In the shadow of apartheid
The 1950s
Contrary to expectations , the South African economy did not follow post-World War I pattern , and the long-awaited depression anticipated by many economists did not come to pass .
A SEIFSA book recording the evolution of the industry to 1967 notes that – thanks to international collaboration , monetary controls , leased land and financial aid to devastated and underdeveloped regions , and despite the balance of payment problems of various countries – a fairly smooth transition from war to a peace-time economy was experienced . opened for business , and the workforce grew to more than 140 000 . Output , measured in quantities , increased significantly .
Two influential developments were the introduction of import restrictions in 1949-50 and the opening of a second Iscor steel works , in Vanderbijlpark , in 1952 . Before the end of the decade , Iscor ’ s annual output climbed to two million tons . Some mining groups diversified by investing in metals and engineering firms . Local manufacturers and processors engaged in a broad range of activities and signed technical aid , licensing and “ know-how ” agreements with international companies .
As the post-war recovery continued , South Africa – with its pent-up purchasing power and the need for new capital equipment and plant and a war-starved consumer market – spent freely . Imports were stepped up without regard to the balance of payments . A drain on foreign exchange reserves developed and it was necessary to introduce drastic exchange control measures .
The exploitation of the new Free State goldfields deferred during the war was now well under way , and with the addition of income from uranium , the revenue of the mining industry increased , with an eventual easing of the country ’ s currency situation . SEIFSA President JM Russell noted in his 1950 presidential address : “ Many existing plants have been expanded , affiliations have been established with overseas interests , and new plants have come into existence to produce a surprisingly wide variety of articles … which hitherto have been imported .”
Industrial relations were “ amicable and constructive ”. The industrial council system was working well because of “ the fair-minded and intelligent perception brought to its administration by the representatives of both employer Associations and trade unions .”
Despite an enduring shortage of suitable labour , prices in the metal industry were internationally competitive – and South Africa started looking to export markets . As in the 1940s , the world in the early 1950s fell under the dark shadow of war – this time the Korean War . The distant conflict led to a shortage of many commodities on world markets and a sharp rise in prices within a few years . However , after the Korean War , strategic non-ferrous metals were in freer supply . The metal industry continued to expand swiftly . Several hundred new firms
In the mid-Fifties , the industry ’ s Sick Pay Fund and Group Life and Provident Fund were established , mainly for skilled workers . Meanwhile , the Nationalists had been imposing a stream of laws and regulations designed to keep white and black South Africans apart . The Black Labour Relations Regulation Act of 1953 was aimed at creating a separate labour relations system for black workers . The fundamental difference was that black trade unions could not take part in centralised collective bargaining or make use of the industrial council system . Black workers ’ interests would be dealt with through a central board – controlled by whites .
The Industrial Conciliation Act became the core of South Africa ’ s labour relations . Apart from covering trade union , industrial council and centralised bargaining arrangements , it also introduced far-reaching racial discrimination into labour affairs . Notably , it prevented black workers from forming registered trade unions and barred “ mixed ” unions .
These two laws entrenched racial division in the conduct of labour relationships . They were supported by other separatist legislation such as the Group Areas Act and the Influx Control Act . Before the end of the decade , the Industrial Conciliation Act was amended to introduce “ job reservation ”, calculated to protect white workers . Employers protested . “ Such matters ”, they said , “ are foreign to a successful system of collective bargaining and are detrimental to the harmonious working of the industrial council system …”
Calamitously , job reservation also denied blacks technical training at a time when the country was crying out for men and women with all kinds of technical skills .
SEIFSA AT 75 - SPECIAL COMMEMORATIVE MAGAZINE 23