U.S. firms and black labor in South Africa: Creating a structure for change

Some have argued that U.S. firms should disinvest from South Africa as a means of putting pressure on the South African government to end apartheid. This argument, however, may ignore a dynamic of change in South Africa in which U.S. firms have played and are playing a large role: South African industrial relations have undergone significant evolution since 1979, the year in which major changes were introduced in that country’s labor legislation. Partly a result of these changes, black trade union membership has increased by 800 percent since 1979. By virtue of its unique exposure to varied constituencies, the multinational subsidiary in both home and host countries can be viewed as an agent of sociopolitical change in South Africa. The author wishes to thank Professors Herbert R. Northrup and Richard L. Rowan for helpful discussion.