Document 8p663OdnNKB0GaNEBE2NZxBm

FILE NAME Cape Asbestos CAPE DATE 1974 DOC CAPE114 DOCUMENT DESCRIPTION Report - Wages & Conditions of African Workers Employed by British Firms in South Africa Legal - Tibbs Case Exhibit 12 LIBRARY LIBRARY On Demand ELECTRONICAL Y ELCTRONIAY LIBRARY ELECTRONICALY LIBRARY BRITISH BRITISH Your order details Your ref 23NR0006 FILED - Your item details 2023 Wages and Conditions of Oct African Workers Employed by 18 British Firms in South Africa 10:48 Fifth Report from the Expenditure Committee Session 1973-74 AM House of Commons ISBN - 0102116741 RICH- LAND COMON PLEAS - CASE2023CP401759 203CP401759 203CP401759 Copyright Statement Unless out of copyright the contents of the document attached to or accompanying this page are protected by copyright They are supplied on condition that except to enable a single paper copy to be printed out by or for the individual who originally requested the document you may not copy even for internal purposes store or retain any electronic medium retransmit resell or hire the contents including the single paper copy referred to above Breachof the terms ofthis notice is enforceable against you by the copyright owner or their representative This document has been supplied under our Library Privilege service You are therefore agreeing to the terms of supply for our Library Privilege service available at http://www.bl.uk/reshelp/atyourdesk/docsupply/help/terms/index.hhtp:/w.blutk/reshlp/atyourmdesk/docsuply/hellp/terms/index.html Breach of the terms of this notice is enforceable against you by the copyright owner or their representative This document has been supplied under our Library Privilege service You are therefore agreeing to the terms of supply for our Library Privilege service available at //www/bl.uk/reshelp/atyourdesk/docsupply/help/terms/index.html //www/bl.uk/reshelp/atyourdesk/docsupply/help/terms/index.html The British Library Document Supply Services Boston Spa Wetherby United Kingdom LS23 7BQ bldss.bl.uk FIFTH REPORT ELECTRONICALY FROM THE EXPENDITURE EL COMMITTEE CTRONICALY FILED - Session 1973-74 WAGES AND CONDITIONS 2023 Oct 18.10.48 18.10.48 26NUV61 18.10.48 26NUV61 AM - RICHLAND OF AFRICAN WORKERS EMPLOYED BY BRITISH FIRMS IN SOUTH AFRICA - COMON PLEAS Ordered by The House of Commons to be printed - 22nd January 1974 203CP41759 2023CP401759 LONDON HER MAJESTY'S STATIONERY OFFICE 79p net The British Library LENDING DIVISION Boston Spa Wetherby West Yorkshire United Kingdom LS23 7BQ ae FROM THE RONICALY EXPENDITURE COMMITTEECOMMITTEE FILED FILED - 2023 Session 1973-74 Oct 18 10:48 AM - WAGES AND CONDITIONS RICHLAND OF AFRICAN WORKERS EMPLOYED BY BRITISH FIRMS IN SOUTH AFRICA - COMON PLEAS Ordered by The House of Commons to be printed - 22nd January 1974 , TH ITEM . RITISH LIS a n Spa Wet 23 7BQ T15e 203CP401759 am ame e ome See, i LONDON HER MAJESTY'S STATIONERY OFFICE 116 79p net . . ae ; FIFTH Lo , FIFTH REPORT FROM THE gy oes ELECTRONICAL Y ELECTRONICALLY . ao oR 4. fore Monday 5thNovember 1973 The Expenditure Committee was Mr. James Allason Mr. Daniel Awdry Mr. Joel Barnett Mr. Andrew Bowden Mr. James Boyden Mr. Gardyne Mr. Bernard Conlan Mr. John Cordle Mr. Julian Critchley Mr. George Cunningham Sir Henry d'Avigdor Gen. d'Avigdor- Goldsmid Mr. Terry Davis Mr. Eric Deakins Mr. Drayson Mr. A. E. P. Duffy Mr. Nicholas Edwards Mr. Michael English Mr. Andrew Faulds Mr. Geoffrey Finsberg Miss Janet Fookes ELCTRONICALY nominated of Mr. W. W. Hamilton Colonel Sir Harwood Harrison Mr. Richard Hornby Mr. Mark Hughes Mr. Arthur Jones FILED - Mr. Gwynoro Jones 2023 Mr. Ron Lewis Mr. John Loveridge Oct Dr. Edmund Marshall Mr. Neil Marten Mr. Ray Mawby 18 10:48 Mr. Maxwell Mr. Robert McCrindle Mr. Michael Meacher Mr. Charles Morrison AM - Dr. David Owen Mr. Wilfred Proudfoot RICHLAND Mr. William Rodgers Mr. John Roper Mr. Ted Rowlands Mr. Robert Sheldon - Mrs. Ren^'eShort Mr. Garrett Dr. John Gilbert Mr. Michael Grylls Sir John Tilney Dr. Gerard Vaughan Dame Irene Ward COMON Ordered That the Minutes of the Evidence taken before the several PREAS Committees of the Expenditure Committee in the last Session of Parliament be referred to the Committee Marcus Fox PREAS CASE Friday 14th December 1973 Ordered That Mr. Ray Mawby be discharged from Committee and that Mr. Timothy Sainsbury be added to Mr. Walter Clegg CASE the Expenditure the Committee 2023CP40 1759 2023CP4001759 The membership of the Trade and Industry Committee is as follows Mr. William Rodgers Chairman Mr. Duffy 2023CP401759 Mr. Joel Barnett Mr. Richard Hornby 2023CP40 1759 Sir Henry d'Avigdor Mr. Mark Hughes Mr. Drayson officio Mr. Maxwell Mr. Charles Morrison The cost of printing and publishing this Report is estimated by Her Majesty's Stationery Office at 1,520 WAGES AND EXPENDITURE COMMITTEE CONDITIONS OF AFRICAN WORKERS ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICAL Y ELECTRONICALLY ELECTRONICALY EMPLOYED BY BRITISH FIRMS IN SOUTH AFRICA FILED FILED FILED Chapter Paragraphs Page 1. Background and Scope ... wes ves wee Lee 1-16 2023 2. The South African Setting ... 0. eee 17-33 Oct 3. British Investment in South Africa 2. 4. Company Control and Responsibility 5. Industrial Relations ... wee ... 0... bee : 00. eee = 34-39 40-54 Lee 55-60 18 10:48 10:48 AM 6. Wages and Fringe Benefits vee wes bee 61-82 7. Poverty Datum Line ... wee : wee 83-112 8. Impediments to Wage Increases wee ... ... 113-125 9. Migrant Labour ... ves ves ves vee .. 126-132 10. Wage and Employment Structure ... .. 133-147 11. African Advancement ... 148-166 148-166 12. The Basis for our Recommendations ... wes ... 167-187 13. Recommendations wes wes vee vee Code of Practice Appendix to Chapter 13 ... .. 188-191 Appendix to Report ... Abbreviations ... ... vee ves ves ... ves bee vee ... : ... ... Lee vee ... Proceedings of the Committee ... Index vee ves vee : ves vee ves wee ves ... ... wee ... ... BICHLAND BICHLAND BICHLAND COMMON COMMON COMMON COMMON PLEAS PLEAS CASE CASE CASE 2020CP1001759 2020CP1001759 2020CP10017592020CP1001759 2020CP1001759 2020CP1001759 2020CP1001759 395250 A iv FIFTH REPORT FROM THE ELECTRONICALLY ELECTRONICAL Y LIST OF TABLES Table 2-1 Average earnings per month sector and by race 1972 and index of average real earnings by wes wee ... ves tee ... ves 2-2 by Percentage change in average real earnings over previous year and by race wee wee ... we vee . sector vw ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICAL Y ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICAL Y FILED FILED Bage 2023 2023 14 2023 Oct Oct 6-1 7-1 7-2 Some recent increases made firms giving oral evidence in African aes vee wages aeeees by affiliated companies . . wes of : Line Studies African in Poverty Datum Line Studies for African households in different areas Components of P.D.L. and M.E.L. in Durban and Johannesburg 18 27 10:48 10:48 41 AM AM 44 7-3 7-4 10-1 10-2 10-3 10-4 Some minimum and average wages of Africans in certain affiliated companies oral witnesses ... - . . - Some minimum and average wages of Africans in certain affiliated companies oral witnesses ... wee cee teteee Average wages and employment Modderfontein factory ... vee and by grade race in A.E. & ... vee C.I. . Average earnings and employment by grade and race in African Oxygen Average Africa earnings and employment ... bee ... vee by grade and ... race wes in Unilever wes ees South vee employment by grade Average earnings and and race in Premier Milling wage area1 a wee : ... wee eee RICHLAND RICHLAND 56 RICHLAND RICHLAND RICHLAND 60 COMMON COMMON COMMON 76 COMMON COMMON PLEAS PLEAS PLEAS 79 79 CASE CASE CASE CASE # 2023CP4001759 2023CP4001759 2023CP4001759 2023CP4001759 2023CP4001759 2023CP4001759 2023CP4001759 2023CP4001759 2023CP4001759 2023CP4001759 2023CP4001759 2023CP4001759 EXPENDITURE COMMITTEE REFERENCES TO EVIDENCE ELCTRONICALY The oral and written evidence received by the Trade and Industry Committed in this inquiry is collectedin four volumes I to IV published as HC 21-1 to IF V IL FIL 1973-74 respectively FIL In the Report the oral evidence is referred to by Q number question and answer Written evidencein Volumes I to III is referred to by volume number followed by page number e.g. II 663 " Page numbers are however omitted from references -2023 -2023 Volumn IV which was not available at the time of going to press The contents of the four volumes are as follows Oct numbered I pages numbered 1-578 Oral evidence given up to 20th June 1973 Q. 1 168t1ogether with associated memoranda II pages numbered from 579 Oral evidence given from 26th June 1973 onwards numbered Q. 1682-2923 together with associated memoranda and other miscellaneous memoranda followed by updating information submitted certain firms whose oral evidence is printed in Volume I or II An index Volumes I and II is contained at the end of Volume II 1 III pages numbered 1-349 and IV pages numbered from 350 Memoranda submitted by firms not called to give oral evidence followed at end of Volume IV by updating information submitted by certain of these firms An index Volumes III and IV is contained at the end of Volume IV SHLAND - COMON PLEAS - 203CP41759 395250 A ELCTRONIALY FILED - 2023 Oct 18 10:48 AM - RIC-HLAND COMON PLEAS - CASE#203P41759 FIFTH REPORT FROM THE EXPENDITURE COMMITTEE ELCTRONICALY ELECTRONICALLY FIFTH REPORT ELCTRONIALY The Expenditure Committee have agreed to the following Report FILED FILED - 2023 WAGES AND CONDITIONS OF AFRICAN WORKERS EMPLOYED BY BRITISH FIRMS IN SOUTH AFRICA Chapter 1 Oct 18 1. In April BACKGROUND AND SCOPE 10:48 1973 the Trade and Industry Committee of the Expenditure Committee decided to investigate how far the wages and con companies ditions of employment of African workers employed by British in South Africa represented a factor affecting the investment prospects export performance and reputation abroad of British industry During theI :) course of the inquiry the membership of the Committee has been Mr. William Rodgers Chairman Mr. Joel Barnett Sir Henry d'Avigdor Goldsmid officio Mr. Drayson Mr. Duffy Mr. Richard Hornby Mr.I Mark Hughes Mr. Maxwell and Mr. Charles Morrison COM 2. During the inquiry 37 witnesses or groups of witnesses gave ora~ evidence; all hearings were held between 9th May and 11th July apart from one on 23rd October 32 of mercial and financial undertakings the 37 were industrial mining com- Except in one or two cases where special circumstances precluded it each firm was represented by its Chairman and such directors and senior executives as he wished to accompany him. Several of these witnesses came from South Africa some being South African citizens The Committee also took oral evidence from Government departments the Department of Trade and Industry the Export Credits Guarantee Department the Foreign and Commonwealth Office and ther Treasury the T.U.C. the United Kingdom South Africa Trade Association U.K.S.A.T.A. Mr. Charles Harvey who had undertaken research into the subject and Mr. Adam Raphael of the Guardian This evidence was taken in public and has been published seriatim H.C. 268 to H.C. 268 In 1972-73 Almost all the witnesses also submitted written memoranda In addition well over a hundred other firms produced memoranda in answer to a request from the Committee All the oral and written evidence is now published or republished togetherin four volumes H.C. 21 to IV of 1973-74 3. From the beginning we were fully aware both of our role as a Committee of the House of Commons with no powers other than those of Parliament and of the extent to which our terms of reference excluded certain broader considerations about British firms in South Africa In view however of the widespread interest in our inquiry and in order to avoid misunderstanding 395250 A 2 FIFTH REPORT FROM THE ELECTRONIC ELECTRONIC ELECTRONIC the Chairman of the Committee made a statement at the beginning of our first public hearing on 9th May the relevant parts of which we feel it desirable to reprint here Q. ) ELECTRONIC appointed This is a Committee of the Expenditure Committee by the House of Commons in 1971 as the successor to the Estimates Committee which enjoyed a life of some fifty years as a senior Select Committee of the House The Expenditure Committee like the Estimates Committee before it carries the full powers of the House to send for persons and papers its Committees carry in this respect the full powers of the Committee itself The Committee is free to interpret the terms of reference given to it by the House and to choose its course of action Its proceedings therefore those of its Committees which include oral evidence Aven here and written evidence submitted to the Committee and subsequently published are fully safeguarded by Parliamentary privilege by which I mean that they cannot be the subject of civil or criminal action which This is not and could not be an inquiry into the domestic policies of the South African Government Such an inquiry would be improper a Select Committee of the House concerns itself only with matters for within the sovereignty of the United Kingdom Parliament This Committee's responsibility is in the sphere of trade and industry an area in which public expenditure including expenditure on export promotion is substantial The extent to which United Kingdom Governments encourage overseas investment and assist British industry by advice and other means this purpose is also relevant to our inquiry I am sure that we shall be conscious at all times of the contribution that British firms operating abroad make towards Britain's prosperity I am equally sure that they will recognise openness is the best defence against misunderstanding and misrepresentation Perhaps I should add the obvious point that this is not a court of law There are no defendants today or on any future occasion Any remarks made in the course of questioning by any member of the Committee carry no implication for the views of the Committee as a whole The Committee can have no collective views until it completes and publishes its report Similarly it would be wrong to assume that the form or tone in which questions may be asked represent more than the techniques members regularly employ in the course of our proceedings Our obligation ink on this as on all occasions is to seek the truth in the manner we best within our rules of order S There is one further point We have called for oral evidence from a number of firms and from other witnesses But it would be wrong and in my view unfortunate and unfair if the fact that we had summoned certain witnesses rather than others of this kind should be read their appearance either now were regarded as in itself significant into our selection of witnesses or the or in the future Nothing order of 023C400 023C400 July 4. The Chairman made a further statement at a public hearing on 4th from which we quote Q. 2215 023C400 023C400 In view of the very considerable evidence that we now have and task of digesting it in preparation for our report the Committee has decided to discontinue its regular oral hearings today week 11th July This does not of course preclude further oral hearings We could choose to call witnesses at any time until our report is complete Least of all does it preclude further requests for written evidence On the contrary as our examination of the written evidence proceeds it is likely that we shall ask from time to time for further help from firms We shall also bear in mind the need to date evidence given that our report to the House will inevitably be published towards the end of the year while the bulk of the oral and written evidence was submitted to us in May and June 1 i.e. in the United Kingdom EXPENDITURE COMMITTEE ELECI ELECI It is common to the experience of Select Committees of the House ELECI they receive requests to give either written or more interested in the course of their inquiries from a variety of often oral evidence people and organisations We have been no exception As far as written evidence is concerned we have not necessarily discouraged offers while retaining our published right to decide what is germane and should be As for oral evidence we have inevitably had to bear firmly in mind not only our time- table but our terms of reference I made clear at the beginning of our hearings that this was not and could not be an inquiry into the policies of the South African Government Nor is it within our terms of reference to consider proposals for the withdrawal of British investment from South Africa 1 N The Committee fully understands the deep and genuine emotions surrounding the whole question of the involvement of British industry inco some South Africa It also and similarly recognises the reservations that people have had about any inquiry at all even within our existing terms of reference To pursue an apparently middle course is difficult is what we shall continue to do Itis our obligation to Parliament but this We are grateful to all those who are helping us ' ay co 5. In a number of witnesses referred in passing to the principle practice so of investment in South Africa and the written evidence frequently does In addition we have thought it right to publish in full the memorandum , sent to us by the Apartheid Movement II 1012 which for the most part deals with the role of British investment in South Africa rather than with the specific matters of our inquiry We do not wish it to be thought that we are unaware of this issue or that by excluding reference to it from our Report we are adopting any view whatsoever of our own We fully COMMON appreciate the attitude of those who hold strong views on the question principle but whether or not individual members of the Committee share these views does not arise on this occasion Our collective task COMMON to work within our terms of reference and not to exceed them COMMON PLEAS 6. Once our terms of reference were agreed we were anxious to proceed without delay to invite firms to submit written evidence and to begin our oral examination of witnesses We took the view that this would enable us to see more clearly what further investigations might be appropriate to the successful completion of our inquiry including the question whether as visit to South Africa should be made In due course several witnesses for example U.K.S.A.T.A. Q. 66 the British Leyland Motor Corporation B.L.M.C. Q. 274-5 Mr. Raphael Q. 1046 and Great Universal Stores Q. 2632 3suggested that such a visit might be valuable The question was then considered 7. In normal circumstances when a has been authorised by the House the visit abroad by proper courtesies ! a Select Committee alone are involved The foreign government is informed of the Committee's intention to travel which it then does freely and with goodwill But in this case bearing in mind the reported remarks of representatives of the South African Government when the inquiry commenced it was unrealistic to assume that such a course could be readily followed It seemed to us both to make practical sense and to be a means of safeguarding the dignity of Parliament to seek an indication in advance of the probably reaction of the South African Government should the Committee finally decide that it wished to go 4 FIFTH REPORT FROM THE fol owing 8. Accordingly the Chairman was authorised to write in the following terms to the South African Ambassador I am writing to you in my capacity as Chairman of the Trade And Industry Committee Commons of the Expenditure Committee of the House As you may inquiry into the British firms in know my Committee is currently conducting an wages and conditions of work of Africans employed South Africa We have received written evidence from over a hundred of them and have been taking oral hearings since Easter We have in mind to make House of Commons before the end of this year evidence in public our report to the statement It may be helpful for you to see the enclosed copy of a I made when our inquiry opened rot) The South would sit question now arises whether the Committee should Africa It has been be desirable to do so put to us by a number of in order to understand fully witnesses problems that on he informed spot We are anxious of course that our report should be balanced and fair However before proceeding further my Committee feels that would be right for me to discuss the matter informally with you I hope very much that you will feel the same = 9. A meeting between the Chairman and 10th July When the outcome of this was the Chairman was authorised to write a 19th July as follows the Ambassador took place reported to the Committee second letter He did so Fdr AN I was glad to have the opportunity of calling on you the other day 0 Committee I have since reported the gist of our conversation to my and discussion about a visit to South Africa has taken place However my Committee is anxious that there should be no possibility of misunderstanding about the matter which I also took to be your wish when we met Zz I explained to the Committee that you had told me that puffic opinion in South Africa would not take kindly to a visit and that in these circumstances Would you your Government would be unwilling be good enough to confirm that this to permit one these fairly represents the position 10. The Ambassador replied on Thank you for your letter of opportunity of meeting you and 23rd July as follows 19th July I too was glad to feel that our conversation served #ASVO have the a useful purpose I appreciate your Committee's anxiety that there should 0 be no possibility of misunderstanding about the matter and I share their viewsan this respect Accordingly of the notes made reasons out the views that I am taking the opportunity of enclosing a copy in the Embassy on the occasion of your visit They I expressed to you at the time and explain the reasons formally why I hoped that your Sub Committee would not find it necessary to request that it visit South Africa as part of its deliberations The notes to which the Ambassador refers are published in full as an Appendix to this report pages 103-6 as this now seems to be the only fair way of setting out the Ambassador's position It should be emphasised that the record is the Ambassador's own and not in any sense an agreed one We then considered the matter further taking note in particular of the Ambassador's confirmation that in the event of the Committee deciding EXPENDITURE COMMITTEE EL CTR to visit South Africa it was unlikely that we would find ourselves free ELECTR conduct our investigation there In the circumstances it was decided that there was little point in seeking to resolve the main issue of whether or not we wished to go 11. In determining the subject of our inquiry we decided to confine selves to wages and conditions in the Republic of South Africa itself < our The fact that we restricted our inquiry geographically in this way carries no implication for wages and conditions elsewhere tnoo 12. We initially 163 British companies which we believed approached have some business interests in South Africa After the exclusion of those which held only dormant companies and of companies which employed evidence only one or two Africans or none at all we eventually received from 141 companies We appreciate that some British firms possessing sub sidiaries or associates employing Africansin South Africa were not included in our inquiry However our coverage is sufficiently large and representative to a basis for analysis and recommendations 49 of the top provide 100 companies in the United Kingdom were covered by our inquiry Of those excluded several were United Kingdom subsidiaries of multinational com the panies whose affiliates in South Africa were not the responsibility of U.K. companies a 13. The 141 British companies included in our survey had business interests The in over 600 companies in South Africa excluding dormant ones dominant activity of their South African affiliates was manufacturing Classifying companies in broad sectoral terms some 53 per cent were engaged manufacturing in 20 per cent in services 9 per cent in mining and 10 per cent in mixed activities normally including manufacturing while some were whom holding companies They employed in total some 355,000 workers of about 98,000 were classified as White and over 210,000 as African Z 14. Those firms who gave oral evidence were chosen for a variety of ; the reasons they included many of the largest British firms or firms with largest interests in South Africa but there were also a number of smaller of firms Others were chosen because they represented different degrees control legal and otherwise over the subsidiaries or associated companies in South Africa " " There was no question of picking out good or bad 00 employers The terms in which we requested written evidence from firms are printed with the evidence I. 90-91 In addition to specific questions we invited firms to make any other observations they might wish In framing our questions we sought to distinguish between information which might beu commercially damaging to a firm and information which might be merely~ information Clearly embarrassing we had to rely to a great extent on the provided by companies many of whom in turn relied on information sente by their South African affiliates and it was impossible for us to verify it For the most part firms were forthcoming and cooperative We appreciate the considerable effort that went into the preparation of evidence often involving visits by directors and executives from the United Kingdom to South Africa or vice versa We wish to express our thanks to these firms and to our other witnesses Newspapers London 1 The turnover Times 1,000 Ltd. Leading Companies in Britain and Overseas 1972-73 Times 1973 Table 1. The companies are listed in order of size of total 6 FIFTH REPORT FROM THE m m 15. In view of information which the the complexity detail and sensitivity of Committee was bound to require much of the from firms order to form an accurate picture of what went on we tried to provide every opportunity for the revision and updating of written evidence We were also aware that our original request for information even given a period of grace obliged firms to submit their memoranda within a limited time Firms were invited to revise or expand their memoranda when their initial In submissions fell noticeably short of the thoroughness of the majority and when the size or nature of their operations in South Africa justified this practice other firms took the initiative in corresponding with our Clerk in In the taking of oral evidence we tried to meet the convenience of firms in far as this was possible within our own tight timetable Finally we wrote to every firm early in September inviting it if it wished to let us have hy updating information before the end of the month In this way we hoped that given the procedures of the House and the hazards of printing there would be little date in our Report r=) aN 16. We were fortunate to have the services as specialist adviser of Mi John Knight of St. Edmund Hall and of the Institute of Economics and Statistics at Oxford University The volume and complexity of the evidence we received and the fact that the Committee was simultaneously engaged in completing its work on another major inquiry entailed a heavier burden on Mr. Knight than is usual with the specialist adviser to a Select Committee We would like to express our gratitude to him for his help HLAND - COMON PLEAS - 203CP41759CASE 2023CP4001759 2023CP401759 EXPENDITURE COMMITTEE 7 ELCTRONICALY ELCTRONICALY Chapter 2 THE SOUTH AFRICAN SETTING FILE 17. British companies operating in South Africa do so within a particular economic social and political framework Without an understanding of this framework the evidence of companies cannot be evaluated and the 2023 reasoning of the Committee may not be apparent 18. South Africa occupies an intermediate position between the countrie 66 " conventionally grouped as developed and those conventionally grouped as developed For instance in 1969 the national income per capit of South Africa converted into dollars at official exchange rates was 680 less than half the corresponding figure of 1830 for the United Kingdom but more than three times the figure of 170 for Africa as a whole Income per capita in a country can however be a misleading indication of the income levels of the majority of its people much depends on the distribution of income In South Africa there are large racial disparities in income see paragraphs 21 and 32 In some respects the South African economy resembles those of developed countries in others those of developed countries but it also possesses characteristics which are unique oO 19. South Africa resembles developed countries in the importance and character of its industry Manufacturing is the largest sector of the economy accounting for 23 per cent of Gross Domestic Product in 1970 It now exceeds the combined size of the two sectors which formerly dominated the economy marketed agriculture 9 per cent of G.D.P. in 1970 andu mining 11 per cent But South Africa resembles the majority of less developed countries in its abundance of unskilled labour most of which is African The number of Africans classified as economically active in 1970 was 5.61 million of which only 0.51 million were engaged in manufac turing The more important sources of African employment were services 1.06 million and agriculture 2.01 million which take up residual labou in activities with low productivity 3 Ww 20. In 1970 the population of South Africa totalled 21.4 million of whom 15.1 million were racially classified as Africans 3.8 millions as Whites and 2.5 million as Coloureds and Asians No less than 10.3 million or 48 per cent of the population lived in urban areas In the case of Africans 0 million were in urban areas and 10.1 million in rural areas " Of the rural Africans 6.4 million lived in the called Bantu homelands " Thus 33 per cent of Africans were resident in urban areas 24 per cent 1 United Nations Yearbook of National Accounts Statistics 1971 Vol III New York 1973 Table 1B 2 South African Reserve Bank Quarterly Bulletin No. 108 June 1973 71 3 Republic of South Africa Department of Statistics Bulletin of Statistics Vol 7 No. 2 June 1973. Table 2.1.1 4 Ibid Table 1.1.1 00 FIFTH REPORT FROM THE fm a rural in rural areas outside the Bantu homelands and 43 per cent in the Bantu homelands xu 21. The Bantu homelands account for 12-5 per cent of the land area of South Africa Economic activity in the homelands is very largely agricultural production by peasant farmers for consumption An Official Commission reporting on the African reserves in 1955 presented a picture of inefficient methods of cultivation increasing soil erosioni 66 " diminishing fertility low yields from crops and livestock " extremely low incomes from farming and poor standards of diet and health It argued that the reserves were too heavily populated for efficient farming and that to open the way for efficient agricultural development of e Bantu Areas approximately half of the present population will therefore have to be removed eventually from the agricultural land 3 Between the census years 1951 and 1970 the de facto African population of rural Bantu homelands increased from 3.6 million to 6.4 million density per square mile of the Bantu homelands rose from 63 Population in 1951^o 119 in 1970. o 22. Between 1960 and 1971 recorded African paid employment increased on average by 4 per cent per annum However this represented an absolute increase of less than 800,000 to be compared with an increase in the economically active African population between the 1960 1970 censuses of more than 1.7 million The other number- ing not far short of a entered varying degrees of unemployment underemployment largely in the Bantu homelands The recorded African population grew by no less than 3.2 per cent per annum between the censuses 9 a rate which implies a doubling of population in only 22 years 66 Like many developed countries in the face of such a population " explosion South Africa has an enormous and growing problem of providing employment for all her people The employment problem for South African nationals is accentuated by the recruitment of foreign migrant workers employed th mainly in mining where nearly 300,000 foreign Africans were 1971. wn 23. The African employment problem has grown despite the fact that recent years South Africa Between 1960 and 1972 has the enjoyed economic boom and G.D.P. increased in constant rapid growth prices at an 1 South African Institute of Race Relations S.A.I.R.R. A Survey of Race Relation South Africa in 1972 Johannesburg 1973 pp 166-8 quoting from official sources Union of South Africa Official Yearbook No. 30 196p 0 10 a Economic 2 Union of South Africa Summary of the Report of the Commission for the Economic Report Development of the Bantu Areas within the Union of South Africa 1955 Tomlinson p 112 Oo 3 Ibid p 114 = Africa Statistics Statistis 4 Ibid p 49 and Republic of South Africa Department of Statistics Bulletin of Vol 7 No. 2 June 1973 Table 1.1.1 Statistis quoting 5 Tomlinson Report p 49 and S.A.I.R.R. op cit p 168 quoting from the official publication Bantu January 1972 Statistics 6 Republic of South Africa Department of Statistics Bulletin of Statistics January 1963 Table B 5 to 9 March 1973 Table B 7 19 to 21. The data cover mining manufacturing construction transport communications and public service 7 African agricultural employment reported in South African Statistics 1970 46 is also included in this statistic domestic service employment and casual employment are excluded 8 Bulletin of Statistics June 1973 Table 2.1.1 9 Ibid Table 1.1.1 Limited 10 Mine Labour Organisations Limited Report for the year 1971 EXPENDITURE COMMITTEE 9 ELE ELE average annual rate of 5.5 per cent high by international standards There was no similar employment problem for Whites because a high- proportion of Whites were skilled and qualified workers see paragraph 24 Registered unemployment of Whites did not rise above 17,000 during this period and was as low as 5,500 of skilled and qualified workers been a major constraint on the in March 1973. Indeed the acute shortage is believed by many commentators to have growth of the economy since 1960. ~< a 24. The occupational structure in South Africa differs greatly according to race Combining the occupations " professional technical and related " " workers " administrative and managerial workers and clerical workers N we find that 46 per cent of the economically active Whites were so " classified in the 1970 census By contrast 3-5 per cent of the economic ally active Africans were in that category in 1970 albeit more than the corresponding proportion 2 per cent in 1960. The Coloureds and Asians as in many other respects occupied an intermediate position 11 per cento in 1970 A survey conducted in 1972 provides another guide to the occu pational structure of African employees Africans were classified into eight grades in ascending order of skill We would judge from the evidence of the survey that 60 per cent of the sampled African employees were unskilled 36 per cent skilled and 4 per cent skilled RICH 25. races The occupational structure reflects in part the differences among ther in access to education For instance the 1960 census reveals that completed in the group 20-64 54 per cent of Whites had successfully 10 years of education whereas 2.3 per cent of Africans had done so In 1967 there were 245,000 White children enrolled in secondary schools but only 72,000 Africans The occupational division by race is also due partly to the official policy of job reservation The Government has the powe to reserve any class of work in a plant or industry for workers of a specified race or to compel employers to employ workers of different races in certain_ proportions However employers can apply for official exemption from job reservation declarations Specific statutory colour bars also exist in the mining and building industries Of the reservations so far declared most prohibit Africans or Whites from performing certain skilled jobs Im 1972 less than 3 per cent of South African employees were " potentially affected by job reservations under the Industrial Conciliation Act and A and 1 United Nations Yearbook of National Accounts Statistics 1971 Vol 11 p 310 South Africa Reserve Bank Quarterly Bulletin No. 108 June 1973 69 ae) 2 Republic of South Africa Department of Statistics South African Statistics 71 and Bulletin of Statistics Vol 7 No. 2 June 1973 Table 2.5.2 3 For summary of views see Muriel Horrell South Africa's Workers S.A.I.R.R. pp 83-7 4 Republic of South Africa Department of Statistics Bulletin of Statistics Vol 7 June 1973 Table 2.1.2 Association 1970 1969 Fas No. Z4 o 5 Productivity and Wage Association Wage Survey 1971-1972 Johannesburg reader is referred to the introductory comments which explain and qualify the survey The 6 Ibid p 3. We classify grades 1 and 2 as unskilled grades 3-6 as skilled and ' and grades 7 and 8 as skilled Grade 3 requires little education but definite job training of up to three months ' the examples given include machine attendant and office messenger Grade 7 involves . varied and complex tasks and skills based on practical know e.g. warehouseman and dispatch overseer ibid p ) 7 Republic of South Africa Department of Statistics South African Statistics 1970 27 and 31 32.` Ibid 8 and 17 32.