sector strategies, industrial financing instruments, and leveraging procurement for industrial development.
• Development of the DTI’s sector strategy methodology
• The South African Renewables Initiative (SARi)
• Measures to deal with monopolistic behaviour in the South African economy
• Joseph Stiglitz’s Initiative for Policy Dialogue (IPD): Africa Task Force
• Ethiopian industrial development and policy
• The NEPAD process

He has authored papers on a range of topics including: industrial development and policy, competition and competitiveness, and regional economic development, and has delivered lectures on industrial development and policy at the following institutions: University of the Witwatersrand, University of Johannesburg, University of Stellenbosch and University of the Western Cape.

Ipeleng Motau joined TIPS in 2015. She has a Diploma in Business Management and Entrepreneurship. She completed a facilitation course followed by a Business Development course with the University of Pretoria in 2013.

She started working as a voluntary administrator and programme assistance for a community development NGO known as Angels of Glory and then became an administrator.

TIPS undertook several sectors studies for the department of trade and industry (the dti) to assist with inputs into the Industrial Policy Action Plan. The sector studies look at a number of data points (i.e. trade, production, employment, etc) in these sectors, as well as market demand and industry dynamics.

Trade and Industry

Department of Trade and Industry

TIPS is working on several projects with the dti and continues to support some of the department’s sector desks, including the automotive, agro-processing, chemicals, cosmetics and pharmaceuticals desks.

In the automotive sector TIPS is working on a project to support the dti with the review of the automotive incentive. The current research for the agro-processing sector includes a review of abalone, a feasibility study on cassava for industrial uses and developmental food systems. Support is ongoing with the other sector desks and comprises data support and research.

Another important project that TIPS is working on with the dti is Regional Value Chains. This follows the completion of a joint project between TIPS, CCRED at the University of Johannesburg, and CSID at the University of the Witwatersrand, with involvement from research organisations in Zambia and Zimbabwe. This research looked at three value chains: the mining capital equipment value chain in South Africa and Zambia; the soy value chain in South Africa, Zambia and Zimbabwe; and the construction value chain in Mozambique and South Africa. The current project will expand the number of regional value chains that are reviewed and part of the work includes identifying possible projects for collaboration between South Africa and other countries in the region. This project will be undertaken in partnership with CCRED and, similar to the earlier project, research organisations in other African countries will form part of the team.

Industrial Development Research Programme

TIPS is providing support for the roll out of a research programme on key industrial development issues gripping the country. This project is being undertaken in partnership with the dti and the United Nations Development Programme.

Manufacturing Circle

TIPS has established a partnership with the Manufacturing Circle and provides support for its quarterly bulletin that reviews the status of the manufacturing sector. The findings of the survey are released to the public and also presented at a quarterly TIPS Development Dialogue. The bulletin provides important insights in the challenges and progress of manufacturing firms.

National Economic Development and Labour Council (NEDLAC)

Over the past few years TIPS has undertaken several research projects for NEDLAC, presented to NEDLAC Chambers as well as partnered with NEDLAC on jointly hosting a Development Dialogue. Currently TIPS is completing a research paper for NEDLAC that looks at regional industrialisation.

Department of Planning, Monitoring and Evaluation (DPME) in the Presidency

DPME has developed an approach for government departments to review proposed legislation that looks at the planned as well as unintended consequences of legislation. The approach is intended to strengthen new legislation coming out and take social and economic factors into consideration; and was adopted by Cabinet as a requirement for new legislation. TIPS has been providing support to DPME as they roll out the programme and will also assist with the development of a Community of Practice to support the effective implementation of SEIAS (socio-economic impact assessment system).

Sustainable Growth

Electricity War Room

The Electricity War Room was set up to address the electricity challenges facing the country in early 2015. In addition to the economic research that TIPS undertook for the War Room, support is being provided for a research project to assessing possible options for the electricity sector going forward.

Green Economy Project for the Department of Trade and Industry

This project involves the development and design of instruments to better understand the transition of South African industries towards a low-carbon trajectory.

City of Johannesburg Solar PV

In partnership with WWF-South Africa, TIPS is assisting the City of Johannesburg and City Power with a research project to look at the possibility of greater use of solar PV by CoJ. TIPS and WWF are conducting a regulatory, policy, technical, financial and institutional review of all possible options for CoJ and City Power to increase the role of solar PV in the municipality.

Department of Science and Technology Baseline for Green Economy Research

TIPS is finalising a pioneering project for the DST with the aim of establishing a baseline of both the public and private R&D investments in support of a green economy.

Inequality and Economic Inclusion

Economies of Regions Learning Network

TIPS provides ongoing support to the ERLN programme (www.erln.co.za).

The Industrial Policy Action Plan reflects work that has been undertaken by the dti and other government departments and is mostly ready for implementation. It has three main components. A range of sectoral actions, including:

Fast-track implementation of the four lead sectors that have emerged from research and intensive interactions with stakeholders:

• Capital/Transport equipment and Metals;
• Automotives and Components; Chemicals, Plastic fabrication and Pharmaceuticals;
• Forestry, Pulp and paper, and Furniture.

Maintaining momentum on implementation of ASGI-SA sector priorities:

Business Process Outsourcing & Offshoring (BPO&O), Tourism and Biofuels, Implementation of other substantive sector projects in: Diamond beneficiation and jewellery; Agro-processing; Film and Crafts.

Further strategy work needs to be developed in a range of other sectors including:

Mining and mineral beneficiation; Agriculture /Agro-processing; ICT (services and products) and Creative Industries and White Goods. A set of cross-cutting actions of particular importance for industrial policy. The design and implementation of an Industrial Upgrading Programme to deepen manufacturing capabilities. A revised suite of Industrial financing instruments to support the industrial policy. Reducing input costs through competition policy and the review of import duties on a range of intermediate inputs into manufacturing.

In addition a range of industrial policy related cross-cutting imperatives are being implemented as set out in Government¹s Programme of Action. Measures to improve government¹s organisation and capacity to implement industrial policy.

The primary objectives of the Centre for Real Economy Study (Crest) were to catalyse economic research with a sectoral focus, especially relatively under-researched service sectors, and to improve the flow of information on relevant research between the policy and academic communities.

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Economic data resources for researchers and students in South Africa are difficult and expensive to access. In some cases the reasons for this lack of access revolve around the cost of sourcing, developing and maintaining these resources. But even relatively inexpensive or public domain datasets are difficult to find in an easily accessible form. Moreover, each data source supplies the data in a different format, using a different user-interface and different modes of access.

ADAT provided access to students and researchers affiliated to any economics or related department of any South African university to a range of data sources in a consistent, powerful and easy to use online interface.