Analysing Wage Formation in the South African Labour Markets: The Role of Bargaining Councils

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2009-01

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University of Cape Town


Development Policy Research Unit


University of Cape Town

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Development and Poverty Research Unit Working Paper Development Policy Research Unit Working Paper 09/135

Abstract
The role of bargaining councils, the central pillar of collective bargaining in South Africa, in the formation of wages is important in the context of high unemployment rates in South Africa. In this study we find that while institutionalised collective bargaining system covered substantially more formal sector workers in 2005 (30 percent) compared to 1995 (15 percent), this still meant that less than a third of the formally employed were covered by bargaining councils.
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