The LRS Story
Knowledge is too important to leave in the hands of the bosses.
The Labour Research Service (LRS) was established in South Africa in 1986 during a state of emergency. LRS aimed to enhance the collective bargaining power of trade unions by providing pertinent economic and financial research and information. The Cape Town Trade Union Library, established in 1983 and renamed the Trade Union Library and Education Center, preceded the LRS. In 1999, the Center and the LRS merged.
The first phase: 1986 -1992
In its foundational phase, the goal of LRS was to contribute to developing a modern trade union movement in South Africa. The LRS acknowledged trade union authority by adopting an organisational structure under union control. During this phase, trade unions heavily relied on the LRS for advice and resources, including company reports, which proved invaluable in wage negotiations, training sessions, and consultations. Additionally, LRS produced specialised reports to support union bargaining and advocacy. In 1987, LRS launched the Actual Wage Rates Database (AWARD), a repository of collective agreements that tracks minimum wages and provides unions with empirical evidence crucial for bargaining.
During this time, the LRS grew as more unions joined. We gathered, analysed, and shared information tailored for unions to use in bargaining. As unions became more sophisticated, they needed better industry-specific knowledge, which the LRS offered. Our funding mainly came from fraternal trade unions and trade union federations abroad, and our member unions pay a small membership fee.
Key developments included launching two publications: The Bargaining Monitor and Bargaining Indicators. The LRS also entered the financial sector with the Community Growth Fund (CGF), a union-directed unit trust and South Africa's first socially responsible investment fund.
The Second Phase – 1993 -1998
During this time, the LRS grew as more unions joined. We gathered, analysed, and shared information tailored for unions to use in bargaining. As unions became more sophisticated, they needed better industry-specific knowledge, which the LRS offered. Our funding mainly came from fraternal trade unions and trade union federations abroad, and our member unions pay a small membership fee.
Key developments included launching two publications: The Bargaining Monitor and Bargaining Indicators. The LRS also entered the financial sector with the Community Growth Fund (CGF), a union-directed unit trust and South Africa's first socially responsible investment fund.
This period marked a significant transition in South Africa as politics and the economy underwent profound changes. Trade unions were evolving into influential forces, but key leaders left for opportunities in government and business, creating challenges. These changes impacted the LRS as well.
With the advent of democracy, foreign funding flowed directly to unions, sidelining many labour support organisations and presenting fundraising challenges. In response, the LRS took various measures, including establishing LRS Financial Services (Pty) Ltd to offer financial guidance to unions tapping into new funding avenues. Eventually, this arm became independent, aligning with the move towards self-sufficiency. Tough decisions followed, and LRS ended certain projects like in-house training programs and the Trade Union Library and Education Centre. The LRS refocused on collective bargaining by 1998, responding to changes in labour laws and unions' demand for transparency in company practices
The Third Phase – 1999 onwards
In its third phase, the LRS adopted a new strategy. We thrived through innovation, diversifying funding, and restructuring for project-based support amid funding shifts in the LSO sector. Around 2003/04, direct commissions from unions declined, but the LRS continued offering collective bargaining support, often at its own expense, in anticipation of a turnaround. Remaining true to its mission, the LRS focused on enhancing the organisational and leadership capacity of trade unions for collective bargaining on income and social livelihood issues.
"The LRS has not departed from its vision and mission. The national and international network further strengthened its ability to stay focused on its vision to provide a relevant service to trade unions, to provide information and support, and capacity building." -
Past board member
The LRS is viewed as a very transparent organisation, one which has never resourced to unethical practices.
"The LRS has never become corrupt even in the direst circumstances." -
Past board member
About the impact of the LRS on the transformation of wage bargaining overall, an ex-board member remarked:
“We saw the bargaining process mature and it was not so drawn out as before.”
According to a union official, the LRS makes the greatest impact on individuals in lower ranks of union hierarchies.
“The LRS empowered trade unions at the level of the shop steward and organiser rather than at the top only.” -
Union official
LRS services have been particularly helpful to union negotiators who:
- had to contend with bargaining that was company-based and centralised
- worked for unions with under-resourced or under-capacitated bargaining departments
- had to deal with focused and specific needs
- were on the National Bargaining Council