ME MOR ANDUM

submitted by the

SOUTH

AFRICAN

CONGRESS

OF

TRADE

UNIONS

to the

WAGE

BOARD

investigating the

PLYWOOD

INDUSTRY

(CERTAIN

AREAS)

in terras of

GOVERNMENT

GAZETTE

Johannesburg.

I

NO.

1570

of 28th September.

1962.

3rd November, 1962.

MEMORANDUM SUBMITTED BY THE SOUTH AFRICAN CONGRESS OF TRADE UNIONS TO THE WAGE BOARD INVESTIGATING THE PLYWOOD INDUSTRY (CERTAIN AREAS) IN TERMS OF GOVERNMENT GAZETTE NO. 1570 OF 28TH SEPTEMBER. 1962.________

PART

I

This Memorandum is presented by the South African Congress of Trade Unions on behalf of the African workers employed in the industry who, in the past, have had no opportunity to express their demands and whose conditions and wages have been imposed upon them. We wish to ask the Board to take into consideration the length of time which has elapsed since the last Wage Board sitting in this industry as these African workers have for ten years been living on wages that bear no relation whatsoever to the present cost of living. The South African Congress of Trade Unions, as a co-ordinating body, has assisted many of its affiliated Unions at many Wage Board investiga­ tions and has also directly represented the workers at Wage Board inves­ tigations. We have, therefore, become familiar with the arguments put forward by those who oppose substantial wage increases for the workers, particularly the non-xtfhite workers. One argument advanced is that it is unfair for one industry to be called upon to increase wages while others are permitted to pay low wages. It was for this very reason that the South African Congress of Trade Unions launched its campaign in 1957 for the introduction of minimum wage legislation of at least R2.00 per day. The Minister of Labour has re­ jected this demand and in so doing stated in the Senate on March 19th, 1962 that "the present system (i.e. through Wage Board Investigations) was the best as it offered the safest and most effective way of bringing a steady increase of minimum wages on a selective basis" (THE STAR 19/3/62). W- consider this statement as a directive from the Minister of Labour to the Wage Board to recommend living wages for the workers in the particular industry being investigated. In terns of the Native Labour (Settlement of Disputes) Act, African workers are denied the right to strike and to negotiate directly with their employers. Where other workers' can negotiate directly, or take strike action to win increases over and above those laid down by a determination for their industry, the African workers cannot do this. On no occasion, to our knowledge, has the Settlement of Disputes Board settled a dispute by recommending a general increase in wages, though low wages were the cause of the dispute originally. The African workers, therefore, must rely chiefly on the Wage Board for increased wages and we appeal to the Board to accept this and to meet its responsibility to these workers. Many employers state that substantial wage increases will lead to inflation and consequently to a national economic collapse. At the outset we wish to state that we disagree fundamentally with this theory. We fail to see how an increase of buying power can lead to an economic collapse. On the contrary, we appeal to the Wage Board to equip the African and all non-white workers with vastly increased buying power to strengthen the internal buying market, It is misleading to give the impression that locally manufactured or produced commodities can be marketed more profitably overseas than at home. Workers can no longer be asked to accept that industry cannot afford to pay higher wages when public statements are issued as to the vast profits obtaining in industry and when tremendous suras are spent on advertising.

PAYABILITY

OF

THE

INDUSTRY.

The workers are constantly told that industry in unable to pay living wages and on this basis it demands the right to continue to pay employees below-breadline wages. We wish to state that we are without the detailed statistics which may be available to the Wage Board and employers and, therefore, we find ourselves at a decided disadvantage in rebuffing the employers' stock argument that a substantial increase in wages will cripple them and force considerable numbers of employers out of business, but we know, for example, that uessrs. Plywood Ltd. announced a net profit in June 1961 of R247,403. We declare that industry must fulfill two functions: (i) (ii)

yield profit to the shareholders pay a living wage to the employees.

It would be unrealistic and one-sided if the employees were to demand a living wage at great cost and disadvantage to the shareholders. In the same way, the shareholders cannot demand super profits at the cost of starving the workers who produce those profits. We consider it unethical to pay employees of a long established "more payable" firm low wages because of new firms. Any firm which is unable to pay living wages has no right to exist. We do not know how the Wage Board decides on the payability of an industry, but we feel very strongly that workers should not be made to bear the brunt of the inability of an industry to pay living wages. The disappearance from South African life of a firm which cannot pay wages which enable their employees to provide sufficient food and cloth­ ing for themselves and their families, will not be regretted. On the contrary, overtrading and unhealthy competition would be minimised and progress in the economy of thecountry will thus be achieved. An argument often advanced by employers is that the closing down of smaller firms as the result of wage increases will mean that numbers of workers will lose their jobs. Our unequivocal reply is that we would prefer to see a smaller, well-paid labour force than a large, badly underpaid labour force. The increased spending power of those workers who receive increases will so stimulate the economy that those who might lose their jobs will soon be absorbed into new or expanding industries. We, therefore, request the V^ge Board to recommend a substantial wage increase to all classes of employees, compatible with the present cost of living. PART

II

We propose that the new Wage Determination should apply to all em­ ployees in the Plywood Industry throughout the Republic of South Africa and the mandated territory of South West Africa. We are aware that the Board is limited by its terms of reference, but we see no justification for the exclusion of certain areas from the new Wage Determination. If the whole industry is covered it will be to the advantage of both employers and employees. For the former it will eliminate unfair competition. For the employees it will stop gross exploitation. We submit that not a single tangible fact or a published survey substantiates the arguments that certain areas are able to pay living wages and others are not.

