INDUSTRIAL RELATIONS

Definition

The practice or the study of

relationship within and
between workers, working
groups and their
organisations and managers,
employers and their
organisations.

Definition (cont..)

The European Commission states:

Industrial, labour or employment
relations regulates the link between
the company and the employers and
indirectly between society as a whole
and its citizens (European
Commission, 2002).
.

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

The relationship being referred to

here includes 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.

What it involves

Employment and employment

regulations
Trade unionism
Grievance and grievance handling
procedures
Discipline and disciplinary action
The laws governing all above

Industrial relations: the

actors

The industrial relations can be seen as

a system which contains three actors.

The trade Unions( COTU)

The employers associations (FKE)
The government (MINISTER OF LABOUR)
Cabinet secretary in-charge of labour
,social security and services.

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

The employers
organisations

Unlike trade unions which are

composed of individual persons,
employer organisations are
composed of enterprises - FKE

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.

Intervention possibilities
by the govt.

Categories:

Creation of general binding rules (example;

unemployment benefits)

Creating the rules of the game in industrial

relations matters

The provision of collective goods to the

other parties (actors)

Intervention possibilities by
the govt. ( cont..)

The government can intervene in a

direct manner as the employer of
the civil servants and employees in
subsidized sub sectors

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.

Industrial relations charter

( cont)

spells 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 sets up a joint Dispute Commission.

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.

Industrial relations charter

( cont)

The employer and the employee need

to be in good terms and operate
within their prescribed obligations for
the 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.

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

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

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 employers organisation.

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.

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.

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 for public office.

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 effecting

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

Why workers join unions

Cont..

Job security

Socialization and group membership

Safe and healthy working conditions

Communicating link with management

Fair compensation

Types of Unions
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. Kenya
National Union of Teachers (KNUT)

Types of trade unions

Type of Union
Craft of skills
union
Industrial unions
General unions

Description
To represent skilled workers e.g. Musicians
Union (MU)
To represent the members of one
particular industry e.g. Fire Brigades Union
(FBU)
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)

Types of union security

models
Models:
1.
A closed shop employs only people who
are already union members. The
compulsory hiring hall is the most extreme
example of a closed shopin this case the
employer must recruit directly from the
union.
2.
A union shop employs non-union workers
as well, but sets a time limit within which
new employees must join a union.

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.

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.

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

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
organizations 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).

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.

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.

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.

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..

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.

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

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 in any

way against an employee in order to
encourage or discourage his or her
membership in an union ( except in closed
or union shop)

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

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 employee 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

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

The rights of an employee

(cont..)

Nominate candidates for union office

Vote in union elections

Attend union meetings

Examine the union accounts and

records

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

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

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

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)

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

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

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 completed

Does not mean that either party is required to agreed to a final

proposal or make concessions

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

When is bargaining not in

good faith (cont..)

Dilatory tactics: the law requires that the

parties meet and confer at reasonable
times and intervals obviously, refusal to
meet with the union does not satisfy the
positive duty imposed on the employer
Imposing conditions: Attempts to impose
conditions that are so burdensome or
unreasonable as to indicate bad faith

When is bargaining not in

good faith (cont..)

Making unilateral changes in conditions:

A strong indication that the employer is
not bargaining with the required intent
of reaching an agreement

Bypassing the representative: The duty

of the management to bargain in good
faith involves , at minimum, recognition
that the union representative is the one
with whom the employer must deal with
in conducting negotiations

When is bargaining not in

good faith (cont..)

Committing unfair labour practices

during negotiations: Such practices
reflect poorly upon the good faith of the
guilty party

Withholding information: An employer

must supply the union with information,
upon request, to enable it to understand
and intelligently discuss the issues
raised during bargaining

When is bargaining not in

good faith (cont..)

Ignoring bargaining items: Refusal

to bargain on a mandatory item
(one must bargain over these) or
insistence on a permissive item
(one may bargain over these)

NB Negotiating in good faith does not

mean that negotiations cannot grind to a
halt

Bargaining items

The labour law sets out categories of items

that are subject to bargaining:

These are mandatory, voluntary and illegal

items

Mandatory - Recognized by law as items that

can be bargained on e.g.. Rates of pay, hours
of employment, wages, overtime, severance
pay, holidays, vacations, pensions, profit
sharing, employee security etc

Voluntary ( or permissible
bargaining items)

