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