By the exclusion of certain areas from the Wage Determination we feel that the employers in those areas are given the go-ahead to continue to exploit their employees, while being protected from competition. They do not work under primitive conditions as their machinery and equip­ ment compare with those employers who are covered by the Determination. PART RISING

COST

OF

Consolidation of

LIVING

AND

III WAGES.

Cost of Living and Basic Wages.

We propose consolidation of the basic wage and cost of living allow­ ances , It is now well over ten years since the coming into effect of Wage Determination No. 163 (Plywood Industry) with the result that it no longer bears any relationship to the cost of living of 1962. The cost of liv­ ing has spiralled while wages have remained static. If wages were to be brought into line with the true cost of living they would have to be doubled. For example, a labourer's wage in the present determination for the districts of Bellville, Cape; Simonstox-m and Wynberg is £2.11.6. Even if doubled this will not give the labourer a living wage as it has been reliably estimated that the lowest subsistence wage for any worker is R.44.00 - R48.00 per month. We shall not burden the members of the Wage Board with details on the present cost of living as so many memoranda on this subject have been submitted by ourselves and other employees' organisations to the Board. In the p^st and at present, the non-white workers have and are sub­ sidising thei: employers. Representatives of the employers may raise their eyebrows at this comment, out how else can one interpret the effect of the minimum wages prescribed by Wage Determination No. 163 (above quoted). Workers in this industry desperately try to eke out their existence on the below subsistence wages which they earn. Their diet is deficient in health-giving food and their physical efficiency is deteriorating. Low paid employees easily succumb to disease. They are riddled with tuberculosis. The effect of low wages with regard to food has led Miss 0. Gibson of the S.A. Institute of Race Relations to comment as follows in 1954: "The cost of minimum food requirements has risen by 29% since 1950, and would absorb 94?0 of income if actually purchased. As other items of expenditure are unavoid­ able, the cost of these is met by cutting food expendi­ ture down to well below the minimum required for the maintenance of health, and substituting with the reduced amount, quantities of cheap starchy foods in place of those necessary to build up health and efficiency." (The Cost of Living for Africans)-, And two years later "Umteli Wa Bantu" published and owned by the Chamber of M^nes after a survey was convinced that a minimum wage for an urban worker should be £31.0.0. per month.

PART

IV.

W,A G E_S«

The minimum wage inclusive of cost of living allowance which shall be peid by an employer to each member of the undermentioned classes of his employees shall be as set out hereunder s(a)

Employees, other than Casual Employees.

A .. Artisan

............ R16.80 ....

................... ............. .

Grade 1 Employee qualified....................................16.80 During the first six months of experience ....................

10.00

During the second six months of experience ...................

11.00 14 65

Grade 11 Employee qualified.......... During first six months of experience........ .

.........

10.00

During the second six months of experience. .........•••••••*•* • -L 10 70 Grade 111 Employee .............................................. Grade IV Employee...........................................

10.25

Clerical Employee qualified (male or f e m a l e ) • ■•*•••••• During the first year of experience........... ..............

16.00

During the second year of experience.........................

18.00

During the third ye-r of experience..........................

20.00

„ , Handyman.... ................ ........... .

................. 16.80

Driver of Motor Vehicle, the unladen weight of which together the unladen weight of any trailer or trailers drawn by the vehicle .. • . i. does not exceed 6,000 lb............ ................. ii. exceeds 6,000 lb but does not exceed 10,0001b.......... iii. exceeds 10,000 lb...... ..............................

. 9 0 *7 ^

Boiler attendent............... ................... . Chargehand...,75c above the highest worker in the group he is in charge of. 1T . .

.................. watchman........... ........................... . •

10.00

„ _ n .................... Grade V Employee....... .......................*.... . **

10.00

........

10 .00

Packer..... .............. ...... ................

.... Weight-recorder.............. .........................

10.25

PART

V

DEFINITIONS: "Boss Boy": We propose the dropping of the word "boy" wherever it appears in this determination. The reason being that this word is offensive to the African people. We propose that the word "chargehand" be sub­ stituted for the word "boy". "Casual Employee" : The present definition should be amended by substi­ tuting the words "two days" for the words "three days". The right to employ casual employees at the expense of full-time employees. Some employers go to the extent of using two different sets of casual em­ ployees in the same week, "Qualified Employee": In the case of clerical employees both male and female, we propose the qualifying periods to be three years. We have found no justification for the fact that two classes of employees, doing the same work, become qualified after different lengths of time. We propose the dropping of qualifying periods in the case of Grades III and IV employees and the reduction of qualifying periods of other classes of employees as shown in Part IV of this memorandum.

We wish to inform the Wage Board that additional points will be raised by employees of the industry at the Wage Board Sitting.

Collection Number: AD1137 FEDERATION OF SOUTH AFRICAN WOMEN 1954-1963

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