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Articles

Trade unions, the state and ‘casino capitalism’ in South Africa's clothing industry

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Pages 89-106 | Published online: 05 Nov 2015
 

Abstract

Relationships between trade unions, the state and capital in South Africa have changed dramatically, especially in the clothing sector. The clothing workers’ union became heavily dependent on its political alliances with the governing party, not only for the regulation of wages and industrial policies, but also for Black Economic Empowerment policies that helped it to acquire massive shareholdings, including in the largest clothing manufacturer. In terms of both its exposure to capitalist risk and its investments in the casino industry specifically, the union acquired a stake in ‘casino capitalism’, whilst relying on government to stack the odds in its favour.

[Les syndicats, l’État et le « capitalisme de casino » dans l'industrie textile sud-africaine.] Les relations entre les syndicats, l’État et le capital en Afrique du Sud ont changé considérablement, en particulier dans le secteur textile. Les syndicats des employés de l'industrie textile sont devenus grandement dépendants de leurs alliances politiques avec le parti au pouvoir, pas seulement pour la régulation des salaires et les politiques industrielles, mais aussi pour les politiques d’émancipation économique des noirs qui les ont aidés à acquérir beaucoup d'actions, y compris dans l'entreprise textile la plus importante. Le syndicat a acquis une part dans le « capitalisme de casino », en terme d'exposition au risque capitaliste et au niveau de ses investissements dans le secteur des casinos en particulier, tout en attendant du gouvernement qu'il mette les chances de son côté.

Acknowledgements

We are grateful to Shane Godfrey, Johann Maree and Mike Morris for correcting errors. SACTWU's general-secretary declined repeated requests to meet and discuss this and other analysis.

Notes on contributors

Nicoli Nattrass is Professor in the Centre for Social Science Research at the University of Cape Town.

Jeremy Seekings is a Professor in the Department of Sociology and is Director of the Centre for Social Science Research at the University of Cape Town.

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1. We are grateful to Mike Morris for this point.

3. For SACTWU membership and social programmes, see http://www.sactwu.org.za/union.

4. According to http://www.sactwu.org.za, SACTWU had 99,697 members in 2014 (checked 25 November 2014). This is more than the number of workers employed in the clothing and textile industry probably because SACTWU organises also in the leather, footwear, distribution and allied industries. SACTWU reported membership figures of 85,025 in 2012 to the COSATU conference. Assuming membership grew steadily in the intervening years, this implies a membership of 92,361 in 2013. SACTWU does not put its accounts in the public domain, hence the estimate for fee income.

5. Information on membership fees for 2013–2014 can be found here: http://www.google.co.za/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CB4QFjAA&url=http%3A%2F%2Fwww.sactwu.org.za%2Farticles%2Fdoc_download%2F13-sactwu-membership-form-distribution&ei=jplpVNSHGYfwaI6AgdAM&usg=AFQjCNEcrAWysKj7IubZbgmmT1l5yRPZrQ&sig2=6HdLJeAXic1SOzkJ6ZKKjw&bvm=bv.79142246,d.d2s. Note: this does not include the ‘agency fees' that since 2006 have been deducted off the wages of all workers registered with the NBC and sent to SACTWU as a result of the NBC agency shop agreement with SACTWU.

8. As of March 2014, Golding owned R1,164,830,550 of HCI shares and Copelyn owned R963,094,906 of HCI and Seardel shares combined. In the financial year ended March 2014, they each earned R14,634,000 in salaries, bonuses and share options from HCI and Copelyn earned an additional R150,000 from Seardel in Directors' fees.

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