Items are neither mandatory nor illegal

The become a part of negotiations only

through the joint agreement of both union
and management

Neither party can compel the other t

negotiate over voluntary item

You cannot hold up a signing of a contract

because the other party refuses to bargain
on voluntary items

Examples of voluntary bargaining items

are: management rights as to union
affairs, pension benefits of retired
employees, scope of bargaining unit,
prices in cafeterias

Illegal bargaining items are forbidden by

law. E.g. closed shops, separation of
employees based on race, discriminatory
treatment

Failure to reach an
agreement Leads to an
impasse

Bargaining impasse occurs when:

1. Union and management are unable to
reach a settlement on a mandatory
bargaining issues (wages, hours, or other
terms and conditions of employment).
2.
When membership refuses to ratify a
tentative agreement. This occurs
because:

The union membership may feel that its

leadership did not bargain in good faith

Possible outcomes of a
labour impasse

Workers power - Stoppage of work by

the union ( strike, picketing, boycotts)

Employers power - Stoppage of work

by management (lockouts), closing
the plant
Seeking the help of a neutral third
party to reach agreement

Types of strikes

Economic strikes based on the

demand for higher wages or better
benefits than the employer wants to
provide. Results from a failure to agree
on the terms of contract

Jurisdictional strikes exist when two

unions argue over who has the right to
represent workers, and workers differ as
to which union should represent them

Wildcat strikes unapproved strike that occurs

suddenly because one union subgroup has not
been satisfied by a grievance decision or by
some managerial action. The union leaders do
not sanction this type of strike
Sit down employees strike but remain in the
plant. Such strike are sometimes said to be
illegal because it could be seen as invasion of
private property
Sympathy strikes occurs when one union
strikes in support of the strike of another union

Picketing

Picketing is used by employees on

strike to advertise their dispute with
management and to discourage other
from entering or leaving the premises
It involves placing members at plant
entrance to advertise the dispute
This practice is designed to shut the
company down during the strike
resulting to losses hence willingness
to negotiate

Picket is legal as long as its peaceful.

It becomes illegal if it leads to violence

can occur if the employer gets
replacements for striking employees or
some employees do not support the
action and try to close the picket line

Boycotts

This involves refusing to buy or use company's

products or services

As an incentives to employees to honor the

boycott, heavy fines may be levied against
union members if they are caught buying, or
using products subjected to boycott.

The union hopes the general public will join the

boycott to put additional pressure on the
employer

Types of boycotts

Generally there are two types of boycotts:

The primary boycott involves refusal of
the union to allow members to patronize
(buy or use products) a business where
there is a labour dispute. These type of
boycotts are legal
Secondary boycott refers to the union
trying to induce third parties, such as
suppliers or customers, to refrain from any
business dealings with an employer with
whom it has a dispute. This type is illegal

Employers power

The employer can:

Lockout
Replacement of striking workers
Close the company or the plant
Close certain operations of the company
Transfer operations to another location
Subcontract certain jobs

All these decisions must be made in

accordance with the law and the actions
are not interpreted as attempts to avoid
bargaining with the union

Lockouts

Lockouts is an effort to force the union

to stop harassing the employer or to
accept the conditions set by
management
Lockouts are also used to prevent union
work slowdowns, damage to property,
or violence related to labour disputes
In practice, lockouts are more of a
threat than a weapon actually used by
management

Permanent
replacement

Although the labour laws protect

the rights of workers to organise,
engage in collective bargaining,
and strike, it does not forbid
companies to hire replacement
workers, nor is there a prohibition
against making these
replacements permanent

What the employer should

consider when faced with
a strike

Generally the employer should consider the

costs associated with the enduring strike
against the cost of agreeing to the union
demands.

There are a number of considerations the

employer must take into account:
1.

2.
3.

How the employers union will affect future negotiations

with the union
How long the firm and the union can endure the strike
Whether business can continue during the strike

Grievance - definition

A grievance is a complaint, whether

valid or not, about an organisation
policy, procedure, or management
practice that creates dissatisfaction or
discomfort
It is a formal complaint regarding the
event, action, or practice that violated
the contract
The complaint may be by the
management or the union.

Grievance and grievance

procedures

Grievance procedure steps/process to be

followed in handling grievances Grievance
procedures are usually followed in unionized
companies, but they are also important
channels of communication in nonunionized
organisation.
In unionised companies, the contract contains
a clause covering steps to be followed and
how the grievance will be handled
The number of steps vary from contract to
contract

Purpose of Grievance
procedures

To determine whether the labour contract

has been violated

Helps clarify what was not clear in the

contract e.g. defining lawful and unlawful
conduct, defining what is just cause or
unjust cause

To settle alleged contract violations in a

friendly and orderly manner, before they
become a major issue.

