Balancing efficiency and equity: the future for labour-intensive industries in an automated economy in South Africa

This study contributes to broader debates on how emerging economies can reconcile efficiency and equity amid automation and industrial transformation. Focusing on South Africa’s manufacturing sector, it asks: (1) How do South African local labour dynamics and trade union regulations mediate corporate strategies on automation and technology adoption? (2) How can adaptive development strategies bolster manufacturing resilience and alleviate structural unemployment while grounding policy in South African labour realities? Drawing on three case studies, the research reveals two key findings. First, while collective bargaining remains vital for protecting labour rights, it can inadvertently accelerate automation, improving efficiency but undermining job security. Second, South Africa’s strong labour union culture, originally intended to protect workers’ rights, may paradoxically encourage firms to automate to reduce union influence. The study argues that fostering labour-intensive industries and implementing policies that promote social equity are essential to mitigating employment precarity. It concludes that reconciling technological advancement with inclusive labour practices is essential for sustainable development.