Is there a future for a Labour Accord in South Africa?

Abstract

Foreign experience suggests that strong unions with close connections to the state can use political exchanges to mould social and economic policies to more readily reflect the needs of labour. South African unions could conceivably form a similar pact with the African National Congress by agreeing to moderate their demands for wage increases and to cooperate in the restructuring of the economy in exchange for pro-labour policies. Given persistent inequality and a rich tradition of social protest, it could be argued that neo-corporatism represents an unnecessary compromise in the South African situation. Nonetheless, neo-corporatism's track record underscores the role institutions can play in redressing social inequality, yet creating the conditions for economic growth. However, the key actors—labour, capital and government—may be neither able nor willing to strike a comprehensive deal.