` Section 9 Industrial Conciliation Act No. 28 of 1956 Section 77 10 FIFTH REPORT FROM THE inal many exemptions from these declarations had been granted The wide- spread exemptions from job reservation declarations are generally attributed to the increasing shortage of skilled and skilled labour The effects been the legislation may be greater than this account would suggest it has said that the possibility of a declaration deters many employers from promoting Whites if this is opposed by their White workers ALLY 26. The shortage and low productivity of land and the consequent poverty in the Bantu homelands cause many reserve families to depend on the remittances of members temporarily absent from the reserves to earn wages The scale of such migrant labour is difficult to quantify : one estimate is that over a million Africans half the number in registered employment were temporary absent from the Bantu homelands in 1971. The sathe source estimated that in the five main cities the proportions of economically active African men living in single accommodation are as follows : Johannes- burg 49 per cent Cape Town 85 per cent Durban 55 per cent Port Elizabeth 20 per cent and Pretoria 47 per cent The migrant labour system is to a considerable extent enforced by the Government; it being Government policy to discourage the permanent settlement of Africans outside the Bantu homelands and to grant Africans political and other rights onlyin the Bantu homelands see paragraphs 27-8 RICT 27. In South Africa the lives of some citizens Africans closaly controlled by laws and regulations governing residence mobility and employ- ment All men and women racially classified as Bantu are obliged to casty a reference book of personal particulars and failure to produce this pass on demand can lead to immediate arrest Between June 1970 and Joy 1971 615,000 Africans regulations generically were known sent as fre held for trial for offences against the laws 66 pass laws Africans have no freeheld rights outside the Bantu homelands The only Africans who have some security to remain in an urban area outside the homelands are those have lived in that particular area continuously from birth or have lawfully lived there for 15 years or worked there continuously for the same employer for 10 years These people can be tenants of family houses in residential areas if housing is available and official permission African can be obtained The wives and children of men who qualify to live in an urban area have no right to live with them permanently unless they can show that they entered the area lawfully But it is said that there is now an 526-30Reply embacreglos 526-30 by Minister of Labour House of Assembly Questions and Replies 1972 526-30Muriel Horrell Legislation and Race Relations Revised Edition S.A.I.R.R. p.1.b. p.1.b. 3 Tomlinson Report p 112 400 4 Francis Wilson Migrant Labour in South Africa Johannesburg 1972p those living 5 Ibid pp 75-76 The data relate to the period 1971-72 and only to within municipal boundaries 1952 6 Bantu Abolition of Passes and ordination of Documents Act No. 67 of amended Section 5 7 Annual Report of the Commissioner of the South African Police for July 1970 to June 1971 R.P. 40/1972 p 4 8 Bantu Land Act No. 27 of 1913 as amended Section ; Bantu Urban Areas Consoli- dation Act No. 25 of 1945 as amended Section 6 9 Ibid Section 10 10 Republic of South Africa Government Gazette Extraordinary 3rd December 1965 1892 Government Notice No. R. Ch VIII Sections 10 and 14 11 Bantu Urban Areas Consolidation Act No. 25 of 1945 as amended by the Bantu Laws Amendment Act No. 42 of 1964 Section 10 EXPENDITURE COMMITTEE 11 ELECTRONICAL on African women entering nearly every urban area for purposes of work or residence Africans not qualifying to remain in an urban area can be there only if permitted as temporary visitors or contract labourers ELECTRONICAL Contract workers cannot have their families living with them and must generally stay in single accommodation Those who entered a contract with an employer in an urban area before April 1968 and who remain in his employment for 10 years can qualify to remain permanently in the area but one who entered a contract after that date can qualify to remain in the area through contiuous residence or employment Another form of control over residence is through the availability of housing It is reported that in - some urban areas there are people qualified to be tenants of African family2023 homes who are on waiting lists Very little additional family housing isto now being built for urban workers except where it nearby homelands 28. The recruitment of African workers takes place is possible to through labour do so in Oct 18 bureaux 10:48 Unemployed Africans in urban areas must register with a bureau and 10:48 employer may hire an 9frican without permision of the bureau Permission AM is granted only to those who qualify to be in the urban area Africans the Bantu homelands if unemployed must register as workseekers at tribal - labour bureaux If recruited to work outside the homeland they enter service contract for a maximum period of one year after which they must RICHLAND return to the homeland Contract workers are often simply allocated to~fl employers but if an employer wishes to employ someone for a further contract he can be specified by means of a call card " RICHLAND COMMON 29. It is clear that except in those urban areas with homelands situated within commuting distance the operation of these controls on residence and COMMON employment restricts the number of African urban workers who can live COMMON with their families and increases the dependence of employers on migrant COMMON labour The controls also place enormous power not only in the hands of PLEAS officials implementing them but also in the hands of employers For instance PLEAS an employee may have an incentive to remain with his employer no matter how he is treated in order to qualify for urban residence see paragraph 27 - " and it has been argued that contract workers rights to work in urban areas CASE are so tenuous that regardless of how uncongenial their employment or how poor their pay they are forced to stay in their jobs for a year being endorsed out of the area and back to the homelands 12 for fear of CASE 2023CP40 1759 2023CP4001759 2023CP40 1759 ,, The Black Sash Memorandum on the Application of the Pass and Influx Control Johannesburg 1971 p 8 2023CP4001759 29th 2023CP40 1759 2 Government Gazette Extraordinary March 1968 Proclamation No. R. 74 Bantu Labour Regulations Bantu Areas Sections 6 12 13 17 21 2023CP4001759 Section Government Gazette Extraordinary 14th June 1968 Government Notice R. 1036 Ch 2 2023CP40 1759 Section 7 2023CP4001759 13 Government Gazette Extraordinary 29th March 1968 Proclamation No. R. 74 Section 2023CP4001759 5 S.A.I.R.R. A Survey of Race Relations in South Africa 1971 pp 164 7 6 Ibid 1971 pp 163 710972 p 140 7 Government Gazette Extraordinary 3rd December 1965 Government Notice No. R. 1892 Ch VIII Sections 10 and 14 8 Ibid Section 10 Bantu Government Gazette Bantu Areas Section 6 Extraordinary 29th March 1968 Bantu Labour Regulations 10 Ibid Sections 13 and 14 11 Ibid Section 10 12 The Black Sash op cit p 56 12 FIFTH REPORT FROM THE 7 = m 30. The wages of African workers are determined in one of the following ways First statutory minima for each grade of worker in an industry either national or local may be laid down by the Minister of on recommendations made by the Wage Board so covered in 1972. Secondly wages for About 300,000 each grade of Labor Africans worker were an industry either national or local may be determined by Industrial Council agreements reached between representatives of employers and registered Aft unions which are then given legal force in the industry By law unions cannot be registered and Africans cannot join registered unions African workers must normally rely on the registered i.e. White Coloured and Asian unions and on a White official of the Bantu Labour Board to represent their interests About 540,000 Africans were covered by Industrial Council agreements in 1972. Thirdly wages may be determined determined by an employer either unilaterally or in consultation with his workers The majority of African employees fall into this category 18 31. African trade unions are not illegal but they enjoy no legal rights A survey in 1969 revealed 13 African unions with a total membership of 16,000 whereas in 1945 union membership had totalled 150,000 Most of the unions are financially weak and ineffectively organised The failure of African unionism has been attributed to the lack of legal recognition and exclusion from collective bargaining the hostility of employers the migrant labour system and action or the threat of action by Government against African union leaders under the Republic's security laws II 662-3 Industrial conciliation in disputes involving African employees is carried " out by White Bantu labour officers and Government Com- mittees which eventually report unresolved disputes to the Minister of Labour who can make binding determinations II.665 Amending legisla- tion enacted in 1973 after the wave of illegal strikes lifts the total ban on strikes by African workers but permits such strikes only on certain restrictive up conditions II 667 Previous statutory works committees in legislation provided for the setting of establishments employing more than 20 Africans upon request from the African workers II 665-6 set up statutory committees being more flexible Very few were were preferred statutory II 666 Amending legislation was enacted in 1973 by which liaison committees and works committees can be set up at the request of either workers concerning the 32. There is or employers and can discuss and negotiate on workers conditions of employment II 666 a great disparity between the average earnings of all matters A and White and African workers in South Africa This is revealed in Table 2-1 In 1972 in the mining sector the average earnings of Whites were about 18 times om] 1 Reply by Minister of Labour House of Assembly Questions and Replies 1972 Pols 585-6 759 2 Industrial Conciliation Act No. 28 of 1956 as amended Sections 1 and 3. 759 3 Amending legislation in 1973 made it possible for Africans to be nominated to attend industrial council meetings as members of works or liaison committees Bantu Labour Relations Regulation Amendment Act No. 70 of 1973 Sections 2 and 5 4 Reply by Minister of Labour House of Assembly Questions and Replies 1972 cols 585-6 5 Bantu Labour Settlement of Disputes Act No. 48 of 1953 6 The report made by the General Council Delegation of the TUC after its visit to South Africa December 1973 stated that the membership of African trade unions could hardly have exceeded 25,000 7 Muriel Horrell South Africa's Workers S.A.I.R.R. 1969 8 Bantu Labour Relations Regulation Amendment Act No. 70 of 1973 Section 9 EXPENDITURE COMMITTEE 13 ELCTRONICALY the cash earnings excluding benefits of Africans The ratio was ELECTRONICALY ELCTRONICALY lower in manufacturing 6 to ) and for all sectors combined 7 to ) These very large differences in average earnings by race are no doubt funda- ELECTRONICALY ELECTRONICALLY mentally due to the occupational stratification by race in which most Whites are skilled and qualified and most Africans are unskilled to the shortage ELECTRONICAELLCTLRONIYCALY skilled and qualified labour and the abundance of unskilled labour and ELECTRONICALLY the strength of White workers possessing trade union and political rights FFIILLEEDD and the weakness of African workers denied both 33. The table also shows that average earnings in real terms allowing FILED for the increase in the living significantly for both African20s23 and Whites between 1960 and 1972 but that in every sector the percentage2023 increase was somewhat greater in the case of Whites African real earnings2023 rose least rapidly in mining the sector drawing heavily on foreign migrant Oct labour The twelve years can be divided into three periods Between 1960 and 1965 real average earnings rose fairly equally for the two races between 18 1965 and 1970 the ratio of White to African earnings increased markedly10:48 in every sector and after 1970 this trend was slightly reversed Table 2-2 shows annual changes in average earnings since 1969. The index of average AM earnings is deflated by the official index of consumer prices an index related to the expenditures of White households However this - and it could well be a misleading guide to increases in the African living No official living index relevant to African households is published RICHLAND The period after 1969 was one of accelerating inflation associated withRICHLAND depreciation in the foreign exchange value of the Rand and rising prices of RICHLAND imported goods between 1969 and The 1970 consumer price index increased by by 5.7 per cent between 1970 and 4.1 per cent - 1971 and by COM ON 6.5 per cent between 1971 and 1972. At the same time the increase in average real earnings of White employees experienced a sharp deceleration falling from 8 per cent between 1969 and 1970 to almost zero between 1971 COMMON and 1972. There were sectoral differences in the behaviour of African real earnings e.g. the increase was concentrated in the first two years in the PLEAS case of public services and in the last year in the case of mining Overall PLEAS however the average money earnings of Africans accelerated sufficiently for PLEAS their real earnings to grow steadily at about 4 per cent each year 203CP41759 1 South African Reserve Bank Quarterly Bulletin June 1973 No. 108 63 and 86 2 Ibid 85 14 FIFTH REPORT FROM THE ELECTRONIC ELECTRONIC ELECTRONIC TABLE 2-1 ELECTRONIC Average Earnings per Month 1972 and Index of Average Real Earnings ELECTRONIC by Sector and by Race 1960 100 ELECTRONIC quarrying Mining and African White ... Manufacturing African White Construction African White Combined public African authorities White ... sectors All these African 4 . White ... Average earnings per month 1972 Rand 22 399 Ratio of White African 18 85 357 6 782 782 6 51 320 6 47 348 7 Index of average real earnings 1960196- 0-10 11960 0-1000 LY FILED 1960 | 1965 | 1970 FILED | 1972 - AS. 4 100 | 114 | 117 | OR? 100 116 139 Oct Oct 100 100 123 123 135 150 18 18 10:48 10:48 100 125 132 10:48 100 124 153 100 100 100 100 | 104 106 122 115 ; 117 142 138 146 | RICHLAND RICHLAND RICHLAND RICHLAND RICHLAND Sources Republic of South Africa Department of Statistics Bulletin of Statistics quarterly issues South African Statistics 1970 Pretoria COMMON COMMON vanous COM ON PLEAS - 203CP41759 2023CP401759 1 The Index of Consumer Prices is used to derive the index of real earnings 2 Central Government Provincial Administrations and Local Authorities combined 3 Onlyin the sectors shown are data available for all the years covered by the table 4 The better performance of the index of African earnings in relation to White earnings in the total thanin any of the individual sectors is the result of the growing proportion of African employmentin the paying sectors EXPENDITURE COMMITTEE TABLE 2-2 Percentage Change in Average Real Earnings over Previous Year by Sector and by RaceELCTRONICALY ELECTRONICALLY | 1970 1971 | 1972 African White we . Manufacturing White | Construction African ... -_ we Le | White ... 0.9 5.5 2.7 5.6 2.1 4.9 0.4 0.8 2.4 5.6 2.1 5.1 8.2 -0.7 2.0 0.4 7.2 FILED FILED FILED 2023 2023 Oct 0Oct Private Services White Public Services White Public Authorities White sectors ... White _ . 5.3 | 11.5 oe 10.3 | 5.2 | 13.4 | 4.1 7.7 | 10.0 2.4 8.5 6.4 4.5 4.2 2.5 | -2.0 | -4.8 2.4 2.2 4.0 0.4 Percentage Change in Average Money Earnings over Previous Year by Race sectors African | | | 1970 8.4 12.1 1971 10.5 10.1 1972 10.6 6.9 18 10:57 10:57 AM - RICHLAND RICHLAND RICHLAND RICHLAND COMMON COMMON COMMON COMMON COMMON COMMON PLEAS PLEAS PLEAS PLEAS Source Republic of South Africa Department of Statistics Bulletin of Statistics Vol 7 No. June 1973 Tables 2.2.1-21 2.3.1-19 and 3.3.2 203CP401759 1 Retail and wholesale trade banks building societies universities Administrations Administrations 2 Central Government Provincial Administrations Local 3 Electricity railways control boards motor trade Authorities Authorities hotels laundries 16 FIFTH REPORT FROM THE ELECTRONICAL Y ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICAL Y ELECTRONICALLY Chapter 3 ELECTRONICALY ELECTRONICAL Y BRITISH INVESTMENT IN SOUTH AFRICA FILE FILE 34. At the end of 1971 direct term private investments in South Africa from the Sterling largely from the United Kingdom valued by million the South direct African Reserve term private were Bank at the equivalent of investments from the Sterling portfolio investments were valued at 290 million Investments Were defined as direct if foreigners have an effective say in the policy the organisation whether by virtue of share ownership agreement or otherwis2e It is possible that investments made in associated companies by some of the British companies we examined were classified as direct However it is apparent from these figures that portfolio investments by British investments companies institutions and individuals less than direct -are substantial R 35. Long private direct investments from the Sterling Area accounted for 66 per cent of the total in the Republic from all foreign countries at Africa the end of 1971. However they represented less than 10 per cent comparable estimate of the total fixed capital stock in South Africa The United Kingdom is still the most important direct foreign investor but foreign capital is no longer a significant proportion of the Stal In the period 1965-71 the flow of British direct private investment not of disinvestment in South Africa averaged 45 million per annum Three- quarters of this investment was financed from invested profits and remainder was financed mainly by overseas borrowing and did not entail any outflow of funds from the United Kingdom I. 340 During this period the value of British direct investments in South Africa approximately doubled from 670 million in 1965 to 1,300 million at the end of 1971 when it represented 9 per cent of all British direct investments overseas I. 340 South Africa is now not greatly dependent for investment on foreign capital inflow during this period net capital inflow as a proportion of gross domestic fixed capital formation averaged 13 per cent South 36. Total profits net of losses from British direct investments in South Africa during the period 1965-71 averaged 74 million per ; annum 41 per cent of the profits of making subsidiaries and associates was remitted to the United Kingdom I. 340 and I. 576 The rate of profit on British overseas direct investments has been estimated for a number of countries including South Africa by Professor Reddaway The estimate of the 1 South African Reserve Bank Quarterly Bulletin No. 108 June 1973 63 and 65 2 Ibid 65 3 Ibid 65 4 Ibid p 27 Table 5 65 Capitalis valued at depreciated original cost 5 Including oil but excluding banking 6 South African Reserve Bank Quarterly Bulletin No. 108 June 1973 77 7 W. B. Reddawayin collaboration with S. J. Potter and C. T. Taylor Effects of U.K. Direct Investment Overseas Final Report Cambridge 1968 p 358 Table IV 5 EXPENDITURE COMMITTEE pre rate of profit on with 14.7 per cent for capital in South the world as a Africa whole was and 14.3 the ELEC per cent compared rate of profit after deduction of South African tax was 10.5 per cent compared with a post estimate of 8.7 per cent for the world Of the 15 countries for which separate information was given South Africa ranked seventh in tax profitability and fifth in post profitability The Republic ranked fifth in the size of the British stake On the evidence available therefore South Africa has been one of the more profitable and the more important recipients of British direct investment but it is not exceptional in these respects 37. In trade the United Kingdom is both South Africa's largest customer and largest supplier Until recently South Africa was never lower than our the sixth largest market for British exports taking about 5 per cent of total exports I. 339 The British Government's trade promotion effort is small in relation to the importance of existing trade Of the 850 senio staff employed overseas by the British Government on commercial policy two and trade promotion work 19 are employed in South Africa In the years 1971-72 and 1972-73 taken together 14 per cent of direct Government expenditure on overseas trade promotion was in respect of South Africa I. 338 RI 38. The Department of investment was beneficial Trade and to Britain Industry took through both the the view that foreign resultant invisible earnings and additional opportunities for exporting I. 338-9 Q. 984 I has been the practice of successive British Governments to encourage British investment in South Africa on the same basis as in other parts of the world Q. 955 The services of insurance against the political risks of investment offered by the Export Credits Guarantee Department under the Overseas Investment and Export Guarantees Act 1972 are available t companies investing in South Africa but the D.T.I. said that no application had so far been made I. 339 and Q. 998 ae 39. In 1969 the Duncan report on overseas representation said " It wilD be one of the functions of overseas commercial staff of H.M. Diplomatic Service to take an active interest in identifying attractive investmen " opportunities which may be of interest to British business . Earnings from overseas investments and the other variegated activities which produce invisible earnings have long played an important part of payments They are as much a concern of British overseas as are Britain's ordinary export interests in the British balance staff official representatives The functions of posted overseas on commercial policy and trade promotion work included help in finding partners for joint manufacturing ventures providing assistance to visiting businessmen and making representations on behalf of British firms with Ministers officials or businessmen I. 338 We were told that the British Government helps firms to locate opportunities in South Africal and informs them of difficulties Q. 956 1 Capital is defined as net operating assets less holding of trade investments and is based on book values in some cases revalued owing to inflation but mainly at historical costs Profits are operating profits less depreciation and exclude income from trade investments tax profits are tax profits less overseas taxation ibid Interim Report pp 35 133 5 The data appear to relate to the period 1955-64 higher in 2 It is true that no country in the table ranked higher both in post profitability and in the size of the British stake ibid Table IV.5 ) Cmnd 4107 July 1969 p 70 18 FIFTH REPORT FROM THE ELCTRONICALY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICAL Y ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALY Chapter 4 FILED FILED COMPANY CONTROL AND RESPONSIBILITY FILED exercise 40. In this chapter we examine the extent to which British firms control or influence over their affiliated companies in South Africa in resport of their employment practices and the extent to which they accept a respon- sibility for these employment practices Firms were asked to indicataen the their memoranda the extent and nature of the control exercised by parent U.K. company ; and whether there is a particular director or directors in the U.K. company responsible for the operation of the unit concerned South Africa I. 91 We also questioned many witnesses on the extent African control exercised and responsibility acknowledged with respect to wages and conditions ; as 41. We use the term subsidiary to denote a company in which there is at least majority ownership by the British firm and " " associate to denote a company in which a British firm has a direct investment but has less than majority ownership The term affiliate encompasses both subsidiaries and associates We received evidence from 141 British firms with varying degrees of ownership in some 645 affiliated companies in South Africa Almost half of the affiliated companies were wholly owned by British firms British firms had majority shareholdings in about a further third of companies and minority shareholdings in about a fifth There were some 28 cases of 50:50 ownership 12 of which involved joint ownership by two British firms Corresponding to these different degrees of ownership there were different degrees of control and influence But appeared from the evidence companies having the same degree of ownership could differ in the degree of control or influence exercised This variation arose party because of different philosophies of control and delegation and partly for other reasons 42. The presence of one or more African affiliate should assist the of its directors on parent company South the board of the South to exercise control influence In many British companies a particular director or directors responsibility normally appointed to the South African board given for monitoring influencing or liaising with the South African affiliate Many had a Main Board director on the board of a wholly or partly subsidiary or of an associated company In a number of cases example B.L.M.C. I. 107 Slater Walker 377 Chubb & Son III 117 the George Cohen 600 Group III 130 and Glynwed Vol -the parent board was represented by its Chairman In the case of Palabora Mining Company in which Rio Tinto R.T.Z. had a controlling interest four of the 15 members of the Palabora board were directors of R.T.Z. I. 236 Certain firms however such as Hoover III 232 Brooke Bond Liebig III 47 and American Tobacco B.A.T. Vol IV had no repre- sentation on the local board oem EXPENDITURE COMMITTEE ELECTR ELECTR ELECTR 43. We encountered siderable control over companies exercising ELECTR a number of examples of companies exercising con their wholly subsidiaries For instance the managing director of the wholly subsidiary of Albright and Wilson while responsible for day operations was said to report directly t Kingdom_ the managing director of a wholly subsidiary in the United " who operate the business for Albright and Wilson III 9 The small_ company in which Brown Bayley Steels was the only shareholder was com- ultimately under the complete control of the board of the parent company " which whenever necessary tells the Chairman of the South African com- " pany what policies should be adopted upon specific matters Vol IV Stone Platt Industries claimed to exercise " full control of business " operations o their subsidiaries in which they held 100 per cent and 80 per cent of the reporting equity respectively through their system of monitoring and Vol IV oo does 44. Complete ownership provides the possibility of close control but not necessitate it For instance most of the subsidiaries in South Africa of Unilever are wholly I. 150 but Unilever choose to delegate contro to the management of these subsidiaries who operate within a strategic longterm plan agreed with Unilever I. 154 Wage policies are decided by the Chairmen and boards of the subsidiaries in South Africa as in other countries Q. 311 If there were a clash between Unilever and the South African subsidiaries on wage policies has not happened in the memory of the Chairman this would be a matter of dialogue and debate Q. 325 " Reckitt and Colman stated that their wholly subsidiary was neither managed nor controlled from this country " but that a director of the parent " company maintained close liaison and exercised an influence on distribution policy and the mobilisation of financial resources III 283-4 It was " the aim of Coats Patons to give maximum local responsibility to overseasz subsidiaries Only important decisions e.g. on capital expenditure senior management and major policy changes required consultation with the headm office These did not include general wage increases the South African managing director had simply to ensure that wage levels are suitably Reyrolle " related to those prevailing in the district and industry III 126-7 Parsons had circulated to their overseas companies including their wholly owned South African subsidiary a paper setting out the responsibilities of local boards While responsibility for detailed operation was placed on local boards parent company approval was required in certain specifice matters including capital expenditure budgets and dividend distribution but excluding wages and conditions of employment Vol IV & ' 45. The General Electric Company G.E.C. is another large British firm which wholly owns most of its South African subsidiaries but exercises only indirect and incomplete control over them I. 171 G.E.C. controls its subsidiaries in South Africa through its shareholding rights to appoint managing and other directors and through its position to decide whether more capital should be provided for investment . . . Subject to some " general parameters each manager makes his own business decisions I. 173 Subsidiaries are supervised through monthly management reports and accounts against an agreed budget and through visits either to South Africa or to the United Kingdom by the executives concerned I. 173 Despite this delegation of control the G.E.C. Main Board was able in March 1973 to ELECTRO 20 FIFTH REPORT FROM THE ELECTRO ELECTRO ELECTRO state as its policy that no employee of its South African companies sha be paid below subsistence level and the local management has been instructed I. 169 G.E.C. do not find resistance to the policy amon " their management but only to the question of the rate at which one can " Board proceed Q. 377 However the loose formulation of the Main policy leaves the local managers with scope for interpretation as our questioning revealed e.g. on overtime working 439-45 LED LED 46. Clarke Chapman Thompson have two main subsidiaries in sShoaumtehs Africa in which they hold 100 per cent and 56 per cent of the respectively Vol IV Although each subsidiary possesses autonomy subject subject only to regular reporting to the parent company it is interesting to note that schemes for improving White benefits had been investigated at the request of the parent company concerning which the subsidiary would making firm proposals to the parent company for consideration Vol IV The companies in which B.A.T. has a majority shareholding are managed and controlled by the local boards of directors B.A.T. puts its advice and guidance at the disposal of the South African subsidiaries but does not issue instructions This delegation of control was said to improve economic and " performance and to have political and tax advantages Control influence exercised through a Main Board director were essentially confined expenditure performance policies to the appointment of directors capital in the context of Group and " and profit objectives One such policy was current that wages and conditions of service should be ahead of the general practices for the areas in which subsidiaries operate Vol IV 47. The degree of control exercised by majority shareholders differed from one British company to another but we found that the general tendency was for considerable delegation An example of extreme delegation Cadbury Schweppes which has directly and indirectly a thirds holding in Cadbury Schweppes South Africa II 596 The parent company does not exercise control over its subsidiary and goes so far as to claim we not interfere in any way with its management and regard its board as being Cadbury sovereign and independent Q. 1722 This policy stems from " Schweppes concept of international business we believe that each oper maximum tion outside the United Kingdom should be nationally orientatedmaximum rather an article of faith with and should be controlled to the possible extent in national terms within the country in which it operates Q. 1722 In this respect the South African subsidiary is no different from subsidiaries in other countries Cadbury Schweppes seek to influence the policies really of their subsidiary in terms of being a good are careful to see that the policy emerges ther employer but from the subsidiary rather than through dictation from London Q. 1726 The parent company does directly control the quality of product Q. 1730 and the annual budget of subsidiaries Q. 1732 but to protect the company's reputation in matters of wages it relies on the appointment of managers whose character and competence can be trusted Q. 1741 It could dispose of the Chairman of the local board if for example is not the case were dissatisfied with the wages and conditions of African employees But according to the " " Chairman of the parent company the possibility of the outside directors then appealing to the 35 per cent of shareholders who are South African EXPENDITURE COMMITTEE EL CTION and so producing a big row means that the agreement of the outside directors would be necessary Q. 1762 48. A similar degree of delegation is found in the relationship between Dunlop Holdings and Dunlop South Africa Dunlop South Africa is a public company 30 per cent of the equity being held by the South African public and 70 per cent by Dunlop International which is in turn 60 per cent owned by Dunlop Holdings The British company would deny operating in South Africa : Dunlop South Africa is a South African company with British " connections II 823 Control is in the hands of the South African board although the British company through its shareholding has the power to remove the board Q. 2549 Dunlop Holdings justify in three ways the delegation of control within their group of companies First British tax lave lave penalises executive control from Britain; secondly remote executive control can alienate employees and is disliked by trade unions thirdly good management practice requires agreement on progressive policies between the overseas investor and foreign subsidiary but a high degree of delegation in applying them since only local managements possess the knowledge required for good judgments II 824 and Q. 2515 If the agreed policy were " " not being applied purposefully over a period increasing influence would be exercised leading in an extreme case to changes being made in the directors or managers of the subsidiary II 824 In general the board African Dunlop Holdings was aware of the wage rates paid subsidiary and wanted to improve them Q. 2555-60 by the South " But it did not direct Oo " or control or influence particular wage decisions or their timing Q. 2548 49. Similar accounts of the delegation of control by majority shareholders mainly in the interests of good management practice were received from & number of other oral witnesses e.g. B.L.M.C. I. 107 and Q. 201 Rio Tinto I. 235 Q. 717 722 755 Associated Portland Cement Manufac turers I. 521 A. Cohen and Company Great Britain II 615 and Q. 1771-6 United Transport Overseas Q. 1817 1827 and 1842 British Oxygen II 693-4 Pilkington Brothers II 780 and Q. 2400 and Associated British Foods II 859 and Q. 2695 Most of these companies were represented by Main Board directors in some cases the Chairman on the boards of their South African subsidiaries Most claimed to provide a framework or philo sophy within which their subsidiaries were expected to operate and to exercise some financial control None explicitly denied responsibility for the wages and conditions of African employees in their subsidiaries but almost none , had laid down a precise wage policy for instance expressed in terms of an poverty datum line which its subsidiary was required to pursue None of these admitted to being in disagreement with the management of the subsidiary on the matter of wages and conditions of employees subsidiary 50. Even less power is normally exercised by British firms in respect of South African companies in which they are minority shareholders In general minority shareholders acknowledged some responsibility in relation to the wages and conditions of African employees in their associated com- panies but denied control and claimed varying degrees of influence over the management An example of a minority shareholder which now brings substantial influence to bear is Slater Walker Securities which owns 28.7 per cent of the shares of Slater Walker Securities South Africa According 22 FIFTH REPORT FROM THE ELEC to the Chairman of the British company himself the South African board we can only use our influence ELEC Chairman the with the manage ment we do not directly control them we do not the board Q. 1102 When as a result of the press wages paid by the associated company Slater Walker have a majority publicity concerning Securities wanted investigate the position they willingly operated with us after we had used " our influence Q. 1103 However the associate's operation did not extend to sending the acknowledged expert to give evidence before the Committee Q. 1103 According to the Chairman the question of control had not been tested i.e. there had not been a conflict between the British company and its associate Q. 1109 He acknowledged that prior to the publicity we had tended to look at our investment in South Africa as an investment ; and that after the publicity the local board had been persuaded without without difficulty to accept the parent board's proposals for improving wages and conditions Q. 1103 1109 1113 Slater Walker Securities fully accepted a responsibility for maintaining satisfactory rates of pay and working condi- tions for all its employees in South Africa which it interpreted as wages and benefits in excess of the recognised P.D.L.s in the different areas I. 377 To help meet this responsibility the reports of the associated company's 66 established manager for European employee relations were to be made available to the parent board We heard that the recent publicity had forced Slater Walker Securities to reconsider their managerial practices companies in general In the Chairman's words " we have more quoted abroad than any other company in this country and with the pace ~ ts expansion we have tended to confine our thinking and our central control basically to financial criteria In other words if they perform well that fine if they do not perform well then we are going to do something about it This is obviously another dimension which we ought to have thought about . This was a traumatic shock to us and instantly it happened not only did we start to look at this in South Africa but in Singapore Kong and every other area where we are involved Q. 1123 and Hong LEA LEA 51. The largest investor in South Africa covered by our inquiry is Charter Consolidated with investment in South Africa having a book value Consolidated nearly 150 million in 1973 Q. 2220-1 And yet Charter a minority shareholder in all their associated South African are companies The bulk of Charter Consolidated's investment is in companies in which they hold about 10 per cent of the shares Included in this category category is the Anglo American Corporation of South Africa which together with closely associated companies accounts for 70 per cent of Charter Con- solidated's total investment in South Africa Q. 2238 Charter Consolidated differ from Slater Walker Securities in that they are in no case the largest shareholder The Chairman denied that Charter Consolidated can exercise any form of control over their investments but argued that they can exercise some influence This they do through direct and indirect representation on the boards through public statements and through close association with companies in particular with the Anglo American Corporation Charter Consolidated fully support the labour relations policies of the Anglo American Corporation Q. 2238 They even allow Anglo American to supply directors 1 They have a majority holding in Cape Asbestos Company Ltd. a British company which we examined separately Q. 2272-2330 EXPENDITURE COMMITTEE ah | Anglo for Charter representation on boards Q. 2238 2268-70 Where American lead Charter Consolidated are prepared to follow Q. 2239 The Chairman saw the need for an enlightened labour relations policy i@ order to fulfil their responsibility to shareholders for maintaining the value Consolidated of investments Q. 2238 Although no case has arisen Charter would reconsider their investment policy in " a company adopting retrogres sive labour relations policies " which would damage the company Q 2238 However it appears that they do not obtain regular information on wages in all of their associated companies Q. 2264 Re an 52. A nationalised industry British Steel Corporation B.S.C. is example of a minority shareholder which claimed to exercise all the influence which it possesses B.S.C. International Ltd. has a 35 per cent interese in a holding company I.P.S.A. which in turn has a 51 per cent interest in three operating companies B.S.C. is not the largest investor in I.P.S.A. corpor the majority of shares being held by the South African owned ation I.S.C.O.R. has only two representatives on the board II 630 B.S.C. has a definite policy " ... ... the British Steel Corporation is concerned as to the employment policies of all the companies in which directly or indirectly it owns even minority interests in South Africa and elsewhere throughout the world and has consistently used such influence as it possesses in those companies to further the improvement of working conditions and to ensure that they at least keep pace with the best current practices of good industrial employers in the country concerned II 631 However it appeared from their evidence that B.S.C.'s interest in South African wages was a recent one and had arisen within the previous eighteen months or two years Q. 1873 As a result of a B.S.C. initiative taken in December group 1972 the I.P.S.A. board with no kind of reluctance adopted a policy in relation to the African employees of its operating companies viz jobs to increase the proportion of Europeans in skilled and skilled to raise wages of the lowest and to ensure as an absolute minimum a proper living wage II 631 B.S.C. have no power to enforce a particular mode or speed of implementation