Releasing the Prisoners from their Dilemma: How to Resolve Labour Tensions in South Africa’s Mining Sector

This policy briefing by the South African Institute of International Affairs analyzes the institutional failures and labour tensions in South Africa's mining sector following the 2012 Marikana massacre. The author argues that a 'prisoners' dilemma' exists where rival unions and mining firms are incentivized toward conflict rather than cooperation due to a majoritarian bargaining system. The document proposes structural reforms to labour legislation, the introduction of profit-sharing models, and the empowerment of the Council for Conciliation, Mediation and Arbitration (CCMA) to penalize violent strikes to stabilize the industry.

• The 16 August 2012 incident at Lonmin's Marikana platinum mine, where police killed 34 striking mineworkers, was precipitated by a combination of a 'brutal police force' and 'grievance-mobilised workers', as well as tensions between labour, employers, and rival unions.
• South Africa's mining industry has experienced stagnation and decline in investment attractiveness. Between 2001 and 2008, the industry contracted by approximately 1% annually, while its top-20 global competitors grew by an average of 5% per year. The country's ranking in the Fraser Institute Survey for mining exploration investment dropped from 14th in 2002 to 63rd overall by the time of the report.
• Labour market efficiency is a critical weakness for South Africa's competitiveness. The Global Competitiveness Report ranks the country 113th in labour market efficiency, specifically citing rigid hiring and firing practices (143rd), lack of flexibility in wage determination (140th), and significant labour-employer tensions (144th).
• The current 'majoritarian' bargaining system creates a 'prisoners' dilemma' (PD) where rival unions, such as the National Union of Mineworkers (NUM) and the Association of Mineworkers and Construction Union (AMCU), compete for credibility by making unsustainable wage demands. This system excludes minority unions and incentivizes violence to maintain monopoly status.
• The National Union of Mineworkers (NUM) faces a conflict of interest because its elites have direct access to national policy formation through the alliance between the Congress of South African Trade Unions (COSATU) and the ANC, making the union both a 'player and referee'.
• To resolve labour tensions, the author recommends transitioning from a prisoners' dilemma to an 'assurance game' (AG) through several policy interventions: amending the Labour Relations Act (LRA) to lower union recognition thresholds, making member balloting non-negotiable, and decoupling NUM from ANC interests.
• The briefing proposes a revenue-sharing model to limit wage increases and incentivize productivity. It suggests linking wage increases to inflation and distributing approximately 20% of company profits, with a weighting in favor of low-skilled workers.
• A key recommendation for creating a 'focal point' for cooperation is to empower the Council for Conciliation, Mediation and Arbitration (CCMA) to punish illegal or violent strikes by removing the bargaining rights of the offending union.

APA

Harvey, R. (2013). Releasing the Prisoners from their Dilemma: How to Resolve Labour Tensions in South Africa’s Mining Sector. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2014/01/Policy-Briefing-81.pdf

Chicago

Harvey, Ross. Releasing the Prisoners from their Dilemma: How to Resolve Labour Tensions in South Africa’s Mining Sector. South African Institute of International Affairs, 2013. https://saiia.org.za/wp-content/uploads/2014/01/Policy-Briefing-81.pdf.

Wikipedia

{{cite report |last1=Harvey |first1=Ross |title=Releasing the Prisoners from their Dilemma: How to Resolve Labour Tensions in South Africa’s Mining Sector |publisher=South African Institute of International Affairs |date=December 2013 |url=https://saiia.org.za/wp-content/uploads/2014/01/Policy-Briefing-81.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{harvey2013releasing, author = {Harvey, Ross}, title = {{Releasing the Prisoners from their Dilemma: How to Resolve Labour Tensions in South Africa’s Mining Sector}}, institution = {South African Institute of International Affairs}, year = {2013}, month = dec, url = {https://saiia.org.za/wp-content/uploads/2014/01/Policy-Briefing-81.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }