Englert&Runciman 2019 ChallengingWorkplaceInequality
Englert&Runciman 2019 ChallengingWorkplaceInequality
Englert&Runciman 2019 ChallengingWorkplaceInequality
Published by Transformation
DOI: https://doi.org/10.1353/trn.2019.0038
Abstract
The world of work has been reorganised, the numbers of workers employed through
the standard employment relationship has declined and there has been an increase in
non-standard employment: labour broking, outsourcing and other forms of precarious
and temporary work. This has created highly unequal workplaces where atypical
workers perform the same work as permanent workers for often half the wages of
what a permanent worker receives. This article considers how precarious workers
are organising, outside of trade unions, to fight against workplace inequality to gain
rights to permanent work. This article develops the power resource approach (PRA)
as a lens through which to explore how labour broker workers are organising in
Gauteng. Through the analysis of two workplace case studies, the article examines
how amendments to the Labour Relations Act (LRA) in 2015 provided new rights and
a new avenue through which precarious workers could organise. The case studies
illustrate the dynamic interactions between institutional and associational power, an
often overlooked relationship , and demonstrate the multiple avenues through which
precarious workers mobilise their power to fight against inequality.
Introduction
The use of outsourced, casualised and atypical labour in South Africa has
overlaid and perpetuated the apartheid system of cheap black labour.
Today, it is estimated that four out of ten workers in the formal sector are
precarious workers (Webster and Francis 2018). Such workers are
especially vulnerable to exploitation and earn, on average, half of what a
permanent worker earns (Casim and Cassale 2018).
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Methodology
The case studies presented here are from different industries and are of
differing workplace sizes. Luxor Paints is a family-owned paint
manufacturer located in the Jet Park industrial estate on the East Rand of
Gauteng, employing an estimated 200 workers, the majority of which
were employed by a labour broker. Dis-Chem is a high street pharmacy
chain that was founded in 1978, which has now grown to include, as of
November 2019, 149 stores across South Africa and Namibia (Dis-Chem
2019). It is listed on the Johannesburg Stock Exchange and was valued at
R20 billion at the time of the listing (Business Report 2016). The
Midrand distribution centre employs over 1,000 workers. It is also where
the Head Offices of Dis-Chem are located and in the analysis that follows,
there are overlaps between the management of the distribution centre and
the overall management of Dis-Chem.
The seeming differences between the cases presented here may lead
some to question the comparative validity of the case studies. The strength
of presenting case studies that may, at first, appear quite different from
one another is that contextualised comparisons can help to make patterns
emerge across diverse experiences and manifestations (Locke and Thelen
1995). Comparing diverse contexts thus highlights the commonalities in
experiences across industries and across workplaces of different sizes as
well as to draw out insights that are specific to their contexts. This guards
against drawing conclusions that are narrowly confined to particular
sectors and enables us to draw better analytical insights into how workers
are organising to contest workplace inequality.
The case studies arise out of the ongoing work that both authors have
engaged in with the Casual Workers Advice Office (CWAO) and the
Simunye Workers Forum (SWF). The CWAO is a non-profit organisation
established in 2011, in Germiston, Gauteng, specifically to assist
precarious workers to organise (see Runciman and Webster 2017, Webster
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and Englert 2019). Since the 2015 LRA amendments came into force, they
have assisted over 12,000 labour broker workers to become permanent
workers (CWAO 2019). The SWF was established in 2015 by labour
broker workers from across industrial sectors as a forum in which they
could organise together around their common issues.
The article primarily draws upon group interviews with worker leaders.
Drawing on the testimonies of worker leaders has both strengths and
weaknesses. Workers leaders are often the most knowledgeable about
ongoing struggles and provide particular insights into these struggles.
However, by focussing on worker leaders we are aware that the narratives
presented here may, and are probably not, shared by all workers. The
interviews are also supplemented by the ongoing research, knowledge and
experience of the authors who have been actively involved in supporting
the struggle of workers within SWF. The research that is presented here
is therefore a product of deep and ongoing engagement with ‘comrades’
and is supplemented by relationships that extend far beyond a conventional
research project.
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process today (see Webster and Englert 2019). While we may want to be
cautious about the distinctions drawn between the categories of core and
non-core workers, measuring their presence provides invaluable insight
into the changing structure of South Africa’s labour force.
Table 1: Core, non-core and periphery, 2004-2017 (millions)
2004 2017 Change
Millions % of Millions % of EAP Millions %
EAP
Core 6.6 33 8.4 34 +1.8 +27
Non-core 3.1 15 5.3 22 +2.2 +71
Periphery:
Source: Von Holdt and Webster (2005), Webster and Francis (2018) and Englert
(2018)
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as our case studies will illustrate. The distinctions that von Holdt and
Webster (2005) made between core and non-core workers no longer
strictly hold and this requires analysts to rethink structural power in
relation to precarious workers (see also Englert 2018).