of the policy that being left to the boards of the operating companies Q. 1899-1900 Nor have B.S.C. Corporation the right to demand information but they have found the companies " ex- tremely operative in giving information Q. 1891 The accept responsibility for the wages of African employees only to the extents which that we are able to influence the course of events and to the extent to " we are able to obtain information Q. 1891 5 ay 53. A number United Kingdom of witnesses claimed tax law to delegate that companies are constrained by the control of operations to their foreign subsidiaries These included Consolidated Gold Fields Q. 668-70 United Transport Overseas Q. 1825-31 Dunlop Holdings Q. 2515 the Chloride Group III 76 and B.A.T. Vol IV We understand from the two memoranda submitted by the Inland Revenue that the legal position is briefly as follows II 999 1001A company resident in the United Kingdom is liable to United Kingdom corporation tax on profits from its own opera- tions in South Africa But if its South African operation becomes resident in South Africa only the dividends received from the South African company are liable to United Kingdom corporation tax The position is made compli- cated by taxation relief but the Inland Revenue concluded that " in 24 FIFTH REPORT FROM THE ELECT ELECT ELECT some cases as witnesses have suggested tax liability could be increased " companies became resident in the United Kingdom II 1000 The ba rule laid down by the courts is that a company is resident where the centra establish management and control of its business are exercised II 999 To the extent to which British companies could exercise influence or control over wages and conditions without losing a tax advantage the Inland Revenue were asked to comment on the following four circumstances British company formulates policies on wages and conditions of a general nature as guidelines for the subsidiary in South Africa or as directives the subsidiary or it formulates specific policies on wages and conditions 1 guidelines or as directives The Inland Revenue stated that none of these circumstances would be sufficient in itself to make the subsidiary resident in the United Kingdom for tax purposes determination of residence depends on consideration of all the relevant factors Even the fourth case the issue of specific directives on wages and conditions would not be conclusive evidence of United Kingdom residence although it would normally be pointer to it II 1001 Moreover it is fairly clear from the evidence on some companies do issue instructions to South African subsidiaries on matters such as investment distribution and the quality of product without their subsidiaries being classed as resident in the United Kingdom wages conclude that some companies may have limited their control over wages o and conditions through a misapprehension and we return to this in Recommendations paragraph 191 > Zz acknowledged employe s 54. Almost all the companies which expressed a view responsibility in relation to the wages and conditions of African employees in their affiliated companies in South Africa Among them can be mentioned R.T.Z. Q. 742 Associated Portland Cement Q. 1498 Imperial Chemica Industries I.C.I. Q. 801 British Oxygen II 693 Jessel Securities Q. 2338 and Armitage Shanks Q. 1963 Virtually no company specifically d claimed responsibility in evidence Even Acrow Engineers Ltd. from acknow whom we obtained evidence only with difficulty and after delay ledged a sense of responsibility for wages and conditions in their associated company Q. 2815 However it is one thing to accept responsibility another to act upon it It is only when they keep well informed about the employment practices of affiliates and are willing to use their capacit for control and influence should the need arise that firms exercise the responsibility which they generally acknowledge There was much eviden that many companies had failed to do this in the past and we are no firms convinced that all are willing to do so in the future Among the who appeared reluctant to exercise responsibility in this sense were A. Cohen Q. 1778 841807-11 Johnson Matthey with regard to their associated company Q. 1688-98 and Dunlop Holdings Q. 2538-49 2564-70 asociated EXPENDITURE COMMITTEE 2 ELCTRONIALY Chapter 5 INDUSTRIAL RELATIONS FILED 55. The system of industrial relations workers is summarised in paragraphs Africano in South Africa as it affects 30-1 Here we are concerned Africano tow examine the industrial relations of the subsidiaries and associates of companies with their African employees We did not ask for information on this and thus most of our information was elicited evidence British written in oralo 10:57 representation_ 56. Nearly all the companies we questioned about African representation_ mentioned that some system of works committees or councils existed in formal_ their subsidiary or associate companies Others relying on less Con-- methods of communication included the mining associates of Con-- solidated Gold Fields and Charter Consolidated and the subsidiaries of Con- Pilkington Brothers which were only then moving to set up formal works Barclays,, committees and apparently subsidiaries of Johnson Matthey Bank and Rio Tinto I. 215 Q. 2242 2497 1707 1612-5 783-8 783-8 Some companies had formed works committees only recently but in Metalo Box they dated from 1950 I. 194 In most cases the African members of works committees were elected by the African employees In a few com- panies e.g. in associates of I.C.I. and subsidiaries of Associated Portlban^d Cement Manufacturers and Armitage Shanks wages were not discussed works committees Q. 869-71 1470 1974-5 In other cases a 2041 wages appeared to be lively issue the African wage increases of February in Unilever companies had resulted from representations by the African works committee I. 152 and British Oxygen stated that there had 1973 been successful works council representation on wages at one plant II 690 and that company interest in living levels went back to the start of works councils Q. 2142 works committee is 22002233CCPP44000107157959 negotiating body Companies generally acknowledged that the African a means of communication and consultation and not it has no power as such except the power to represent Q. 300 However it appeared from the evidence that the works committee 2023CP4001759 2023CP4001759 2023CP4001759 could be a useful means of communication the absence of trade unions and one which was needed 2023CP4001759 2023CP401759 57. Many witnesses stated that African trade unions are illegal in South Africa In some cases their statements may have reflected lack of know- ledge in others an opinion that workers organisations possessing no legal rights could not be termed trade unions No company volunteered the information that it had dealings with an African trade union While it is true that few companies were asked the question only Metal Box Company and British Oxygen specifically said that their sub- sidiary companies were in favour of the legal recognition of trade unions either of or including Africans Metal Box South Africa had publicly 26 FIFTH REPORT FROM THE ELEC ELEC ELEC stated their view to the Minister of Labour Q. 542-3 and the parent company claimed in their evidence that if a trade union were to be formed comprising numerous works committees we would do everything " recognise them Q. 514-8 British Oxygen preferred full union representa- tion to the works committee system and agreed that they had an obligation The to see to the organisation of their African workers Q. 2125 Chairman explained the view of their subsidiary company something has to be done to meet the frustration and the sense of deprivation which Africans have felt and still feel today it is in the company's best interests to see that the confrontation as skill and that can only be done through communication Q. 2128 such is handled wisely and with proper representation and proper oO 58. Representatives of the T.U.C. advocated that British companies in South Africa should recognise and negotiate with African trade unions " representing their workers We believe that people who are conversant with collective bargaining procedures and with the way in which they can develop good relations should at any rate within the law seek to extend that particular principle to South Africa Q. 2063 The legal status of employers to unions was said to be less important than the readiness of deal with them agreements should be negotiated and adhered to even T.UI. though they were not legally binding II 669 and Q. 2112 The representatives thought it reasonable that British companies should within the law encourage the organisation of African workers or at any rate should not hinder the formation and operation of African trade unions Q. 2063 They argued that the best hope for improvement in African wages and conditions lay in the development of free collective bargaining and that on wages voluntary collective bargaining will establish principles an levels which will be more appropriate than the exercise of a P.D.E Q. 2054 59. There are reasons why this exclusive emphasis on the encouragement encouragement and development of collective bargaining may be misplaced First existence of an abundant supply of unskilled labour would tend to weaken the bargaining power of unskilled workers Secondly the development an effective trade union movement would require a basic change registered Government policy It is true that there is support among both registered unions and employers associations for the granting of trade union rights to Africans have called For instance leaders of the largest trade union for the recognition of African unions and for T.U.C.S.A body the admission Africans to existing registered unions II 670 The Natal Employe Federation were reported to have recommended trade union rights for @ workers even before the wave of illegal strikes in Natal early in 1973 I. 312 These views notwithstanding Government policy was clearly stated in 1972 by the Minister of Labour the organisation of Bantu workers is neither in the interests of South Africa nor in the interests of improving their own wage position nor in the interests of promoting race relations ) The 1973 legislation on industrial relations makes no concessions in this respect For these reasons the encouragement or lack of hindrance of African trade unions by the subsidiaries and associates of British companies 1 House of Assembly Debates Hansard 1972 No. 14 Col. 6683 2 Bantu Labour Relations Regulation Amendment Act No. 70 of 1973 EXPENDITURE COMMITTEE 27 ELCTRONICALY might prove inadequate as a means of improving African wages and ELECTRONICALLY conditions fromELECTRONICALLY Such policies on their own would not absolve companies responsibility for the wages and conditions of their African employees ELCTRONICALY 60. British companies could use the power and influence which they possess ELECTRONICALLY over their subsidiaries and associates in South Africa to encourage lawful ELECTRONICALY development of collective bargaining with African employees While African workers remain unionised democratically elected African works FILED committees could perform a useful function provided that they were able FILED to discuss wages and conditions of employment The special difficulties - faced by African unions may be said to be partly due to the hostility of 2023 some employers A recent study of company practice in South Africa 2023 claims that active African leaders run the risk of being dismissed from their Oct jobs that some employers threaten to call the police if organisers visitOct refuse to allow meetings to be held at the place of work and notices of 18 meetings to be displayed or refuse to allow the collection of trade union 10:57 dues by means of deductions from pay It would be helpful if British 10:57 parent companies were to lay down a clear policy against practices which 10:57 hinder the development of African trade unions Like the T.U.C. AM we see no reason why companies should not meet and discuss with African ~ trade unions conditions of work rates of pay and so on Q. 2063 Even RICHLAND RICHLAND though the law safeguards the employer's strong position this is no obstacle to a company's recognising and engaging in collective bargaining with an RICHLAND African trade union if it represents a significant proportion of the African RICHLAND employees Such a policy would be in the term interest not only of RICHLAND - the African employees but also of the company Finally it would be helpful for parent companies to be well informed about industrial relations COM ON with African workers Group industrial relations directors would do well to be as concerned with industrial relations in South African subsidiaries and associates as group financial directors are with affiliates finances PLEAS - 203CP41759 1 Muriel Horrell South Africa's Workers S.A.I.R.R. 1969 pp 59-60 2 Such deductions require also the express authority of the Minister of Labour 395250 B 28 FIFTH REPORT FROM THE ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICAL Y ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY Chapter 6 ELECTRONICALY FILED WAGES AND FRINGE BENEFITS FILED FILED 61. Included in the information requested in our letter to British companies was the following I. 90-1 2023 The number of employees at each unit classified by grade and for function as may be appropriate For each such classification there should be a racial breakdown into Whites Asians Coloureds and Africans 0 oh. Comparative basic wage rates similarly classified Both he average and the lowest rate paid to each group should be shown Where these have recently been raised to a material extent or are about be raised this should be indicated and the appropriate date given " informationrelating aid Any deductions from pay to fringe benefits training facilities ge x The information received was not sufficiently uniform for us to carry a statistical analysis summarising the sample or comparing companies St did however make possible a study of recent African wage increases see relation paragraphs 69-70 and Table 6-1 of the lowest African wages in 66 to poverty datum line measurements see Tables 7-3 and 7-4 and individual racial and occupational wage structure see Chapter 8 within companies 62. African wages in affiliated companies are determinedin various ways see also paragraph 30 In some cases the company negotiates with a registered trade union membership of which Africans are excluded by law rates of pay which are then applied to all employees including Africans This arrangement operates for instance in Barclays National Bank Q. 1612 some associated companies of Slater Walker Q. 1148 and Dunlop South Africa Q.2520 ; in Dunlop the African works committee is allowed to be present at the negotiations Q. 2520 company is a member of an industry employers In many cases whichThe association negotiates agreements with registered trade unions in an Industrial Council the agreed rates for each job then becoming statutory minima throughout the industry Some companies pay no more than the statutory minima example the sugar estates of Tate and Lyle with respect to many of the~ir less skilled African employees Q. 1203 and I. 412-3 Courtaulds main subsidiary has established an Industrial Council specific to the company and negotiates all rates of pay with the registered trade union while liaising with the African works committee I. 27 8 63. Many companies consider the legal minimum wages determined by Industrial Councils or the Wage Board to be out of date or too low for other reasons For instance some Courtaulds subsidiaries I. 56 and subsidiaries of G.E.C. I. 171 I.C.I. I. 261 Associated Portland Cement EXPENDITURE COMMITTEE 29 ELCTRONICALY I. 522 Cadbury Schweppes Q. 1757 Associated British Foods II 853ELCTRONICALY statutory and associates of B.S.C. Q. 1878 pay significantly above the minima In April 1970 the minimum basic monthly pay in Metal Box South Africa equalled the legal minimum of R35 in May 1973 it was R78 ELCTRONICALY and double the legal minimum of R39 I. 190-1 It appeared that com- ELECTRONICALY panies were not prevented from raising wages except in gold- and coal- mining; Consolidated Gold Fields and Charter Consolidated's mining asso- ciates were free to pay wages only between the minimum and maximum rates laid down by the Chamber of Mines I. 216 and Q. 2266 However FILED this constraint no longer operates because the maximum was abandoned - early in 1973 I. 216 note Hardly any company mentioned a scarcity of 2023 unskilled labour as a factor which raised unskilled wages above the statutory minima Oct 64. Some wages are determined unilaterally by the company without nego- Oct tiation and in the absence of statutory minima For instance Unilever 18 themselves decide the wages of their employees of all races we have10:57 paid ahead of competition and for that reason there has not been the pres- 10:57 " sure for unionisation Q. 303 In I.C.I.'s associated company A.E. & C.I. AM the wages of African employees are covered neither by statute nor by AM company agreement with registered trade unions I. 271 2 RICHLAND 65. Despite the difficulties of making comparisons it is clear that there exist large differences in the wages paid to Africans within our sample These wage differences are only partly the result of differing company RICHLAND policies no doubt they reflect many other factors as well I. 311 The nature of the good or service produced influences the techniques of production to be used For instance it affects the proportions in which unskilled COMMON skilled and skilled labour are combined hence the average level ofCOMMON COMMON skill of African workers and hence their average earnings If its product requires high intensity and little African labour a firm can more easily afford to pay high wages to its African employees The ability to pay PLEAS high wages depends partly on the profitability of the firm which in turn depends partly on demand and partly on the degree of competition in the PLEAS industry Geographical wage differences arise from differences in the cost- - living in statutory wage determinations by area and in the operation of CA market forces in local labour markets The greater the employment of migrant labour or of female labour the less the average earnings of Africans # tend to be Migrant workers from the Bantu homelands and from neigh-2023CP401759 bouring countries are as is usual with migrant labour generally paid lower2023CP401759 wages than are permanent and stable workers having to support their 203CP401759 families in the cities The Industrial Council agreements and Wage Board 2023CP40 1759 determinations described above contribute to wage differences between2023CP401759 203CP401759 industries 66. The following examples illustrate how differences in African wages can arise even within companies Dunlop South Africa operate two tyre plants one in a large city Durban the other in a country town Ladysmith The average monthly earnings of African employees in the Durban plant were R96 and in the Ladysmith plant R59 Table opposite II 808 Because the Group Administration of Dunlop South Africa employs only skilled Africans the average monthly African wages at head office were R156 1 Classified in grades 7 and 8 Table opposite II 808 395250 B2 30 FIFTH REPORT FROM THE ELECELEC ELEC ibid The average net monthly earnings of a day labourer in the purp mill of Courtaulds largest subsidiary S.A.I.C.C.O.R. were R88 in April 1973 I. 26 for a male labourer on the S.A.I.C.C.O.R. forestry estates monthly income including payment in kind was R58 I. 30 It is policy of Associated British Foods subsidiary to set rates of pay for its 12,500 African workers not according to product process or profitability but according to the location of operations Thus average earnings of 1 " " skilled Africans ranged from R87 per month in " wage area " Johannes- burg to R62 in wage area 5 country districts and R56in wage area primarilyna company farms II 873-4 Consolidated Gold Fields are whereas mining group but they also own some industrial companies; all but a small proportion of the African miners are migrant labourers recruited mainly from other by the industrial companies average monthly earnings of about R55 including benefits countries the majority of Africans employed 209-13 The are stable dwellers I. workers were R28 in underground in kind I. 216 in the case of the cash and industrial companies African average monthly earnings varied from R61 to R I. 221 In another mining company the African average wage was RB1 per month I. 237-8 This was Palabora a subsidiary of R.T.Z. which is highly profitable and employs stable African employees in a very capital- intensive operation Q. 707 711 ro) I 67. It is relevant to compare wages in affiliated companies those in their competitors for markets or for labour The comparison with wages in the industry throws light on what companies can pay; and with wages in the locality on what companies have to pay in the absence of an industry minimum No company admitted to paying African employees 12s than most of its competitors Many of the companies which discussed this question claimed to pay more than most of their competitors For instance the Palabora mining subsidiary of R.T.Z. I. 240 and the subsidiaries of G.E.C. Q. 423 Associated Portland Cement Q. 1465 and U.T.O. Q. 1858 paid wages in excess of rates in their districts of operation A subsidiary of English Calico being located in a rural area close to a Bantu homeland and therefore in a locality not subject to statutory minimum wages paid wages as high as those of any company in the area I. 538 indeed their employers recent wage increases had met with criticism from other local employers Q. 1560 Metal Box South Africa I. 193 the subsidiary of Associated were British Foods II 853 and the subsidiaries of Courtaulds I. 17 and 33 within among the companies which claimed to pay some of the highest rates their respective industries Not all companies were as forthright as Slater recent Walker who explained how African wages had been set prior to their " wage increases In the absence of trade unions and of labour scarcity He factor that determines the rates and conditions of living is the strict economic factor of the amount one has to pay in order to get people to come from homelands which is very low Q. 1150 68. The only precise statistical comparison we have of African wages in affiliated companies with those in other companies in South Africa is from a private survey conducted in March 1972. This covered over 188,000 African employees in 1,086 companies Information relating to the 185 companies with British affiliations was extracted from the sample at 1 Productivity and Wage Association Wage Survey 1971-72 Johannesburg pp 3-28 EXPENDITURE COMMITTEE 31m ELECTRONICALLY ELECTRONICALLY the request of the United Kingdom South Africa Trade Association and was published in evidence II 1021 The following summary shows average wages by grade of job in ascending order of skill from grade 1 _ Grade | 1 wage Rand per month Average British companies companies affiliated companies companies | 45.97 42.85 | 2|3|4 | 54.03 54.03 | 57.37 54'86 | 65 62 5 | 72.84 72.97 | 6 ! 08 | 89 | to grade 8 ELECTRONICALLY ELECTRONICALLY | 7 8 ELECTRONICAL Y ELECTRONICAL Y | | 87.44 95.54 108 FILED 128 FILED FILED of wage panies com- com- | 107 | 106 In In comparison with the sample as a " panies were higher for the unskilled {| 105 104 | 100 101 92 whole wages in affiliated " " " and skilled grades and 2023 2023 com- 2023 lower Oct for the " skilled grades However the differences were not great in percentage terms and possibly could even be explained in terms of different 18 industrial and regional patterns Moreover this comparison may be unfair 10:57 to British firms Nearly 9,000 questionnaires were sent out but little more 10:57 than 1,000 were completed Q. 44 no doubt it was the 10:57 paying companies which responded Q. 915 Since the organisers of the survey felt AM that a disproportionate number of affiliated companies had operated - Q. 44 it is possible that British affiliates are being compared with only the RICHLAND better South African employers Taken at its face value however the RICHLAND survey suggests that in March 1972 the subsidiaries and associates of British RICHLAND companies tended to pay roughly the going rate to African employees in RICHLAND South Africa RICHLAND 69. Table 6-1 sets out the size and timing of some of the increases in COMMON African wages during 1973 reported by our industrial witnesses Very few COMMON witnesses failed to report some increase in African wages since the end of COMMON 1972. In in 1973. some April cases additional increases were planned to take place later COMMON was most frequently mentioned as a month in which the COMMON increases took place well over half our oral witnesses and a significant PLEAS PLEAS proportion of those who gave written evidence had given increases in April The course of events which is relevant to this activity runs as follows - Early in February there was a wide outbreak of illegal strikes among African workers in Natal I. 92 From 12th March onwards the wages paid to affiliated companies in South Africa received adverse publicity in British newspapers On 4th April the Committee announced its intention of carrying out an investigation and on 19th April our letter requiring information by 18th May was sent to British companies Also 203CP4 1759 relevant is the rapid increase in the living in South Africa 10 per cent between March 1972 and March -which meant that wage increases of similar magnitude were necessary in order to maintain living standards All these factors may have contributed to the large wage increases which we have observed; it is not at all easy to isolate the importance of any of them However we did ask a number of oral witnesses the reasons for their recent wage increases 70. Some companies denied that recent publicity had been responsible for their wage increases For instance B.L.M.C. said that the strikes in Durban ,, Wages per week are converted to a monthly basis by multiplying by 4+ 2 Assuming the unskilled grade to be 1 and 2 skilled 3-6 and skilled 7 and paragraph 24 footnote 5 Statistics 3 Republic of South Africa Department of Statistics Bulletin of Statistics June Vol 7 No. 2 Table 3.3.2 8 see 1973 395250 B ELCTRONICALY TABLE 6-1 Some recent increases made in African wages by affiliated companies of firms giving oral evidence ELCTRONIALY Parent Company Courtaulds Subsidiary or Associate Category ofLabour and Pay S.A.I.C.C.O.R. ... Basic starting rate for lowest Date of increase Percentage increase Source Between December 1972 42 I. 23-4 and April 1973 B.L.M.C. Unilever ... Leyland South Africa *** Unilever South Africa ... Basic wage of unskilled African employees in car division Minimum weekly wage of newly joined August 1973 April 1973 February 1973 ... 23 23 I. 24 II 1037-40 I. 104 108 FILED - 16 I. 151-2 G.E.C. All workers in lowest grade Basic rates of lowest adult employees 1st April 1973 Late 1973 202 16 I. 171 175 606 II 1040 Metal Box Metal Box South Africa Minimum basic rate February March and 46 191 May 1973 Consolidated Gold Fields Gold Fields of South African wages in mining Africa R.T.Z. Palabora Minimum rate for lowest grade March 1973 April 1973 POST 25 I. 216 54 I. 238 I.C.I. : All C.I. A.E. & C.I. Average African wages January 1973 African average wage rates in lowest grade 1st April 1973 at Modderfontein FROMATHE About 10 I. 261 271 286 20 I. 271 279 Slater Walker N.T.E. Basic wages of African men in estates 1st April and 2nd July 100 I. 391 FROMATHE division African wages in industrial division 1971973 3 1st April and 2nd July 10+ I. 380 1973 Tate and Lyle Illovo Sugar Estates Minimum rate for field workers April and May 1973 223 I. 413 1-12 Associated Portland Whites Cement ... RICHLAND Cement Wages of factory workersin grades 1-12 1st May 1973 223 I. 413 Lowest wage of African labourer in 1st March and 10th May 37 I. 524 Witwatersrand area 1973 Lowest wage of African labourer in factories 26th March 1973 41 I. I. 522-3 English Calico Natal Thread Lowest basic rate for trained Africans March April and June 147 I.I. 537 - 1973 Barclays Bank Barclays National Bank All clerical wages Cleaners urban areas Cleaners rural areas 1st April 1973 About 12 I. I. 555 { COM N 1st August and 1st 10 IIII 1044-5 October 1973 58 PLEA Percentage Parent Company Subsidiary or Associate Category of Labour and Pay 39520 B.S.C. Shanks employees Armitage . .. All _ ... Minimum rate of lowest grade of | &Co. .. Shanks ... .. Lowest level of wages vee Date of increase increase Source 16th March 1973 te 7th April 1973 ... tee 12.5 II 632 40 II 647 Q. 1977 British Oxygen ... .. African Oxygen .. European wages se sae .. February 1973 ... os 10 Q. 2209 Johnson Matthey ... Johnson Matthey .. African wages wee vee tee .. April 1973 25 Q. 1708 Cadbury Cadbury Schweppes Africa Schweppes Male basic rates we wee wee .. January and June 1973 South Africa 13+ II 596-7 U.T.O. we ... Vaal Transport Corpora- Operators wages tee tee ww 1st and April About 50 II 960 January ELCTRONIAY tion 1973 FILE Cape Asbestos .. Mining companies ... Average wage of African employees . 1st May 1973 wee 25 II 732 Jessel Securities ... .. Wandrag Asbestos .. Average wage of African employees April 1973 ase ae 25 II 760 August 1973 se 20 II 1046 African PENTOFB~ Pilkington Bros. ... Alpha Anthracite .. P.B. South Africa ... Average wage of African employees ... Rates for African posts .. April 1973 vee August 1973 May 1973 wee 27 II 761 wee 20 II 1046 to 44 II 781-3 Dunlop Holdings employees End increase ... Dunlop South Africa ... Basic wage of African grade at main tyre plant inin lowest March 1973 66 over last year " 9.8 Table opposite II 808 G.U.S. oe -.. Lewis Stores ... Average wage of Whites wee - 1st April 1973 wee 7.5 II 829 PENTOFB~ Durban Bag ... Average wage of Whites vee 1st April 1973 wee 9 II 840 Associated British Foods Premier Milling .. Average wage of Whites sas . February 1973 ... . About 30 II 853 Notes MOT^ Where more than one increase occurred the percentage increase refers to the combinedincreases Where a subsequentincrease was reportedin an updating memorandum thisis shown separately A plus sign after the percentage indicates that not all of theincreases are included AM - RIC-HLAND B4 B4 ,,Source Management Responsibility and African Employment in South Africa Report of a Panel of Investigation Johannesburg June 1973 p 88 COMN PLE 34 FIFTH REPORT FROM THE ELECTR ELECTR ELECTR ELECTR had been a spur to action Q. 239 R.T.Z. claimed that wages were on steady accelerating upward path Q. 731 wage increases in the subsidiary of of Associated Portland Cement had been determined the increase in the Government cement by the size and price Q. 1414 timing timing 1466 and Barclays wage increase was the result of lengthy negotiations Q. 1608 Unilever claimed that the publicity and our inquiry had improved their 342 knowledge of the terms of employment in Unilever South Africa but had not in itself affected company policy on wages Q. 319 Q. In some companies e.g. those affiliated to Tate and Lyle I. 413 and Consolidated Gold Fields I. 216 the coincided with industry caodjmupsatnmieensts ipnucbrleiacsietsy On the other hand many frankly admitted that the recent or our inquiry had resulted in or contributed to wage increases for Africans These included G.E.C. Q. 424 Slater Walker I. 389-91 English Canco Q. 1501 Johnson Matthey Q.1708 Armitage Shanks Q.2018 and Great Universal Stores G.U.S. Q. 2598 Courtaulds had used the recent climate to bring home very forcefully to our South African friends and colleagues that there is room for a faster rate of improvement Q. 91 3 colleagues > 71. We received a great deal of evidence on benefits In many cases the term proved to be kind were substantial and in some cases rivalled value fringe the provision of misleading benefits cash payments in The importance of benefits in kind stemmed in part from the widespread employment of migrant African workers The practice of Consolidated Gold Fields associated company over 60,000 African migrant workers in its gold illustrates the form and nature of these benefits I. 210 The migrant workers are accommodated free of charge in blocks divisted into rooms each room usually containing between 10 and 20 men Heating hot and cold water flush toilets and electric lighting are provided Africans receive free food designed to provide 4,500 calories a day available all times and in unlimited quantities; free Bantu beer is issued Food and accommodation are subject to strict Government regulations on minimum standards Literacy and handicraft classes films and a wide range of sports facilities are provided free of charge There are free medical services of the highest standard Facilities are available for Africans either to save their cash earnings or to remit them home The company valued benefits kind at between R25 and R30 per month roughly equal to the average basic cash wage of African underground workers of R28 per month I. 21 It is difficult for us to gauge from afar the standards of accommodation and the quality and by the of life in the hostels provided by Gold Fields of South many other companies employing migrant workers Affica s 72. Housing assistance given to African employees varied considerably depending partly on the location of operations and on the extent of migrant labour Workers on the farms are generally accommodated in compounds or houses provided by the company Standards of accommodation amenities and sanitation can be low e.g. both Courtaulds I. 30 and Slater Walker I. 390 had recently decided on improvement programmes on their estates It may be possible for companies to build or improve the family housing of their employees living nearby in a Bantu homeland The mining subsidiary of R.T.Z. at Palabora had negotiated with Government for the company to build and administer owning housing of a high standard in a nearby Bantu homeland for their African employees I. 241 Q2. 739 EXPENDITURE COMMITTEE 35m ELECTRONICAL The recrea- company had also provided a community centre a hospital and ELCTRONICAL tional facilities in the emerging township I. 242 Courtaulds subsidiary had built houses for their employees in the African township near their rural mill but had been prevented from building houses larger than the Govern- ment standard Q. 142 Many companies operating in the cities employ ELECTRONICALL stable African labour force housed with their families in townships see paragraph cases 128 company housing assistance may not be necessary in these FILED FILED 73. Firms employing migrant labourers generally provide their own hostels 2023 or put workers in municipal hostels The standards of hostel accommodation2023 in South Africa are said to be poor in many cases Private employers who hurriedly put up hostels for their expanding labour forces may be responsible for this It is not possible for us to assess standards of accom- modation in the companies from which we received ; evidence but in some cases the companies themselves were dissatisfied For instance Jessel Securities were not happy by a long chalk with their associated coal10:57 mine they were in the process of improving standards and rebuilding theAM compound Q. 2386 A.E. & C.I. the associate of I.C.I. had decided in 1972 that because the migrant system looked like being " permanent RICHLAND they would embark on a R6 million programme of improving the accom- RICHLAND modation in their hostels I. 273 Q. 847 It is right that British companies should be familiar with the living conditions of migrant employees and RICHLAND should ensure that high standards of hostel accommodation are achieved RICHLAND and maintained However in Chapter 9 we express our reservations about - COM ON the migrant system itself 74. Those companies which employ migrant labour generally provide free ; COMMON food or rations at the company hostels normally these are prescribed diets COMMON with high nutritional content However many other companies provide works canteens in which free or subsidised meals are made available to their African PLEAS employees For example the subsidiary of Associated British Foods sub- PLEAS sidised canteen facilities for Whites in most of their operating units where the number of employees justified it although there were few canteen CASE facilities for Whites In 1972 a decision was taken to extend the scheme for CASE Whites to all operating units Meals were planned under the group's medical officer of health II 855-6 The prevalence of canteen facilitie202s3CP401759 for Africans stems from a feeling on the part of many employers that Africans 2023CP40 1759 would otherwise not be nutritiously fed e.g. II 741 Q. 2355 75. There were wide differences in the provision of medical services 203CP401759 for2023CP401759 Africans Companies employing migrant labour generally gave free medical 2023CP40 1759 attention and hospitalisation for these workers e.g. affiliates of Associated 2023CP40 1759 Portland Cement I. 525 Cape Asbestos II 733 and I.C.I. at A.E. & C.I. 2023CP4001759 I. 272 Many companies provided medical attention for employees only at the place of work e.g. affiliates of B.L.M.C. I. 105 Q. 216 G.E.C. I. 172 Metal Box I. 191 and Unilever I. 153 Unilever explained that Africans had not shown an interest in the medical aid scheme available to employees because of the cost provincial and state hospitals at and because treatment was available at notional cost I. 153 State facilities ,, See Francis Wilson op cit including pp 10 41-2 52 68 71-2 74 2 Ibid p 52 36 FIFTH REPORT FROM THE ELECT ELECT " " were quite reasonable for Africans in the urban districts in which Unilever operated but it would be a different matter if we were in the rural areas " Q. 337 In comprehensive some cases companies operating in rural areas medical services for employees and their families provided e.g. Date and Lyle's subsidiary in the case of resident families I. 414 416 and Courtaulds estates I. 30 R.T.Z.'s subsidiary at Palabora was trying to recruit the services of three African doctors to initiate a medical established Tan scheme for African employees and their families it had established decided interim clinicin the townshipin addition to the mine clinic and had benefit to contribute to the cost of a township hospital I. 239 242 Both R.TZ. I. 239 and Courtaulds Q. 145 said that their plans for improving their facilities were being delayed by a shortage of medical staff It would and right for companies concerned with the welfare of African employees their families to discover whether there was a need for medical services addition to those provided by the State and if so how best to meet the w 76. Some but not all companies have a pension scheme for their African workers our oral witnesses those whose affiliates appeared Among emplnoyoeets provide a pension scheme for any or for some of their African included Consolidated Gold Fields I. 212-5 Marchwiel Holdings I. 502 English Calico Q. 1531 I.C.I. with respect to their associate A.E. & G. I. 272 U.T.O. II 933 Cape Asbestos II 733 and Jessel Securities II 745-64 English Calico had been deterred by the high initial turnover at their rural factory but admitted that there is now a case for looking at migrant this again Q. 1531 In some of these companies it is the use of workers which prevents a pension scheme from being extended to all employees However as Associated British Foods have found Q. 27113 a pension fund can be extended to cover migrant workers provided that unbroken service is not required Indeed a pension scheme would encourage migrant workers to return so raising their efficiency and encouraging the acquisition of skills see paragraph 130 There are employers including the affiliates of Slater Walker I. 380 392 and G.U.S. II 828 which simply African make ex gratia payments to some of their African employees now G.E.C. I. 172 B.L.M.C. I. 105 and other companies include their African employees in pension schemes which are organised on an industry basis Some companies have pension schemes which are the same for the different races e.g. Unilever South Africa I. 153 Barclays National Bank I. 5335 and Pilkingtons subsidiaries II 778 However it was common to find schemes classified by race as in the subsidiaries of Johnson Matthey II 580-1 in and A. Cohen II 613 Metal Box justified the racial differences in their pension interruptiaornrsangements 538 There is in terms of the different social structure of service were not penalised in the case of Africans Q. 538 reason to believe that the average expectation of life differs significantly for Africans and Whites Flexibility or racial distinctions in pension schemes may be called for to take account of this 77. We were told that the State pension for a European was R7 per month I. 76 Companies which do not provide a pension scheme for their African employees might well consider whether the State pension is adequate to maintain them in retirement We see point in Courtaulds decision to disregard the State pension which is subject to a stringent means test EXPENDITURE COMMITTEE 37m ELCTRONICALY in considering the adequacy of the company pension scheme ibid Firms whose employees are members of industry pension schemes may wish to follow Courtaulds example with respect to some of in deciding to improve upon these pension schemes their garment I. 45 52 65 companies 69 Com- ELECTRONICALLY ELCTRONICALY panies which employ African migrant workers could ensure that returning ELECTRONICALY migrants were included in a pension scheme While there may be some ELECTRONICALLY case for racial distinctions in pension schemes it is important to ensure that FILED racial differences in pensions do not operate to the disadvantage of Africans FILED FILED 78. Some companies help with the education of their African employees - or of their children or explained why they were of the African community in preparing a scheme to provide general bursaries 2023 G.E.C. for the 2023 higher education of their African employees children their big problem Oct starts with education Q. 452 B.S.C. considered contributions to Non-Oct White education to be of fundamental importance in improving the working 18 " capabilities of Whites and thereby their standard of living II 629 11:03 Accordingly B.S.C. South Africa had decided to allocate 2 per cent of its total net annual income in bursaries and grants for the education of South Africans on a racial basis ; discussions were proceeding with the educa- AM tional institutions and bursary administrators which would be involved - ibid Metal Box South Africa regarded illiteracy as a barrier to the RICHLAND training and advancement of Africans and therefore operated literacy pro- grammes at its factories I. 192 The subsidiaries of British Oxygen II 689 RICHLAND and Associated British Foods II 855 provided grants for the universityRICHLAND education of the children of employees of all ; races but in both companies - COMMON the grants were extended to secondary education in the case of Africans COMMON because Africans unlike Whites were required to contribute to the costs of secondary education COMMON 79. In some cases the response of Africans to the opportunities for COM ON education provided by companies had been small For instance I.C.I. South Africa had received no requests from White employees for assistance PLEAS in furthering their education and few requests from their children for university PLEAS bursaries I. 269 Only one African had applied for a university grant - available to the children of Barclays National Bank employees Q. 1616 ; CASE there were eleven applicants for the secondary school grants introduced CASCEASE 1972 although Barclays would have been prepared to make 100 grants CASE Q. 1617 British Oxygen's subsidiary was planning to provide study rooms 2023CP40 1759 for African employees in order to improve the response to their scheme for 2023CP40 1759 furthering education Q. 2145 Many of the company schemes to help 2023CP40 1759 African education had been introduced within the previous year or were still 2023CP40 1759 being ; introduced in those cases where response is weak it will no doubt2023CP401759 improve provided that schemes are carefully adapted to African needs We 2023CP40 1759 were told that many Africans now attach great importance to education 2023CP4001759 Q. 895 1082 The numerous British companies which offer no educational assistance to Africans miss an opportunity to help in a way which would be highly valued 80. The problems and insecurity of Africans resulting from Government controls over movement residence and employment were noted in paragraphs 27-29 Some companies provide African employees with advice and assistance when problems arise e.g. concerning pass law infringements work permits and authority to move from one place to another Firms mentioning such 38 FIFTH REPORT FROM THE 14 e) assistance included I.C.I. South Africa I. 269 Pilkingtons subsidiaries I 779 International Computers Holdings Vol IV Mather and Platt lead Vol IV and John Brown III 56 These companies have provided a which other affiliated companies may well wish to follow = . 