The Economic and Socio-Political Factors Influencing Labour Relations within Iscor from 1934 to 1955 by William Roy Curtze Langley The Economic and Socio-Political Factors Influencing Labour Relations within Iscor from 1934 to 1955 by W. R. C. Langley for the degree of Master of Arts in the subject History Supervisor: Professor A.M. Grundlingh Joint Supervisor: Dr. F.A. Mouton November 1997 II ACKNOWLEDGMENTS I would like to express my appreciation for the assistance I have received from the following persons and for their contribution towards the writing of this dissertation: • The Librarians and Staff of Iscor's Archives; • The staff of the State Archives in Pretoria; • Mrs. Mariette Agenbag of Iscor's Public Relations Department, Iscor Head Office, Pretoria; • Mr. Johan Potgieter of the Iscor Pension Fund; • Mrs. Sue Johnson, whose knowledge of the English language was of invaluable worth in writing this dissertation; • Ms. Mary-Lynn Suttie, Subject Librarian: History and Politics, at the University of South Africa, whose assistance in locating resources was invaluable; • Mrs. Elmari Viljoen and Mrs. Cecilia Cupido, who showed unbelievable patience in typing and re-typing this dissertation; • Professor A.M. Grundlingh my Supervisor and Doctor F.A. Mouton the Joint Supervisor, of the Department of History, University of South Africa, who provided invaluable guidance and encouragement, without which this dissertation would not have been completed; • My wife Denise and son Ulrich, for the patience and understanding with which they have endured the demands of this dissertation; • to my Creator, without whom I could not have achieved this. III DECLARATION I declare that "The Economic and Socio-Political Factors Influencing Labour Relations within Iscor from 1934 to 1955" is my own work and that all the sources that I have used or quoted have been indicated and acknowledged by means of complete references. Signed: ........ Date: UNISA BlBLIOTFr.:V / LIBRARY Clas: --~ -,-,i1,:,•• ,~,.~:,:,·,1908 Klas,.. ::,·~ ~:.:; l:::t - . .. - Acee Aanw111 ....... \\\\\\\1\\\\\\\ 0001101208 IV ABBREVIATIONS ANC African National Congress I SCOR South African Iron and Steel Industrial Corporation Limited I STORES Iscor Utility Stores (Pty) Ltd NP National Party PRES CO Pretoria Steel Corporation SAR South African Railways TB Tuberculosis us co Union Steel Corporation VECOR Vanderbijl Engineering Company VESCO Vanderbijl Park Estate Company VD Venereal Disease YSKOR Suid Afrikaanse Y ster en Staal Industriele Korporasie Beperk v SUMMARY Founded in 1928, Iscor was intended to make South Africa self sufficient in the provision of steel while providing employment for poor whites. Economic considerations prevailed when Iscor began replacing expensive white labour with cheaper black labour. From 1934 to 1948 black labour was employed to curtail costs. While being replaced by black labour, white employees' salaries and fringe benefits remained better than those of their black colleagues. Affordable houses were provided for white employees while blacks were housed in overcrowded compounds. No medical or pension benefits were made available to black employees or their families, while white employees enjoyed both. White employees were provided with what were arguabley the finest sports facilities in the country while black facilities were neglected. With the National Party victory in 1948 more emphasis was placed on the employment of Afrikaans speaking white South Africans at the expense of blacks and English speaking whites. Key Concepts: Poor whites; economically viable labour; wage disputes; arbitration; housing; migrant labour; compounds; social control; medical, health and retirement benefits; recreation; apartheid in sport; racial differences; Afrikaner empowerment. VI TABLE OF CONTENTS Page Acknowledgments II Declaration III Abbreviations IV Summary v Table of Contents VI CHAPTER One Introduction 1 Two The Early Years 11 Three Iscorians in the Work Place 31 Four Housing and Accommodation 67 Five Medical, Health and Retirement Benefits 119 Six Sport and Recreation 147 Seven Conclusion 170 Sources 177 1 CHAPTER 1 - INTRODUCTION My interest in this topic arose while employed by Iscor, from 1988 to 1996, during which time I spent four years living in housing supplied by the corporation in Pretoria West as well as at Sishen Iron Ore mine in the Northern Cape. This eight year sojourn at Iscor brought me into contact with the wide rage of facilities offered by the corporation. Whilst working at Sishen I became acutely aware of the vital role which Iscor played in the community by way of providing recreational and medical facilities for employees as well as the other members of the community. At the same time, however, I became aware of the fact that there were different facilities for white and black employees and even after the unbanning of the African National Congress (ANC) and other freedom parties and the ANC victory at the election poles in 1994 