To prevent future grievances form

arising

To improve cooperation between

management and union workers

Help to obtain better climate of

labour relations

Benefits of a grievance
procedure

Stabilization of daily employee relations;

Democracy in the workplace;
Open discussion of issues, and improved
communication between the employer
and employee;
Allows for interpretation of the Collective
agreement;
Provides the option to submit the problem
to a neutral third party.

Step in a grievance
procedure

1. Informal Discussion: discuss this issue

with his or her supervisor. may be resolved
at this step via the supervisor listening to
the issue(s) raised by the employee,
investigating the concerns thoroughly and
providing a thoughtful response
If a dispute is not settled at the Informal
Discussion, then a grievance is filed stating
clearly the articles
allegedly violated.

Formal Step 1

2. Formal step 1: If a grievance is filed,

the employee, in conjunction with his or
her union representative will complete
grievance form provided by the union,
outlining the facts of the grievance, the
article(s) of the collective agreement
allegedly violated, and the remedy
sought and submit this to the
supervisor or designate.

Upon receipt of the grievance, the

supervisor or designate must arrange to
meet with the employee and the union
representative within prescribed
timelines to discuss the problem.
In addition to the supervisor, the
employee and the union representative,
an employer representative will also be
in attendance..

3.

Formal step 2: If the grievance

is not settled at step 1, there
is a conference between
middle management and
union officials (union
committee)

4. Formal step 3: If not settled then the

grievance is referred to senior
management and senior union officials ( for
example chairperson, or secretary
general), attempt to solve the grievance.

Sometimes a mediator may be brought in at this

point to help resolved the grievance.
The mediators role is to get the two parties to
communicate and to offer compromise.
The mediators role is not to establish which side
is right or wrong
His or her recommendation can be accepted or
rejected by either party

5. Formal step 5: Both parties (union and

management) turn the grievance over to
an arbitrator who makes a decision .

Why discipline rules and

procedures

Discipline rules and procures help to

promote orderly employment
relations as well as fairness and
consistence in treatments of
individuals

Disciplinary procedures are also legal

requirements in certain circumstances

Why discipline rules and

procedures (cont)

Disciplinary rules tell employees what

behavior is expected from them. If an
employee breaks a specific rule, this is
regarded as misconduct

Employers use disciplinary procedures and

action to deal with situations where
employees allegedly break discipline rules

Disciplinary procures may also be used

where employees dont meet their
employers expectation in the way they do
their job (unsatisfactory performance)

Why discipline rules and

procedures (cont)

When dealing with disciplinary cases,

employers need to be aware of both the
aware of the law on unfair dismissal
and the statutory minimum procures
contained in the employment act

The law requires employers to act

reasonably when dealing with
disciplinary issues

Why discipline rules and

procedures (cont)

What is classified as reasonable

behavior will depend on the
circumstances of each case, and is
ultimately a mater of employment
tribunal to decide.
However there are core principles of
reasonable behavior which will help
employers deal with disciplinary issues
in a fair and consistent manner

Dealing with discipline issues

in the work place what to
do?
When a potential disciplinary matter arises:
The employer should make necessary
investigations to establish the facts promptly
before memories of the event fade
It is important to keep a written record for later
reference
Having established the facts, the employer
should decide to:

Drop the matter,

Deal with it informally - recommend counselling for the
employee
Or arrange for it to be handled formally

What to do??

When an investigatory meeting is

held solely to establish the facts of
a case, it should be make clear to
the employee involved that it is
not a disciplinary meeting

What to do - gross
misconduct(cont)

In cases of gross misconduct:

relationship have broken down (cannot work together anymore)

there is a risk to an employers property ( theft, fighting etc)
Risk of being held responsibilities to other parties ( corruption,
unethical behaviour to customers etc) ,

consideration should be given to a brief

period of suspensions with full pay whilst
investigation is conducted
Such suspension should only be imposed after
careful consideration and should be reviewed
to ensure it is not unnecessarily protracted.
And it should be made clear that suspension is
not a disciplinary action

What to do (cont)
Informal action:
Cases of minor misconduct or
unsatisfactory performance are best
dealt with informally
A quiet word is all that is required to
improve an employee's conduct or
performance
If informal action does not bring about
improvement, or the misconduct or
unsatisfactory performance is
considered to be too serious, employer
should go for formal actions

Formal action - steps

Inform the employee of the problem

Hold meeting to discuss the problem
Discuss on outcome and action
Verbal warning
First formal action
Second and final written warning
Dismissal or other penalty