81. Our study of fringe benefits in affiliated companies has brought out wide disparities For instance a number of memoranda made negligible mention or no mention at all of fringe benefits for African employees These included Redland Vol IV Cape Asbestos companies other than mining II 733 some associate companies of Jessel Securities II 744-64 and Clarke Chapman Thompson Vol IV On the other hand Courtaulds claimed that fringe benefits at the mill of their main subsidiary had been improved to what is thought to be the best standards in South Africa " "/ in some respects were better than those currently available in some Courtaulds factories in Britain I. 14 It appeared that there had been considerable improvements and extensions of fringe benefits during 1972 and 1973 ; many were being planned or implemented at the time of our inquiry for 82. Pilkingtons subsidiary provided a wide range of fringe benefits their migrant African employees costing about R20 per month per employee II 778-9 It was part of their general philosophy to try all greater in gaps gaps which 2430 Pilkingtons did would depend upon not see their fringe " " the social infrastructure benefits as a barrier to greater reliance or to the development of collective bargaining at the current stage of sophistication of their African employees Q. 2489 2506 In answer to the suggestion that fringe benefits implied paternalism Pilkingtons argued that their African employees generally welcomed the fringe benefits rather than the equivalent increase in wages Q. 2499 There is a case for companies providing benefits in kind for employees if the benefits would otherwise provided inadequately or not at all Fringe benefits would no doubt be more valued if they were based on detailed consultation with African employees about their wants and needs affiliated companies need not British- However the benefits provided by be confined to their own employees For instance Staflex International only four Africans employed in their distribution units agreed with effect from 1st January 1973 to distribute among about 5 per cent of the budgeted pre profits of the local subsidiary four organisations devoted to African welfare Vol IV 203CP401759 2023CP401759 EXPENDITURE COMMITTEE ELECTRONICAL Y ELECTRONICALLY ELCTRONIALY Chapter 7 POVERTY DATUM LINE FILED^ FILED^ 83. " " Much of our inquiry concerned the poverty datum line P.D.L. 66 " " minimum effective level or effective minimum level M.E.L. as criteri for minimum wages in South Africa The various studies now available have not been made by the authorities even an official living index appropriate to Africans is published by university departments and other private bodies It is a measure of the concern felt by such people that so many P.D.L. studies have been made At least two large multinational companies Unilever Q. 313 and Barclays Bank Q. 1599 mentioned that which they had not encountered such studies in other wage countries in they had business interests AM 84. The concept of a poverty line was developed in England by Rowntree at the turn of the century His work was later improved by Bowley The P.D.L. a modification of Bowley's method was first calculated in South Africa by Batson in 1940. Various subsequent studies modelled on Batson's work were made periodically during the post period but the P.D.L. reached a full flowering only in 1973 Table 7-1 shows no less 37 estimates relating to 1973 on which we have received information than ro) = 85. The table shows significant differences in the estimates of different compilers even for the same place at the same time These differences arise from the arbitrary nature of the P.D.L. " It is intended to measure then lowest possible amount on which a family can live under humanly decent conditions in the short run It is normally composed of the retail cOSED of the following items sufficient food to provide each member of the house- hold taking account of age and sex with the nutritional requirements for health also clothing fuel and lighting cleaning materials housing and transport to and from work The cost of some components e.g. housing and transport is normally based on average actual expenditures and that ofS other items on the imputed minimum requirements for health or decency NN 86. Since the variability and arbitrariness of P.D.L. measures raises the question of their value in setting some explanation is required of the differences among the studies most frequently cited by witnesses These include the University of Natal's estimate for Durban the Johannesburgon Chamber of Commerce's estimate for Soweto Johannesburg Professor 1 B. Seebohm Rowntree Poverty a Study of Town Life London 1901 2 A. L. Bowley and A. R. Burnett Livelihood and Poverty London 1915 3 E. Batson Social Survey of Cape Town Reports Nos SS1-30 School of Social Science and Social Administration University of Cape Town 1941-44 4 P. N. Pillay A Poverty Datum Line Study among Africans in Durban Department of Economics University of Natal Occasional Paper No. 3 June 1973 5 Department of Economics University of Natal op cit 6 Johannesburg Chamber of Commerce circular to members details of PDL November January 1973 published in evidence I. 362 40 FIFTH REPORT FROM THE -- ---- ------ -- -- Potgieter's study of the main centres and the comprehensive survey the Bureau of Market Research which was published too late for witnesses to take into account Among companies supporting the survey financially were 26 subsidiaries and associates of British companies covered by our inquiry Estimates for Durban and Johannesburg are shown in Table 7-2 7-2 87. Discrepancies in the estimates of food costs are the main reason f the differences in the P.D.L. for Durban The University of Natal figure js based on the cost in the shops used by Africans of a culturally neutral minimum diet necessary for health drawn up by the National Nutrition Council The other two studies make use of the food ration scales based on American minimum nutrition standards but adapted to African eating habits produced by the Department of Health These imply that an African adult male is allowed no more than 25 cents per day for food The eating habits to which the nutritional requirements were adapted may the products of poverty rather than choice = 88. The Bureau of Market Research estimated a minimum subsisten level M.S.L. which is very similar to the P.D.L. of other studies However in addition to the normal items it includes taxes and replacement of household equipment Despite these additions the Bureau's estimate generally the lowest largely as a result of its assessment of food and clothing requirements The Chamber of Commerce's estimate of the P.D.L. includes allowances for medical and educational expenses and taxes Because the P.D.L. nevertheless excludes some fairly essential items the Chamber added six further items costing R9 per month to the P.D.L. estimate to derive its recommended minimum wage All this is shown in Table 7-2 8 89. The P.D.L. excludes many items on which expenditure is actually made by African households Because Batson in his original study found that household income had to exceed the P.D.L. by half as much again before households actually spent on the items included in the P.D.L. t Some stipulated amount he introduced the M.E.L. and estimated it as 150 per cent of the P.D.L. I. 352 This has become a standard rule of thumb recent support has been found for the rule African household expenditure studies show that expenditure on items excluded from the P.D.L. is about 50 per cent of expenditure on the items which are included The Bureau ee 1 J. F. Potgieter The Poverty Datum Line in the Major Urban Centres of the Republ Institute for Planning Research University of Port Elizabeth Research Report No. #3, April 1973 oe) 2 P. A. Nel M. Loubser and J. J. A. Steenekemp The Minimum Subsistence Level the Minimum Humane Standard of Living of Whites Living in the Main Urban Areas the Republic of South Africa May 1973 Bureau of Market Research University of South Africa Research Report No. 33. The list of subscribers taken from the cover of the publication includes the following affiliates of British companies AE & CI African Oxygen Barclays Bank International Beecham South Africa BP Southern Africa Cadbury Schweppes S.A. CompAir S.A. Dorman Long Africa Dunlop S.A. Everite Haggie Rand International Computers S.A. Leyland Motor Corporation of South Africa Lintas Lion Match Company Marley S.A. Metal Box Company of South Africa Palabora Mining Company Premier Milling Company Reckitt and Colman S.A. Shell S.A. Smith and Nephew South African Nylon Spinners Standard Bank of South Africa Stewarts and Lloyds of South Africa Unilever S.A. and Rowntree 3 Department of Economics op cit pp 3-4 4 Institute for Planning Research op cit pp 6-7 and Bureau of Market Research op cit pp 11 17 5 Bureau of Market Research op cit A29 Table DU 6 See Department of Economics op cit p 18 7 Department of Economics University of Natal op cit p 21 Main Cities Cape Town Durban Johannesburg ... Port Elizabeth ... Pretoria Other Places Alberton Benoni ... Boksburg Bloemfontein ... TABLE 7-1 Poverty Datum Line Studies for African Households in Different Areas PDL MEL Assumed Rand per Rand per Date family Estimator Source month month size ELCTRONIAY 81.80 122.70 March 1973 ... 199 Institute for Planning Research U.P.E. 123 Relations 92.49 138.73 April 1973 199 S.A. Institute of Race 123 89.44 134.16 February 1973 6 Commission University of Cape 123 FILE WagesTown 77.76 c 100.13 May 1973 FILE 5.9 Bureau of Market Research University of 4 South Africa 78.13 117.19 March 1973 6 Institute for Planning Research U.P.E. 15 94.00 Department FILE 69.87 143.58 March 1973 ... 91.02 May 1973 5.2 of Economics University of 15 Natal 5.7 Bureau of Market Research University of 4 South Africa 74.68 112.02 March 1973 6 Institute for Planning Research U.P.E. 194 87.12 63.79 117.09 82.17 March 1973 May 1973 S Johannesburg Chamber of Commerce 194 5.2 Bureau of Market Research University of 194 South Africa 18M 78.58 117.87 March 1973 ... 6 Institute for Planning Research U.P.E. 1 68.34 90.74 May 1973 5.4 Bureau of Market Research University of 4 South Africa 75.44 113.16 March 1973 6 Institute for Planning Research U.P.E. 1 61.12 80.06 May 1973 5.8 Bureau of Market Research University of 4 - South Africa 68.37 68.65 68.76 74.55 89.77 May 1973 6 91.66 May 1973 6 89.66 May 1973 6 111.83 March 1973 ... 6 RICHLAND Bureau of Market Research University of 4 South Africa Bureau of Market Research University of 4 South Africa - Bureau of Market Research University of 4 South Africa Institute for Planning Research U.P.E. 1 COMN PLE ELECTRONICALY ELECTRONICALY Brakpan East London ... Empangeni Germiston Grahamstown ... PDL Rand per month 72.08 76.63 63.60 70.12 70.50 66.32 Kempton Park Kimberley we we King William's Town ... Kroonstad we Krugersdorp Ladysmith Parys ... Roodepoort Springs ... Transkei Rural Area ... 71.08 78.48 68.96 83.55 65.11 74.66 85.69 70.25 68.46 53.73 Uitenhage 76.44 72.93 Vereeniging 70.50 Vanderbijlpark Vaal Triangle ... _ 89.48 MEL Assumed Rand per Date family month size Estimator Source ELCTRONIALY 93.49 114.95 84.02 May 1973 March 1973 May 1973 6 Bureau of Market Research University of 4 South Africa 6 Institute for Planning Research U.P.E. 1 5.2 Bureau of Market Research University of 4 105.18 March 1973 *** 6 92.19 May 1973 6 South Africa Institute FILED for Social Research University of 7 Natal Bureau of Market Research University of 4 -2FTY South Africa -2FTY 99.48 March 1973 ... 6 Wages and Economics Commission Rhodes 7 University 91.15 May 1973 Bureau of Market Research University of 4 South Africa 117.72 March 1973 666 103.44 March 1973 ... 666 125.32 March 1973 ... 666 Institute for Planning Research U.P.E. 1 Institute for Planning Research U.P.E. 1 GEP98T1 Workers Union of South Africa 7 Garmente g 84.48 111.99 May 1973 March 1973 FROMATHE 5.9 Bureau of Market Research University of 4 South Africa 6 Institute for Planning Research U.P.E. 17 128.54 March 1973 6 91.88 May 1973 10 Workers Union of South Africa 17 Garemegnt FROMATHE Bureau of Market Research University of 4 South Africa 88.83 May 1973 10 Bureau of Market Research University of 4 December 80.59 1968 7 114.66 March 1973 ... 6 RICHLAND South Africa J. G. B. Maree M.A. dissertation 8 Institute for Planning Research U.P.E. 1 - 95.94 May 1973 5.17 Bureau of Market Research University of 4 South Africa 92.84 May 1973 6 Bureau of Market Research University of 4 134.22 February 1973 5 South Africa Vereeniging Chamber of Commerce 7 COMN PLEA PLEA 66 a Minimum subsistence level " 66 b Minimum humane standard of living " c The estimate relates to the Cape Peninsula and not just to Cape Town " " d The bracketed figure is the minimum monthly recommended wage derived as the PDL plus the cost of certain other essential items d We have received no information on the details of these estimates ELCTRONIAY f The estimates relate to the actual average size of those multiple households in the sample used (g) Separate comparable estimates for another race or races have been made by the estimator h This estimate was the latest available Sources 1. J. F. Potgieter The Poverty Datum Line in the Major Urban Centres of the Republic Institute for Planning Research University of Port Elizabeth FILEXPENDZUDET Research Paper No. 12 April 1973 2. Michael Hubbard The Poverty Datum Line and Effective Minimum Level for African and Coloured Families in Cape Town April 1973 South African Institute of Race Relations mimeo 3. University of Cape Town Wages Commission of the Students Representative Council An Updated Memorandum Presenting Information on Black Wages and Poverty in the Cape Town Area mimeo February 1973 FILEXPNDZUT 4. P. A. Nel M. Loubser and J. J. A. Steenekamp The Minimum Subsistence Level and the Minimum Humane Standard ofLiving ofWhites Living in the Main Urban Areas of the Republic of South Africa May 1973 Bureau of Market Research University of South Africa Research Report No. 33 1973 1973 FILEXPENDZUET N. Pillay A Poverty Datum Line Study among Africans in Durban Department of Economics University of Natal Occasional Paper No. 3 June 6. Johannesburg Chamber of Commerce Monthly Budget Family of Soweto Johannesburg Circular to members July 1973 7. South African Institute of Race Relations Poverty Datum Lines in Various Areas 1973 mimeo RR 73 8. Evidence I.361 MIOGA - RIC-HLAND COMN PLE Food Clothing Cleansing Fuel and light Accommodation Transport Taxes we we wee we Replacement of household equipment Medical expenses wee aes Education PDL . Recreation and entertainment Personal care ane Furniture wee we wee Crockery cooking utensils etc. ... Writing materials etc. Saving for emergencies Minimum recommended wage ELCTRONIALY TABLE 7-2 Components of PDL and MEL in Durban and Johannesburg ELCTRONIALY Durban Johannesburg Institute for Bureau of Chamber of Institute for Bureau of FILED University of Natal March 1973 Planning Research March 1973 Market Research May 1973 Commerce January 1973 Planning Research March 1973 Market Research May 1973 - Rand Rand Rand Rand Rand Rand AGTI 69.11 38.37 38.03 43.02 33.38 31.29 8.67 19.72 10.23 19.50 9.17 11.00 2.51 0.93 0.75 1.00 1.88 8.588.58 4.27 4.55 7.427.42 4.77 fi^kqYT1FROMAE 6.72 6.71 7.03 8.50 8.68 8.01 5.11 4.76 5.71 5.98 5.70 6.63 0.75 0.97 _ 0.64 _ __ _ _ 2.92 - 2.53 _ _ 0.51 _ _ _ 94.00 _ 78.13 _ 2.53 69.87 78.06 _ 74.68 - 63.79 fi^kqYT1FROMAE _ 3.56 1.21 3.06 _ _ _ _ 0.99 1.72 0.99 _ _ _ 1.67 _ _ RICHLAND _ _ _ 0.59 _ _ _ _ 1.87 _ _ _ _ 2.00 _ _ _ _ - _ _ _ 87.12 _ _ COMN PLEA Durban Johannesburg Institute for Bureau for Chamber of Institute of Bureau of University Planning Market Commerce Planning Market of Natal Research March 1973 March 1973 Research May 1973 January 1973 Research March 1973 Research May 1973 ELCTRONIAY Rand Rand Rand Rand Rand Rand Medical and dental expenses _ To pension unemployment medical and burial funds _ _ 0.75 0.27 Education . vee ae wee _ _ 2.25 Extra washing and _ _ 0.07 _ _ _ _ 0.60 0.27 FILEXDENDO 2.27 0.09 cleansing Extra clothing . _ _ 1.19 _ _ 1.19 Extra food ... Taxes 50 per cent of PDL _ ~ 11.62 _ _ 9.56 2.58 39.07 47.00 39.07 0.45 0.45 39.03 39.03 37.34 0.35 _ MEL 143.58 117.20 91.02 117.09 112.02 82.17 Size of household ... 5.2 6.0 5.7 _ Sources See Table 7-1 Notes * a Minimum subsistence level . 66 b Humane standard of living " c Taxes additional to those levied on an income equal to the minimum subsistence level " d The average relates to the actual average size of multiple households in the sample used 6.0 5.2 CONSMITER AM - RIC-HLAND COMN PLE 46 FIFTH REPORT FROM THE ELECT ELECT " ELECT " living of preferred to estimate a humane standard of Market Research H.S.L. a modest level standard of living " This is not a ed percentage addition to their M.S.L. but is built up by adding new compo- nents e.g. medical and educational expenses and higher standards of compo- and clothing; the H.S.L. happens to be about 30 per cent above the MS.L. The various terms and their different components can give rise to confusion For instance more than one witness appeared to regard Commerce's recommended minimum wage as the M.E.L. 151 and Pilkington Brothers Q. 2460-75 the e.g. Chamber Unileve-- judge 90. We can understand that it is not easy for employers to relative merits of these various estimates Some have pointed this out Sons e.g. Slater Walker Q. 1134 British Oxygen Q. 2184 and Barton and Vol IV However it is important that companies which are concerned about the welfare of their African employees also that their critics should thoroughly understand the P.D.L. its components and the assump- assump- tions which underlie it For instance they may wish to question whether the minimum food and clothing requirements laid down by the estimators of the lower P.D.L.s are adequate for their workers Moreover it is only measurements gan if employers understand the P.D.L. and M.E.L. that these be used sensibly as criteria for determining minimum wages RICH RICH 91. We have decided not to adopt the practice of converting estimates of African wage levels or of the P.D.L. from Rand into pounds sterling at official exchange rates Such conversion is both unnecessary and potentially misleading It is unnecessary because we are concerned with the absolute level of poverty of African workers in affiliated companies in South Africa and not with their poverty relative to British workers It is potentially misleading because relative prices in the two countries of the commodities budgets which enter into African household or P.D.L. quite different from the relative currency prices II 852 92. Among the information requested of companies was budgets may be the following Any comments you may have on the concept of the Poverty Datum Line both in general and in relation to your particular wage levers I. 91 A dozen companies failed to comment on the P.D.L. A large number claimed that their subsidiaries or associates tried to ensure that minimum wages were not below the P.D.L. e.g. B.L.M.C. Q. 206 Unilever I. 192 191 G.E.C. I. 169 Metal Box I. I.C.I. with respect to its subsidiary I. 257 and Cadbury Schweppes Q. 1733 In many cases this was recent decision e.g. in English Calico Q. 1522 and Slater Walker The latter had agreed in March with their associate N.T.E. to commission various P.D.L. studies which would provide the basis for minimum wages I. 390-2 A number of companies stressed that their subsidiaries or associates took the P.D.L. into account as one factor among several in wage- determination productivity employment and profitability were also relevant They included Barclays Bank Q. 1597 Associated British Foods Q. 2672 3 " " and Cadbury Schweppes for whom the P.D.L. was only a back level II 597 1 Op cit p 1 oven EXPENDITURE COMMITTEE ELEC ELEC ELEC criterion 93. Many companies cast doubts on the use of the P.D.L. as a for minimum wages British Oxygen was typical in complaining of the proliferation of P.D.L. estimates and the difficulties of interpretation IIZ 691 3Q. 2142 2184 A number of companies appeared to reject the P.D.L. criterion on those grounds e.g. Bestobell III 23 Many firms argued that the P.D.L. did not apply to their African workers either because they were migrants e.g. Consolidated Gold Fields with respect to their mining associates I. 218 or because the firm operated in rural areas e.g. Marchwie Q. 1355 or because the workers were predominantly young or female e.g. English Calico with respect to Associated Hemmers I. 540 Many of the companies operating away from the main cities claimed that no satisfac tory P.D.L. or no P.D.L. at all was available to them However some of? these had decided to commission P.D.L. studies relevant to their African employees e.g. Slater Walker with respect to N.T.E. I. 390 392 and Cape Asbestos with respect to their mines Q. 2330 others tried to adapt an urban P.D.L. to local conditions e.g. Courtaulds with respect to the pulp mill at Umkomaas I. 21 2 the 94. Even in the case of companies accepting the P.D.L. as a criterion for establishing wage minima there are considerable problems of interpreta- tion Since the P.D.L. is intended to indicate the income required by a family it was questioned whether the P.D.L. was relevant to the wages primary workers such as juveniles and women who were not normally primary breadwinners " e.g. Consolidated Gold Fields Q. 617 Barclays Bank Q. 1631 and I.C.I. Q. 898 Application of the P.D.L. criterion was there- fore limited by some companies to adult male employees e.g. Metal Box I. 192 G.E.C. I. 259-60 263 and Dunlop Holdings II 815 There is danger that if juveniles or women were paid wages equal to those of adult adult males they would be discriminated against in recruitment practices In ad recent survey of African multiple households 15 per cent of the household heads were women It cannot be assumed that the household, head is family always a man nor that However most juvenile all juveniles carry no responsibility for a and women workers are not the primary breadwinners in their families Companies should recognise the particular_ relevance of the P.D.L. to heads of households > of policy 95. At least one company Courtaulds had agreed upon a policy of family income supplements in some of their subsidiary companies This is illustrated by reference to the wage structure introduced in April 1973 Pretoria at Paper Products I. 73 Adult males over 18 received a minimum~ basic pay of R20 per week However a minimum of R23 per week appliedminimum~ to married males and also to those married females who were primary breadwinners In addition employees primarily responsible for children received R1.50 per week per child up to a maximum of four children this policy Courtaulds claimed to be breaking new ground Q. 178 they also claimed that all family men were above the M.E.L. in all Ing 181 the cases we have been able to check Q. 109-14 However a number of firms rejected the principle that workers should be paid according to family circumstances rather than according to their worth to the company ,,P. A. Nel M. Loubser and J. J. A. Steenekamp Income and Expenditure Patterns of White Urban Households Pretoria Survey Multiple Bantu Households Bureau of Market Research Table 3.3 University of South Africa Research Report No. 27.1 Pretoria 1971 48 ELE FIFTH REPORT FROM THE ELE e.g. British Oxygen Q. 2144 II 692 Metal Box Q. 521 English Calico Q. 1574 and Associated British Foods II 854 The reasons given included the difficulty of administering such a system given the unstable and extended families families of many Africans Q. 521 and the danger that would find it more difficult to get jobs II 692 men with large ALL members 96. The Pretoria survey mentioned in paragraph 94 revealed 5-7 per household in multiple households; 38 per cent of households had one earner 52 per cent had two earners and 10 per cent had more than two earners The household head accounted on average for 71 per cent of total household income his wife for 14 per cent and other members for 15 per cent This implies that total household income averaged 1.4 times that of the household head Similar results have been found other places A Durban study mentioned an average of 1.6 wage earners per African household However because additional roughly half the income of the main earner the household 1.3 times that of the household head earners income receive averaged 97. The existence of more than one earner in the average household has led a number of companies to derive a minimum wage by dividing the P.D.L. by a figure between 1.3 and 1.5 These included British Oxygen affiliates Q. 2184 2202-5 Caravans International's subsidiary II 909 until recently Unilever subsidiaries Q. 288 Great Universal Stores citedand cited the University of Cape Town Wages Commision in support of their division by 4 Q. 2577 Division by 1-3 had apparently been supported by Natal Employers Association Q. 1134 however the Association had recently changed their minds and had set the full P.D.L. R94 per month Durban as the objective for minimum wages Q. 1157 9I. 353 Dun Employers Holdings subsidiary although a member of the Natal Association divided the P.D.L. by 1.5 to establish minimum wages II 805 Q. 2522 Associated British Foods subsidiary assumed 1-4 earners per family citing Professor Potgieter as authority II 854 In fact notion that the P.D.L. should be reduced to allow for the income of other household earners was convincingly rejected by Professor Potgieter in evidence to the Committee because many households contain only one earner would to divide the P.D.L. by 1.4 or 1.5 for purposes of setting wages mean that these households received about thirds of the income necessary to maintain minimum standards II 1004 H.HS.S..DD. . 98. The Bureau of Market Research in estimating the M.S.L. and H.S.D. had done so not only for the actual average multiple households reported in Table 7-1 but also for hypothetical households of different sizes and for member households The Bureau pointed out that in 190 member households represented 57 per cent of economically Africans in the areas which were surveyed The M.S.L. for member households differed from that of multiple households in that it allowed for the dependants of workers in only one item support of relatives This allowance was based not on a study of the minimum ( Op cit Table 3.14 2 Ibid Table 3.16 3 Department of Economics University of Natal op cit p 27 4 In fact the Wages Commission was prepared to divide the MEL by 4 but not the PDL because of the danger that earner families would fall below the minimum standard op cit p 4 5 Bureau of Market Research University of South Africa op cit p 8 eee. EXPENDITURE COMMITTEE 49TI ELEC ELEC financial requirements of the dependants of migratory workers but on records of the average monthly payments made by member households too their families elsewhere with allowance for inflation and in the case o& married men an arbitrary 50 per cent increase in the allowance alloIwne the case of married men living alone the support of relatives was just over R20 per month Thus the M.S.L. of a married male migrant worker living in a hostel in Johannesburg was R37 per month and in Durban R39 per month The danger of estimating requirements on them by basis of actual receipts is obvious A contrary view Professor Potgieter " although the cost of living in the was put to us homelands is likely to be lower due to some produced foods cheaper housing and transport and the generally less sophisticated standard of living we have counterparts evidence that the household size is larger than that of their the in cities I therefore see no reason why these labourers should be on a different wage " scale II 1005 on available 99. The truth is that there are no satisfactory estimates at present for assessing the minimum income requirements of migrant workers and the their families Nor can this deficiency be overcome in every case by company carrying out or commissioning its own P.D.L. study The incomes of migrant workers families no doubt vary considerably according to their country or area of residence and the amount and fertility of their land In the case of companies recruiting from many sources no single P.D.L~fl would do many studies would be necessary II 1005 Despite these difficulties of producing a precise criterion for migrants wages it would be possible at least to avoid the apparent misapprehensions which we encountered Various witnesses referred to their migrant workers as single men e.g. Thorn Electrical III 332 No doubt the term was used simply to indicate living ; conditions but it points to a danger that companies will over look the fact that many migrants are married and have dependants It iz inadequate merely to be concerned with the living conditions of the migrantsu themselves as e.g. Johnson Matthey appeared to be in the case of their associated company Q. 1716 21 their families 100. A number of witnesses conveyed the impression that the of their migrant workers were able to support themselves adequately in the Bantu homelands Tate and Lyle in adapting the Soweto P.D.L. to the situation of their subsidiary's migrant workers from the Transkei allowed purchased dependants R10 160 kilos of maize per month for purchased food I. Q. 1178-87 By making only minor allowance for the other purchased o needs of the families of the migrant field workers they were able to produce a P.D.L. for these dependants of less than R17 per month I. 418 Asso ciated Portland Cement argued that the families of their migrant workers fed themselves in the reserves Q. 1449-50 They therefore derived a P.D.L R35 per month for these workers by deducting the food component from the P.D.L. for Soweto assuming that this food component was comparable with the food the company gave to the worker plus the food grown by his family I. 520 Lack of dependence on migrant remittances to such an extent is certainly not universally the case and probably not even typical For instance according to a recent study of the Ciskei 33 per cent of household heads had no arable land available to them and another 29 per ,,Ibid p 21 2 Ibid p 28 Table 14 50 FIFTH REPORT FROM THE ELECT cent had no more than 5 acres in some areas was mentioned by of arable land Consolidated Gold Growing Fields I. ELECT landlessness 207 To guard against the danger that the dependants of their employees have subsist at levels well below those corresponding to the P.D.L. it would benefits wise for companies to pay their migrant workersin wages and fringe no less than the workers would be paidin the same jobs if they were settled nearby with their families For instance A.E. & C.I. the asfascotcoriyaitne I.C.I. paid to the lowest grade of worker at the main migrant benefits Modderfontein near Johannesburg minimum wages including kind of some R75 per month I. 271-2 279 roughly equal to the 2023 higher P.D.L. estimates for Johannesburg Table 7 1 2023 the 101. We encountered the question of which wage to compare with P.D.L. We had asked companies for information on basic wage rates clas ified by grade or function and by race both the average and the lowest rate for each group and also for information on fringe benefits and deductions minimum from pay I. 91 Because the P.D.L. is generally regarded as a living standard it is the lowest rather than the average rate that is relevant In addition to the basic rate there may be various forms of bonus e.g. annual production attendance or holiday bonus piecework payments overtime payments and various benefits in kind We favour the view that only these elements of the wage which are guaranteed and certain should be included for comparison with the P.D.L. II 1004 Annual bonuses provided that they are certain might be included even though they cannot help the weekly budget on the grounds that some P.D.L. items such as clothing can > bought once a year Various deductions from pay by employers are com- monly mentioned e.g. tax unemployment insurance and employees contri- bution to a pension fund Unless these P.D.L. estimate they should be deducted the P.D.L. are included as components of wiZth from the wage for comparison 102. Despite the abundance of relatively unskilled workers overtime work- ing by Africans appeared to be extensive in many companies Probably the amount of overtime worked by Africans was governed by the amount worked by Whites of whom there was a scarcity Q. 1892 G.E.C. stated that in their subsidiaries in addition to the basic working week of 45 hous an average of 5 to 10 hours of overtime were consistently worked with wage premium of third Q. 387 I9. 