15. Mr Hargreaves recalled that a British subsidiary in South Africa had experienced a strike by its Black employees in 1976. The majority of the workers had been members of a union yet the manager had claimed he could not find anyone with whom he could discuss a resumption of work. The dispute had resulted in the South African Government imposing two banning orders. This strike had demonstrated that British subsidiaries were not prepared to act reasonably or to handle disputes with their Black employees in a constructive way. He hoped that henceforth British employers would encourage more actively the growth of Black unions and to this end it might be necessary to phase out liaison committees in order to bring Black unions into discussions on wages and conditions of work.
16. Mr Coates put forward the CBI view that liaison committees were a step towards responsible Black trade unions. He hoped it would be generally acknowledged that British companies had responded well to the invitation to publish information on their South African wages and terms of employment contained in a White Paper (Cmnd 5845). This information had revealed substantial improvements in Black wages during the last 15 months. However, it should be realised that the managements of British subsidiaries in South Africa regarded themselves as South African and were not readily susceptible to British influence. Members of the CBI and UKSATA had met in February to consider what constructive action should be taken and there was general agreement that guidelines should be drawn up which would involve companies in a commitment to give their Black employees a greater say in determining conditions of employment. In formula- ting and implementing the guidelines, the CBI would need the co- operation of employers' organisations in South Africa since the recent UKSATA mission to that country had revealed resistance to overseas pressure. The Minister of Labour, Mr Botha, had also given the impression to the mission that the South African Government was responding to changing circumstances and did intend to reduce discrimination against Black workers and provide for their participa- tion in negotiations. This impression had been heightened by a study of the draft legislation (paragraph 11 above) but the CBI now understood that this draft legislation was the subject of criticism in South Africa. If the impression given by the Minister of a move towards associating Black workers with negotiating machinery proved false, the CBI would need to reconsider its attitude. Mr Coates agreed that the CBI guidelines should make British subsidiaries aware that present law in South Africa did not prohibit Black trade unions or the possibility of employers concluding agreements with them. In the CBI's view, the guidelines should aim to encourage mutual confidence between employers and their Black workers. CBI was not attempting to maintain the status quo but to create conditions conducive to progress towards full recognition of Black trade unions through the development of works and liaison committees. The CBI would soon be holding a further meeting to consider the content of the guidelines and the prospects of securing the co-operation of employers' organisations in South Africa.
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