Industrial/labour relations

1. Industrial/labour relations

2. INDUSTRIAL RELATIONS • DefinitionThe practice or the study of relationship within and between workers, working groups and their organisations and managers, employers and their organisations.

3. Definition (cont..) • The European Commission states: “Industrial, labour or employment relations regulate the link between the company and the employers and indirectly between society as whole and its citizen (European Commission, 2002). .

4. Definition (cont..) • Industrial relations is the study of bargaining relationship between employees and employers (Laffer, 1974) • The continuous relationship between a defined group of employees and management (John Ivancevich 2004) • The field of industrial relations looks at the relationship between management and workers, particularly groups of workers represented by a union

5. The relationship being referred to here include the negotiation of a written contract concerning pay hours of work and others terms and conditions of employment as well as the interpretation and administration of this contract over its period.

6. What it involves • Employment and employment regulations • Trade unionism • Grievance and grievance handling procedures • Discipline and disciplinary action • The laws governing all above

7. Industrial relations: the actors • The industrial relations can be seen as a system which contains three actors. • The trade Unions • The employers associations • The government

8. Trade unions • Participation of the trade unions in the industrial relation can take different forms, from collective bargaining to strikes. Trade Unions find their legitimate and strength to take part in these negotiations from their members

9. The employers’ organisations • Unlike trade unions which are composed of individual persons, employer organisations are composed out of enterprises - FKE

10. The government • Prime mission - to preserve social peace (the regulation of general conflict, which can be disturbed by a strike, etc. • Their wish for prosperous economy, which can only be achieved by limiting unemployment and encouraging economic growth. • Direct interest in industrial relations as an employer.

11. Intervention possibilities by the govt. • Categories: • To creation of general binding rules (example; unemployment benefits) • Creating the rules of the game in industrial relations matters • The provision f collective goods next to the other parties (actors)

12. Intervention possibilities by the govt. ( cont..) • The government can intervene in a direct manner as the employer of the civil servants and employees in subsided sub sectors

13. Industrial relations charter • Is a tripartite pact among government, employers and a trade-union umbrella organisation, which is voluntary. • It provides a framework for Kenyan industrial relations. • It is an agreement among the government, employers and workers through umbrella bodies for the management of labour and industrial relations in Kenya.

14. Industrial relations charter ( cont…) • spelt out the agreed responsibilities of management and unions and their respective obligations in the field of industrial relations • Defines a model recognition agreement as a guide to parties involved • It set up a joint Dispute Commission.

15. Industrial relations charter ( cont…) • The charter was first signed prior to independence in 1962. • Based on the need for consultations and co-operation among these parties for efficiency and improvement of workers’ terms and conditions of service are its pillars.

16. Industrial relations charter ( cont…) • The employer and the employee need to be in good terms and operate within their prescribed obligations for a smooth flow of work. • The government, through the Ministry of Labour, is meant to be the arbitrator should a dispute arise between the worker and employer. • It is for these reasons that the three actors are referred to as “social partners”. • Occasionally, conflict arises because of the partners’ divergent interests.

17. Legislation pertaining to labour and labour relations in Kenya • Relevant laws and acts include • The Employment Act; • Labour Relations act • Occupation, Safety and Health Act (OSHA) • Labour institutions Act • Work injuries and Benefits Act

18. Trade Unions _ definition • the predominant historical view is that a trade union "is a continuous association of wage earners for the purpose of maintaining or improving the conditions of their employment." • It is an organisation of employees that use collective action to advance its members interest in regard to wages and working conditions

19. A trade union is "an organization consisting predominantly of employees, the principal activities of which include the negotiation of rates of pay and conditions of employment for its members • “An association of employees whose principal purpose is to regulate relations between employees and employers, including any employer’s organisation

20. Objectives and activities of trade unions • The immediate objectives and activities of trade unions vary, but may include: • Provision of benefits to members: Early trade unions often provided a range of benefits to insure members against unemployment, ill health, old age and funeral expenses.