175-7 In the absence of overtime working about 25 per cent of their African employees would have been paid below the relevant P.D.L. Q. 441 G.E.C. claimed that their objective provided paying all employees above the P.D.L. was currently being achieved that 5 hours of overtime were worked by the lowest i.e. less than informed average amount of overtime Q. 443-4 In September G.E.C. that the minimum would shortly be raised to a level which without any oveT time working would exceed the relevant P.D.L. II 1040 It is bad practice that overtime working should be necessary in order to yield an income exceeding the P.D.L. both because of the long hours involved and because of the unreliable nature of overtime earnings It would seem to be a defect 1 P. J. de Vos A Economic and Educational Survey of the Bantu Residing in the Middledrift Victoria and Zwelitsha Areas of the Ciskei Fort Hare 1970 p 295 in Francis Wilson Migrant Labour in South Africa pp 100-103 quoted 2 On poverty in the Bantu homelands see also paras 21 22 and 26 above and Francis Wilson op cit Ch 5 EXPENDITURE COMMITTEE of the " task " system of payment used on the estates of Slater Walker's ciate N.T.E. that only 36 hours a week are guaranteed I. 436 40 ELECTRONI ELECTRONI asso ELECTRONI 103. A number of witnesses argued that the value of fringe benefits Pilksihnogutlodn be included in the wage to be compared with the P.D.L. e.g. Brothers II 780 Q. 2491-2501 and Marchwiel Holdings Q. 1302-3 < or that the P.D.L. should be reduced to exclude the value of benefits provided e.g. Tate and Lyle I. 418 The inclusion of fringe benefits in the wage is correct only if these particular benefits are also included as components of the P.D.L. However most P.D.L. estimates exclude educational and medical expenses pension contributions and other commonly provided fringe benefits Where important benefits in kind are provided for employees e.g. the food and accommodation received by migrant workers it should be remembered that this provision reduces family requirements only up to the value that the P.D.L. estimate places on the food and accommodation requirements of the household head 104. The application of the particularly difficult in the case P.D.L. concept to of farm employees 1 :03 migrant workers isAM It generally falls upon the employers to provide housing food and many amenities for African_ Associated employees and their families living on company estates e.g. British Foods II 858 Slater Walker I. 391 and Courtaulds I. 29 33 The cash wage can be a minor part of the total of African employees is much affected by the as housing sanitation education and medical remuneration the welfare quality of amenities such services provided by the employers Such companies may have to rely more upon their judgments as to a satisfactory quality of amenities than upon an adapted P.D.L. COM 105. The application of the rules suggested above is illustrated by reference to the wage paid to labourers in Courtaulds largest subsidiary S.A.I.C.C.O.R. in a week of workers the basic wage for April 1973 46 hours a I. 26 week was In the case of R15.64 To day this Courtaulds added the average overtime payment of R3.91 and a bonus based on average plant production of R1.76 giving a weekly average of R21.32 In addition Courtaulds provided a housing subsidy and paid unemployment insurance contributions and employees tax these added up to R1.28 giving a weekly gross income of R22.59 From this total was subtracted R0.94 in employee pension contribution and the deductions by the " employer R1.28 to give an average weekly home pay of R20.37 However since overtime and production bonus probably could not be Courtaulds guaranteed the likely guaranteed home pay was R14.70 " had modified the Johannesburg Chamber of Commerce's recommended 4001759 40 1759 minimum wage to conditions at the Umkomaas mill I. 21-2 purposes of comparison we excluded from it the cost of housing and For tax since these were already deducted from the wage rate The most appropriate estimate of the recommended minimum wage R15.13 per week turned " out to be slightly higher than the guaranteed home pay for a labourer " We have produced these details to illustrate the complexity of making valid comparisons Even companies which are confident as Courtaulds were 1 There was no indication in Courtaulds memorandum that the family income supplement scheme discussed above in paragraph 95 had been introduced in this company 40 Substantial increases were made in July 1973 raising the basic wage to R19.32 II 1037 DATA 52 FIFTH REPORT FROM THE a 4 1 case I. 22 that they pay all their employees above the P.D.L. in this above the Chamber of Commerce's recommended minimum wage ma in fact be paying some employees below it Conversely criticism of companies be for paying below the P.D.L. may prove on closer examination unfounded LY LY 106. Until very recently the infrequency with which P.D.L. estimates would a number of centres were published inevitably meant that some others date Some companies quoted less date P.D.L.s than ; partly this depended on the dates of submission of memoranda We received early memoranda from B.L.M.C. and Unilever B.M.L.C. quoted figures for December 1972 for Durban and August 1972 for Port Elizabeth I. ) The wages reported by Unilever had been established by reference to a the November 1972 P.D.L. I. 151 Some delay is inevitable between carrying out of a P.D.L. survey its publication and a firm's periodic wage allow review The effects of such delay can be ameliorated if companies a margin between the P.D.L. and their minimum wage and review wages frequently Given the recent pace of inflation in South Africa many cam- panies said that they would in future review African wages at frequent intervals For instance the affiliated companies of Courtaulds Q. 176 Armitage Shanks Q. 2020 and Associated British Foods II 858 Q. 2643 were going to review wages regularly twice a year The former infrequency of P.D.L. revisions and the lack of P.D.L. estimates for some of the smaller centres mean that companies may themselves have to update a P.DL. their estimate or adapt a P.D.L. relating to a main centre to conditions in locality However there is a greater danger of inaccuracy if P.D.L.s are not produced by experts For instance Armitage Shanks could not provide a satisfactory explanation of why their estimate was R18 less than the P.D.L. for Johannesburg which was 20 miles away II 648 Q. 1972 and 2014-6 U ae 107. Professor Potgieter concluded his study of the P.D.L. as follows : " sincerely believe that to offer wages less than the P.D.L. under present living conditions is inhuman whatever the economic circumstances We favour the use of the P.D.L. as a criterion for minimum wage fixing This should not be done mechanically many assumptions and judgments are involved in its application We have suggested a set of rules for relating minimum wages to the P.D.L. in a sensible way The estimators of the P.D.L. regard it as a measure of the barest minimum required to support a family in African living conditions assuming the wisest allocatioofn expenditure Acceptance of the P.D.L. criterion should therefore notabe that taken to imply that a wage equal to the P.D.L. is a fair one To say no adult male should be paid a regular wage less than the P.D.L. does not imply that the wage should be equal to the P.D.L. This is recognised by many firms e.g. Barclays Bank Q. 1627-8 and B.S.C. Q. 1889 However there is a danger that the P.D.L. will be used by some firms to establish the wage which they can get away with I. 352 It is because the P.D.L. represents the barest minimum that the M.E.L. has been put forward as an objective for minimum wages Thus Professor Potgieter recommended that the M.E.L. be the ultimate target in setting wage levels II 1004 We believe that the subsidiaries and associates of British com- 1 J. F. Potgieter op cit p 62 EXPENDITURE COMMITTEE ELECTR ELECTR ELECTR panies panies many of whom already pay some the M.E.L. should accept the M.E.L. as be achieved according to a timetable of the their African African employees ELECTR above target for minimum wages t oO wage 108. We were able to question oral witnesses in some detail on the paid by their subsidiaries and associates in relation to the most relevant P.D.L. In Tables 7-3 and 7-4 we set out some instances of companies which were paying minimum wages either below some or all of the relevant P.D.L. estimates or likely established In estimating to be below the relevant P.D.L. if one were the minimum wage for comparison with the P.D.L. we have attempted to apply the rules developed in paragraphs 948 103. Because a valid comparison requires considerable information illus.w trated in paragraph 105 which in most cases was not fully provided we recognise the difficulties in making any such comparisons 7-4 should be read in close conjunction with Table 7-1 Tables 7-3 and na _. 109. B.L.M.C. quoted an date Natal Employers Association P.D.L I. 106 which was less than the minimum wage at their subsidiary's Durban unit cited in the table However the latest P.D.L. recommended by the Association the Natal University estimate of R94 per month exceeded Leyland's minimum wage Unilever South Africa used the Johannesburg Chamber of Commerce P.D.L. of R78.06 for their employees in all centre - I. 151 This may have been inadequate in Durban and Cape Town where one of the three P.D.L.s and three of the four P.D.L.s respectively exceeded the Unilever minimum wage Similarly the nationwide minimum wage in Metal Box South Africa appeared to be less than some of the P.D.L.s in some of their centres of operation It was only with the addition of bonuses and overtime raising the pay of a minimum worker to R89 per month cited I. 177 that the April minimum at the G.E.C. Johannesburg company in the table would exceed the Johannesburg Chamber of Commerce's P.D.L.Z " and recommended minimum wage The two examples cited of minimumu wages paid by associates of Slater Walker suggest that the company's objec- the tive of paying all employees in excess of the recognised P.D.L.s in different " areas I. 377 had not yet been achieved A cleaner at Barclays " National Bank at Ladysmith a town then classified by the Bank as rural ) would require 10 years of service to reach the P.D.L. for Ladysmith as estimated by Professor Potgieter Q. 1661-9 This did not appear to square with Barclays statement that a family man should be paid considerably more than the P.D.L. I. 555 However Barclays minima and scales were subsequently raised in August and October II 1044 Cadbury Schweppes South Africa paid a minimum wage to adult male established employees in Port Elizabeth which was less than either of the P.D.L. estimates for that centre It would require 8 years of service at A. Cohen's subsidiary for a grade 3 worker to reach the P.D.L. for Benoni estimated by the Bureau ofS Market Research II 618 The British Oxygen subsidiary cited in Table 7-3 paid minimum wages a little below the only P.D.L. for its main location Germiston and well below the P.D.L. estimates for some other locations such as Durban and Cape Town The minimum wage at the tyre plant of Dunlop South Africa in Durban was below two of the three Durban P.D.L.s and the minimum at the new Ladysmith plant was below the only P.D.L. for Ladysmith The minimum wage in the G.U.S. retail chain sub- sidiary was well below all currently available P.D.L.s. The basic minima paid by Associated British Foods subsidiary were less than the P.D.L.s 54 FIFTH REPORT FROM THE available industrial ELECT The for the cities specified in the table The minimum wages associates cited in the table of Consolidated Gold Fields and Jessel Securities were significantly less than all the Durban and Johannesburg respectively 110. There were a number of companies operating or P.D.L. estimates localitcies in rural which no independent P.D.L. study or no P.D.L. study at all had been made There were others employing migrant African workers predominantly for whom the local P.D.L. was not relevant in assessing the needs of workers families Where companies provided free board and lodging and other benefits to migrant employees these were commonly valued at between R20 and R30 per month The associates of Consolidated Gold Fields Jessel Jessel Securities and Johnson Matthey Marchwiel cited in wages Holdings including benefits in kind for and the subsidiaries of Cape Asbestoasnd Table 7-3 all reported minimum their migrant employees which were relation to other minimum wages shown in the table and well below any of the current P.D.L. estimates shown in Table 7-1 Tate and Lye's subsidiary paid their factory workers married men minimam excluding benefits in kind greater than their own estimate of the P.B.L. excluding benefitsin kind relevant to the factory workers and their familjes I. 418 However we have suggested grounds for questioning this P.DL. minima estimate paragraph 100 The field workers received much lower but 70 per cent of these were single youths I. 418 Similarly the lowest wage at the rural factory of Associated Portland Cement's subsidiary exceeted the P.D.L. cited for their migrant workers I. 520 but the P.D.L. was con- structed by the company on questionable assumptions paragraph 100 The minimum wage paid in April to African employees by English Calizo's subsidiary located in a rural area for which no P.D.L. estimate had been made was lower than the current P.D.L. estimate for any centre Armitage Shanks subsidiary paid African males a minimum of about R63 per month apparently low for township employees 20 miles from Johannesburg the see 106 " There was no " estimated P.D.L. for paragraph scientifically However rural area in which R.T.Z.'s subsidiary P.M.C. is located Q. 712 6 esti- the Panel of Investigation commissioned by R.T.Z. made a rough Panel mate of R70 per month i.e. above the minimum cash wage recommended that a reliable estimate be made and this was The being acted upon by the company I. 236 R.T.Z. reported in an updating memorandum that a P.D.L. relevant to the paid married workers at Palabora Rad now been estimated at R45 a month II detail to discover precisely why it was estimates 1042 We were so much lower not given sufficient P.D.L. than other 2 111. Some companies may say that the figures in Table 7-3 are mis- leading For instance it is possible that the minima apply only to workers who are not primary breadwinners e.g. juveniles and women It is also possible that very few workers are actually paid the minima quoted This was argued in evidence by amongst others G.U.S. Q. 2588 yet even the average rate for African unskilled workers in their subsidiary equal to R69.20 per month was below the P.D.L. on which they claimed to base their wages for urban areas II 830 Q. 2576 In many cases our comments about the minimum wage for the lowest grade of worker would apply also to the average wage in that grade Our objective in producing Table 7-3 was to suggest to British companies that there is a case for examining or re- EXPENDITURE COMMITTEE ELECT Seetescenen: ELECT examining the lowest wages paid by their subsidiaries and associates in the also~ light of present information on the P.D.L. For this reason we have produced without further comment Table 7-4 which shows minimum wages paid by the affiliates of some British firms from which we received memoranda but did not take oral evidence Neither in Table 7-3 nor in- Table 7-4 is the list of British companies and affiliates which pay wages low in relation to the P.D.L. by any means exhaustive Nor do the tables show a more than selection of the grades of labour and places of operation M.E.L. should be borne in mind that the information on the P.D.L. and It shown in Table 7-1 is already likely to be date 2023 2023 112. Many companies operate in localities for which no current satisfactory P.D.L. estimate exists see paragraph 110 above Adaptation by such Oct company of P.D.L. estimates for other places is possible but carries with it the danger of inaccurancy paragraphs 100 and 106 Where companies employ migrants and particularly where they are recruited from many areas the estimation of relevant P.D.L.s presents special problems which mean that precise estimates are impossible paragraphs 98-100 Despite this difficulty there is a good case for commissioning experts to undertake P.D.L. studies as some companies have done It may be necessary for a company with RICHLAND rural operations to commission a P.D.L. study on its own see paragraphs RICHLAND 92 and 110 But no doubt there are economies of scale to be reaped RICHLAND may be possible to join with other companies either through an area employers association or an industry employers association or through company sponsorship of a national survey see paragraph 86 AnotherRICHLAND possibility is that the subsidiaries and associates of British companies should COMMON combine to commission a regular nationwide set of Q. 2639 possibly through U.K.S.A.T.A. which has P.D.L. estimates COMMON already gatheredCOMMON information on the wages paid to African employees by its members Q. 8-15 COMMON COMMON PLEAS - 203CP41759 Company B.L.M.C. Unilever Metal Box ... G.E.C. Slater Walker Barclays Bank Cadbury Schweppes A. Cohen ELCTRONICALY TABLE 7-3 Some Minimum and Average Wages of Africans in certain Affiliated Companies oral witnesses ELCTRONIALY African Affiliate Locality Grade of Number Date Wage Minimum Notes Source African in Rand per or Labour Grade month Average Leyland Motor |} Durban Corporation of South Africa Hourly paid unskilled 45 April 1973 FILED | Lowest 82.9 Basic income It was I. 106 110 83.3 Average claimed that no de- ductions from pay were made - Unilever Africa South | Throughout South | Grade W. 1 Africa but mainly lowest in Durban grade 994 April 1973 79.9 Minimum including Wage anual I. 152 159 83.9 Average bonus Employee pen- sion contribution of 20^FTHCREBORT R6.07 per month is deducted Metal Box South | Throughout Africa Africa South Wage group 1 lowest grade L. Marthinusen | Johannesburg African May 1973 310 | April 1973 20^FTHCREBO 77.3 Minimum Basicmonthlypay 77.6 Average I. 190 192 71.4 | Minimum Rate for standard hours I. 172 177 77.2 Average L. Suzman Durban Unskilled malc Late 1973 14 April 1973 ORAM 83.1 Minimum II 1040 51.8 Lowest Rate for standard hours | I. 454 462 63.5 Average Statutory deductions were R0.20 per McCallum & { Johannesburg Stevens Unskiled Unskilled male 22 ~| April 1973 THE month 60.3 Lowest Rate for standard hours | I. 494 499 72.0 Average Statutory deductions | Barclays National Ladysmith .. Bank were R0.51 per CHLAND month | Cleaner notch ~ April 1973 56.6 Minimum First year ofrural wage I. 558 Q. 1 October 1973 90.4 scale CHLAND Minimum 1662 II 1044 Cadbury Schweppes South Africa Port Elizabeth Metal Sales Benoni - Established unskilled male 177 April 1973 64.2 Minimum Basic wage The em- | II 598 609 ployee pension con- tribution of R4.14 Grade 3 ggrraaddee per month is de- _ February 1973 ducted 53.3 Lowest Basic wage rate 59.4 Average II613618 COMN PLEA ELCTRONICALY TABLE 7-4 Some Minimum and Average Wages of Africans in certain Affiliated Companies oral witnesses ELCTRONIAY Company African Affiliate Locality Grade of Number Date Wage Minimum Notes Source African in Rand per or Labour Grade month Average FILED Aberdare Holdings E.C.C. South Vereeniging Africa Operator se- cond lowest 38 May 1973 62.9 Minimum Basic wage including | III 6 66.9 Average leave bonus grade - Albright & Wilson | | Chrome Chemicals Merebank Natal ... Unskilled = South Africa labourer Amalgamated Power Engin- |Amalgamated Johannesburg eering Power Engineer- ing South Africa Labourer 115 May 1973 72 June 1973 62.0 Minimum Basic wage 68.9 Minimum Basic wage 78.2 Average III 8 2013 III 10 TCRIBORT TTCCRRIIBBOORRTT Armstrong Equipment South Armstrong Hy Mainly Port Elizabeth Male produc- draulics South tion oper- Africa ative stores staff main- tenance 74 May 1973 58.2 Minimum Basic pay rate IV 64.2 Average staff driver FRAM | | Automotive Products Asso- Automotive and Johannesburg ciated jointly with Joseph Girling South Lucas Industries Africa jointly with Automotive Products of South Africa Grade 2 second lowest grade 234 May 1973 September 1973 FRAM 54.6 Minimum Basic wage The em- | III 13 15-16 60.6 Average ployee pension con63.1 Minimum tribution of R4.33 | IV Appx 2 THE 69.3 Average per month is deducted Babcock & Wilcox Barton and Sons | Babcock & Wilcox All areas of Africa Operations Labourer Bartons Tube and | Boksburg Transvaal |] Unskilled Conduits 617 | April 1973 CHLAND 79.3 Minimum Guaranteedminimum | earnings but until IV 1 October 1973 it | includes 35 hours of IV Appx 2 overtime working - 147 March 1973 55.6 Lowest Basic wage rate assum- August 1973 ... 59.5 Average 63.5 Lowest 67.9 Average ing 195 hours a IV COM N month The mini- of | mum bonus of R3.75 IV Appx 2 per month is included PLEA PLEA ELCTRONICALY Company Bestobell Affiliate Locality Bestobell Indus- | Johannesburg trial & Albert Vaux Grade of African Labour Unskilled Number Date in Grade 39 May 1973 July 1973 Dickinson | Industria Unskilled nr Johannesburg contract British Insulated Callender's | Kilpatrick South | Johannesburg and Unskilled Cables Africa one Durban Scotish Scottish Cables | Pietermaritzburg ... | Grade 2 se- South Africa cond lowest grade 57 May 1973 456 | May 1973 416 May 1973 British Match Corporation | The Lion Co. Match | Durban Grade 1 low- grade est Pretoria Rosslyn nr Pretoria | Grade 1 98 | June 1973 266 June 1973 British Ropes Haggie Rand Centres including Johannesburg Cape Town and Durban Grade 1 La- bourer and other un- skilled 871 | May 1973 Chubb & Son Delta Metal Co. | Josiah Parkes and Johannesburg Sons South Africa GradeG third low- est grade 155 May 1973 Consolidated Brassfoundry LuipTaraarnsdvsavallei Grade H se-- cond low est 251 May 1973 African Wage Minimum Notes Source Rand per or month Average ELCTRONIAY 46.0 Lowest Basic rate The em-| III2326 62.0 Average ployee pension con- 50.7 Lowest 68.3 Average tribution and the Christmas bonus roughly cancel out 57.2 Lowest 62.0 Average Wage FILED 53.5 Minimum includes mini- 55.5 Average mum bonus of R2.1 per month III 34-8 62.7 Minimum Wage includes bonus of 69.0 Average about R3.50 per month Minimum wage of R86 planned PENDVIAM by end 1973 66.3 Starting Basic wage IV 68.0 Average 57.7 Startingand | Basic wage average PENDVIAM Lowest 51.8 Basic wage Many III 42-4 9.2 Average African employees also receive food and accommodation -- -- receive R13 per month in lieu PENDVIAM 61.6 Lowest Basic rate assuming | III 85 100 - 71.9 Average 195 per month hours | A minimum of R94 IV Appx 2 is intended by July 1974 RICHLAND 53.8 Minimum Basic earn- 71.3 Average ings excluding over- time and bonuses | IV Delta claim a value of R10.33 per month - for fringe benefits COMN PLE ELCTRONICALY Company African Affiliate Locality Grade of Number Date Wage Minimum Notes Source African in Rand per -- -- Labour Grade month Average ELCTRONIAY | | |* Drake and Cubitt Holdings Drake and Gor- S.A.B.C.T.V. site ... Electrical ham South Boy Africa - 27 May 1973 48.0 Lowest Basic pay rate assum- 53.8 Average ing 195 working | hours per month IV Accommodation is provided at some sites but it is not FILED stated whether it is provided at this one East London Labourer in 54 =| May 1973 23.4 Lowest As above Statutory | IV training to 39.0 Average deductions assumed - be electric- to be zero ian's assis- tant 20BTORE EMI Cape Night Watch | Cape Town Nightwatch- man 425 May 1973 52.3 Average Basic wage including leave pay of R2.40 per month III 194-5 Ever Ready Eveready South | Port Elizabeth Africa ... we Grade2 se- cond low- est 121 May 1973 August 1973 ... 55.4 Lowest Basic pay The em- | III 197-200 68.5 Average 59.3 Lowest 73.3 Average 20BTOREBT ployee pension con- tribution of about | IV Appx 2 R4 per month is deducted Fodens Ltd Olynwed Fodens S.A. | Alrode Transvaal Labourer 26 | May 1973 Defy Industrie.s.. | Durban Newcastle Natal ... Grade I low- est grade 287 | July 1973 702 | July 1973 53.0 Lowest Wage rate IV 61.5 Average 61.6 Minimum excluding Rate holiday | IV 67.7 Average bonus 61.6 Minimum 65.4 Average Guest Keen & Nettlefolds GKNGKN Sankey | Transvaal ... African Thermotank ... Thermotank | Durban Natal Labourer Grade 1 lowest grade Howden Group James Howden & | Johannesburg Safanco General worker 623 | June 1973 1 Oct. 1973 25 | May 1973 229 | June 1973 197 | Sept. 1973 67.4 Minimum Rate for standard MTHRICLAND 75.2 Average hours 81.1 Minimum IV IV Appx 2 63.7 wage rate assum- Lowest Basic Average ing 195 working IV 66.6 | - hours a month Minimum bonus of R2.1 per month is included COM N 59.6 Average Basic pay including | III 233-6 holiday bonus of R2.4 per month 72.6 Average IV Appx 2 PLEA PLEA ' 39520 Company Affiliate Locality Industrial and Comercial Commercial Finance Corporation Triangle } Luipaardsvlei South Africa Transvaal Grade of African Labour Unskilled labourer Number Date in Grade 105 | June 1973 | International Compressed CompAir S.A. | Johannesburg Air Corporation Labourer 15 May 1973 Lead Industries Group Fergusson's Paints | Durban Labourer 34 May 1973 Sept. 1973 Lonrho Group Tweefontein United Collieries Witbank Transvaal | African male 1,712 | June 1973 Marley Mather & Platt Marley S.A. | Nigel Transvaal ... | Spreader labourer male | Mather & Platt Germiston ... S.A. Durban Grade III lowest grade 42 May 1973 103 | May 1973 122 | May 1973 African Wage Minimum Notes Source Rand per or month Average ELCTRONIAY Minimum | 54.0 Basic rate for standard III 237-8 hours 45 hours per week including minimum bonus of R2.1 per month FILEPNOLJUBACIOMITO9FAM 59.8 Lowest Basic rate for standard 63,7 Average hours 45 hours per | III 242 FILEPNOJUBACIMTO9FA week including minimum bonus of R2.1 per month 65.2 Lowest Basic rate IV 73.7 Lowest FILEPNOLJUBACIOMITO9FAM 76.7 Average IV Appx 2 43.3 Lowest Lowest basic rate and 52.1 Average average earnings | IV respectively The of value free housing rations and other benefits in kind estimated at not less FILEPNOJUBACMT9 than R30 is includ- ed Statutory ded- uctions are assumed to be zero 51.8 Lowest Basic wage 59.5 Average - III 261 Minimum RICHLAND | | 51.9 Minimum Basic rate mini- IV 55.9 Average mum of R100 is planned for June 63.5 1974 and average - -2 COMN PLE African ELCTRONIAY Company Mitchell Cotts Affiliate Locality Industrial Carbon | Johannesburg and Graphite Grade of African Labour African Number Date in Grade 43 May 1973 Wage Minimum Notes Source Rand per or month Average | 51.2 Minimum Earnings It is claimed IV 62.1 Average that the inclusion of Co. benefits FILED Reinforcing Steel |Capetown East Co. London Port Eliz- African 814 May 1973 raises the minimum to R75 51.2 Minimum IV 62.1 Average abeth Durban - Bloemfontein Victoria Ozalid Group Holdings Kolok Africa Electron Johannesburg Unskilled 10 | June 1973 Ranks Hovis McDougall ... | Cerebos Africa Ultra River Salt Works rural Mainly grade I unskilled male 20 | July 1973 Redland Vereeniging Tiles | Verenigng Benoni African 116 | June 1973 94 | June 1973 20 3 57.3 Lowest Basic rate including | III 271 59.3 Average bonus of R1.1 per month 57.0 Minimum Wage including living 60.0 Average accommodation val- ued at about R22 | IV month Statu- tory deductions are EP109RUM assumedto bezero Lowest 46.0 Basic wage rate IV 53.6 Average 51.2 Lowest 59.6 Average Reyrolle Parsons Selection Trust S.G.B. Group TRICHLAND | | Reyrolle Parsons of South Africa Elandsfontein Trans- vaal Grade lowest grade 39 April 1973 69.2 Lowest Basic standard | IV 73.4 Average hours 45 hours a week including bonus of R3.4 per month TRICHLAND African Selection | Field Transvaal | Labourer Trust Explo- 20 | May 1973 Lowest | 45+ Basic wage excluding III 303 47+ Average the value of free ration accommodation and - transport provided Statutory deductions are assumed to be S.G.B. Building Durban Equipment zero Labourer COMN Fixer Checker 55 May 1973 65.1 Lowest Basic wage rate 80.3 Average III 305 PLEA 39520 Company African Affiliate Locality Grade of Number Date Wage Minimum Notes Source African in Rand per or Labour Grade month Average ELCTRONIAY Tarmac Rossway Quarries | Halfway House Transvaal Labourer GradesI & II lowest grades Roadstone | Halfway Transval House | Labourer S.A. Transvaal Grades I & II lowest 21 May 1973 1973 26 | September 1973 29 May 1973 __... || 40 September 1973 33.9+ Minimum Basic rate for standard | III 317-8 40.0+ Minimum hours 46 hours a | IV Appx 2 week excluding the value of the free ac- commodation re- 40.0+ Minimum ceived by most 49.8+ Minimum Africans Statutory | As above deductions assumed grades to be zero Thorn Electrical Industries | Thorn Lighting | Industria Nr African male 237 May 1973 49.4 Lowest Basic rate III 328 S.A. Johannesburg 69.4 Average September 1973 52.3 Lowest IV Appx 2 76-0 Average Parkinson Cowan | Johannesburg South Africa InvesHoutsemInevenstmtensts | The Cementation Cementation | Johannesburg Johannesburg Co. Africa Labourer 18 May 1973 Unskilled engineer- 456 May 1973 FILEXP023A 52-2 Lowest Basicrate 66.2 Average III 331 58.0 Minimum Basic rates Those at | IV work on contract ing sites receive free ac- Unskilled engin- 499 May 1973 49.3 Minimum commodation and engin- food Turner & Newall ... Turners Asbestos | Durban Products eering con- | tracting Labourer TOMI^M 521 May1973 60.0 Minimum Excluding overtime | IV 65.9 Average shift bonus August 1973 ... 71.0 Minimum 77.0 Average IV Appx 2 TOMIT^M - Vickers McVan Steel Pro- | Boksburg ducts Grade G welding paint shop 32 | May 1973 63.6 Minimum Basic rate assuming 195 | III 344 and ave- hours per month rage grinding etc. worker RICHLAND GeneralNotes Weekly rates are converted to a monthly basis by multiplying by 41. Unless otherwise stated in the Notes statutory deductions from pay by the employer approximately R0.80 per month at P.D.L. wage levels are assumed to be equal to R0.80 per month and deducted Unless otherwise stated in the Notes other appropriate deductions from pay by the employer are not subtracted and the value of appropriate fringe benefits not added because they were not precisely valued Where later increases in wages were reported by companies in supplementary memoranda the new rates are also shown Wages are rounded to one decimal place C3 COMN PLE 66 FIFTH REPORT FROM THE ELECTRONICALLY ELCTRONIALY Chapter 8 FILED IMPEDIMENTS TO WAGE INCREASES - their 113. It was clear that companies had the power to raise the wages of their employees in no case were wage increases expressly prevented by statute Government policy or employers agreement and in the case of mining maximum wages formerly laid down by the Chamber of Mines had h^/en increases abandoned early in 1973 paragraph 63 to African wage increases at any rate mentioned by many companies Nevertheless various to large and rapid impediments 114. A number of witnesses claimed that wage increases for unskilled workers would cause managers to economise on their employment both using these workers more efficiently and by substituting machinery and skilled labour for unskilled labour For instance the Chairman of Courtaulds referring to the forest estates controlled by his company said it was absurd for Africans to load logs one at a time as they then did when a crane could grasp 100 at a time Courtaulds faced a severe moral dilemma as whether to employ fewer more skilled better people or to maintin employment but without raising wages they had chosen to opt for former policy Q. 155 The same dilemma was acknowledged by Associ British Foods whose subsidiary the Premier Milling Company was engaged their in intensive activities; thirds 11,000 employees labour force being unskilled II 875 " Premier Milling claimed to employ more Africans than was economically justified " especially in the rural areas and In England there would be one employee on a bakery delivery van in South Africa three If wages were raised rapidly many workers would Similarly become unemployed II 853-4 English Calico considered if unskilled wages were to rise further in their textile subsidiary there was scope for mechanisation for instance through the installation of more mod23eCP4r0 n machinery and fork trucks Q. 1562 23CP40 employment 115. The quantitative effect of African wage increases on is likely to be greater for activities in which much unskilled labour is employed or in which there is scope for a choice of production techniques than activities using little unskilled labour or in which the methods of production are technologically determined The dilemma of wages versus employment is not a serious one for every company the argument is open to abuse Moreover some companies whose subsidiaries or associates produced fairly essential goods Unilever Q. 328 and Associated British Foods Q. -recognised the beneficial effect of higher wages generally on the demand for their products It is possible that the growth of markets resulting from African wage increases and the greater intensity of the more essential goods would tend to offset the economising on unskilled labour EXPENDITURE COMMITTEE ere: expected by various witnesses I. 317 Q. 922 ELECqualifications Despite these qualifications we recognise that in some situations firms can be faced with a serious dilemma Even if a firm were able to raise wages rapidly without causing actual dismissals its labour force might nevertheless expand less rapidly than it would otherwise do If after a thorough investigation a firm were to judge that its proposed wage increases would cause serious hardship through thef effect on employment it would be justified in taking these consequences inte alcecveolunt in deciding the pace and size of increases in wages above the P.D. nN wage 116. Many witnesses claimed to be constrained in granting African increases increases by their " capacity to pay " i.e. by the effect of wage increases of their rate of profit It is not possible to generalise about the rate of profit of capital in South African affiliates compared with that in their parent companies Of the companies we asked about this the answers were fairl evenly divided In any case the recorded profits of international companies are made suspect by the possibility of the transfer pricing of interna transactions between branches ; although we were told that there is no great incentive to record profits in South Africa rather than the United Kingdom or vice versa Q. 936 RICI RICI 117. Capacity to pay was limited in some cases by price control some by competition within the industry and in others by the existence of world market price The products which were said to be subject to price control included sugar cement soft drinks tyres bus fares bakery products and food cans For instance thirds of the products of the subsidiary Associated British Foods are controlled ; prices being fixed at artificially low levels in order to subsidise consumers of essential foodstuffs II 852 The Government calculates the control prices and subsidies paid to producer on the basis of the weighted average of costs throughout the industry ( 2648 Wage increases specific to Premier Milling would have little effect abov>e> on the weighted average and would have to be born as a cost by the company 66 In all their operating units Premier Milling claimed to pay well 66 usually the statutory minimum " substantially above the wages wages laid paid down by Government by competitors and so and usually to place selves at a competitive disadvantage II 853 Premier Milling claimed to have extremely low profit margins on sales particularly in the controlled industries rigorous II 852 Associated Portland Cement stated that as a result of price controls the price increase allowed in the cement industry in March 1973 was only the second since 1959 I. 519 The industry had been helped by the achievement of economies of scale Q. 1406 but the subsidiary's profi margins had declined and the rate of profit on capital was low by any " standards I. 519 The control price was based on the costs including permitted rate of profit on capital of the industry as a whole Q. 1407 Their subsidiary had tried to get firms throughout the industry to raise African wages but had encountered " certain measure of success with one company and difficulties with others Q. 1409 Price control had restricted African wages 66 Although substantial increases in the wage rates of the African workers have been under consideration for some time it was not until the price increase was awarded in March 1973 that the company was in a position to award increases to an extent which the management regarded as satisfactory I. 519 Both Associated British Foods and Associated 68 FIFTH REPORT FROM THE ELECT Portland Cement paid minimum wages which appeared to be low in relation to appropriate P.D.L. measurements paragraphs 109-110 and Table 79 118. A few companies claimed to be facing severe competition in The South African market This point Keen and Nettlefolds G.K.N. arguing been severely affected by paying was most forcefully made by Guest that their competitiveness had already wages higher than their competitors and that there was a real danger of certain products being priced out of markets Their subsidiaries paid basic rates between 19 and 40 per cent above the statutory minimum rates but many of their South African competitors had stated categorically that they would pay the statutory minima Vol IV He rate of return on capital for companies managed by G.K.N. in South Africa was significantly lower than for the G.K.N. group as a whole Vol As a result wage increases to ensure that all workers received basic earnings in excess of the P.D.L. would have to be postponed until October 1973 V81 IV and Table 7-4 G.K.N. saw the solution to their problem in the exertion of pressures by companies and trade associations on the authorities to raise statutory minimum wages ; pressures which their managements ware Holdings applying Vol IV We heard a similar story from Marchwiel " Their subsidiary earned a very low rate of return on capital Competition in the civil engineering business in South Africa is the fiercest anywhere the world Q. 1385 Their minimum wages were lower than any P.D.L. available 7-2 estimate Tables and 7-3 but they claimed that they could remain pay much higher wages than those of their competitors and business Q. 1372 The subsidiary was pressing strongly for the industry's employers federation to push for higher wages Q. 1404 Although wages of nightwatchmen in their subsidiary security company were below the relevant P.D.L. estimates E.M.I. were restrained from raising wages because they could not alter prices under terms of contract except to cover those cost increases which H. 194-5 and Table 7-4 resulted from Wage Board determinations AfricAfaricann 119. Various other companies claimed that profits were sensitive to profits wages For example the Chairman of Courtaulds stated that the before tax of their subsidiaries would be roughly halved as a result of recent wage increase but that managements would try to economise on labour reduce this loss Q. 187 Similarly Slater Walker Securities claimed that the improvements recently introduced on the estates of their associated company N.T.E. would initially reduce its rate of profit on capital from per cent to 3 per cent but they hoped to recover some of this loss mark increasing productivity Q. 1118 Cape Asbestos with a world price and wages exceeding 70 per cent of profits that a doubling the low wages paid to their migrant workers would bring their mines to very close balance Q. 2303 mark ta 120. However not all companies were concerned about the effect of African wage increases on their profitability With profits before tax equal to 48 per cent of sales and African wages no more than 6 per cent of sales at Palabora in 1972 Q. 733-4 the Chairman of R.T.Z. could state Palabora is in the position of being so profitable that the question of African wage is in that context irrelevant In other words we are not in the position or likely to be in the position where we would even have to ask ourselves whether we could afford to pay African wages because the ( Steenemenan EXPENDITURE COMMITTEE 6%) fr labour which content in Palabora is relatively small Q. 707 Other firms did not regard the effect on profitability as exercising a constraint on the wages paid to Africans included Barclays Bank Q. 1641 English Calice Q. 1568 Armitage Shanks Q. 2033 and G.E.C. Q. 380-1 Two com panies B.L.M.C. Q. 209 and Tate and Lyle Q. 1210 whose South African subsidiaries had recently been making losses claimed that the making had not affected their policies on wages Unilever had balanced wage increases by increasing productivity so that they had not " suffered in any way as a result of improving standards of pay for our Africans Q. 359 0 121. Some managements may fail to recognise the potential for improving the efficiency of their African employees by raising their wages This potential was seen by those companies for instance Unilever Q. 290-2 and B.L.M.CO Q. 240 which argued that relatively high wages were necessary to recrui--,, and retain the best kind of workers By offering relatively high wages Unilever could require a completed primary education of their recruits Q 316 There were a few suggestions that some Africans lacked material