Organising in the Informal Economy: A Case Study of the Building Industry in South Africa

SEED Working Paper, No. 38

Abstract:
This research paper documents attempts of organizing informal construction workers in South Africa. The focus of the study is on the perceptions that informal workers have of trade unions. In addition other organizations offering job placement and legal services are mentioned, but the experiences of informal workers on these are mainly negative. At the time of the study, trade unions were not encouraging informal workers to join. The four registered trade unions that are part of the study are introduced below. Amalgamated Union of Building Trade Workers of South Africa has made the concession of allowing informal members to pay their fees over the counter. However, their membership fee is the same as everyone else‟s, and this may be a hinder for membership. The union does not have any specific services for the informal members, but they may be interested in the job placement service provided by the union. Members are recruited at construction sites, and members are encouraged to recruit others. Building and Construction Workers‟ Union has since 2001 started organizing smaller companies and subcontractors, both formal and informal. It was not yet clear what the strategy for organizing informal workers would look like. Building Woodwork and Allied Workers‟ Union of South Africa organizes members through spreading pamphlets and calling for meetings in the workplaces or in town. It has no specific strategy for organizing informal workers. Likewise, the National Union of Mineworkers was still in the process of developing a strategy for informal workers.
One thing that the unions shared in regards to the informal economy was that they all wished for policies that would encourage informal employers and subcontractors to organize. The paper also examines the organizing strategies of these groups. Most of the existing employers‟ associations have traditionally been for Whites in the formal economy, whereas most of the informal business owners are Blacks. Two organizations that are organizing informal employees are profiled in the report: the South African Subcontractors‟ Association (SASCA) and the African Builders‟ Association (ABA). ABA is encouraging people to join mainly by helping them get contracts. However, sustaining a membership has been a challenge unless ABA can keep providing new jobs for the members. SASCA is a registered employers‟ association, and is assisting its members in legalizing their businesses. It provides members with legal, accounting, employment agency and quantity surveying services, as well as entrepreneurship training. In addition, it raises awareness amongst the members on their rights and obligations as employers.