Black Urban Employment and Coloured Labour Preference¶
S.B. Bekker; J.H. Coetzee (1980). Black Urban Employment and Coloured Labour Preference. Development Studies Working Papers, No. 1. Institute of Social and Economic Research, Rhodes University, Grahamstown.
| Type | working paper |
| Scope | Economics and economic history of apartheid |
| Method | survey fieldwork |
| Period studied | 1955–1980 |
| Regions | Western Cape, Cape Town, Cape Peninsula, Gugulethu, Langa |
| Themes | bantustans removals influx, labour markets wages, inequality poverty unemployment, demography urbanisation, education human capital, manufacturing industrial policy, politics ideology elections |
| Citation key | bekker1980 |
Argument¶
The paper assesses how the Coloured Labour Preference policy (applied in the Western Cape since 1962) affected the permanent black residents of Cape Town. It analyses black employment from three angles: production (employer demand and preferences), recognition (workers' aspirations and attitudes) and income (wages, housing, household welfare). It argues that the policy skewed the black labour market. Demand for skilled black labour was restricted, while demand for low-skilled black and contract labour was amply met. Many employers preferred black labour at low skill levels, partly because contract workers were cheaper. The policy was applied only where it did not damage the regional economy. Black Capetonians, especially educated youth, experienced it as a political barrier to jobs and housing.
Evidence and method¶
Employer survey of Greater Cape Town (Nov 1978; n=519 in total sample, with a representativeness test); Peninsula Administration Board annual Labour Returns (1974-78); household survey in Gugulethu and Langa (Oct/late 1978) with samples of residents aged 20-30 and over 30; the Theron (1976) and Riekert (1979) Commission reports; Eiselen's 1955 speech; Black Labour Regulations; census figures for 1960, 1970 and preliminary 1980.
Place in the debates¶
- Coloured labour preference: employer choice versus state compulsion (see Coloured Labour Preference policy in the Western Cape). Employer preference for black labour at low skill levels is largely self-imposed and linked to experience of contract workers. Preference for coloured labour at skilled levels rests largely on regulation. The policy was applied only where the regional economy was not harmed.
- Does racial labour control serve employers (cheap labour thesis)? (see Coloured Labour Preference policy in the Western Cape). Partly. Contract workers earned less than permanent black and coloured workers, which influences employer preference. Most employers nonetheless opposed the policy, and the policy is shown to withhold skilled black labour from the economy.
Findings¶
-
The policy aims to replace black by coloured labour and minimise black numbers in the Western Cape. (p. 5)
In short, the policy aims to replace black by coloured labour and thereby aims to reduce to a minimum the number of blacks in the region.
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Officials were instructed to fill vacancies first with coloured, then resident black, then migrant labour. (p. 11)
seeking to meet employers' demands first from the ranks of coloured, then resident black, and last, black migrant work-seekers.
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The registered black labour force fell between 1974 and 1978 only because migrant numbers were cut, while the permanent component stayed constant. (p. 16)
The total registered black labour force has dropped from 70 039 in 1974 to 54 140 in 1978.
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Half of employers preferred black to coloured labour, overwhelmingly at unskilled and semi-skilled levels, and the preference was strongest among employers with experience of contract workers. (p. 17)
Half of the employers prefer black to coloured labour, overwhelmingly at unskilled and semi-skilled levels.
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Coloured preference at skilled levels was not wage-driven but tied to regulations, while black preference at low skill levels was influenced by lower contract worker wages. (p. 20)
At unskilled and lower semi-skilled levels, contract workers earn significantly less than black permanent and coloured workers
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The policy produced a surplus of highly educated black work-seekers, which the authors call anomalous given calls for skilled manpower. (p. 23)
In sum, then, there exists a significant surplus of highly educated black work-seekers in Cape Town.
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Most employers would hire more black workers if the policy were abolished, and a large majority felt reduced black manpower would harm the Greater Cape Town economy. (p. 23)
Sixty percent of employers are prepared to employ more black employees if the policy is abolished.
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Jobs were by far the most pressing problem for township residents. (p. 25)
The one issue which was classified almost unanimously as a major problem area (95% for both age groups) was that of 'jobs'.
