An appropriate wage bargaining system to improve economic performance

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Periodical article

Title:	An appropriate wage bargaining system to improve economic performance
Author:	Sithole, S.A.
Year:	1995
Periodical:	South African Journal of Economics
Volume:	63
Issue:	1
Pages:	26-35
Language:	English
Geographic term:	South Africa
Subjects:	wage differentials economic development
External link:	https://doi.org/10.1111/j.1813-6982.1995.tb00223.x
Abstract:	High inflation and mass unemployment are the major problems facing South Africa today, and the need for employers and trade unions, both collectively and individually, to play a decisive role in the vital task of significantly improving the prevailing poor economic situation cannot be overemphasized. Without a systematic approach to wage bargaining, it is very difficult for the bargaining partners to take into account the extent to which wage settlements can impact on inflation and unemployment. This paper shows how wage bargaining can impact on macroeconomic performance; at which level(s) wage bargaining can take account of macroeconomic considerations and the conditions or circumstances under which South Africa can opt for either centralization or decentralization of wage determination. Having evaluated the theoretical arguments and looked at concrete examples of attempts made in other countries (in particular Sweden and Japan) to balance wage settlements against their macroeconomic consequences, recommendations are made as to the appropriate future direction of wage bargaining in South Africa. Bibliogr.