Publication

This paper uses the mineworkers strike in Marikana in 2012 to examine the labor tensions in South Africa's mining industry and at possible ways of resolving them. It argues that there is a statistically significant negative relationship between labor tensions and mining investment attractiveness, controlling for commodity price increases, and corruption in the country. It also finds that the institutional context in South Africa’s mining sector currently creates incentives for unions to value violence and unprotected strikes over cooperation, fostering competition and hindering mutually beneficial outcomes. The paper concludes by looking at ways to change these dynamics.