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

The document argues that South Africa's mining sector is trapped in a 'prisoners' dilemma' where majoritarian bargaining rules incentivise rival unions to pursue aggressive, often violent, strategies to maintain credibility and market share. This institutional failure, combined with rigid labour regulations, has contributed to industry stagnation and decreased investment attractiveness. The author recommends decentralising wage bargaining, implementing profit-sharing models, and empowering the Council for Conciliation, Mediation and Arbitration (CCMA) to strip bargaining rights from unions that engage in illegal or violent strikes.

• The 2012 Marikana massacre, where police killed 34 striking mineworkers at Lonmin's platinum mine, was precipitated by labour-employer and inter-union tensions.
• South Africa's mining industry has experienced stagnation and a decline in investment attractiveness, ranking 63rd out of 96 in the Fraser Institute Survey, down from 14th in 2002.
• Labour market inefficiency is a primary concern for productivity, with South Africa ranking 113th globally in this area, specifically suffering from rigid hiring/firing practices and significant labour-employer tensions.
• The current 'majoritarian' bargaining system creates a 'prisoners' dilemma' where rival unions, such as the National Union of Mineworkers (NUM) and the Association of Mineworkers and Construction Union (AMCU), compete for credibility through excessive wage demands that mining firms cannot afford.
• A conflict of interest exists because the NUM has direct access to national policy formation through its alliance with the ANC and COSATU, effectively acting as both a player and a referee in labour negotiations.
• To resolve these tensions, the author proposes decentralising wage bargaining and implementing a revenue-sharing model where approximately 20% of company profits are distributed, weighted toward low-skilled workers.
• The author recommends strengthening the Council for Conciliation, Mediation and Arbitration (CCMA) to provide a credible deterrent by removing the bargaining rights of unions that propagate illegal or violent strikes.

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} }