incentives but these referred to the least skilled migrant workers from rural areas e.g. by Courtaulds with respect to some of their transient estate workers Q. 133 and by Associated Portland Cement with respect to their migrant workers from nearby reserves Q. 1455 The one company -which reported that its subsidiary had conducted a survey of African_ motivations found that what its dwelling workers wanted most was more money Q. 895 Companies which think that it is low productivity which restricts the wages of their African employees should consider whether low productivity could be partly a result of low wages If the pay is low regard management may be content with low productivity and inclined to its " African workers as an undifferentiated black mass rather than as individuals with potential Q. 921 If wages were raised managerial attitudes and policies might change Z 122. Some African wage instances the firms which used increases may well African wage bill the capacity to pay argument against have exaggerated its importance In many is a fraction of the total wage bill and African wage costs are small in relation to total costs For instance CASE the manufacturing sector as a whole the African wage bill was approximately equal to 5 per cent of sales 12 per cent of value added and 25 per cent of the total wage bill In such circumstances a large increase in African wages would have little effect on costs or profits In 1969 in the gold mining industry the African wage bill represented roughly 10 per cent of sales 15 per cent of value added 30 per cent of the total wage bill and 25 per cent of profits Between 1968 and 1973 gold market more than doubled in terms average earnings of the 63.500 Africans in company of Consolidated Gold Fields also gold is uncertain and the current price may the price of gold in the London of Rand In that period the 759 the gold mines of the associate7d59 doubled I. 216 The future of fall Nevertheless it appears that the associates of Consolidated Gold Fields could have raised African wages much further during that period with insignificant effect on profits Republic 1 of South Africa Department of Statistics South African Statistics Pretoria 1971 Tables 80 and M The data relate to 1967-68 Francis Wilson Labour in the South African Gold Mines 1911-1969 Cambridge Appendix Appendix Appendix 4 Appendix South African Reserve Bank Quarterly Bulletin June 1973 No. 108 63 1970 1972 70 FIFTH REPORT FROM THE ELEC 123. In most of the companies we investigated White wage and sality costs exceeded African wage costs This means that unless White wage increases occur throughout the industry whereas African wage increases are " specific to the firm the capacity to pay of individual companies is more sensitive to White than to African wage levels A complication mentioned Barclays by several witnesses including G.E.C. Q. 383 Metal Box Q. 553 Bank Q. 1641 and Jessel Securities Q. 2378 is the effect of an increase in the wages of the lowest employees on wage differentials Subsequent increase demands by unionised workers to restore differentials may force an in their pay as well and so may act to deter the award of wage increases the lowest But this result is not inevitable Metal Box South Africa they in raising African wages did maintain differentials right up the scale yet were clear that this had not constrained them at all in raising the wages of the lowest Q. 552-3 = 0 124. Subsidiaries or associates of British companies may be forced through competition or price controls to pay low wages in line with their competitors The remedy in this case lies in exerting all the influence they possess independently and through employers associations their competitors introduce raise wages generally in the industry and on the authorities to raise statutory minimum wages or to raise controlled prices 5 125. We recognise that in some companies wage increases would endanger the continuation of the enterprise or its further expansion and that increases could reduce African employment through mechanisation and wage other economies But these effects are important in relatively few cases Egen here they should govern the pace at which companies approach their wage goals rather than the goals themselves We have argued in paragraph 107 that the subsidiaries and associates of British companies should pay minimum wages at least to adult male employees in excess of the current and appro- priate P.D.L. The case for retaining investments in South Africa supposing 66 that some employees were paid below the P.D.L. was put by B.S.C we saw that continuing progress was being made in the direction which we advocated we would continue to use such influence as we have in that direction I do not think that we would consider that we would be serving any useful purpose by leaving the field . We would regard it as fair responsibility to put that right Q. 1897-8 We can appreciate this argument but it is not conclusive If their subsidiaries or associates argue argue that they cannot afford to pay wages above the P.D.L. to all adult retain employees British companies should seriously consider whether to their business interests in South Africa 240 1759 24001759 24001759 EXPENDITURE COMMITTEE ELECTRONICAL Y ELECTRONICAL Y ELCTRONIALY Chapter 9 FILED MIGRANT LABOUR - 2023 126. We did not request written evidence from companies on the use 2023 migrant labour questioning the orgi by their subsidiaries or associates but in the course of relevance of the subject became apparent The prevalence policy of the system is described above in paragraph 26 and Government and enforcement in paragraphs 27-29 11:08 11:08 127. There was considerable variation in the extent of employment 11:08 migrant labour among the companies which gave oral evidence Thi variation appears to reflect the character and location of the industry and Government policy more than company attitudes Most of the mining companies instance subsidiaries and associates of Consolidated Go Fields I. 210 Cape Asbestos II 733 and Jessel Securities Q. 2342 2350 -use migrant contract labour on a large scale This is partly because mining companies rely heavily on foreign workers 80 per cent of allowed African employees in mining are foreigners foreigners are in only on a temporary basis But even in the case of South African nationals the Government imposes a restriction that no more than 3 per cent of black South African miners or 100 men per whichever is the smalle -can be housed in married accommodation Q. 695 The 3 per cent restriction is not confined to the mining sector Associated Portland Cement I. 525 and Tate it was mentioned also by and Lyle Q. 1268 with respect to their affiliated cement plant and sugar estates respectively I.C. not explained that migrants were employed by an associated company because there are too few township near the factories; stable labour is available in sufficient quantity Q. 847 and the Government prevents the company from building more married accommodation Q. 900 The migrant labour system can take a more casual and voluntary form in agricu ture Both Courtaulds I. 29 and Slater Walker Securities Q. 11202 reported a large transient element in the labour force between nearby African reserves and company farms coming and going 001 001 128. A number of companies have subsidiaries or associates engaged ig manufacturing and located in urban areas near to African townships whose African labour forces are largely stable and dwelling These companies include Unilever Q. 315 British Oxygen Q. 2159 Courtaulds with respect to their subsidiary pulp mill Q. 131 and I.C.I. with respect to their wholly subsidiary I. 257 Some companies have affiliated plants located in cities or rural areas bordering Bantu homelands which employ stable workers living with their families in the homeland and commuting daily to work These include English Calico I. 535 538 Q. 1535 and R.T.Z. I. 241 72 FIFTH REPORT FROM THE a) 129. Few companies employed migrant labour by claimed to prefer a migrant to a stable labour force choice almost none none For instance Cou aulds had decided to stop employing transient labour on their estates they were moving towards a smaller more skilled better stable labour force I. 15 This system would be much easier managerially Q. 154 and in view of the recent publicity casual labour would no longer be employed of that a relief of distress basis Q. 131 We heard from many witnesses stable labour force was needed for the acquisition and retention of skills and that urban workers were preferable also because they tended to be better educated and more fluent in English or Afrikaans Unilever companies employed migrant workers in the lowest jobs Q. 307 and according to the Chairman our policy is as far as possible to employ the urban African only and it is only when we cannot get him that we will consider anybody else Q. 331 Consolidated Gold Fields while pointing to the benefits of the migrant system to the homelands and neighbouring countries and the danger of stabilising labour if the future of the mines were uncertaint claimed that the mines would welcome a large resident African labour forc if it were politically possible I. 211 Migrant labour was not efficient an therefore not cheap the main problem the mining companies face is that too few migrant Africans acquire the level of skill and general experience " called for by modern mechanised mining I. 218 Job reservation on the mines would have to be lifted to reap the full benefits of stabilisation copper- I. 211 In contrast to the other mines covered by our inquiry the mining subsidiary of R.T.Z. at Palabora does not employ migrant labou This reflects the location of the mine close to a homeland that it intensive possible for workers to commute daily the capital- and nature of open mining Q. 711 In negotiations with the Govers- ment R.T.Z. argued that the mine must have a skilled African labour force settled with their families and this was accepted Q. 711 The use some seasonal migrant labour on sugar estates was defended by Tate and Lyle as a method voluntarily adopted in other countries Q. 1260 1but they nevertheless wished to raise the proportion of stabilised workers abo the level permitted by Government Q. 1268 ' entire 130. The economic effects of the migrant labour system are not without benefit to employers In an economy in which many wages are determined by the operation of market forces the system makes available a supply of unskilled labour at a price considerably below the wage which would support a family in the city Moreover it is possible by means call cards see paragraph 28 and good wages incremental scales and pension schemes to employ contract labourers again and again instance permitting the acquisition of skills and experience I. 321 For instance an affiliated company of I.C.I. had an annual turnover of African employee of less than 10 per cent despite the prevalence of year contracts Q. 850 Nevertheless I.C.I. and many other companies did criticise the migrant system on economic grounds Q. 847 There was hardly any criticism on social grounds it was apparent that many witnesses had not concerned themselves with the broader consequences of the system Yet it is for social as well as economic reasons that the system has been criticised by academics the churches and many others in South Africa Critics argue that migrancy has contributed to the breakdown of African family life and to much personal misery that it has contributed to the social prostitution bigamy See, EXPENDITURE COMMITTEE aE associated illegitimacy with barrack drunkenness life and that violence irresponsibility Government methods of disease associated and enforcement have caused great insecurity and hardship Hence the fear of one witness that it employers were successfully to overcome the economic disadvantages the would try less hard to eliminate migrant labour This would be dangerous because no amount of higher wages better jobs better conditions better training will alter the social hardships of forcible separation from his or " her family I. 321 131. A benefit of the migrant system mentioned by some of the worker e.g. witnesses e.g. Consolidated Gold Fields I. 210-11 is the remitted income which provides for the Bantu homelands in South Africa and for other countries halted such as Lesotho and Malawi It the poverty of these areas would was argued that if migration were be made worse I. 211 However much depends on the alternatives to migration Foreign countries would suffer because their workers would no doubt be returned home permanently The Bantu homelands would suffer from the loss of remittances ; but they would gain from the permanent transfer of workers and their families to the urban areas because fewer families limited land Q. 689 951-2 therefore be uncertain would remain The effect on in the homelands to share the the homeland economies would would ' 132. We did not take evidence on the social consequences of the migrant important labour system However because this is regarded as a serious and matter by many South Africans British companies which acknowledge a responsibility towards the African employees of their South African subsi- diaries and associates ought to become fully aware of the social condition in which migrant workers and their families live Companies wishing to stabilise their labour forces whether for economic or social reasons car attempt to apply pressure on the relevant authorities The success of R.T.Z in negotiating for a stable African labour force at Palabora Q. 711 andu the discovery by Tate and Lyle on inquiry to the Department of Bantu Administration that the 3 per cent quota on married accommodation is not as inflexible a figure as we had been led to believe Q. 1268 indicate that such pressure is worth applying Government controls make it more difficult to recruit a stable labour force in some parts of the country than in others This should be taken into account in making decisions on ther location of new investment Firms located within commuting distance of negotiating Bantu homeland can if necessary follow the example of R.T.Z. in negotiating with the Department of Bantu Administration for the company to build family houses were to build for its workers in the hostel accommodation companies homeland I. 241-2 If for their workers which was easily convertible to family occupation they would have even less incentive to retain migrant workers should a future change in official policy permit stabilisation Whilst firms continue to employ migrants there is still much scope for easing the hardships likely to be entailed in the ways suggested in paragraphs 71 80 ~~. vee 1 See for instance Francis Wilson op cit especially Ch 9 and Appendix VI which contains statements by the main South African churches 74 FIFTH REPORT FROM THE ELECTRONICAL Y ELCTRONICALY Chapter 10 WAGE AND EMPLOYMENT STRUCTURE FILED 133. The large disparity between White and African earnings Africa revealed by official statistics see paragraphs 32-3 was N in South generally confirmed by the data on minimum and average basic rates classified by both grade and race which companies were asked to submit The pattern and the extent of diversity within the pattern are well illustrated by reference to wages and employment in four companies shown in Tables 10-1 to 10-4 The companies are I.C.I.'s associate A.E. & C.I. British Oxyden's subsidiary African Oxygen Unilever South Africa and Associated British Foods subsidiary Premier Milling M 134. The largest factory of A.E. & C.I. provides an example of complete lack of overlap between employment Table 10-1 Africans and Some 64 per manual Whites in grades of cent of Africans were in the unskilled grades Y and Z and the remaining 36 per cent in the semi skilled grades P to T while all the Whites were in the skilled grades G to K and artisans The average pay of the lowest graded Whites was negly double that of the highest graded Africans It appeared from zur questioning that this gulf in pay was less a matter of job content than African exclusion by law from the registered trade union which negotiated on pay and ensured that skilled jobs required union membership Q. 830-34 - > 135. A similar complete absence of overlap between Whites and Africans in job grades was found in many other affiliates of British compantes e.g. subsidiaries of Associated Portland Cement I. 522-3 A. Cohen II 508 Cape Asbestos II 728-32 the affiliates of Johnson Matthey II 580-2 and some of 759-62 the associates of Jessel Securities In the mining associate of II 745 6749 50753 7 Consolidated Gold Fields he maximum payment to the highest graded African miners was less than Cohe minimum payment to European miners I. 216 220-1 400 400 136. Within our sample of affiliated companies African Oxygen was among the leaders in the promotion of African employees Only 50 Her cent of their African employees could be classified as unskilled grades 1 and 2 45 per cent were skilled grades 3-5 and 5 per cent were skilled grade 6 upwards II 697 and Table 10-2 Nevertheless there was an almost complete lack of overlap between Africans and Whites the table shows that of the 1,993 African employees only 10 were in jobs performed also by Whites II 696 It was a policy objective of African Oxygen to reduce the ratio of White to White wages Contrary to the trend in the manufacturing sector as a whole the company had achieved some reduction in the ratio between 1967 and 1972 II 688 ELCTRONICALY Grade Employment ELCTRONIALY TABLE 10-1 Average Wages and Employment by Grade and Race in A.E. & C.I. Modderfontein Factory Arti- Y z P QR QR S T G H I J FILED K Total LEDSLPEDESNPEDNIDITTUURREE Africans Whites 1,646 - - 1,503 819 547 291 67 32 - 210212 _ 115 | 4,905 LEDSPENDITURE ------- ---- ------- ------- ------- ------- ------- 210212 210212 210212 13 115 21 825 COMITE Average basic wage or salary R per month Africans Whites Source 1. 278 9 71 80 89 102 133 148 177 _ _ _ _ I _ COMMITTEE 86 - 1 COMMITTEE _ - 1 - 331 342 358 381 559 408 400 AM - Notes 66 The data relate only to payroll i.e. manual employees There are no Asian or Coloured employees A dash indicates none in this grade RIC-HLAND COMN PLE ELCTRONIALY TABLE 10-2 Average Earnings and Employment by Grade and Race in African Oxygen C5 FILED Grade 1234567M2B3 1234567M 2B3 1234567M 2B3 1234567M 2B3 1234567M 2B3 1234567M 2B3 1234567M 2B3 1234567M 2B3 1234567M 2B3 1234567M 2B3 B4 Totul above - Employees Africans 285 714 588 211 92 92 1 7 3 --- | 1,993 20RBOT Whites ** _ _ _ 25 _ 741 209 557 188 209 1,904 20RBORT Asians and Coloureds 7 54 37 39 57 52 16 32 1 _ _ _ 295 20RBORT Average wage and salary rates R per month Africans 72 78 106 128 142 179 162 - 228 Whites ... 16 | ... - - | - 216 302 375 488 Asians and Coloureds 16 78 92 119 149 163 175 197 349 - _ Source II 696 8 Notes A dash indicates none in this grade * indicates figure not provided The average wage and salary rate excludes the top grade C5 and above 53AMTHRICHLAND 53AMTHRICHLAND 90 * _ 309 133 53AMTHRICLND 53AMTHRICLAND - COMN PLEAS i TABLE 10-3 Average Earnings and Employment by Grade and Race in Unilever South Africa Grade W1 W2 W3 W4 W5 | W6 | W7 | W8 S5 99 Employment Africans wee wee | 994 1,290 562 241 186 143 109 58 15 43 ELCTRONIAYi S7 Manag- erial | Total | FILED 3 1 3,645 FILED Whites ... we we _ TE 1 _ 1 17 133 292 351 187 273 463 1,716 Asians and Coloureds ... 21 77 35 39 58 82 113 44 17 21 Average earnings R per month FILED 2 _ 509 Oct ( | ; 1810 Africans 91 _ we 107 121 138 152 166 195 197 257 305 345 * ) 119 Whites we we - - - 138 149 173 198 241 324 367 414 * 315 1810 Asians and Coloureds ... 91 104 115 138 149 180 199 239 264 277 352- 352- AM 170 - Source I. 151-2 Notes A dash - indicates none in this grade RICHLAND * Indicates no figure provided Earnings of the managerial grade are excluded from the total Earnings include annual bonus but exclude overtime and shift allowance The weekly earnings data are converted to a monthly basis for reasons of comparability by multiplying by 4 and rounding to the nearest whole Rand - COMON PLE 78 FIFTH REPORT FROM THE ELEC ELEC 137. Table 10-3 indicates that there was considerable overlap between Africans and Whites in employment at Unilever South Africa No less than 3,273 of the company's 3,645 African employees were in grades bel those occupied by Whites but the remaining 10 per cent shared grades with highest Whites Unilever claimed that for the group as a whole the 58 paid African employees were on higher pay scales than over 800 White employees The company stated that there was no discrimination in pay on the basis of race or sex I. 151 The small size of the racial differences in average earnings within each grade bears this out; these differences were said to be due to varying lengths of service I. 152 20 20 138. Many companies claimed to pay the rate for the job irrespective of race in other words equal pay for equal work e.g. I.C.I. South Africa I. 259 and the subsidiaries of Standard Bank Vol IV Smith and Nephew Vol IV the Shell Group Vol IV and B.P. Vol IV Asom result of a job evaluation exercise Metal Box South Africa had recently National introduced the rate Bank's scales were for the job I. independent of 190 Q. 551 All Barclays race these being negotiated with registered trade union but extended to union members I. 555 Q. 161 This equality of pay and conditions for clerical staff had been introduced by Barclays in 1971 Q. 1589 1595 Pilkington Brothers claimed that their subsidiaries paid the rate for the job and that whenever Africans took over jobs previously done by Whites they never received less than the Whites were getting before Q. 2420 The statistical information whi the company provided indeed revealed considerable racial overlap in wage scales although not in job titles II 776-7 COM equal 139. A Unilever witness warned that things which are far from pay for equal work . . . can be dressed up to look like that Q. 294 number of companies while claiming to have a policy of paying the rate for the job submitted evidence which appeared to contradict their claims admitted Both English Calico and Cape Asbestos supported the principle but in oral evidence that there were no instances in their affiliates of Africans and Whites doing the same jobs Q. 1513 2321 6II 727 When British Oxygen were question about the significant racial differences in avera earnings in the overlapping grade Al- unsophisticated clerical positions "2 they answered that the gap had been narrowed and would in time eliminated and that the African clerks had been in the grade for a relative average short time Q. 2130-3 There were big differences by race in the pay of salesmen in Lewis Stores the retail chain of G.U.S R103 per month for Africans R217 for Coloureds and R259 for Whites II 836 G.U.S. claimed that there was equality of opportunity among salesmen all races and that the differences were mainly due to lack of productivity as evidenced by the high pay of a few White salesmen II 829 Q. 2589 90 Turner and Newall stated in their memorandum that certain jobs previously regarded as White occupations were now being performed by Africans and paid for at the rates laid down when these jobs were done by Whites Vol IV However their evidence on wage rates shows that the average wage of the lowest White grade apart from apprentices was more than double the average wage of the highest African grade 1 Their claim does not equate with the evidence of Table 10-3 but the group as a whole includes two other companies in addition to Unilever South Africa I. 150 meme, EXPENDITURE COMMITTEE ELECTRONICALLY TABLE 10 4 Average Earnings and Employment by Grade and Race in Premier Milling wage area 1 Grade Employees Africans vee we vee Whites ses see Asians and Coloureds ... see Average earnings R per month Africans ... eee eee Whites vee wee Asians and Coloureds vee wee Un- skilled 2,992 1 17 % 22 22 Semi- skilled 817 108 187 122 238 171 Skilled Skilled 54 425 28 185 386 270 Clerical Clerical 35 363 103 148 276 235 ELCTRONICALYTotal 3,898 FILED 897 335 - 96 2023 324 194 Oct enna, Source II 875 Notes 18 The data refer only to wage area , i.e. Johannesburg and Kempton Park in order or avoid the complication of geographical wage differences Employees not in the manual or clerical grades are excluded The weekly earnings data are converted to a monthly basis for reasons of comparability by multiplying by 4+ and rounding to the nearest whole Rand occupa- Vol IV For instance the average wage of one of the Africanised occupa- tions that of crane driver was R116 per month in Durban much above the Natal University P.D.L. of R94 per month 2 140. Although no less than 77 per cent of the 3,898 African employee of Premier Milling in wage area i were classified as unskilled there wer over 900 Africans overlapping with almost 900 Whites in the skilled skilled and clerical categories see Table 10-4 Associated British Food explained the policy on pay as follows as a general principle and where this is capable of meaningful definition Premier pay equal wages for equa work It is often extremely difficult to define equal work as whole departments tend to be either White or White II 855 Where different races performed precisely the same job as in the case of delivery salesmen and in the pharmaceutical division the same basic rates of pay relative to length of service applied ibid However Table 10-4 reveals that the average earnings of Africans were roughly half those of Whites in the three categories When questioned about these differences Associated British Foods adhered to their claim that they paid the rate for the job so implying that the earnings differences were due to differences in length of service and in the precise jobs performed within the three loose categories Q. 2722-30 2 141. In some cases there were clearly racial differences in pay for the same job The George Cohen 600 Group were in favour of narrowing the differential within job classifications where there is comparable workin performance " ; but they were against paying Africans the same rates as Whites if only because the Whites rates are high due to scarcity conditions social and environmental circumstances III 137 The average basic rate for the category fitter in their affiliated company was R103 per month in the case of Africans and R380 per month in the case of Whites III 133 Differences of this magnitude would seem to be indefensible There were some large racial disparities in pay in the Leyland Motor Corporation of South Africa For instance at their largest plant Blackheath the semi- skilled category contained two Africans averaging R90 per month 1,555 80 FIFTH REPORT FROM THE ELEC ELEC ELEC Coloureds averaging R103 and 81 Whites averaging R248 I. 108 ELEC Those gaps were partly due to the variety of jobs within the skilled category Q. 265-6 However B.L.M.C. also stated that the new job grading grading structure which was to come in during June 1973 would introduce the rate for the job irrespective of race and that this would reduce the racial disparities in pay Q. 193 264 142. Africans are excluded from registered trade unions and T therefore from apprenticeships; consequently they cannot become qualified artisans see paragraphs 155-6 However they can acquire skills through working under artisans and may eventually perform similar work Q. 1308 1311 import- rate at which such African employees should be paid is a matter of ance The category artisan at the subsidiary of Marchwiel Holdings month received very different average pay according to race R132 per for Africans R184 for Coloureds and R342 for Whites I. 502 However Marchwiel said that there was generally a differencein the work performed e.g. a White foreman would be in charge and other races would worka assistants Q. 1308-9 A subsidiary of Pilkington Brothers employed number of Africans in the grade assisting an artisan II 78132 Pilkingtons explained it is really a covert way of getting additional skills to the Bantu He is assisting an artisan and after a few he is a years good plumber Q. 2443 An African an artisan in the assisting plumbing shop received R128 per month whereas the minimum rate for a White artisan was R325 per month II 776 782 Once Africans have acquired artisan skills job wage differences of this magnitude would not be justified Courtaulds claimed that their main subsidiary paid Africans who had acquired skills the rate for the job by degrees we have got acceptance by unions that when a man is fully skilled he shall be accepted as a craftsman " and paid full craftsman's rates Q. 152 I. 14 9 143. The policy of the rate for the job has for implications African advancement into better jobs If African advancement is limited the hostility of White workers or their trade unions the application providing principle can serve to accelerate the promotion of Africans by by of security for White workers against the undercutting of their wages This was the reason given by some companies e.g. Metal Box Q. 547 adopting the policy Some registered trade unions are said also to accept the policy no doubt because it offers the best protection of their members wage levels There can be circumstances in which the payment of rate for the job would actually retard the promotion of Africans This result would be most likely to occur if African workers were less efficient than their White counterparts if employers through prejudice preferred to employ Whites rather than Africans unless the latter involved a profit advantage and if there was no overall shortage of skilled and skilled labour However the evidence which we received on the importance of White workers attitudes to the promotion of Africans see paragraphs 158-9 on the efficiency of African workers where they compete directly with Whites paragraph 162 and on the great shortage of every kind of skill paragraphs 148 150 suggests that the payment of the rate for the job would accelerate rather than retard the pace of African advancement in current South African conditions A consideration of no less importance ,,See for instance S.A.I.R.R. A Survey of Race Relations in South Africa 1972 p 255 eee EXPENDITURE COMMITTEE ELECER ELECER ELECER ELECER is the basic fairness of the principle of equal payment for equal work work irrespective of race We recognise that White trade unions may well to impede the introduction of a wage structure rationally based on job content and even than one Not all White trade unions are in favour those which favour equal pay in those race may use their bargaining strength of the rate for jobs performed to obtain wage the job by more increases in the jobs reserved for Whites in return for concessions on African advance ment into other jobs paragraph 160 However there is a strong case for those affiliated companies which have not already done so to under take thorough job evaluation and accordingly to introduce a rate or scale for each grade based on content and independent of the race or races employed in the job races discrimina 144. It is important that companies should at the least avoid tion against African employees in a particular job or grade not only in pa but also in other conditions of service such as fringe benefits Some com panies claimed to make little or no distinction based on race in the provision of fringe benefits e.g. Unilever South Africa I. 153 I.C.I. South Africa I. 261 Barclays National Bank I. 555 and Shell South Africa Vol IV Some distinctions may be imposed by law e.g. in housing assistance ibid and it may be necesary to adapt fringe benefits to differences in the living conditions social customs and needs of the different races But there ir a more important reason why racial distinction in fringe benefits may Ue. for appropriate The shortage education see paragraphs of some social amenities for Africans e.g. 78-9 means that preferential treatment for Africans in certain respects would be fair and just We encountered instances of such preferential treatment in favour of Africans e.g. in education para graph 78 and legal assistance paragraph 80 However we also encountere instances in kind of discrimination against Africans in the provision of benefit / For example Wm Cory's associate African Bitumen Emulsions provided a pension fund and medical aid for White Coloured and Asian employees at its Durban plant but not for Africans Vol IV Two sub salary sidiaries of Ozalid Group Holdings gave an annual bonus of a month's to Whites and Coloureds but only a week's salary to Africans In Ozalid as in many other companies Africans had to rely on the State medical facilities while a medical aid scheme was open to Whites and Coloured III 271 General Accident's subsidiary gave full sick pay to Whites for twelve months but to Whites for three months The contributory medical aid scheme was limited to Whites Vol IV Similarly in the George National Cohen 600 Group's subsidiaries the sick pay fund of the appropriate Industrial Council providing sick pay for up to 30 weeks was avail able for Whites Asians and Coloureds but not for Africans who were paid full sick pay only for eight days followed by third pay for the next fortnight Vol IV The Leyland Motor Corporation of South Africa made no provision for medical aid for their hourly Africans I. 105 Q. 216-7 145. Even if the rate for the job were paid the extent of overlap in jobs between Africans and Whites in most affiliated companies is not sufficiently large for this to have a significant effect on the average 1 Many companies provided information on the fringe benefits of Africans only which meant that we could not investigate racial differences 82 FIFTH REPORT FROM THE earnings of the different races differences in average earnings is The more important reason the structure of employment ELEC for racial The great majority of employees do racially specific jobs Africans in unskilled work and Whites in occupations requiring skills or qualifications Even Unilever South Africa where there was considerable overlap and the Fate for the job was paid the average earnings of White employees excluding managerial posts were 2.6 times those of Africans Table 10-3 In A.E C.I. the figure for manual jobs only was 4.7 times Table 10-1 ; in African Oxygen excluding the top posts C5 and upwards it was 3.4 times Table grades 10-2 and in Premier Milling confined to manual and clerical it was 3.4 times Table 10-4 The racial disparity in earnings appeared par- ticularly large in mining companies For instance the mining associates of Consolidated Gold Fields paid average earnings of R407 per month Whites and about R55 R27 in cash and about R28 in kind to Africans employing a ratio of 7.4 to 1 I. 216-221 The largest subsidiary of Lontho Western Platinum Holdings paid Whites on average R403 per month and Africans R59 R29 in cash and R30 in kind the ratio being 6.8 to Vol IV The relatively high ratio of White to African average earnings in mining companies reflects their use of African migrant labour and the considerable power of the White trade unions in the mining industry Q. 649 146. The picture which emerges from the evidence is of an employment structure strongly stratified by race To give another example Metal Box train- claimed that their subsidiary had gone further than most firms in ing Africans for positions of skill and responsibility I. 193 Yet only 370 of their 3,759 hourly African employees were in the grades 6 to 04 contrast the other 90 per cent being in the less skilled grades 1 to 5. By 726 of the 768 hourly Whites were in grades 6 to 14 and only 5 per cent in grades 1 to 5 in addition there were about 1,250 White employees stratification not hourly I. 189 So long as such a degree of job by race continues to operate even in progressive companies a significant unlikely unlikely reduction in the ratio of White to African average earnings is occur 1 147. A major problem in reducing the racial earnings disparities was clearly stated by the T.U.C. Colour plays a dominant role in South African social structure and its effects are bound to be seen in the labour structure of industry The level at which distinctions operate may well move up and they may be blurred in various ways but it can be expected that those not of African race will continue to seek in general to retern " African authority and the better paid positions II 669 The obstacles to advancement and to diminishing the racial stratification of jobs and possible 1759 ways of overcoming them are examined in Chapter 11 1 The number of Africans not hourly was not stated EXPENDITURE COMMITTEE ELCTRONICALY Chapter 11 AFRICAN ADVANCEMENT FILED 148. We gathered from many witnesses that substantial advancement of Africans into better qualified and more skilled jobs had occurred under the boom conditions of recent years For instance in Unilever South Africa the number of Africans employed in the lowest four grades had risen by 43 per cent between 1960 and 1973 whereas the number of Africans in the seven higher grades had increased by six or seven times Q. 298 I 1961 only 6 per cent of White workers at A.E. & C.I. were employed on skilled work; by 1973 the proportion had risen to 39 per cent I. 271 Although the 299 White clerical staff at Barclays National Bank in April 1973 represented less than 3 per cent of the total clerica staff the number had increased fourfold over the previous five years I. 554 Q. 1584 By September 1973 the number had increased to 464 II 1045 Associated British Foods stated that in recent years Whites had taken over from Whites as truck drivers computer punch card operators and laboratory assistants and in many grades of clerk II 854-5 G.E.CZ reported that until 1972 only six of the sixteen work grades in their industry were open to Africans in terms of an industry agreement with the regis tered trade unions This had now been expanded to eight and was expected to increase further Q. 400-2 B.S.C. described the recent and curren programmes for upgrading Africans and other Whites at their associated companies II 631 Q. 1945 In the jointly company of Shel and B.P. the proportion of Whites in staff jobs had risen from 1.8 per cent to 12.7 per cent over the previous five years and would increasen further as a result of job evaluation exercises then in progress Vol IV The promotion of African labour was generally attributed by witnesses to the shortages of skilled White labour e.g. I. 310 Q. 320 401-2 Upgrading was expected to accelerate as the economy grew and the shortage became more acute e.g. I. 99 262 II 669 Q. 323 In many affiliated companies Africans have been upgraded mainly into jobs being vacated by Whites The promotion of Africans does not neccesarily mean a breaking upwards down of the industrial colour bar ; in many cases the bar has moved in the hierarchy of jobs see paragraph 134 6 = 149. On company policy towards the advancement of Africans we obtained the views only of those companies which volunteered the information and of oral witnesses under questioning These limitations notwithstanding many affiliated companies were said to have a policy of advancing African employees into more responsible and better jobs e.g. the main subsidiary of Courtaulds I. 28 the associates of B.S.C. II 631 and affiliates of Associated Portland Cement I. 519 Haggie Rand III 41 and Eagle Star III 178 Unilever said that it was very much in their sub- sidiary's commercial interest to promote Africans and to push for this as hard as they could Q. 282-4 299 It was the policy of English Calico's main 395250 D 84 FIFTH REPORT FROM THE ELECTR subsidiary to encourage Africans to assume higher responsibilities ELECTR we would be happy to see the advancement of the Africans as far as " possible Q. 1506 R.T.Z.'s subsidiary had engaged the services of an international firm of consultants to help management in