AbstractThis paper puts forward a model of real wage determination for black workers in South Africa. The model is fitted to data for mining and manufacturing for the post‐war period. It is found that since 1980 the rise of black trade unions has been a major factor underlying wage increases in manufacturing. In the 1970s, rising gold prices and reduced foreign labour supplies were favourable for mining labour, and in both industries pass law limitations on mobility are found to have lowered balck wage