A - Dimensions of structural inequality South Africa Reclaiming Power: Womxn’s Work and Income Inequality in South Africa November 2020 Inequality Report 2020 1 Abstract CEO takes home as much as 461 black women from the bottom ten percent of earners. Labour market inequality is a key driver to stubborn gender, race, income and wealth inequality in South Africa Existing government policies have failed to reduce inequality because macroeconomic policies have entrenched rather than reduced the dominance of a handful of conglomerates based in finance, extractives and energy. This skewed industrial structure, established during apartheid, has led to a decline of manufacturing, jobless growth, asset price inflation and investment volatility in the era of financialisation, while crowding out the informal sector’s ability to absorb unemployment. Addressing the crisis of inequality in South Africa therefore needs to go much further than the labour market reforms, skills development policies and micro support for the informal sector that have been advocated by mainstream economists. Long-term, socially sustainable distributions of income would require radical transformation of the economy towards more labour intensive, linked to sectors that serve the needs of the population - for example via a developmental welfare state across health, education and other social needs - rather than the imperatives of profit and capital expatriation. Specific policies to reduce labour market inequality - such as a living wage, a maximum income cap no higher than 10% of the income of the lowest paid worker in firm, social protection for all and making workplaces safe for women - must be rooted in macroeconomic policy that reorients away from the ‘Minerals Energy Complex’ and expansion of the financial sector in and of itself, towards industrial policy aimed at promoting sustainable and equitable economic development. Inequality Report 2020 3 CONTENTS Page 3 Page 6 Page 8 Page 9 Contents Acknowledgements Foreword Glossary Page 11 Page 12 Page 17 Page 23 Acronyms What is this What we do is Johann Rupert’s report about? important too entrepreneurial secrets 4Inequality Report 2020 Inequality Report 20204 Introduction A B Dimensions Women of structural inequality at the margin 1. Social inequality 32 1. Unpaid care work 56 2. Income inequality and wealth inequality 39 2. Precarious work 60 3. Labour market inequality 45 3. Informal work 70 C D E What is behind classist, gendered How the state’s microeconomic What could we do instead? & racialised labour inequality in policy and practice maintains OZA’s recommendations South Africa? the status quo? 1. What is the Minerals Energy Complex? 76 1. At work in the formalised sector 109 1. Policy recommendations for reducing labour 2. The Financialised Minerals and Energy Complex 80 2. At work in the informal sector 114 market inequality 135 3. The Historical Origins of the Financialised MEC 87 3. Industrial policy 116 2 .Build your own campaign 142 4. Economic Reform since 1994 94 4. Political and Corporate capture as a driver of inequality 120 3. How to use this report 144 5. Other Social Impacts of Financialised MEC 101 5. Taking the fight into the future 127 5Inequality Report 2020 Inequality Report 20205 ACKNOWLEDGEMENTS This report is an outcome of a Nomonde (JITP); Paulos Selibana (JITP); participatory research with Oxfam Project and Research Coordinator: Social Movement Reviewers: Ntakuseni Tshikosi (JITP); Lebogang South Africa’s (OZA’s) social Dr Basani Baloyi (Oxfam South Africa, OZA) Pumza Vitshima (National African Phanyelo (South African Federation movements partners and academic Farmers Union); Micheal Mokgoja (South of Trade Unions; SAFTU); Mosa Nkoko researchers that spanned a two year Africa Informal Trader Association, (SAFTU); Bonisile B Malati (JITP); Othusitse process from the conceptualisation Editors: SAITA); Thozama Gwente (SAITA); Agnes Jackals (SAITA); Gladys Thlame (Simunye of the research to its development. Claire Cerruti, Dr Basani Baloyi (OZA). Motlhokoa (Tiyisetsang); Julekha Latib Workers Forum) (One Voice Of All Hawkers Association); Dade Hlatshwayo (Johannesburg Copy Editor: Informal Traders Platform, JITP); Jane Reviewers: Lorraine Shabangu (University of the Nonyane (JITP); Zodumo Chitwayo Ms Sipokazi Mthathi (OZA), Rukia Witwatersrand, Wits). (JITP); Sibulele Poswayo (Inequality Cornelius (OZA), Asanda Ngoasheng Movement); Zipho Xego (Transkei Land (OZA), Prof Ben Fine (School of Oriental Researchers: Service Organisation), Olwethu Kota and African Studies), Dr Gilad Isaacs Ms Baba Tamanda Gqubule (Trade and (Unemployed Peoples Movement, UPM); (Wits University), Ms Caroline Skinner Industrial Strategies, TIPS), Dr Mondli Sinovuyo Ngubo (UPM); Salphy Nkoana (UCT), Mr Duma Gqubule, Max Lawson Hlatshwayo (UJ), Prof Chris Malikane (Matshupatsela Cooperative, MC); Ruth (Oxfam International, OI), Cristina Rovira (Wits), Prof Susan Newman (The Open Mkari (Matshupatsela Cooperative); Izquierdo (Oxfam Intermon), Prof. Mike University), Dr Ben Scully (Wits), and Mr Lulama Mali (JITP); Ruth Makari Rogan (Makanda University), Dr Seeraj Ryan Brunette, Nokwanda Maseko (TIPS). (MC); Ziwelile Florah Mnisi (Minenhle Mohamed, Mr David Francis (Southern Cooperative); Shereza Sibanda (Rivoningo Centre for Inequality Studies), Dr Kate Research Assistance: Women’s Forum); Persely Msibi Philips (Government Technical Advisory Ms Akona Zibonti (OZA), Ms Kwezilomso (Iketsetse); Lebogang Malewa(Young Centre), Dr Carin Rancin (UJ), Dr Malehoko Mbandazayo (OZA), Ms Vuyokazi Futshane Nurses Indaba Trade Union, YNITU); Tshoaeli (UJ), Mthandazo Ndlovu (OZA), Mr (OZA), Mr Sameer Dossani (Oxfam Great Catherine Modise (YNITU); Choaro Dibate Obi Gadziwa, Dr Chiara Mariotti (OGB); Mr Britain, OGB), Dr Basani Baloyi (OZA) (YNITU); Kelebogile Mokabe (YNITU); Sameer Dossani (OGB). Thomas Mathebula (YNITU); Patience 6 Inequality Report 2020 Grassroots Social Media Popular Education Campaign Roadshow INEQUALITY 1 year of REPORT mobilising SOUTH AFRICA State of the Political nation address Influencing DRAFT 2 Developmental phase 2: Once the reports were final. we then produced a synthesised version of the report, which had two rounds of comments from social movement and reference group. There was a further round of refinement before it was sent to graphic design. We also Informal Domestic Academics Care Oxfam Technical Labour Young held a campaign design workshop to identify Workers Workers Workers People Unions People campaign areas. DRAFT 1 Developmental phase: We then contracted Section A Section B Section C researchers to produce the research Meeting 1 Meeting 2 Meeting 3 papers. and then then they were sent to social movement reviewers as well as the reference group for comments. there were two workshops held with social movements to take TIME AND ENERGY comments. COLLECTIVE CONCEPT Conceptualisation phase: We met with social movements and academics to have discussions which helped to develop a proposal. That was turned into a set of proposals. Inequality Report 2020 7 FOREWORD SIPHOKAZI MTHATHI This report is one important step towards a better dynamics that make it unlikely to have what is written OXFAM SOUTH AFRICA understanding of inequality and what we should do to about embody a full representation of the lived experience EXECUTIVE DIRECTOR reduce it. I would humbly suggest that you take your time of the womxn and men impacted by inequality. with it. While to some extent these issues are inescapable, the A lot is said about inequality in South Africa, but how Taking time may be a challenge, but it can be very first step to any solution is to be aware of the problem. much is understood? When we hear time and again that rewarding. If you were to take your time to understand We at Oxfam South Africa are aware of the many problems South Africa ranks among the most unequal countries in the South African story of inequality, you might find that regarding whose stories are told and how they are told. the world, what does that mean to us? After hearing this a it is a story that is still being written. Its first act is set in We have done our best to ensure that this report reflects few times, still, does it even register? Or make much of a the desperation and brutality of the colonial era, when the voices of those whose stories are often not included difference in our lives? Europeans came here seeking wealth and saw different in the larger narrative around inequality. We have worked There is a difference between information and knowledge. forms of slavery and coercion as a means to obtaining that closely with several social movements including feminist Information is what we receive from the television or radio wealth. The second act takes place as black people resist movements, youth movements, unemployed people’s news, or from our phones which ping us with information that oppression, even while the oppression entrenches movements, labour unions, LGBTQ+ movements, and from social media feeds that may or may not even be itself through the formalizing of the apartheid system. movements of people who work in the informal sector. They accurate. In order to turn that information into knowledge The third act, which is where we are now, begins with the tell their own stories through these pages, stories that we need time. That is, time to verify whether or not the promises of a constitution that offered hope of a new kind have too often been overlooked by those who would claim information is accurate or useful.