While previous analysis of PRA in relation to precarious workers
struggles may have its limitations, we believe that the analytical framework
is still a useful tool for unpacking the dynamics of worker struggle for
analysts and activists alike. However, we stress, that the conceptual
framework has the most utility when the focus of analysis is between the
dynamic interactions between different sources of power. As Schmalz and
his colleagues highlight, ‘it is not so much the extent of power resources,
but rather their development and specific combinations which are crucial’
(2018:115). In the following case studies, we trace the dynamic interactions
of power as workers confronted their employers in the struggle for
permanent work. We begin by introducing the workplace case studies by
providing some contextual history, before going on to analyse how the
intersections of differing forms of power shaped the struggle within each
case.
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Recognising the need to build associational power that they had not found
in unions, the labour broker workers formed a workplace forum. The
forum had an elected chairperson, a secretary and treasurer, and they
adopted a simple constitution that had been suggested by CWAO. Workers
met twice a week, Tuesdays and Thursdays, during their lunch break, in
front of the company.
In contrast to Luxor Paints, both permanent and labour broker workers
were largely unorganised at Dis-Chem. In their case, the fight around
Section 198 rights began ‘in secret’ (group interview, August 10, 2018),
when a group of 17 night shift workers approached CWAO to open a case
at the CCMA. Employer responses to workers’ demands that their rights
be enforced was, inevitably, crucial in shaping the associational power of
workers.
Employer responses
Employer responses to the implementation of Section 198 differ and play
a crucial role in shaping the emergence of associational power.
Management at Luxor Paints deployed multiple tactics to delay and
frustrate workers. After the case was referred to the CCMA, the company
registered at the National Bargaining Council for the Chemical Industry
(hereafter referred to as the bargaining council) and successfully argued
that the CCMA, therefore, had no jurisdiction over the case, forcing the
workers to file a new dispute at the bargaining council. These delaying
tactics were used by Luxor management to taunt and demoralise workers.
Management also began to target individual workers, mainly those it knew
were financially vulnerable, to get them to sign the deal NUMSA had
negotiated. This tactic was used throughout the process and 21 workers
eventually succumbed and became known as the ‘600s’, a reference to the
pay increase they had accepted.
Despite the intimidation and delaying tactics used by management, at
the first conciliation at the bargaining council, the employer indicated that
they were willing to take the workers permanently and negotiations began.
Workers say that the employer now seemed keen to negotiate as it had
realised that the ‘legal way’ would be costlier for them, having to pay for
lawyers, compared to the workers that received free legal assistance from
CWAO.
The workers elected an ad hoc negotiating team who would also liaise
with CWAO during the negotiation. The initial offer from the company
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was still only an offer to ‘top up’ the salary, a top up that would not even
meet the bargaining council minimum wage, technically a labour law
violation, and was far from equalising pay with the permanent workers. The
company kept up the pressure on the workers to accept the deal. Aside
from targeting individual workers, they offered one of the negotiators a
supervisory position, an offer that was eventually accepted with the
agreement of the other workers, but this was, of course, not without its
tensions. Furthermore, during the negotiations, the company called in a
‘CCMA commissioner’ to explain their rights to them.
They said he was from CCMA [that he] was coming to clarify the issue
of Section 198, [but] he was just a bogus guy, they just found him in the
street just to come to lie to us… Immediately…this guy, we can see ‘hai,
this one.’ We say ‘comrade! let us go back to work. These people are
wasting our time’. (Desmond, group interview, July 27, 2017)
When the workers understood that it was a ‘fake commissioner’, they
walked out of the room. This episode was an important moment for the
workers, gaining knowledge on their rights had translated into a new-found
confidence and power at work:
That’s where we started to call our self the permanents of Luxor Paint
[sic], without even getting the contract because that’s when we started
to say ‘comrades, we no longer need Transman [the TES] in this
company because the law says we are permanent now.’ So every time
those people of Transman come we used to chase them away. (Desmond,
group interview, July 27, 2017)
The workers now refused to engage with the labour broker, who was
offering improved pay and conditions, they only wanted to talk to their
employer, Luxor Paints.
The workers went for arbitration in May 2016 but before the arbitration
award was made, the company agreed to make the workers permanent and
to equalise their pay and conditions with the permanents. In addition, the
workers would also receive back pay for what the company should have
paid them since 2015; the equalisation and back pay was staggered over
three months. Despite entering into an agreement, the employer tried one
last time to frustrate the workers by trying to apply different salaries to the
workers. Empowered by their experiences, the workers did not hesitate to
go immediately back to the bargaining council to ensure the employer
honoured the settlement agreement it had entered into with the workers.
