Dear friend of the FMF
In this week’s feature article, Frans Rautenbach investigates the high density of unions and union participation in South Africa and their relationship with the high unemployment rate. He examines these factors in relation to the impact on jobs when trade unions are protected by law. Using numbers from different US states and COSATU’s membership the author makes the case for job freedom and against compulsory participation in a union.
South Africa Can Work
An insightful and provocative book, written by Frans Rautenbach, a labour lawyer with a proven track record in a range of policy issues, in which he proposes a complete overhaul of policy thinking, and provides fresh arguments that effectively address South Africa’s high unemployment, race problems and lack of education. Rautenbach examines the fundamental problem of rent-seeking, to which he proposes two antidotes: the free market and decentralisation of government. Along the way he tackles holy cows such as affirmative action, trade unions, labour law and welfare payments. He also addresses contentious topics such as racism, white privilege, political correctness, state funding of higher education and mounting evidence that trade unions substantially suppress employment growth.
Available here or from Exclusive Books.
The more trade unions, the less job growth – FRANS RAUTENBACH
Is there any correlation between union density and the growth or decline in employment? in the graph below, the block to the left of the vertical axis expresses union density (defined as a percentage of the economically active population). The right-hand side of the vertical axis shows the formal employment growth or decline.
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Publish date: 22 November 2017
The views expressed in the article are the author’s and are not necessarily shared by the members of the Foundation.