there was no noticeable difference in Iscor's attitude toward their black employees. In fact, by early 1996, it was still virtually unheard of to see black employees making use of the Iscor Club at Sishen or being treated at the Iscor clinic in the town. In both instances black employees still had their own facilities, located near the mine hostels, which were situated a few kilometers outside the town. This, coupled with the privatization of Iscor in 1991 and the resultant publicity which accompanied this historic move raised questions and a curiosity about the origins and functions of these services and the part played by them in regulating the economic and socio-political factors which influenced labour relations within Iscor. Knowing the effect which these had on labour relations nearly seventy years after the founding ofiscor, the decision was made to investigate these relationships during the early years of the corporation's existence. The year 1934 is used as the starting date of this topic as this was the year in which Iscor began production for 2 the first time at their Pretoria steel plant, whilst the year 1955 is taken as the cut­ off date, taking us to the end of the first 21 years of production and industrial relations at Iscor. Investigations around the topic revealed a substantial gap in South African historiography in this field, with Nancy Clark's book, Manufacturing Apartheid, State Corporations in South Africa, Yale University Press, 1994, being the only published work which more or less touches on this topic. There are two doctoral theses which deal with Iscor and both of these focus mainly on the economic aspects of Iscor while the socio-economic and political aspects have been ignored. 1 C.S. Richards deals with the economic considerations which influenced the decision of the government of the day to go ahead with the founding oflscor and covers the period to 1937. T. Cross, on the other hand, deals with the economic development and importance oflscor from 1928 to 1989. An economic and socio-political topic dealing with Iscor therefore appeared to offer scope for a contribution to a relatively undeveloped area of historical writing in South Africa. A preliminary survey of primary sources indicated that a study of a topic of this nature was possible. This was also a topic capable of being handled within the parameters of a dissertation of this nature. While researching, sources were found to be more sketchy and superficial than originally thought and it became necessary to research parallel topics so as to be able to piece together the jigsaw puzzle of missing information. This meant that Iscor had to be placed in context in the political and socio-economic scenario in South Africa during the period under discussion and could therefore not be looked at in isolation, which in the end allowed for a more objective approach to the topic. T. Cross The Political Economy of a Public Enterprise: the South African Iron and Steel Corporation. 1928 to 1989. D. Phil Theses, Oxford University 1994 (unread); C.S. Richards, The Iron and Steel Industry in South Africa. Witwatersrand University Press, Johannesburg, 1940. 3 With the start of production at the Pretoria Works in 1934 it was deemed necessary by the Board and especially Dr. van der Bijl, Chairman of the Board, that good quality affordable housing2 should be provided by the corporation for their white employees. The development and planning of the Iscor township at Pretoria West was laid out along the lines suggested by the South African Public Health Act of 1919 and the 1920 Housing Act, which bore a close resemblance to the English Housing and Town Planning Act of 1909 and the resolutions adopted by the international community at the Inter-Allied Housing and Town Planning Congress held in Paris early in 1920.3 Black employees, however, were not so lucky and found themselves confined to compounds in Pretoria, and later at Vanderbijl Park and at Thabazimbi Iron Ore mine in the Northern Transvaal. Although facilities left much to be desired in the compounds and the workers were sometimes harshly treated, especially at Thabazimbi mine, their conditions were far better than those to be found on the gold and diamond mines of Southern Africa.4 With the development of Vanderbijl Park in the second half of the 1940's, even more detail was given to the development and the layout of the town. There, unlike at the Pretoria Works, the entire town was planned from scratch with regard to the layout of the industrial areas, residential areas, ( both black and white), Housing and Accommodation are dealt with in Chapter 4. S. Parnell, Creating Racial Privilege: The Origin of South African Public Health and Town Planning Legislation, Journal of Southern African Studies. Vol. 19 (3 ). 1993. 4. R. Turrell, Kimberley's Model Compounds, Journal of African History. Vol. 25 (1). 1954: C. Van Onselen, Chibaro: African Mine Labour in Southern Rhodesia 1900-1933. Pluto Press, 1976.