Prohibitive labour costs

Between 1960 and 1980, labour costs grew faster than the average productivity of the economy. Labour costs include net wages, payroll taxes and social security contributions by both the employees and employers, as well as various fringe benefits such as private company pension schemes, free cars and expense accounts. When labour costs increase faster than productivity, the remuneration of capital is lower.

Some South African companies estimated in 1999 that HIV/AIDS was costing them R250 000 annually per 100 employees through absenteeism, extended sick-leave, funeral loans, and loss of productivity. Despite this, very few companies had a proactive Aids policy and even those were far from adequate. Most companies treated HIV/AIDS education for employees and their families as charity or "the humane thing to do".