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Younger respondents were more likely to attribute unemployment to politics, including the preference policy. (p. 32)
Political Explanations 65% 51%
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Lack of family housing led to overcrowding and poverty, particularly among lodger families. (p. 35)
between twenty-five and thirty percent of occupier families live below the bread-line (measured in terms of the HSL), whereas more than fifty percent of lodger families fall below this line.
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The authors conclude that both white employers and black employees opposed the policy. (p. 38)
In Cape Town, it would seem that both white employers and black employees are opposed to the policy.
Evidence ledger¶
Sources used¶
| Source | Kind | Period | How used |
|---|---|---|---|
| Employer survey of Greater Cape Town, November 1978 | author survey or fieldwork | November 1978 | Supplies the profile of the wage labour force, employer preferences for black versus coloured labour, wage comparisons, over-qualified black workers, and employer assessment of the policy. |
| Household survey in Gugulethu and Langa, October 1978 | author survey or fieldwork | October 1978 (described as late 1978 on p. 21) | Source for black Capetonians' attitudes to jobs, unemployment, competitors and the policy, and for household income, housing and unemployment data. |
| Peninsula Administration Board annual Labour Return (Consolidated Labour Returns, 30 June each year, 1974-78) | official statistical series | 1974-1978 | Shows trends in the registered black labour force (permanent vs migrant) and its sectoral breakdown, including the June 1978 table. |
| Theron Commission report, RP 38/1976 (Commission of Inquiry into Matters relating to the Coloured Population Group) | commission or official report | 1976 | Reaffirmation of the policy and evidence on employer preferences. |
| Riekert Commission report, RP 32/1979 (Commission of Inquiry into Legislation Affecting the Utilisation of Manpower) | commission or official report | 1979 | Documents the Standing Committee measures, the 1966 labour regulation and the buffer zone, and provides evidence on employer preferences. |
| Black Labour Regulations, 1965 (GN R1892/1965), including the 1966 amendment | legislation gazette | 1965-66 | Establishes the legal mechanism empowering labour officers to withhold black labour unless non-black labour was unavailable. |
| Environmental Planning Act, 1967, section 3 | legislation gazette | 1967 | Freezing of industrialists' black labour components in Cape Town and the Boland. |
| Government Gazette 2280, 21.2.69 (prescribing Divisional Council areas such as Graaff-Reinet and Jansenville), under Urban Areas Act 1945 and Black Labour Act 1964 | legislation gazette | 1969 | Evidence that rural Western Cape areas were declared prescribed (urban) areas for influx control. |
| Eiselen (1955) address, 'The Native in the Western Cape', Sixth Annual Congress of the South African Bureau of Racial Affairs | other | 1955 | Dates the stated Department policy of white and coloured labour preference and defines the region. |
| Subcommittee of the Interdepartmental Committee report 'Bantoebehuising in Wes-Kaaplandse Stedelike Gebiede' (Louw Commission), 1965 | commission or official report | 1965 | Source for the proposal that no new family housing be built in black areas, only hostels convertible to coloured use. |
| Federated Chamber of Industries, 'Nywerheidsdesentralisasie in Suid-Afrika' (1975) / Department of Planning, Decentralisation - Growth Points (1977) | commission or official report | 1975-1977 | Documents decentralisation growth points and incentives linked to coloured labour. |
| SAIRR Survey of Race Relations / Yearbook, 1976-1978 | secondary literature compilation | 1976-1978 | Used for details on the 1976 policy reaffirmation and the black unemployment/employment context. |
| Bekker and Cilliers (1980) 'Die Arbeidsituasie van die Swartman in die Wes-Kaap', Stellenbosch Occasional Paper no. 4 | secondary literature compilation | 1980 | Companion report that presents the employer survey results in greater detail. |
| Newspaper reports 1978 (Cape Times 27.4.78; Cape Argus 29.4.78; Rapport 30.4.78; Financial Mail 5.5.78) | newspapers periodicals | April-May 1978 | Evidence of a shift in official mood towards stricter enforcement of the policy in 1978. |
| Peninsula Administration Board information on lodger families (July 1978) | state archives | July 1978 | Gives the share of township houses with a registered lodger family (one in six). |
| Potgieter (1978) household subsistence level (HSL) Fact Paper no. 25, Institute for Planning Research, UPE | secondary literature compilation | 1978 | Supplies the household subsistence level against which the bread-line shares of households are measured. |
| Interim Report on Economic Potential of Western Cape (Bureau for Economic Research, Stellenbosch, 1979) | commission or official report | 1979 | Cited for the regional economic context of the Western Cape. |
New data¶
A November 1978 employer survey of Greater Cape Town (about 519 usable responses, from tables) and an October 1978 household survey of Gugulethu and Langa residents (older and younger age groups, n of roughly 89 and 154 respondents; 810 household members for the work-seeker table).