bringing about an effective change in the traditional South African approach to the utilisation of brack labour I. 241 A number of companies reported that their affiliates would like to move faster on African advancement than was feasible G.E.C. Q. 453 Barclays Bank Q. 1591 Associated British Foods Q. 2662 and G.U.S. Q. 2602 None argued against African advancement of for a less rapid pace no o _ 150. We accept that the shortage of skilled White labour has given com- panies a special interest in advancing Africans to better jobs I. 310 How- ever it is also true that managerial attitudes in affiliated companies may reflect the mores custom and practice of South African society In that case opportunities for African advancement may be overlooked " it is possible that by setting an example one can show people not only 253 what can be done but what can be done in their own interests Q. It will become apparent from our examination of the obstacles to African advancement that purposeful policies are required to overcome them For a number of affiliated companies there was no sign that effective policies were being pursued see paragraph 165 ef ective 151. It is not enough that the directors and top management should should abjure racial discrimination avoidance of discrimination is necessary fight down the managerial line B.S.C. were confident that the policies of those shareholding at the top of the companies in were enlightened but they were which afraid they had a minority that these policies did not always find their way right down the line Q. 1908 This was not necessarily due to ill intent B.S.C. said but to a communications problem which industry has to face Q. 1942 It was no doubt the same problem which " the subsidiary of British Oxygen to introduce a programme of attitude Africans change among their White employees in direct contact with II 689 As a result of these efforts which included the replacement of unsatisfactory supervisors the subsidiary reported there has been a Dery definite change of heart among White supervisors They no longer African employees as numbers or simply cost items II 689-90 Oxygen have provided a commendable lead in this respect African 202 African 152. The importance of legal job reservation as a bar to advancement depended on the industry in which firms were engaged Employment in mining governed by the Mines and Works Act appeared to be particularly affected Q. 598 II 665 Consolidated Gold Fields pointed out that in mining an African was barred from holding a blasting certificate and from many jobs including those of sampler surveyor and engine driver Q. 598 Both G.E.C. and B.S.C. whose affiliates were members of S.E.I.F.S.A. the engineering employers federation referred to legal job reservation in the engineering industry Q. 400 1924 The S.E.I.F.S.A. agreement with the White trade unions set up 16 grades of work of which eight were confined to union members Q.400 but Africans are excluded by law from membership of registered unions see paragraph 31 The closed shop agreement which effectively barred Africans from the skilled grades had statutory force having been gazetted under the Industrial (~nessuce, EXPENDITURE COMMITTEE Conciliation Act Q. 481-4 In A.E. & C.I. the associate of I.C.I. similar statutory Industrial Council agreement involving a closed shop w said to exclude Africans from the skilled manual grades Q. 832 I. 271 153. Firms in other industries generally reported that statutory job reservation caused few problems These included affiliates of Metal Box Box Q. 490 2Armitage Shanks Q. 1997 Cadbury Schweppes Q. 1747 English Calico Q. 1553 United Transport Overseas Q. 1853 and B.L.M.C Q. 220 Only one employee in Pilkingtons subsidiaries was covered by job reservation order Q. 2420 This picture accords with the evidence that legal job reservation covers only a very small proportion of jobs in the economy as a whole see paragraph 25 the e) 154. Companies in diverse lines of business mentioned the problem that the promotion of Whites often entailed expensive duplication in order to meet Government requirements that the different races should not share the same facilities R.T.Z. referred to this as a source of increased capital cost Q. 790 G.U.S. said that the regulations often prevented Africans from performing the same clerical work as Whites unless a separate office was created Q. 2604 Barclays Bank said that the Shops and Offices Act subsidiary and Labour Acts had retarded African progress in their e.g. separate offices or work areas had to be provided for White clerical staff and separate restaurants rest rooms and lavatories for each race employee I. 556 Q. 1585 1593 Barclays were now planning all new major premises to meet the employees so that all physical restrictions imposed on contact between races could be employed Q. 1584-7 Since the cost of providing separate facilities for employees of each race was too grea in small branches African advancement would be concentrated in the big centres Q. 1593 Courtaulds mentioned that the law relating to separate amenities for different races had created difficulty for a subsidiary Pretoria Paper Products in applying their policy of discrimination PLEAS administrative and clerical personnel I. 72 PLEAS PLEAS artisang 155. It was generally reported that Africans could because they were unable to serve apprenticeships not e.g. become artisang by Metal Q. 490 Jessel Securities Q. 2358 and Pilkington Brothers Pilkington explained at the moment although this is changing the Whites will not take on a Bantu apprentice Q. 2423 There is apparently no legal to the apprenticeship of Africans except Council agreement restricts skilled grades to where a members bag gazetted Industria of registered trade unions as in the engineering affiliates of G.E.C. and B.S.C. see paragraph 152 B.L.M.C. explained that it was the custom and practice that a White artisan would train only a White apprentice Q. 220 this is an under standing we have with the unions Q. 224 They added that Africans were not allowed to join a trade union and by definition artisans are members of the trade union Q. 226 156. It would be wrong for British affiliates to is is possible in opening artisan jobs to Africans S.A.I.C.C.O.R. had overcome the problem that assume that no progress Courtaulds subsidiary Africans could not be 1 Alex Hepple Ltd. 1971 p 37 395250 South Africa Workers under Apartheid Christian Action Publications D 86 FIFTH REPORT FROM THE ELE And apprenticed to White artisans by introducing in 1972 a new grade of for Africans aspiring to the skilled trades I. 28 S.A.I.C.C.O.R. persuaded the registered trade unions that when a man was fully skilled he should be accepted as a craftsman at full craftsman's rates and The Government in gazetting the Industrial Council agreement had given its approval Q. 152 It is worth noting that S.A.I.C.C.O.R. had achieved greater flexibility for itself as a protection against other companies resistance to change by setting up its own separate Industrial Council I. 77 Tate and Lyle explained that Africans had to acquire artisan skills in the Bantu homelands or pick them up on the job they saw the the problem in the establishment of a training school Q. 1222 solutiotno The South African Sugar Association of which Tate and Lyle's subsidiary was member was building a training centre initially to provide apprenticeship training for White Coloured and Asian apprentices However The Association was negotiating with the Government to be permitted to train African apprentices as well I. 415 Q. 1221 1225 141 157. Many companies said that an African could not be put in authority over a White e.g. English Calico Q. 1554 G.U.S. Q. 2602 3Barclays Bank I. 556 British Oxygen II 694 and Tate and Lyle Q. 1226 Some claimed that this was a legal requirement e.g. Slater Walker Q. 112 Pilkington Brothers Q. 2421 and I.C.I. Q. 865-8 However I.C.I. later submitted a supplementary memorandum setting out the legal position I. 573 According to I.C.I. there is no law specifically preventing a White from being in charge of White persons but the Government has categorically stated that it would not allow such situation to arise The Government a under would be able to enforce its policy by means of a job reservation order the Industrial Conciliation Act or in the case of Africans by means d& a prohibition on the employment of or the performance of work by an African under the Bantu Labour Act Z mot 158. Although the majority of companies when asked said they were significantly impeded by statutory job reservation many claimed that they were impeded by the White trade unions Moreover some of the companies affected by a statutory colour bar ascribed the bar to the trade unions rather than to the Government According to I.C.I. if the trade unions did not agree to African advancement it was pointless asking the Government change the law but if the trade unions agreed the Government would also agree Sometimes promotion could be effected by changing the title But " not the content of a job and the Government was generally quite helpful on this Q. 863-4 According to B.S.C. it was the White trade unions not the Government who were responsible for the statutory closed shop for skilled work in the engineering industry Q. 1925-6 Consolidated Gold Fields said that in mining " this job reservation puts a ceiling the level to which an African can aspire but below that ceiling is another One " which is set by the White trades unions Q. 598 English Calico in whose subsidiary White employees were not unionised claimed that the subsidiary was untouched by job reservation because of the absence of unionisation Q. 1515 1553 British Oxygen stated that official approval had been given to industry for Africans to be trained and to undertake a range of jobs in future which in the past had been considered a preserve of White workers but that the approval was subject to the reaction of trade unions The reaction was said to differ from union to union the Boilermakers Union 90 FIFTH REPORT FROM THE training in the employees mother tongues I. 273 ELECTR Tate and Lyle's sub- sidiary's main plant has a training school for aptitude testing and basic training of operators drivers and junior supervisors and uses outside agencies to provide training for higher jobs I. 414 U.T.O. said that their larger passenger companies provide comprehensive training facilities for drivers inspectors and others II 934 British Oxygen's subsidiary runs a welding school at which over 1,000 Whites employed mainly by customer firms have been trained since 1967 II 690 Q. 2140 They have also established contact with Operation Grade described as " making body which has developed an excellent education programme as part of the company's drive to reduce illiteracy among employees ibid B.SC. said thatin expectation of the agreement between S.E.I.F.S.A. and the to which unions their associates had already trained Africans to do the jobs would thereby be released Q. 1924 18 1 :17 AM - RIC-HLAND COMON PLEAS - 203CP401759 203CP401759 2023CP401759 EXPENDITURE COMMITTEE ELCTRONIALY Chapter 12 FILED THE BASIS FOR OUR RECOMMENDATIONS FILED 167. Before we make our recommendations two issues must be examined the extent and form of control which should be exercised by British com- panies over their subsidiaries and associates in South Africa and the extent and form of control which should be exercised by the British Government over British companies in relation to their business interests in the Republic 00 168. The Committee chose to investigate the wages and conditions of employment of African workers employed by British companies in South Africa as a factor affecting the investment prospects export performance and reputation abroad of British industry paragraph ) We cannot yet say whether investment prospects and export performance have been adversely affected although the effect Q. 1025-6 They were reference It is we accept D.T.I. thought there was bound to be some the clear about the relevance of our terms an extremely important subject that the activities of British firms abroad and the practices they employ in different countries do affect the reputation of British industry It is for that reason that we set out to stress this particular subject in the guidance that we issue to firms seeking to set up subsidiaries in South Africa Q. 967 The Britis C.B.I. in their booklet A new look at the responsibilities of the " " public company January 1973 say Few responsible businessmen today would hold that directors are required to act only in the pursuit of the | maximum profit for their company or that in so doing they must recognise responsibility only to their shareholders In our view this is not enough there must be and be seen to be an ethical dimension in corporate activity Whatever the consequences for our national interest and for that of particular companies British firms are inevitably faced with moral decisions in relation to African employees of affiliated companies in South Africa o bs 169. In fact few of our witnesses would disagree that companies have responsibility for African employees in so far as they have the power control and influence their wages and conditions company which we questioned did exercise all Yet it seems that not every the control or influence every which it was capable Certainly some companies had not until the recent publicity attempted to meet the responsibility which they now acknowledge 170. It was a feature of the evidence we heard that almost all our industrial witnesses expressed confidence in and support for the manage- ments of their South African subsidiaries or associates Very few admitted to being in any disagreement with the local management on the wages and conditions of African employees Where disagreements were hinted at these were about emphasis or timing and not objectives Does that mean that the question of control and influence is in practice unimportant The basic agreement between British companies and their subsidiaries and associates could reflect two extreme states of affairs or elements of both It could 92 FIFTH REPORT FROM THE ELEC reflect enlightened managements in both countries informing and co operat- ing with each other but it could equally reflect an unwillingness the part of British companies compounded of ignorance and interest to challenge the practices of South African managements in these matters Even if British firms at present concur in the policies of their South African subsidiaries or associates there is a continuing need for them to exercise generally control and influence in order to meet the responsibility which is acknowledged generally O 171. We accept that British companies with scores or even hundreds of branches abroad have little possibility of control on any but witnesses policy issues We also accept the argument of many important that it is good practice to delegate But the wages and icmopnodrittainocnes managerial of African workers in their South African affiliates are of such the witnesses have to the reputations of parent companies that they must necessarily responsibility for formulating broad policies . a 111 172. The first essential is for British companies to be informed about and the wages and conditions of employees in their South African affiliates about the local background Personal visits by British management are important for this purpose We noted that some chairmen managing directors or other senior directors even of firms with large world interests found time to visit their South African affiliates regularly Others -including those of several of the smaller appeared to have tle detailed knowledge of the employment conditions in their South African affiliates Companies with Main Board representation on the South African board are in a better position to know and to influence the state of affams ; at present some British firms are not represented even though they are majority shareholders There is a risk involved in allowing South African companies to supply directors to represent the British company at board meetings meetings v au e 173. The Main Board director responsible for industrial relations should be no less concerned with industrial relations in South African affiliates fran the financial director is with their financial policies Information should requested regularly on wages and conditions expressed in relation to the policy objectives of the British board Too many British firms normally look little further than the balance sheets of their South African subsidiaries and associates They would do well to follow the example of English manufacturing now Tootal who discussing communications with their 116 plants in about 20 countries said We have given a lot of thought and discussion to this not only in the context of South Africa but in the would- wide context because of the result of this publicity ... We are in the process of debating between ourselves what kind of responsibilities we should have in Manchester for wages I certainly think we shall institute some system of being aware as a Main Board in more detail of what goes on Q. 1530 174. Elsewhere in this report we have noted that the extent of a British company's financial holdings in its South African affiliates did not necessarily correspond with the actual degree of control it exercised over its affiliates or of responsibility it accepted for their actions It is not for us to discuss the wisdom or otherwise of majority or minority shareholdings EXPENDITURE COMMITTEE ELECO ELECO but we emphasise the risk to the reputation of British firms arising from ELECO conduct of their overseas affiliated companies even though there may ELECO only a minority shareholding Firms should devote as much care to maintenance - maintenance of their reputation as employers as they do to the of the quality of the products that bear their name 175. The D.T.I. inquiry by quoting summarised a statement Government of the Prime policy on the Minister made our subject of on 16th March 1973 " that British companies in South Africa would recognise hope their own interests in establishing a name as employers in particular by good keeping abreast of the best current practices in respect of pay and emplo " ment Q. 965 The Minister for Trade and Consumer Affairsin the D.TJ. told the House of Commons on 16th April 1973 that the Government wished to encourage British companies with subsidiaries or associates In South Africa to look urgently at the pay and conditions of their employees and to make any necessary improvements H.C. Deb col 12 of the best current practices and their improvement were The adoption said to have implications Common- political which were welcomed by the Foreign and wealth Office in their evidence Q. 1008 It appeared to us however that the translation of such views into advice to companies had been hearted The D.T.I. had prepared a Note on the setting up of subsidiary companies in South Africa which was made available to prospective British investors Q. 974-8 It was only in August 1972 that the Note was expanded To include a word " Labour In March so as to draw it to had not been updated section Conditions of for White Employment Industry 1973 this section was published in Trade and the attention of all firms Q. 974 but the sectiQon since August 1972 Q. 978 176. The section in the Note dealing with wages and conditions of No increasing employees White simply indicates that various measures such as the wages and improving the fringe benefits of Africans advancing Africans into some skilled jobs and consulting with African employees are not illegal and that the South African Government has expressed support for of these The only specific opinion offered is that such most " should resultin greater stability less absenteeism and higher productivity The Note contains no statement reflecting British Government measures policy above expressed in the letter written by the Prime Minister and quoted The D.T.I. explained that the guidance was intended to stress the fact that consider companies should look carefully at this question and that there were " " of ensuring reasonable conditions of employment Q. 959 We this form of guidance to be totally inadequate ways = ' 177. The D.T.I. were said to communicate with " invest or operate in South Africa Firms come to companies seeking to us with questions and for information and it is expected within the Department that all those dealing with firms on this subject will draw the attention of the firms to this problem and the need to conform with the best employment " practices frequently " " Q. 972 The D.T.I. were also quite in touch with the bigger companies already operating in the Republic either through our posts in South Africa or at headquarters when talking to them about their general ) D.T.I. Guidance to British Firms Paying Wagesin South Africa Trade and Industry 9th March 1973 p 690. Printedin Evidence II 1023 94 FIFTH REPORT FROM THE m ad TT " Republic operations overseas Q. 980 The commercial staff posted in the were said to go out of their way to draw the importance of this issue o the attention of the firms with whom they are dealing in South Africa employment Q. 1020 The D.T.I. was in favour of making progress in " " practices by means of persuasion and publicity Q. 1028 But Mr. Adam Raphael of the Guardian told the Committee that in his investigation employment little of " practices in affiliated companies he got very help from the British Embassy He interpreted this as being due to a lack of knowledge or an unwillingness to make use of press publicity on the of the Embassy which he said had ceased to list British companicomepaniess part in South Africa Q. 1052 178. In February 1973 the United States Department of State published a document on the employment Africa This was made available to all the Republic It is a document of practices of U.S. firms in South U.S. firms known to be operating in some 7,000 words explaining the problems encountered by companies and means of overcoming them and suggesting or urging certain objectives and courses of action It also sets out the achievements or improvements of particular controlled firms in the wages and conditions of White employees based on evidence which was volunteered by companies The document invites firms to provide further information on a continuing basis The D.T.I. had not favoured the State Department's approach of setting out the practices of particular comprehen firms in South Africa because such a document could never be sive and it would be extremely costly and consuming to keep it updated Q. 979 The D.T.I. later explained that a system of voluntary reporting as in the U.S. case would not be expensive but that information collected on such a basis would be very selective e.g. comprising only what the best firms chose to tell Q. 1018 Therefore the D.T.I. preferred to persuade companies of the need to conform to the best employment practices primarily through detailed contacts with particular firms coming to [ys " for guidance and assistance on this question Q. 979 However the gather ing and dissemination of information on companies achievements is an important means of encouraging and persuading others CASE 179. The Foreign and Commonwealth Office were asked for their opinion on the desirability of legislation requiring British firms to report on CASE employment practices of their affiliates in South Africa They saw R clear answer Q. 1006-7 They explained that the relationship between British Missions abroad and British was one of operation companies trust and confidence There would be undesirable consequences an Foreign aet implications if the and Commonwealth Office appeared to " " a policeman supervising the activities of British firms abroad Q. 1007 This particular objection would not apply to a requirement laid upon companies to report to the D.T.I. in London 180. Asked about the possibility of legislation to encourage British firms to adopt the best current employment practices in South Africa the D.T.I. pointed out that legislation applying to activities in other countries raised 1 Department of State Bureau of African Affairs Employment Practices of U.S. in South Africa Washington D.C. February 1973 printed in evidence II 1024 2 Ibid Preface Firms EXPENDITURE COMMITTEE 95m ELECTRONICALLY ELECTRONICALLY legal and jurisdictional problems Q. 1009-11 In the words of Sir Max ELECTRONICALY Brown of the D.T.I. I doubt very much whether one could think of enforcing anything in South Africa by any action taken in Q. 1027 Given limitations of this kind the Government's ELCTRONICALY that persuasion would be the most effective method Q. 1009 this country ELECTRONICALLY ELECTRONICAL Y approach was Joint ELCTRONICALY 181. Early in 1973 Representative Charles C. Diggs introduced a 66 Resolution in the U.S. House of Representatives to protect United States domestic and foreign policy interests by making fair employment practices in FILED criteria the South African enterprises of United States firms a for eligibility - for Government contracts ( " Fair employment practices were defined as including the concepts of equal pay for equal or comparable work equal 2023 to fringe benefits equal hiring and training opportunities and equal opportunity Oct for advancement to supervisory and higher positions all without regard race or color The law would be administered by the administrator of 18 the Government department concerned with discrimination in employ-11:17 11:17 ment by Government contractors who would be assisted by an advisory board drawn from various spheres To be eligible for Government contracts firms would have to satisfy the administrator that the operations in South Africa AM which they owned or controlled adopted fair employment practices RICHLAND 182. Even if the Government found it possible to legislate along the lines RICHLAND of the Diggs Resolution such legislation would give rise to problems asso- RICHLAND ciated with the degree of control over possessed by British companies and to their subsidiaries and associates RICHLAND considerable arbitrariness in the RICHLAND interpretation of fair employment practices Difficult decisions would - arise where for instance a firm was clearly making progress but was being restrained by factors beyond its control Only those companies which sought COMMON Government contracts would be touched by the legislation COMMON COMMON 183. Another potential form of influence over British companies might seem to be by means of Government control over company transfers of PLEAS PLEAS capital to South Africa However the scope for such action is limited by the fact that quarters of British net investment is financed from re- - invested profits and the remainder is financed mainly from overseas borrow- ing and does not entail an outflow of funds from the United Kingdom para- graph 35 the The D.T.I. considered that exercise of control over capital " flows as a means of influencing companies would be bound to be arbitrary " and less effective than the present methods Q. 1028 184. Since 1969 there has been a clause in H.M. Government contracts 203CP4 1759 requiring the contractor to refrain from unlawful discrimination within the meaning and scope of the Race Relations Act 1968 which applies within Great Britain There is also a requirement that Government contractors should ensure pay and conditions no less favourable than those established for the trade or industry in the district within the United Kingdom Social Audit Ltd. submitted a memorandum II 1002 arguing for an extension 1 Similar Resolutions have been introducedin Washingtonin the past although they not progressed towards enactment 2 93rd Congress 1st Session H. J. Res 268 31st January 1973 p 1 3 Ibid Section B 4 Ibid Section 3 5 Ibid Section 4 6 Standard Conditions of Government Contracts for Stores Purchases Clause 16 7 Ibid Clause 17 have 96 FIFTH REPORT FROM THE ELB ELB ' of such requirements adapted Government contracts performed would wholly or partly in South Africa An investigation of this subject have taken us beyond our terms of reference publicity 185. We received much evidence indicating that the recent press and our own inquiry had contributed to a significant improvement in wages and conditions of African employees of affiliated companies the Republic paragraphs 69-70 and Table 6-1 The expectation that their employment practices will be subject to public scrutiny would seem to bea this is potent force for progress " It was the view of the D.T.I. that eminently an area in which publicity and the uncovering of information is the most effective device you can have for moving on the objectives British Q. 1010 We believe that the new interest recently shown by many companies in African wages and conditions will be maintained But it possible that in some cases the current interest will subside and the higher real wages of African employees will be short unless further publicity is anticipated 26 186. There would seem to be at least four ways of arranging that companies are liable to future public scrutiny First there could be a system of voluntary reporting of employment practices by companies to the D.T.I. as in the case of U.S. firms volunteering information to the State Department partgraph 178 Such publicity could usefully provide a lead and guide some firms but it would have the customary drawbacks of a voluntary system Secondly there could be a statutory requirement for example in reports companies legislation that British companies should furnish periodic to the D.T.I. on the employment practices of their subsidiaries or asso ciates paragraph 179 These reports could then be presented to the House or published in some other way Thirdly there could be further investige tions similar to the present inquiry by a Select Committee of the House This would have the advantages of compulsion without the need for legis lation of flexibility judging by the reporting of oral evidence to the Committee considerable publicity Fourthly firms could be called upon to keep their shareholders regularly informed of employment practices Africa 187. Our terms of reference confined the investigation to South but any recommendations to Government inevitably raise the question whether South Africa should be singled out for special scrutiny or control South Africa is not the only country in which affiliated companies of British firms pay low wages Indeed some of our oral witnesses acknowledged that mentioned their affiliates paid lower real wages in other countries Others that the Governments of other countries would not allow them to raise wag It is true that poverty is poverty wherever it is encountered but like the D.T.I. we believe that South Africa is a rather special case Q. 1025 EXPENDITURE COMMITTEE 97 ELECTRONICAL Y ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICAL Y ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY Chapter 13 ELECTRONICALY FILED RECOMMENDATIONS FILED 188. At various places in this Report we have given our opinion as to 2023 what constitutes good practice on the part of companies in South Africa 2023 with regard to wages and conditions of employment These views 2023 are gathered together and produced as a set of Guidelines Practice printed as an Appendix to this Chapter We in the Code of Oct recommend that the Appendix be regarded as the draft for a new set of Guidelines to British 18 companies with business interests in the Republic replacing the advice 11:26 currently given by the D.T.I. We recommend that the Guidelines 11:2116:26 published by the D.T.I. and that a copy be sent by the D.T.I. to every AM British company known to have or to be contemplating the establishment of AM business interests in South Africa 189. Although we were practices in South Africa told by is given the D.T.I. that advice to companies both by RICHLAND on employment RICHLAND the commercial RICHLAND RICHLAND staff posted to the British Embassy in South Africa and by D.T.I. in London we received the impression that both the Embassy and D.T.I. played a - fairly passive role possibly waiting for companies to request advice and COMMON COMMON assistance We recommend that the staff in the Embassy and the D.T.I. play an active role of seeking out companies in order to encourage and advise them on improvements in employment practices This function COMMON requires an date knowledge of for instance the law South African COMMON Government policy and company practice Staff would be assisted in keep- PLEAS ing date on current practices if they received voluntary reports on the progress of firms Information in these reports could be incorporated in the Guidelines as a lead for other firms - We recommend that a review be undertaken of the staff in South Africa and the D.T.I. whose function it is to provide information assistance and advice to companies in order that the purposes we envisage are adequately met We recommend that companies be invited to submit reports on their practices and on progress concerning African wages and conditions We recommend that the Guide- 203CP41759 lines be regularly revised 190. It is important that companies should expect future publicity In this inquiry we have been concerned to understand the situation in some detail and to document the employment practices of affiliated companies both good and bad Future investigations could concentrate on those companies which do not pursue good employment practices ; and if the policies which we have recommended appear to have failed in their objectives tougher measures could then be considered We anticipate that the subject will continue to command the interest and vigilance of the House 191. Some companies over or issue directives said that they to subsidiaries were reluctant to exercise control in South Africa because the sub- sidiaries might thereby be rendered liable to United Kingdom corporation 98 FIFTH REPORT FROM THE m e tax see paragraph 53 The two memoranda submitted by the Inland Revenue do not indicate that the issue of policy directives on wages and conditions of employment alone has this result Nevertheless it is important that there should be no doubt about the matter and that companies should not be deterred from exercising due control through any misapprehension We recommend that the Inland Revenue should issue public guidance FILED this subject and that if necessary there should be legislative change - CODE OF PRACTICE 2023 GUIDELINES FOR UNITED KINGDOM COMPANIES WITH INTERESTS IN SOUTH AFRICA Oct 1 1. Government policy is summarisedin a statement of the Prime Minister would madein March 1973 " hope that British companies in South Africa employers recognise their own interests in establishing a name as good keeping particular by for advancement abreast of the best current practices and opportunities These Guidelines are intended to assist companies in achieving and maintaining good employment practices RIC 2. In general companies should ensure as a minimum that as far as possible the management attitudes and practices adopted by their affiliates in South Africa in relation to their employees are consistent with and an bear examination against the attitudes and practices adopted towards their employees in the United Kingdom or 3. British companies having business interests in South Africa or thorough contemplating operations there should ensure that they have a knowledge and understanding of the position of their African workers and of the economic social and political forces which govern their lives There is an abundance of unskilled labour available in the Republic so that operation of market forces cannot be relied upon to ensure adequate wages for the unskilled Because Africans lack the normal trade union rights and there are very few African trade unions there can be no certainty that collective bargaining will ensure that African wages are adequate Considerable differences exist in the average earnings from employment of Africans and Whites in all sectors of the economy Government laws and regulations on the movement residence and employment of Africans place great power in the hands of employers over their African employees dismissal may entail the loss of rights to urban residence and employment The migrant labour system which has been subject to criticism not only for its economic but also its social consequences is in many cases legally imposed on companies and their African employees Various legal institutional and customary obstacles to equality of opportunity and to the advancement of Africans into better and paying jobs are encountered The setting in which their subsidiaries and associates operate should be well understood by British companies It is because of this setting that the present Guidelines have been produced 4. The improving mistaken impression the wages The South that employers are effectively prevented from or conditions of service of African employees is African Government has expressed itself in favour =e EXPENDITURE COMMITTEE ELECTR ELECTR ELECTR of increases in wages for Africans and it is not opposed to the training and advancement of Africans provided that White workers do not object. It has spoken against the resistance of White trade unions to African goals advancement Many South African employers have set progressive as evidenced by statements of an employers association in favour of trade union rights for Africans and the minimum wage objectives of various associations Progressive views have been attributed to some White trade unions The great shortage of skilled and educated manpower which prevails in South Africa is generally acknowledged to have produced FILED greater incentive to and possibility of African advancement than existed in the past 5. It is right for British companies to accept a responsibility in relation to the wages and conditions of African employees in their business interests in South Africa in so far as the companies have the power to control or^o influence these wages and conditions The wages and conditions of AfricanA_frican_ employees are an important issue on which the parent company is advised to formulate certain broad policies The Main Board director responsible for industrial relations should be no less concerned with industrial relations in South African affiliates than the financial director is with their financial RICHLAND policies 6. To increase their impact in South African subsidiaries and associatesRICHLAND it is important for parent companies to develop good relationships with RICHLAND them These can be fostered through periodic visits to the Republic by the Chairman and others in the parent company Personal visits also enable the : parent company to acquire knowledge of wages and conditions in the affiliate Main Board representation on the South African board is to be recommended To monitor and assess an affiliate's policies information COMMON should be required regularly on wages and conditions expressed in relation COMMON to the policy objectives of the British board Industrial Relations PLEAS 7. In the absence of African membership of trade unions it is advisable - to establish or employees as a continue with effective works committees means of consultation communication and CASE of African CASE training in CASE industrial relations To be effective works committees should be 2023CP40 1759 democratically elected should meet regularly and frequently and should be 2023CP401759 able to discuss wages and conditions of employment Practices which hinder 2023CP4001759 the development of African unions should be avoided African trade unions 2023CP4001759 are not unlawful and although they possess none of the normal trade union 2023CP40 1759 rights there is nothing to prevent a company from recognising and 