21. Objectives and activities of trade unions (cont..) • Collective bargaining: Where trade unions are able to operate openly and are recognised by employers, they may negotiate with employers over wages and working conditions. • Industrial action: Trade unions may organize strikes or resistance to lockouts in furtherance of particular goals.

22. Objectives and activities of trade unions (cont..) • Political activity: Trade unions may promote legislation favourable to the interests of their members or workers as a whole. To this end they may pursue campaigns, undertake lobbying, or financially support individual candidates or parties (such as the Labour Party in Britain) for public office.

23. Why do workers join unions? • Dissatisfaction with the work environment, including working conditions, compensation, and supervisors (note: Not the work itself) • A desire to have more influence in affecting change in the work environment ( therefore the greater the extent to which management has mechanism for voicing employees concern, the less tendency on the part of the workers to favour unionization) • Employees beliefs regarding the potential benefit of a union

24. Why workers join unions Cont.. • Job security • Socialization and group membership • Safe and healthy working conditions • Communicating link with management • Fair compensation

25. Type of Union • Description / Example • Craft of skills union • To represent skilled workers e.g. Musicians Union (MU) • Industrial unions • To represent the members of one particular industry e.g. Fire Brigades Union (FBU) • General unions • Unions which recruit workers from all types of industries and with any level or range of skills e.g. Amicus – the Manufacturing Science and Finance Union (MSF) • White-collar unions • Represent office workers e.g. National Union of Teachers (NUT)

26. Types of trade unions

27. Types of union security models Models: • A closed shopemploys only people who are already union members. The compulsory hiring hall is the most extreme example of a closed shop—in this case the employer must recruit directly from the union. • A union shop employs non-union workers as well, but sets a time limit within which new employees must join a union.

28. Five types of union security are possible (cont..) • 3. An agency shop: • Employees who do not belong to the union still must pay union dues on the assumption that the unions effort benefit all workers • requires non-union workers to pay a fee to the union for its services in negotiating their contract.

29. Five types of union security are possible (cont..) • 4. An open shop: • It is up to the employees whether or not they want to join the union – those who do not, do not pay dues • Does not discriminate based on union membership in employing or keeping workers. • Where a union is active, the open shop allows workers to be employed who benefit from, but do not contribute to, a union or the collective bargaining process.

30. Five types of union security are possible (cont..) • 5. Maintenance by membership arrangement. Employees do not have to belong to the union. • However, union members employed by the firm must maintain membership in the union for the contract period

31. Who is excluded from union representation? • In the Industrial Relations Charter, the parties agreed that the following will be excluded from union representation: • Persons who are formulating, administering, -coordinating, and/or controlling any aspects of the organization’s policy: • Executive Chairman • Managing Director, • General Manager (and his deputy) and functional Heads – that is, departmental Heads (and their deputies), • Branch Manager (and his deputy), • Persons in-charge of operation in an area (and their deputies).

32. Persons having authority in their organisations to hire, transfer, appraise, suspend, promote, reward, discipline and handle grievances • Persons training for the above positions (including Under-studies). • Personal Secretaries to persons under 1 above. • Persons whose functional responsibilities are of a confidential nature as shall be agreed upon between the parties. • Any other category of staff who may, in the case of any particular undertaking, be excluded from union representation by mutual agreement.

33. Recognition and Registration of Unions - who may not be registered • The registrar to refuse registration of an application if there already exists a registered trade union whom he or she deems “sufficiently representative of the whole or of a substantial proportion of the interest in respect of which the applicants seek registration.”

34. An application for registration may be refused by the Registrar if persons seeking registration for an organization are engaged or work in different trades or calling and if its constitution does not contain suitable provision for protection and promotion of their respective sectional industrial interests.

35. Other grounds for refusal • Other restrictions imposed by law are that, an organization may also be refused registration: • If the objects of its constitution are unlawful • Its principal purpose is not in accord with what is set out in the Act • If the secretary or treasurer are deemed not sufficiently literate in English and Swahili language and are unable to carry out their duties adequately. • Additional grounds for refusal and cancellations are: • Unlawful application of trade union funds • Improper keeping of funds of the organization • If the trade union is being used for unlawful purpose..

