This paper highlights some of the problems in providing acceptable and adequate shelter in urban areas of South Africa for a migrant workforce housed in large, single-sex hostels. The negotiations conducted over this issue in 1988/1989 between a trade union and an employer within a limited industrial setting at Brickco, a large iron foundry in the Transvaal, are the basis of the article. The company’s housing policy consisted of converting the hostels from single-sex to integrated family accommodation. Furthermore, two large townships were developed, which facilitated permanent urban residence for the company’s largely migrant black workforce. However, an attitude survey of hostel residents carried out in 1988 showed a strong commitment on the part of the workforce to maintaining land, livestock and a permanent home in the Transkei, where their families lived. In the urban areas, they required affordable rented accommodation near to work, with facilities for family accommodation for short periods. The paper examines the company’s housing policy with respect to subsidies, home loans, and gender discrimination. This policy became the most important issue of conflict between the union and the company. Bibliogr.