2023CP40 1759 negotiating with a trade union representing African workers The lawful 2023CP40 1759 development of collective bargaining with African employees should 2023CP4001759 be encouraged The Poverty Datum Line 8. Poverty Datum Line P.D.L. and Minimum Effective Level M.E.L. estimates can provide a helpful guide to the minimum wages which employers should pay in the Republic Companies should ensure that there is available an date P.D.L. and M.E.L. measure appropriate to their lowest workers and their dependants in each location of operation 100 FIFTH REPORT FROM THE 1s OF Where P.D.L. and M.E.L. estimates are not available a company should commission experts to undertake such studies or it should join with other companies through an area employers association or an industry employers association or an association of British companies eng produc U.K.S.A.T.A. or through sponsorship of a national survey appropriate estimates banest regard 9. The estimators of the P.D.L. it as a measure of the minimum required to support a familyin African living conditions assuming the wisest allocation of expenditure A wage equal to the P.D.L. cannot therefore be thought of as a fair one Companies are urged to accept Be M.E.L. as the target for minimum wages and to establish a timetable for achieving it Oct Oct Fringe Benefits 10. There is a case for companies to provide benefits in kind for 18 ployees if the benefits would otherwise be provided inadequately or mot at all Where companies provide board and lodging for migrant workers much can be done to raise the quality of life of these employees Com- panies should be familiar with the living conditions of their migrant workers and ensure that high standards of provision are achieved and maintained their but they should also be mindful of the living conditions and needs of migrant employees dependants family free- 11. Assistance with housing is impeded by laws relating to hold and residence but in the case of employees commuting from nearby Bantu homelands there is a possibility of a company helping Africans to acquire their own homes Much can be done to further the education of African employees their children and the African community generally assistance can range from literacy programmes to bursaries for universi education The high demand for education among many Africans makes this a particularly valuable form of assistance Companies are in a position to ease the problems and insecurity of Africans resulting from restrictions on their movement residence and employment by providing advice legal assistance when problems arise Firms should determine whether services ( African employees and their dependants have need of medical addition to those provided by the State ; and if so to meet the need Com- panies should ensure that African employees are covered by a pension scheme which is comparable in benefits to that of White employees suited to the needs of Africans e.g. migrant employees should not be disadvantaged by broken service By providing free or subsidised meat companies can ensure that paid employees are nutritiously fed = companies 12. In the provision of fringe benefits redress the disadvantages encountered by Africans in social amenities and services Many of the benefits in should attempt tb the availability of kind recommended above would be helpful not only to employees but also to employers by strengthening employee loyalty and reducing labour turnover There are many institutions and organisations concerned with the welfare of NonWhites to which companies could make financial contributions Migrant Labour 13. Companies should adopt a policy towards migrant labour based not only on the consequences for the company of the migrant system but also on an understanding of the consequences for Africans EXPENDITURE COMMITTEE 101 ELCTRONICALY 14. There is much that companies can do to see that their employeesELECTRONICALY distance have a legal right to reside with their families within commuting ELECTRONICAL Y of their work For instance there is reason to believe that GovernmentELECTRONICALY enforcement of migrant employment in some industries is not entirely in- flexible A consideration of importance in choosing a location for a newELECTRONICALY plant is that some locations permit more use of stable family labour ELECTRONICALY than others Advice and legal assistance can be given to African employees FILED in relation to the pass laws - Wage Structure 2023 15. A company's wage structure should be determined irrespective of 2023 race according to principles of job evaluation Equal pay for equal work will be meaningless so long as Whites and Africans are not employed Oct in the same jobs or grades Payment of the rate for the job irrespectiv1e8 of race can accelerate the pace of African advancement in times of shortage 11:26 of skilled labour because it can give White workers and unions a sense 11:26 of security against the undercutting of their wages 11:26 AM 16. It should be an objective of company policy to reduce the differen- tial often large between the average pay of White and African workers This can be achieved not only by a narrowing of the wage structure but also RICHLAND by a change in the racial structure of employment 17. Controlled prices or competitors practices may hinder affiliated RICHLAND companies in their improvement of wages and conditions It is possible - to reduce or overcome these difficulties as is shown by those companiesCOMMON which have exerted their influence on their competitors for example in COMMON employers associations to raise wages throughout an industry or on the authorities to introduce or raise statutory minimum wages or to raiseCOMMON COMMON controlled prices African Advancement 18. Companies are urged to press hard into more qualified and better jobs PLEAS for the advancement of Africans CASE Adherence to the mores custom CASE and practice of South African society may mean that opportunities for CASE African advancement are overlooked It is important that racial discrimina- 2023CP40 1759 tion be avoided not only by those at the top of the company but also right 2023CP40 1759 down the managerial line There may be need for a programme to change 2023CP4001759 the attitudes of White supervisors of African employees 19. There is reason to believe that where legal job reservation exists 203CP401759 it 2023CP4001759 can be avoided by obtaining exemptions and by careful and diplomatic 2023CP401759 handling of White workers and trade unions There is no law preventing a 2023CP40 1759 White from being in authority over a White but a company would have to negotiate with the Government whose general policy is to prohibit such appointments and possibly with White workers or unions In order to ensure equality of opportunity among the races companies should be prepared to meet the costs involved in duplicating facilities where separate facilities are required by law 20. Companies which complain of a lack of aptitude or ambition on the part of African workers may find that the problem lies with their own 102 FIFTH REPORT FROM THE 9514 management Where lack of education prevents African acquisition or promotion the remedy lies partly in a company's own hands Moreover individual company can raise the educational quality of its labour force offering attractive pay and conditions 0 = 21. It is important to see African workers as individuals with potential for acquisition and development Wherever the scale of opera- tions permits companies should establish training departments to provide training for African workers and to develop their full potential Where training cannot be provided within the firm the use of external training courses should be explored problem that Africans cannot Companies can attempt be apprenticed to White overcome training to artisans eitherby means of a training school for artisans or through training job Oo 22. Companies should recognise that to recruit skilled workers from Britain and other countries for employment in South Africa can retard the pace of African advancement Where that is the case companies are urged not to use White immigrant labour but to endeavour to recruit from the White potential within South Africa and to develop that potential by means of training - General Advice RICHLA 23. Companies may feel that to follow some of these Guidelines would be damaging to their profitability But there are profit advantages in being a good employer and it is in a company's wider interest to maintain a good reputation The ability to pay basic wages above the relevant P.D.L. , at least to all adult male employees should be regarded as one of the minimum conditions for maintaining or establishing a business interes South Africa PLE 24. Given the particular circumstances of British companies operating in South Africa and the continuing interest in their performance companies should conduct a regular review of these matters at Main Board level so that they may be in a position to satisfy shareholders seeking information Companies should bear in mind that disclosure followed by scrutiny an from essential characteristic of a free society which no one should fear and which much good may come 2023C 25. The British Embassy in Pretoria the British GeneraDin Johannesburg and other centres and the Department of Trade and Industry in London are able to give detailed information and advice on P.D.L. and M.E.L. estimates and on the organisations and individuals making these estimates on the training and advancement of Africans and on other aspects of wages and conditions They can also give details of organisations in South Africa which provide information and assistance on these subjects and on the laws relating to Africans Companies will find further help in the Fifth Report of the Expenditure Committee of the House of Commons 1973-74 and in the evidence given to the Trade and Industry Committee in 1973 House of Commons papers 116 and 21-1 to IV of 1973-74 EXPENDITURE COMMITTEE 103 ELECTRONICALLY ELCTRONICALY APPENDIX TO REPORT INFORMAL MEETING ON see paragraph 10 10 JULY 1973 BETWEEN THE AMBASSADOR AND MR WILLIAM RODGERS CHAIRMAN OF THE UNITED KINGDOM PARLIAMENTARY SUB COMMITTEE INVESTIGATING THE BANTU WAGES AND EMPLOYMENT BRITISH FIRMS OPERATING IN SOUTH AFRICA CONDITIONS ELECTRONICALLY ELECTRONICALLY PRESENT The Ambassador Mr. J. B. Shearar Counsellor South African Embassy FILED Mr. J. R. Mostert 2nd Secretary South African Embassy - 2023 Mr. William Rodgers Chairman Trade and Industry Committee Mr. I. I. Milne Secretary of the Committee After being welcomed by the Ambassador Mr. Rodgers expressed his thanks for being granted an interview While the Ambassador had doubtless followedo the Committee's investigations at a distance his visit could help to fill in the gaps and sketch the course it expected to follow It would be taking the last oral evidence on Wednesday 11 July and would then have heard evidence from about 30 firms In addition it had received written submissions from approximately 100 firms It was aiming towards completion of its report by the end of the year but had not established a definite timetable AM The question of visiting South Africa had been briefly considered by the Sub- Committee at the start of the investigation bearing in mind the fact that it was not competent to enquire into South African Government policies but only into the activities of British firms operating in South Africa It was felt at the time that this matter could not be considered in any detail at that stage The evidence obtained in the United Kingdom might in fact fully satisfy the Sub Committee's needs and it could not know until this evidence had been heard whether it would be desirable to visit South Africa o The Committee had not yet taken a firm decision on a visit but the feeling was that a lot could be said for seeing things on the spot It was difficult to judge a country from a distance and much of the evidence it had heard was somewhat meaningless to those who had no background knowledge of the country For instance evidence concerning migratory labour was difficult to put - into perspective without firsthand knowledge of the South African labour scene It had also been suggested by a number of witnesses that the Committee could unless not properly understand the nature of employment conditions for Africans it saw them on the spot The Committee would not find it acceptable however to decide to go to South This Africa and then find its way blocked by the South African Government was why it had decided that he should first approach the Ambassador informally.-- for instance It was commonplace for Select Committees to go abroad visits had instance has been made to Italy the United States and Belgium while the Sub- mentary Committee on Race Relations had been to India No Select Committee had yet been prevented from going to another country He reiterated that as a Parlia- body the Committee had no connections with the Government of the day S The normal procedure was merely to inform the Foreign Government through the British Embassy that a Select Committee intended to visit their country.co Were there no other impediments this procedure would also have been followed should the Committee have decided to visit South Africa When the enquiry started remarks were made to imply that the Committee would not be able to visit South Africa He had not followed these in detail but would like to believe that the proceedings so far had led those who thought that the Committee might trespass in the sphere of the internal business of another country to other insights He referred to the clear terms of reference within which his Committee acted and reiterated that all its members were acutely aware of the careful path it would have to tread avoid infringing South African sovereignty 104 FIFTH REPORT FROM THE ELE ELE ELE He felt that it was right for him to see the Ambassador and discuss the matter He repeated that the Committee had as yet not taken a decision and he could therefore only speak for himself He felt that they would not want to take a something decision to go and find themselves turned back at the Airport or something of that nature Such an occurrence would offend the dignity of Parliament Committee was not in any case interested in striking attitudes r He asked whether the Ambassador could tell him whether if it was decided to visit South Africa in September or October it would be as free to travel to are and move about in South Africa as Select Committees traditionally whether the South African Government would put obstacles in its way or ' The Ambassador referred to the Minister of Foreign Affairs call on the Secretary of State for Foreign and Commonwealth Affairs in April and said that this matter had inter alia been discussed He recalled that Dr. Muller noth had set on his arrival at the airport and after seeing Sir Alec Douglas out the South African Government's views on the Committee investigation The furthest he had gone was to say that we would not like to see the Sub- Committee visit South Africa 0 Thus far the Committee had not indicated clearly what its view was the subject of visiting South Africa In Mr. Rodgers letter it was stated that certain firms had suggested that it would serve a good purpose if the Sub- Committee were to visit South Africa It was a now little clearer Committee Committee had discussed the possibility but had not yet come to any definite decision although September had been mentioned as a possible date for a visit The Ambassador referred to the United Kingdom and South it was not necessary to go into , Select Committee the similarities in the Parliamentary system Africa and indicated that against this background details concerning the functions and powers 3 a S The Ambassador stated that one of his primary concerns during both his terms of office in London was to keep the relations between the two countries as good as possible in circumstances which could sometimes be difficult Under both Labour and Conservative Governments he had found that the Prime Minister of the day had always respected the sovereignty of South Africa It was however now suggested that a Select Committee which was a part of the constitutional machinery of the United Kingdom go to South Africa It was evident that they would not only talk to British companies operating in South African Africa They would for instance possibly also talk to the South employees of those firms and to academics as was in fact stated by Mr. Rodgers There had been severe reactions in South Africa about the possibility of such a found visit Such reaction had cut across Party political lines and was also to be amongst some leaders of the Bantu nations S between The The effect of such a visit would therefore be to strain relations two countries He could understand that businessmen who had given evidence before the Committee might suggest that such a visit would be but they were perhaps not so aware of the constitutional difficulties advisable 5 other Whereas mention had been made of British Select Committees visiting countries such visits had not taken place under quite the same conditions an the particular circumstances sketched before it would be inappropriate froma constitutional point of view for a Select Committee of a Parliament whether British or any other country to visit South Africa or for South Africa to say that it was welcome The Ambassador expressed his surprise that Members of the Committee who are aware of the constitutional position could suggest this Therefore he hoped that his Government would not receive a formal request concerning a visit as he did not think it would be able to accede to it Mr. Rodgers said that speaking for himself he acknowledged that some of the matters they would look at in South Africa might not be acceptable to the South African Government On the matter of sovereignty however he found it difficult to understand the Ambassador's position He again mentioned visits by Select Committees to foreign countries and stated that his own Committee was totally aware of the sovereignty of other countries and South Africa (weeenesemen EXPENDITURE COMMITTEE 105 ELECTRONICALL ELCTRONICAL ELECTRONICALL He had personally reflected upon what his attitude would be should American Committee wish to visit Britain and talk to American firms about British Government policies He found it difficult to see that he would protest against such a visit as long as the Committee did not seek to tell the British Government what to do It would however be perfectly entitled to investigate United States firms in Britain ELECTRONICAL ELECTRONICALL The Ambassador said that he did not think that they saw eye to eye on this subject There was no problem with the investigation in the United Kingdom7 This was a matter for the House of Commons and British Companies Should the Committee proceed with its investigations in South Africa then the South African Government would take the view that this would constitute interference i hmeentioned for instance that the Committee might ask questions in relation to South African legislation m9 Mr. Shearar indicated that he thought that the South African electorate would O undoubtedly regard the visit as constituting interference in its domestic affairs and the Ambassador added that people in South Africa might not have such a clear view of the Committee's proceedings and that they might have misunderstandings about the scope of its investigation = Nh Mr. Rodgers said that he could see that problems might arise where a matter was followed from afar He emphasised that his Committee had never suggested> that firms operate outside the law in South Africa In this investigation as in : others they had been treading a sensitive path He thought that what the Ambassador was saying was that whether a visit would really infringe South African sovereignty thereupon The Ambassador or not it would answered that he still be seen in South would not like to split VIHO Africa to infringe hairs on this He pointed said that one should however take cognisance of the background and out inter alia that it must not be forgotten that South Africa was governing for decades and that the Republic was already 12 years old Also there was a concerted campaign aimed at bringing political pressure to bear on investors Further it was not basically investments overseas that were in question but specifically investments in South Africa If the present investigation had not come about as a result of newspaper publicity regarding South Africa only or the if the scope of the investigation had been wider empowering it to look into activities of British firms in Africa or in overseas countries in general the climate might have been different p74 In his personal view the whole episode was having some beneficial results| and As a result of this many British companies were improving the conditions wages of their Bantu employees It was also to be welcomed that the Boards of British firms were now more correctly informed about the position in South Africa as far as for instance Government policy and legislation were concerned Mr. Rodgers stated that he would say to his Committee that in the light of the discussion it seemed apparent that to visit South Africa it was likely conduct their investigation in the event of the Committee deciding that they would not find themselves free to 2 The Ambassador agreed that this would be a fair summary of the discussion Rodgers but asked Mr. also to add what he had said concerning the usefulness of 2 the Bantu wages episode would The Ambassador said he in fact like to see him and other members of the House of Commons visiting South Africa in their private capacity after the present enquiry was completed They would then be visiting South Africa as individual Members of Parliament been many Mr. Shearar added that there had which had covered the ground with which such visits in the past some of the Committee was currently concerned and that M.P.s had been assisted by Government departments Chambers of Industry etc. 106 FIFTH REPORT FROM THE ELEC In conclusion Mr. Rodgers thanked the Ambassador for receiving him said that he would report back to his Committee within the following week The Press was not aware of his visit and he personally did not favour a public announcement concerning his visit He could not guarantee however tha facts might not leak out as members of his Committee might inadvertently inadvertently mention the visit in the course of private conversations On the question of publicity he further said that he foresaw two possibilities Should the Sub- Committee upon hearing the outcome of his discussions decide not to visit South Africa no announcement would be made Should they however still decide to visit South Africa the matter The Ambassador said that if would of course become public it was decided to mention this meeting in in the final report he would appreciate it if this could be discussed with him before publication oe Mr. Rodgers replied that he did made in the report He promised any developments in this direction not foresee however to any mention of the meeting being keep the Ambassador informed of 18 18 LONDON 11:26 11:26 11 July 1973 AM - RIC-HLAND COMON PLEAS - 203CP41759 B.A.T. ... B.L.M.C. B.P. B.S.C. C.B.I. D.T.I. ... E.M.I. ... G.D.P. .. G.U.S. .. H.S.L. I.C.I. I.P.S.A. I.S.C.O.R. M.S.L. ... P.D.L. ... P.M.C. ... R.T.Z. ... S.A.I.C.C.O.R. S.A.I.R.R. S.E.I.F.S.A. T.U.C. ... T.U.C.S.A. U.K.S.A.T.A. ... U.P.E. U.T.O. ELECTRONICAL Y EXPENDITURE COMMITTEE ABBREVIATIONS ELCTRONIALY American Tobacco Co. Ltd. British Leyland Motor Corporation Ltd. British Petroleum Co. Ltd. British Steel Corporation Confederation of British Industry FILED Department of Trade and Industry ... - Electric and Musical Industries Ltd. FILED - Gross Domestic Product General Electric Co. Ltd. 2023 Oct Guest Keen and Nettlefolds Ltd. Great Universal Stores Ltd. Humane Standard of Living 18 Imperial Chemical Industries Ltd. International Pipe and Steel South Africa Pty Ltd. 11:26 Investments Industrial Industrial South African Iron Corporation Ltd. and Steel - Minimum Effective Level Minimum Subsistence Level Natal Tanning Extract Co. Ltd. Poverty Datum Line Palabora Mining Co. Ltd. Rio Tinto Corporation Ltd. South African Industrial Cellulose RIC-HLAND COMMON Corpora COM ON tion Pty Ltd. South African Institute of Race Relations Steel and Engineering Industries Federation of South Africa Trades Union Congress Trade Union Council of South Africa PLEAS United Kingdom South Africa Trade Association University of Port Elizabeth United Transport Overseas Ltd. 203CP401759 108 FIFTH REPORT FROM THE ELECTRONICALLY PROCEEDINGS OF THE COMMITTEE ELCTRONIALY TUESDAY 22ND JANUARY 1974 Members present : Sir Henry d'Avigdor in the Chair Mr. Joel Barnett Colonel Sir Harwood Harrison Mr. James Boyden Mr. Gardyne Mr. Bernard Conlan Mr. Richard Hornby Mr. Mark Hughes EILED - Dr. Edmund Marshall Mr. George Cunningham Mr. Terry Davis Mr. Eric Deakins Mr. Drayson Mr. Duffy Mr. Nicholas Edwards 2023 Mr. Neil Marten Mr. Maxwell Oct Mr. Michael Meacher Mr. Charles Morrison Dr. David Owen 18 Mr. William Rodgers 11:26 Mr. Michael English Mr. Andrew Faulds Mr. Garrett Mr. William Hamilton Mr. Timothy Sainsbury 11:26 Mr. Robert Sheldon Mrs. Ren^'eShort AM - Report from the Trade and Industry Committee brought up and RICHLArNeDaSd Motion made and Question proposed That the Report be read a second time paragraph by paragraph | " RICHLANDS add Amendment proposed to leave out from the word be to the end and | | | hear the words not read a second time until black witnesses have been by the Committee Mr English COM ON Question put That the Amendment be made The Committee divided Ayes 1 Mr. Michael English Noes 21 PLEAS Mr. Joel Barnett Mr. James Boyden - Mr. Gardyne Mr. George Cunningham Mr. Terry Davis Mr. Eric Deakins 203CP401759 Mr. Duffy Mr. Garrett Mr. William Hamilton Colonel Sir Harwood Harrison 2023CP4001759 Mr. Richard Hornby Mr. Mark Hughes 2023CP401759 Dr. Edmund Marshall Mr. Neil Marten Mr. Maxwell Mr. Michael Meacher Mr. Charles Morrison Dr. David Owen Mr. William Rodgers Mr. Timothy Sainsbury Mrs. Ren^'eShort EXPENDITURE COMMITTEE SELCTRONICALY Main Question put The Committee divided Ayes 24 Mr. Joel Barnett Mr. James Boyden Mr. Bernard Conlan Noes 1 Mr. Gardyne SELCTRONIALY Mr. George Cunningham Mr. Terry Davis FILED Mr. Eric Deakins - Mr. Drayson Mr. Duffy 2023 Oct Mr. Nicholas Edwards Mr. Michael English Mr. Garrett 18 Mr. William Hamilton 11:26 Colonel Sir Harwood Harrison 11:26 Mr. Richard Hornby Mr. Mark Hughes AM Dr. Edmund Marshall - Mr. Neil Marten RICHLAND Mr. Maxwell Mr. Michael Meacher Mr. Charles Morrison Dr. David Owen - Mr. William Rodgers COM ON Mr. Timothy Sainsbury Mrs. Ren^'eShort Paragraphs 1 to 191 read and agreed to COMMON Appendices agreed to Resolved That the Report be the Fifth Report of the Committee to thePLEAS House PLEAS Ordered That the Chairman do make the Report to the House Committees Ordered That the provisions of Standing Order No. 85 Select Reports be applied to the Report 203CP401759 110 INDEX ELCTRONICALY References T. = Table are to paragraph numbers in the report except where otherwise A. - Code of Practice Appendix to Chapter 13 followed by the ELECTRONICAL Y stated . appro- priate paragraph number therein ELECTRONICALLY Affiliates in South Africa bearing the same name as the U.K. parent company ELECTRONICALLY a ELECTRONICAL Y similar name are not separately indexed; references are shown among those of the parent company A ABERDARE HOLDINGS LTD T. 7-4 ACROW ENGINEERS LTD 54 A.E. & C.I. LTD 64 73 75 76 100 133 134 145 148 152 164 166 T. 6-1 T. " Affiliate " definition of 41 BARTON & SONS LTD 90 T. 7-4 BATSON E. 84 89 BESTOBELL LTD 93 T. 7-4 BOILERMAKERS UNION 158 BOWLEY BOWLEY A. L. 84 BRITISH AMERICAN TOBACCO , 53 Co. FILED - 2023 Oct 0042 _ AFRICAN BITUMEN EMULSIONS PTY LTD AFRICAN OXYGEN LTD AFROX GROUP 133 136 145 151 T. 6-1 T. 7-3 T. 10-2 AFRICAN SELECTION TRUST PTY LTD T. 7-4 EXPLORATION ALBRIGHT & WILSON LTD 43 165 T. 7-4 ALPHA ANTHRACITE Co. LTD T. 6-1 AMALGAMATED T. 7-4 POWER ENGINEERING LTD ANGLO AMERICAN CORPORATION AFRICA LTD 51 APARTHEID MOVEMENT 5 OF SOUTH Apprenticeships 155 156 A. 21 Armitage ShANKS GROUP LTD 54 56 70 107 110 120 153 T. 6-1 T. 7-3 ARMSTRONG EQUIPMENT LTD T. 7-4 " Associate " definition of 41 ASSOCIATED BRITISH FOODS LTD 49 63 66 67 74 76 78 92 95 97 104 107 109 114 115 117 133 140 148 149 166 T. 6-1 T. 7-3 ASSOCIATED HEMMERS PTY LTD 93 ASSOCIATED PORTLAND CEMENT MANUFAC- TURERS LTD 49 54 56 63 67 70 75 100 110 117 T. 6-1 T. 7-3 121 127 135 149 162 AUTOMOTIVE & GIRLING PTY LTD T. 7-4 SOUTH AFRICA AUTOMOTIVE T. 7-4 PRODUCTS ASSOCIATED LTD B BABCOCK & WILCOX LTD T. 7-4 BARCLAYS BANK LTD 56 62 70 76 79 83 92 94 107 109 120 123 138 144 148 149 154 157 159 161 T. 6-1 39 BRITISH EMBASSY IN SOUTH AFRICA 177 179 189 A. 25 British Government attitude and 37-39 167 175-191 A. 1-25 role 3 \ BRITISH INSULATED CALLENDER'S CARLES LTD T. 7-4 0 H BRITISH LEYLAND MOTOR CORPORATION LTD 6 42 49 70 75 76 92 106 209 120 121 141 153 155 160 164 T. T. 7-3 BRITISH MATCH T. 7-4 CORPORATION LTD 165 COMMON BRITISH OXYGEN Co. LTD 49 54 78 79 90 93 151 157 158 95 97 109 164 166 T. 128 6-1 COMMON 133 139 T. 7 BRITISH PETROLEUM Co. LTD 138 CLEAS BRITISH ROPES LTD T. 7-4 CLEAS BRITISH STEEL CORPORATION 52 63 78 P07 148 149 151 152 155 158 166 T.- BROOKE BOND LIEBIG LTD 42 DAVID BROWn Corporation LTD 165 203CP40 JOHN BROWN & Co. LTD 80 BROWN SIR MAX 180 BROWN BAYLEY STEELS LTD 43 2023CP40 BUREAU OF MARKET RESEARCH UNIVERSITY OF SOUTH AFRICA 86 87 footnotes 88 89 94 footnote 98 109 T. 7-1 T. C CADBURY SCHWEPPES LTD 47 63 92 153 164 165 T. 6-1 T. 7-3 109 CAPE ASBESTOS Co. LTD 51 76 81 93 110 119 127 T. 6-1 T. 7-3 footnote 75 135 139 165 CAPE NIGHT WATCH LTD T. 7-4 CARAVANS INTERNATIONAL LTD 97 T. 7-3 CEM CEMENTATION Co. AFRICA Ltd. T. 7-4 CEREBOS AFRICA LTD T. 7-4 A. CHALMERS & Co. LTD T. 7-3 Mines Chamber of Mines 63 113 CHARTER CONSOLIDATED LTD 51 56 63 CHLORIDE GROUP LTD 53 CHROME CHEMICALS SOUTH AFRICA PTY GEN 111 ELECTRONICALLY DRAKE & CUBITT HOLDINGS LTD ELECTRONICAL Y 165 ELECTRONICALY ELECTRONICALLY DRAKE & GORHAM S.A. PTY LTD T. ELECTRONICALLY ELECTRONICALLY Duncan Report 39 ELECTRONICALLY DUNLOP HOLDINGS LTD 48 53 54 62 94 97 109 165 T. 6-1 T. 7-3 DURBAN BAG Co. PTY LTD T. 6-1 ELECTRONICALLY ELECTRONICALY FILED FILED CHUBB & SON LTD 42 T. 7-4 CIVIL ENGINEERING BOARD 165 INDUSTRY TRAINING CLARKE 46 81 CHAPMAN COATS PATONS LTD 44 THOMPSON LTD A. COHEN & Co. GREAT BRITAIN LTD 49 54 76 109 135 T. 7-3 GEO1R44GE COHEN 600 GROUP LTD 42 141 Companies giving evidence statistics of 12- 15 40-1 Company control and responsibility 40-54 CONFEDERATION OF BRITISH INDUSTRY 168 CONSO7L-I4DATED BRASSFOUNDRY PTY LTD CONSOLIDATED GOLD 63 66 70 71 76 122 127 129 131 6-1 T. 7-3 FIELDS LTD 53 56 93 94 100 109 110 135 145 152 158 T. WM CORY & SON LTD 144 COURTAULDS LTD 62 63 66 67 70 72 75 77 81 93 95 104 105 107 114 118 121 127 128 129 142 149 154 156 160 162 T. 6-1 D DEFY INDUSTRIES LTD T. 7-4 DELTA METAL Co. LTD T. 7-4 DEPARTMENT OF BANTU ADMINISTRATION 132 178 DEPARTMENT OF TRADE AND INDUSTRY 2 38 168 175 176 177 179 180 183 185 186 187 188 189 A. 1-25 DESIGN MANUFACTURERS PTY LTD T. 7-3 DE Vos P. J. 100 footnote DEWRANCE S.A. LTD T. 7-4 DIGOS REPRESENTATIVE CHARLES C. 181-2 Directors 173 A. 40 5-6 4A.2 46 47 49 51 60 172 2023 EAGLE STAR GROUP 149 2023 2023 E.C.C. SOUTH Africa Pty Ltd. T. 7-4 Oct Education 25 78-9 144 164 A. 11 Oct Effective Effective minimum minimum effective level level see 18 Minimum Minimum 11:26 EGNEP PTY LTD PENGE Mine T. 7-3 11:26 ELECTRIC & MECHANICAL INDUSTRIES LTD 118 T. 7-4 AM Ellerman LiNES LTD 165 RICHL Employers Associations 59 62 118 1247 152 A. 4 RICHL RICHL ENGLISH CALICO LTD now TOOTAL LTD 67 70 76 92 93 95 110 114 120 128 139 149 153 157 158 161 162 164 173 T. 6-1 T. 7-3 COMMON EVER READY Co. GREAT BRITAIN LTD T. 7-4 COM ON Evidence publication of 2 4 DICKINSON PTY LTD T. 7-4 PLEAS EXPORT DEPARTMEN CREDITS GUARANTEE 2. 38 PLEAS - F FERGUSSON'S PAINTS PTY LTD T. 7-4 FODENS LTD T. 7-4 Food provision 11 of by companies 71 FOREIGN & COMMONWEALth Office 2 177 179 Fringe Benefits 61 71-82 144 A. 10-12 1C7P40 1759 G GARMENT WORKERS AFRICA T. 7-1 UNION OF SOUTH GENERAL ACCIDENT FIRE & LIFE ASSUR- ANCE CORPORATION LTD 144 165 GENERAL ELECTRIC CO LTD 45 63 67 70 75 76 78 92 94 102 109 120 123 148 149 152 155 162 164 T. 6-1 T. 7-3 112 GLY GLYNWED LTD 42 165 T. 7-4 GOLD FIELDS OF T. 6-1 T. 7-3 SOUTH Africa LTD 71 Great UNIVERSAL STORES LTD 6 70 76 6-1 109 139 149 154 157 161 T. GUARDIAN THE 2 177 GUEST KEEN & NETTLEFOLDS T. 7-4 LTD 118 H HAGGIE RAND LTD 149 T. 7-4 THERMOTANK LTD T. 7-4 HARVEY CHARLES 2 164 HAWKER SIDDELEY GROUP LTD 165 HEPPLE ALEX 155 footnote HILL SAMUEL GROUP LTD 165 HOMELANDS 20 21 22 26 65 67 100 127 128 129 131 132 156 162 A. 11 HOOVER LTD 42 164 HORRELL MURIEL 25 footnote 31 footnote 60 footnote Housing 27 71-3 127 144 A. 11 HOWDEN GROUP LTD T. 7-4 HUBBARD MICHAEL T. 7-1 Humane Standard of Living H.S.L. 89 T. 7-2 I ILLOVO SUGAR ESTATES LTD T. 6-1 T. 7-3 IMPERIAL CHEMICAL INDUSTRIES LTD 54 56 63 64 73 75 76 79 80 92 94 100 121 127 128 130 133 138 144 152 157 158 164 T. 6-1 INDUSTRIAL & COMMERCIAL FINANCE PORATION LTD 165 T. 7-4 Cor- INDUSTRIAL CARBON & GRAPHITE Co. PTY LTD T. 7-4 INDUSTRIAL COUNCILS 62 63 65 144 152 155 156 INLAND REVENUE DEPARTMENT 53 191 INTERNATIONal Compressed Air TION LTD CompAir T. 7-4 Corpora- INTERNATIONAL LTD 80 COMPUTERS HOLDINGS INTERNATIONAL PIPE & Steel InvestMENTS SOUTH AFRICA PTY LTD I.P.S.A. 52 MET ELECTRONICALLY ELECTRONICAL Y J ELECTRONICALY ELECTRONICALLY JESSEL SECURITIES LTD 54 73 ELECTRONICALLY 109 110 123 127 135 155 T. 6-1 177-3 Job reservation A. 19 25 152 JOHANNESBURG CHAMBER OF 88 89 104 109 T. 7-1 153 ELECTRONICALLY ELCTRONICALY COMMERCE 86 FILED JOHNSON 76 99 MATTHEY & Co. LTD 110 135 162 T. 6-1 T. 54 FILED 70 7-3 FILED - K KILPATRICK SOUTH KNIGHT JOHN 16 AFRICA 2023 PTY Oct 18 KOLOK AFRICA PTY LTD T. 7-4 11:26 L AM LEAD INDUSTRIES GROUP LTD T. 7-4 RICHLAND Legal assistance 80 144 A.11 RICHLAND LESOTHO 131 LEWIS STORES LTD 139 T. 6-1 T. RICHLAND LEYLAND MOTOR CORPORATION OF AFRICA LTD 109 141 144 T. 6-1 7-3 LION MATCH Co. LTD T. 7-4 LONRHO LTD 145 T. 7-4 JOSEPH LUCAS LTD 165 T. 7-4 COMMON PLEAS~ M ALFRED MCALPINE & SON PTY LTD T. MCCALLUM & STEEL MCVAN STEVENS T. PRODUCTS CASE 7-3 PTY LTE | T. Malawi 131 MARCHWIEL HOLDINGS LTD 76 103 203CP401759 110 118 142 162 T. 7-3 Maree J. G. B. T. 7-1 MARLEY MARLEY LTD T. 7-4 L. H. MARTHINUSEN LTD T. 7-3 MATHER & PLATT LTD 80 T. 7-4 MATTE SMELTERS PTY Ltd. T. 7-3 Medical services 72 75 144 A.11 METAL Box Co. LTD 56 57 63 67 75 76 78 92 94 95 109 123 138 142 146 153 155 159 164 166 T. 6-1 T. 7-3 METAL SALES Co. PTY LTD T. 7-3 MIG STA 113 113 Migrant Workers 22 26 100 110 126-132 145 A. 11 A. 13-14 65 66 71-77 163 A. 3 A. 93 10 Minimum effective level 95 97 footnote 107 A. 8-9 MEL 83 89 90 111 T. 7-1 T. 7-2 Minimum subsistence level MSL 86 footnote 88 89 98 T. 7-1 T. 7-2 MITCHELL COTTS GROUP LTD 165 T. 7-4 MORGAN CRUCIBLE CO LTD 165 Movement Controls 27 28 29 80 A. 3 A. 11 A. 14 N NATAL 109 EMPLOYERS ASSOCIATION 59 97 NATAL TANNING EXTRACT 102 119 T. 6-1 Co. LTD 92 93 NATAL THREAD CO PTY LTD 162 T. 6-1 T. 7-3 NATIONAL MANAGEMENT & DEVELOPMENT FOUNDATION 165 NATIONAL NUTRITION COUNCIL 87 0 " Operation Grade 166 OZALID GROUP HOLDINGS HOLDINGS LTD 144 T. 7-4 P PALABORA MINING CO LTD 42 66 67 72 75 110 120 129 132 T. 6-1 T. 7-3 JOSIAH PARKES & SONS SOUTH AFRICA LTD T. 7-4 PARKINSON COWAN LTD T. 7-4 SOUTH AFRICA PTY Pensions 76-7 144 A. 11 PILKINGTON BROTHERS LTD 49 56 76 80 82 89 103 138 142 153 155 157 T. 6-1 PILLAY P. N. 85 footnote T. 7-1 POTGIETER PROFESSOR J. 109 T. 7-1 F. 86 97 107 7-2 POVERTY DATUM LINE PDL 49 50 83- 112 115 117 118 125 T. 7-1 T. 7-2 7-2 T. 7-3 T. 7-4 A. 8-9 A. 23 A. 25 PREMIER MILLING Co. LTD 114 117 140 145 T. 6-1 T. 7-3 T. 10-4 133 PRETO154RIA PAPER PRODUCTS PTY LTD 95 PRODUCTIVITY & WAGE ASSOCIATION 24 footnote 68 R ELCTRONICALY RANKS HOVIS MCDOUGALL LTD T. 7-4 RANSOME HOFFMANN POLLARD LTD RAPHAEL Adam 2 6 177 RECKITT & Colman LTD 44 165 REDDAWAY PROFESSOR W. B. 36 REDLAND LTD 81 165 T. 7-4 165 ELCTRONICALY FILED REINFORCING STEEL Co. PTY LTD T. 7-4 FILED 2023 REYROLLE PARSONS LTD 44 T. 7-4 RHODES UNIVERSITY T. 7-1 128 RIO TINTO CORPORATION LTD 42 54 56 66 67 70 72 75 110 120 128 129 132 149 154 T. 6-1 T. 7-3 18 ROSSWAY QUARRIES PTY LTD T. ROWNTREE B. SEEBOHM 84 ROWNTREE MACKINTOSH LTD 164 7-4 11:26 AM - S SCOTTISH CABLES SOUTH AFRICA SELECTION TRUST LTD T. 7-4 SGB GROUP L~dT. 7-4 LTD RICHLAND - COM ON SHANKS & Co. S.A. PTY LTD T. T. 7-3 Shareholders 47 50 168 186 A. 24 " " SHELL TRANSPORT & TRADING Co. LTE 138 144 148 PLEASE SLATER WALKER SECURITIES LTD 42 , 51 62 67 70 72 76 90 92 93 PLEASE 104 109 119 127 157 T. 6-1 T. 7-30 SMITH & NEPHEW LTD 138 ASSOCIATED CASE COMPANIES SOCIAL AUDIT LTD 184 South African Ambassador in 10 pp 103-6 SOUTH AFRICAN INDUSTRIAL 2023CP London Cellulo CORPORATION PTY LTD S.A.I.C.C.O.R. 66 105 156 T. 6-1 aa} oi SOUTH AFRICAN INSTITUTE OF RACE RELA- TIONS S.A.I.R.R. 21 footnotes 23 footnote 31 footnote 60 footnote 149 footnote T. 7-1 SOUTH AFRICAN IRON & STEEL INDUSTRIAL CORPORATION LTD I.S.C.O.R. 52 SOUTH AFRICAN SUGAR ASSOCIATION 156 STAFLEX INTERNATIONAL LTD 82 STANDARD BANK LTD 138 114 STE STEEL AND ENGINEERING INDUSTRIES FEDER- ATION OF SOUTH AFRICA S.E.I.F.S.A. PLATT INDUSTRIES LTD 43 " Subsidiary " definition of 41 SUZMAN L. LTD T. 7-3 T TARMAC LTD 165 T. 7-4 TATE & LYLE LTD 62 70 75 110 120 127 129 132 156 T. 6-1 T. 7-3 100 157 103 166 TAX LAWS U.K. 48 53 191 THORN ELECTRICAL T. 7-4 INDUSTRIES LTD 99 TOOTAL LTD see English Calico Ltd. TRADE UNION COUNCIL OF SOUTH AFRICA T.U.C.S.A. 59 TRADES UNION CONGRESS 2 31 footnote 58 59 60 147 TRAFALGAR HOUSE INVESTMENTS LTD T. Training 165 166 A. 4 A. 21-2 A. 25 TREASURY 2 TURNER & NEWALL LTD 139 T. 7-4 TURNERS ASBESTOS PRODUCTS LTD T. 7-4 TWEEFONTEIN UNITED COLLIERIES LTD T. U UNILEVER LTD 44 56 64 70 75 76 83 89 92 97 106 109 115 120 121 128 129 133 137 139 144 145 148 149 159 160 162 164 T. 6-1 T. 7-3 T. 10-3 WOR ELECTRONICALY ELECTRONICALLY ELECTRONICALLY Unions Trade 30 31 48 56-60 ELECTRONICALL|Y 134 142 143 152 155 156 159 160 166 A. 3 A. 4 A. 7 A. 19 ELECTRONICALLY UNITED KINGDOM SOUTH AFRICA ASSOCIATION U.K.S.A.T.A. 2 110 A. 9 TRADE ELECTRONICALY 668 ELECTRONICALLY ELECTRONICAL Y UNITED Transport Overseas Ltd. 67 76 153 166 T. 6-1 T. 7-3 53 FILED UNIVERSITY OF CAPE TOWN 97 T. FILED UNIVERSITY OF NATAL 86 87 96 footnote 109 T. 7-1 89 T. footnote 7-2 2028 UNIVERSITY OF PORT ELIZABETH 86 foot- note T. 7-1 T. 7-2 at186titude and practices 178 OCE18 181-2 V 11:26 VAAL TRANSPORT AM T. 6-1 6-1 CORPORATION PTY VEREENIGING CHAMBER OF COMMERCE T. 7-1 BICHLAND VEREENIGING TILES LTD T. 7-4 Vickers LTD T. 7-4 - W COMMON WANDRAG ASBESTOS PTY LTD T. COMMON COMMON T. WESTERN PLATINUM HOLDINGS LTD COMMON WHITES CEMENT LTD T. 6-1 T. PLEAS WILSON DR FRANCIS 26 footnote 122 footnote footnote PLE1AS 00 Women wages of 65 93 94 96 CASE Works Committees or Councils 56 CASE Printed in England by Her Majesty's Stationery Office at St Stephen's Parliamentary Press 395250 Dd 251821 K14 3/74 203CP41759 ELCTRONIALY FILED - 2023 Oct 18 11:26 AM - RIC-HLAND COMON PLEAS - CASE#203P41759 ELECTRONICALLY ELECTRONICAL Y ELCTRONIALY FILED - e 2023 ee cere Oct HER MAJESTY'S STATIONERY OFFICE 18 Government Bookshops 11:26 AM 49 High Holborn London WCIV 6HB 13a Castle Street Edinburgh EH2 3AR - 41 The Hayes Cardiff CF1 1JW Brazennose Street Manchester M60 8AS Southey House Wine Street Bristol BS1 2BQ RICHLAND 258 Broad Street Birmingham B1 2HE 80 Chichester Street Belfast BT1 4JY Government publications are also available - through booksellers COMON PLEAS PLEAS - 203CP401759 2023CP401759 . ISBN 0 10 211674 1