36. Consequences of cancellation • The consequences of cancellation of registration of a trade union are that it: • ceases to enjoy any rights and privileges; • does not take part in any trade dispute or promote, organize or finance any strike or lock out or provide pay or benefits for its members; • shall be dissolved and its funds disposed of in accordance with the rules of the union; • no person shall take part in its management or organization, or act on behalf of the union as an officer.

37. Unfair labour practices - employer It is an unfair labour practice: • To interfere with, restrain, or coercing employees in exercising their legally sanctions rights of self organisation. • For company representatives to dominate or interfere with either the formation or the administration of labour unions. • The above two can be through bribing employees, using company spy system, moving business to avoid unionization, and black listing union sympathizers. • Discriminating employees for their legal union activities • Discharging or discriminating against employees simply because the latter file unfair practices against the company • Employers refusing to bargain collectively with their employees’ duly chosen representatives

38. Unfair labour practices - unions • Restraining or coercing employees from exercising their guaranteed bargaining rights – e.g.. Staging an anti union employee will lose his or her job once the union gain recognition • Cause an employer to discriminate an any way against an employee in order to encourage or discourage his or her membership in an union ( except in closed or union shop)

39. Unfair labour practices - unions • Refuse to bargain in good faith with the employer about wages, hours and other employment conditions. • Certain strikes and boycotts are also unfair practices • Engage in “featherbedding” (requiring an employer to pay an employee for services not performed • Charging excessive or discriminatory membership fees

40. Unfair labour practices - unions • Inducing, encouraging, threatening or coercing any individual to engage in strikes, refusal to work, or boycott where the objective is to: • Force or require an employer or self employed persons to recognize or join any labour organisations • Force or require an employer to cease using products or doing business with another person • Force an employer to apply pressure to another employer to recognize a union which is not in your industry

41. The rights of an employee • To belong or not to belong to a union ( except for union shops) • Employees can present grievances directly to an employer • Employees authority to make any subtraction of union dues form his/her pay cheque

42. The rights of an employee (cont..) • Nominate candidates for union office • Vote in union elections • Attend union meetings • Examine the union accounts and records

43. Collective bargaining - Definition • It is a process by which the representative of the organisation meet and attempt to work out a contract with the employees representatives – the union • Occurs when representatives of a labour union meet with management representatives to: • Determine employees wages and benefits • To create or revise works rules • To resolved disputes or violations of labour contracts

44. Definition (cont..) • It is the primary process for determining wages, benefits, and working conditions • Bargaining means the process of cajoling, debating, discussing, and threatening in order to bring about a favourable agreement for those concerned

45. Variables influencing the collective bargaining process • The success of collective bargaining process and the final agreement reached are influenced by: • The management representatives • The union representatives • The state of the economy • Goals of the bargaining parties • The labour laws • Issues being discussed • Public sentiments • Precedents in bargaining

46. Labour contract • This is the result of collective bargaining • A labour contract is a formal agreement between a union and management that specifies the conditions of employment and the union-management relationship over a mutually agreed period of time (2 – 3 years)

47. Labour contract (cont..) • Its specifies what the two parties have agreed upon regarding issues such as wages, benefits, and working conditions. • The labour contract and bargaining process is bound by certain ‘good faith’ guidelines that must be upheld by both parties

48. Collective bargaining - What is good faith • Both parties communicate and negotiate, that they match proposals with counterproposal, and that both make every reasonable effort to arrive at an agreement. • It does not mean that one party compels another to agree to a proposal • Nor does it require that either party make any specific concessions

49. Good faith guidelines • Meetings for purposes of negotiating the contract are scheduled and conducted with the union at reasonable times and places • Realistic proposal are submitted • Reasonable counterproposals are offered • each party signs the agreement once it has been complemented • Does not mean that either party is required to agreed to a final proposal or make concessions

50. When is bargaining not in good faith • Surface bargaining: Going through the motions of bargaining without any real intention of completing a formal agreement • Inadequate concessions: Unwillingness to compromise, even though no one is require to make a concession • Inadequate proposal and demands: The advancement of the proposal should be a positive factor in determining the overall good faith