CASE STUDY

READ THE CASE STUDY AND ANSWER THE QUESTIONS THAT FOLLOW:

STRIKES IN SOUTH AFRICA

South Africa is used to workers dowling tools and taking industrial action. Strikes are normal in a

democracy but they can be economically consequential, especially if prolonged. The strike that took

place in May $2018$ inconvenienced commuters. The strike was prolonged for a period of $4$ weeks as

drivers pressed for better pay. Below is a list of five other major strikes that have been staged in South

Africa post$-$democracy.

$2007$ PUBLIC SERVANTS STRIKE

Hundreds of thousands of public servants embarked on a four$-$week strike, affecting schools and

hospitals in particular. The strike lasted $28$ days as unions representing workers demanded a $12-$

percent wage increase. They eventually settled for $7\mathrm{.}5$ percent.

$2010$ PUBLIC SERVANTS STRIKE

In July and August $2010$ public servants across the country downed tools. Unions representing $1\mathrm{.}3$

million workers demanded an $8\mathrm{.}6-$percent pay increase and a monthly housing allowance of R$1000$

backdated to $1$ April $2010.$ Both parties eventually agreed on a $7\mathrm{.}5$ percent increase. The three$-$week

strike was estimated to have cost the economy R$1$ billion a day.

$2012$ MARIKANA STRIKE

The massacre resulted from a wildcat strike at a mine owned by Lonmin in the Marikana area of North

West. On $16$ August $2012,34$ men were shot and killed in clashes between rival mineworkers and $39$

unions and the police. The first protests were staged on about $10$ August $2012.$ By the time the violent

strike ended in September, an estimated $45$ people had been killed.

$2014$ PLATINUM BELT STRIKE

On $23$ January $2014,$ almost $70,000$ platinum$-$mine workers went on strike. Members of the

Association of Mineworkers and Construction Union $($AMCU$)$ at Lonmin, Impala Platinum, and Anglo

American Platinum downed tools, demanding a monthly basic salary of R$12500.$ The strike was the

longest work stoppage in South Africa's history. It continued for five months and cost workers earnings

of around R$10\mathrm{.}6$ million. The industry lost R$24$ billion in revenue.

$2016$ PIKITUP STRIKE

Refuse$-$removal workers in Johannesburg downed tools in March $2016.$ Garbage went largely

uncollected in the city for weeks and pilled up$,$ causing a health hazard. The illegal strike eventually

ended after $23$ days when unions and the company reached a wage agreement.

$1\mathrm{.}1$ In reference to the provided case study, identify and explain the underlying reasons for strike

actions in the South African labour force. $(5)$

$1\mathrm{.}2$ If you were appointed as an HR manager at Lonmin in Marikana, which measures would you apply

to prevent the recurrence of fatal and lengthy strikes? $(10)$

$1\mathrm{.}3$ The ultimate objective of any compensation strategy is to improve the performance of employees

and ensure productivity in the organisation. Highlight and discuss some of the underlying objectives of an effective compensation plan.

Use the Harvard referencing method