Thematic Lessons from the Marikana Miners' Strike in South Africa: A Corporate Governance Perspective

Literature › Works

Linda Muswaka (2014). Thematic Lessons from the Marikana Miners' Strike in South Africa: A Corporate Governance Perspective. Mediterranean Journal of Social Sciences, Vol 5 No 2. MCSER Publishing, Rome.

Type	journal article
Scope	Post-1994 South African economy
Method	theoretical or conceptual
Period studied	2012–2013
Regions	North West Province (Marikana/Rustenburg platinum belt), South Africa
Themes	mining migrant labour, unions strikes, labour markets wages, business and state, transition post apartheid
Citation key	muswaka2014

Argument

The article reads the 2012 Marikana strike and massacre as the culmination of grievances produced by shareholder-value-oriented corporate governance, which neglects mineworkers and mining communities. It argues that the strike strengthens the case for stakeholder-oriented governance. It draws seven 'thematic lessons' for directors: treat employees as key stakeholders, make decisions that are cost effective in economic, social and environmental terms, decide with stakeholders in mind, regard sustainability, carry out human rights and environmental impact assessments, and address workers' economic illiteracy. The argument is normative and legal-prescriptive, resting on secondary and grey-literature sources (Bench Marks Foundation, press, ILO) rather than original research.

Evidence and method

Secondary and grey sources only: Bench Marks Foundation reports on platinum-belt communities, ILO news item, press and blog commentary (Mail and Guardian, Corporate Watch, De Vos), Statistics South Africa national accounts, and corporate-law literature (Greenfield, Lutter, Blair and Stout). No archives, interviews or datasets are used.

Findings

• The strike began as a wage demand by rock drillers, and the police killed miners on 16 August 2012. (p. 2)

  The strike began with the demand by approximately three thousand rock drillers to have salaries increased from R4 000 per month to R12 500 per month.

• Mining companies' growth rested on cheap labour, and mineworkers symbolised apartheid exploitation. (p. 2)

  The expansion of the mining companies in South Africa was driven inter alia by the availability of the supply of cheap labour that ensured that healthy profit margins could be attained.

• The author asserts that migrant labour was drawn from across the region and that post-1994 conditions have barely changed. (p. 2)

  Post-1994, nothing much has changed for the mine workers who are still being paid appalling wages as evidenced by the Marikana miners' strike.

• Mining's role in the economy rests on the mineral-energy complex that emerged from the discovery of gold and diamonds. (p. 2)

  The structure of the South African economy, whereby the mineral and energy complex is the main driver of the economy, first emerged out of the discovery of gold and diamonds

• Platinum-belt CSR is described as top-down and unresponsive to communities, per the Bench Marks Foundation. (p. 3)

  top-down, designed by experts and imposed on communities and there is very little evidence that communities, as stakeholders, are actually consulted about their needs

• The author links the strike to workers' living conditions set against company profits. (p. 3)

  the Marikana miners' strike was fuelled by the fact that while most mineworkers lived in appalling conditions in informal settlements around the mine, the companies were making huge profits

• The central thesis is that Marikana exposes the weaknesses of shareholder-value governance. (p. 3)

  Perhaps one of the biggest ramifications of the massacre, aside from the tragic deaths of so many, is the revelation of the shortcomings of shareholder value oriented corporate governance.

• Employees and shareholders are both investors, so employees merit equal consideration. (p. 3)

  Shareholders contribute financial capital and employees contribute "skill, time and effort"(or human capital).

• The author concedes that wage demands should be tempered by the economic context, since above-affordability settlements risk job losses. (p. 5)

  The unfortunate effect is that where settlements are above what the economy can afford, there could be job losses.