By February 2017, all 65 remaining workers were permanent workers of
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Despite the fact that most of the workers joined GIWUSA, the forum
continued and was used to resolve immediate workplace issues. Problems
were discussed during the two weekly meetings and representatives sent
to management. Their most notable achievement was to get the company
to correct – after going to the bargaining council – the vacation days
workers were entitled to during the December holiday period, when the
workplace was closed. The forum was an effective way to address workplace
issues, one that even management came to respect, according to the
worker leaders.
While Dis-Chem management had agreed to make workers permanent,
it reneged on the conditions. The settlement agreement had stated that
workers would continue to work the same hours as they had previously
done and that their pay and conditions would be equalised with that of
existing permanent staff. However, this did not happen. Shifts were
changed, hours increased but with no increase in pay, and pay was not
equalised. In addition to this, management continually brought workers
into disciplinary proceedings after its failed intimidation attempts with
the polygraph tests. The reaction of management after workers had been
made permanent provided the impetus to organise, in this case.
Initially, workers attempted to organise in a workplace forum, similar
to Luxor Paints workers. However, the history and conditions of the
workplace made this more challenging. As most of the workers had
become permanent simply through adding their name to a list, worker
leaders found it difficult to convince workers about the need for a
workplace forum. Furthermore, workers have restricted access to the
workplace and cannot freely move around, as access passes restrict
workers to certain areas, a challenge not encountered in the smaller Luxor
Paints.
Workers decided that a union would be able to overcome these
difficulties as well as being able to bargain, as Tebogo explains, ‘the
purpose of the union was… to organise us and then to give us shape
because we were scattered... they would never believe in us, that we can
organise them. But through the union, when they see that powerful union,
they get hope’ (group interview, August 10, 2018). Within a period of less
than a year, workers joined and left two unions, eventually joining a third
union, the National Union of Public Service and Allied Workers
(NUPSAW). However, workers have not relied on the union alone and
employ a dynamic mix of organising strategies. Workers describe their
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After less than a year of union membership, the notion that the union
was failing, largely because it had yet to win workplace recognition, was
a common sentiment expressed in worker meetings. Workers recognise
that their associational power is derived from them as workers and not the
union. CWAO and SWF continue to play an important role in providing
workers with information on their rights and to support their organisation,
even though they are union members.
While the union continues to fight for recognition, CWAO continues
to take up many of the shopfloor issues that workers encounter including
the fight for equalisation, which the union has largely ignored. Employing
both the union and CWAO is a deliberate strategy by workers to overwhelm
management, as Tebogo explains,
As NUPSAW, we tabled our demands, whereby one of the demands is
a living wage of R12,500. And we want better working conditions... The
other thing is that with CWAO, we are challenging this settlement
agreement. So now the boss is focussing on NUPSAW… So as soon as
the 20th, we sit with the union, he (management) will think ‘my problem
are solved I promised the union members that I’ll give them R1, 000’. And
then during the course of that week, he will receive an email saying ‘hey,
we want you again’. So his problems will grow day by day. (group
interview, August 10, 2018)
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Conclusion
The focus of this article has been to consider how, in the context of a
weakened trade union movement, workers organise to fight against the
inequalities they experience at work. The two case studies provide a
situated and relational analysis of how different sources of power have
unfolded in the struggle for labour broker workers to become permanent
workers. Both cases provide insight into the state of contemporary
workplaces in South Africa, where the workplace is divided and fragmented
socially and, often, structurally. Labour broker workers are frequently
not, as is often assumed, itinerant workers who transition through different
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Notes
1. The authors would like to thank the workers of Luxor Paints, Dis-Chem and the
Simunye Workers Forum for sharing their struggles with us. We also wish to thank
the staff of the Casual Workers Advice Office for their comradeship in supporting
this research. Funding for the research was provided by the Southern Centre for
Inequality Studies, University of the Witwatersrand. Editorial support was kindly
provided by Terri Maggott. All errors are our own.
2. In recent times, there has been an increase in the use of the term ‘precarious’ to
describe a range of employment relationships such as labour broking, fixed-term
contract work, on-demand work or forms of so-called self-employment. However,
as Alberti and her colleagues (2018) highlight, there is also a need to understand
that precarious labour is not defined solely by contract status but also by the
‘subjective feeling of precarity’ (2018:49) engendered by forms of insecure work.
Therefore in our usage of precarious here we mean both the form of work and
the subjectivities it creates (see also Barchiesi 2011).
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