Inference¶
Quantification: Descriptive tables.
Descriptive analysis of the authors' own employer and household surveys, supplemented by Peninsula Administration Board labour returns and legal/administrative documents. Claims are drawn from cross-tabulations by sector, age group and employment type; there are no controls or causal modelling, and effects of the policy are inferred from stated opinions and patterns.
Key claims¶
| Claim | Basis | Strength |
|---|---|---|
| The registered black labour force on the Peninsula fell between 1974 and 1978 only because the number of migrant workers was cut back, while the permanent registered black labour force stayed constant. (p. 12) | Peninsula Administration Board consolidated Labour Returns 1974-78 (Figure 2). | Systematic data |
| Employers prefer black (especially contract) labour at unskilled and semi-skilled levels and coloured labour at skilled and clerical levels, so preference for blacks is self-imposed while preference for coloureds is tied to the policy. (p. 15) | Employer survey, Tables 2-4 (n=519 total, 480 for the cross-tabulation). | Partial data |
| Contract workers earn less than permanent black and coloured workers at low skill levels, and this wage differential probably influences employer preference for black labour. (p. 16) | Employer-reported average weekly wages (Table 5) from the employer survey, restricted to unskilled and semi-skilled categories. | Partial data |
| There is a surplus of highly educated black work-seekers in Cape Town, caused by the policy, with few opportunities beyond a static government sector. (p. 19) | Employer survey estimates of educated black employees and five-year demand (Tables 6-7), plus over-qualification questions. | Partial data |
| Most employers would hire more black workers if the policy were abolished, and a large majority think a fall in black manpower would harm the Greater Cape Town economy. (p. 19) | Two employer survey questions on the policy and its consequences. | Partial data |
| Access to jobs is the highest-priority concern of township residents, and the youth explain unemployment in political terms, especially through Coloured Labour Preference. (p. 21) | Household survey in Gugulethu and Langa, Tables 1-3, 6 and List 1 (open-ended responses). | Partial data |
| Housing is extremely scarce, lodger families are more overcrowded and poorer than occupier families, and incomes are low. (p. 31) | Household survey tables on occupancy and income, and Peninsula Administration Board information on lodger families, with HSL from Potgieter. | Partial data |
| The policy has been applied through an array of administrative measures from 1962 but tempered in practice by the needs of the Western Cape economy. (p. 8) | Legislation, regulations, Theron and Riekert commission reports and committee documents. | Partial data |
The author's caveats¶
The employer survey over-represents large employers with black workforces, so the coloured share of the workforce is probably understated. Labour Return data cover only registered workers, exclude illegal workers, and probably over-represent large, established employers. Employer wage comparisons are acknowledged as difficult and are restricted to low skill levels. Household data rest on a sample of two age groups, and the authors note that the respondent-based and household-based work-seeker counts differ.
Gaps in the evidence¶
The argument attributes labour-market effects to the policy without comparing similar cities or periods, and without time-series evidence on how enforcement changed. Better evidence would be the Department of Labour and Administration Board registers, labour bureau placement records and case files, which existed then, together with a panel or longitudinal employer data. The survey data are not described in detail in the paper itself (design and questionnaire are available only on request), and wage and income evidence rests on employer-reported averages and small samples.
Replicability: Data described but not public.