Transcript Document

Partnering with Trade Unions to
Boost Competitiveness
Stephen Olieka
Director of Human Resources
Mumias Sugar Company
Contents
Introduction – Before Trade Unions
Trade Unions
Benefits
Challenges
Partnering with Unions
Existing Mechanisms
Partnerships
Introduction - Before Trade Unions
Before Trade Unions
Before the emergence of trade Unions, work
conditions were very poor:
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Long hours
Low pay
Few benefits
Dangerous and poor work environments
Few rights – no power to influence decisions about
own job
Trade Unions
Trade Unions
In the UK Unions emerged during the Industrial
Revolution but became legal in 1867
In the US unions emerged in the 1870s
In Kenya the Trade Unions Ordinance enacted in
1937 - allows Africans to organize themselves in
Trade Unions
COTU established in 1965
Kenya currently has 34 unions affiliated to COTU
and 5 not affiliated to COTU
Trade Unions
Union is a group of workers who have come
together to make collective decisions
Union is democratic – members elect their
leaders through an elective process
Through Collective Bargaining their elected
leaders negotiate with their employer over:
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Wages
Working conditions and hours
Safety and Health
Other benefits
Industrial Relations Charter
Product of Tripartite Meeting of 4th May 1976
consisting of:
• Government of the Republic of Kenya (Minister of Labour)
• Federation of Kenya Employers
• Central Organization of Trade Unions (K)
Recognizes the importance of consultation and
cooperation to the efficiency and productivity of
an undertaking or enterprise
Objectives of Industrial Relations
To improve peace and stability in industries
To secure the interests of both parties.
To enhance industrial democracy – involve
employees in decision making
To enhance collective bargaining
To minimize or eliminate disputes, strikes, lock
outs
To increase productivity of the enterprise
Benefits of Trade Unions
Benefits for workers include:
– Satisfactory rates of pay. Research shows
unionized workers get better levels of wages
– Protection of workers jobs - union members are less
likely to be dismissed.
– Securing adequate work facilities
– Satisfactory work conditions, includes areas such as
health and safety and equal opportunities.
– Negotiating bonuses for achieving targets
Challenges
Challenges
Lack of flexibility – union workers work set hours,
must take specific breaks irrespective of
workload
Difficult to multiskill workers – each worker has
one role – will not carry out any task outside
current job
Communication is a challenge – must go through
union reps
Not easy to fire problem employees
Challenges
Union contracts inhibit the effectiveness of a
team – CBA may fix number of allowable
absences or sick-offs
Fairness – equal provision of benefits to
everyone at the same level (union) vs fair reward
for hard work (employer)
Adversarial approach and “fighting over the
spoils” does not take into account the
sustainability of the business
Employers’ Challenge
“When the growth of the economy is slow, the cost
of living goes up and employees’ purchasing power
is eroded. It is hard to remember that enterprises
operate in the same environment…….the employer
has to consider productivity and sustainability of
the enterprise”
Jacqueline Mugo, CEO - FKE
Management Magazine
October 2013
The Case of British Airways
“Pilots accept pay cut to ‘save’ British Airways’
Mail Online – Daily Mail
14th July 2009
“BA Pilots to accept 2.6% pay cut”
BBC News (www.bbc.co.uk)
13th July 2009
They also accepted 20% cut on allowances
Other employees agreed pay cuts, Job cuts
(>2000), unpaid leave and to work for nothing.
The Case for Management to Partner
Strategy making has evolved over the years;
– Competitive Advantage (Industry Forces Model)
• But who has any competitive advantage not replicable?
– Resources Based View
• How do you manage Resources in a dynamic external
environment
– Dynamic Model of Strategy
• No certainties – only probabilities – that evolve and
change in real time
– Trust and Collaboration – New theory
Partnering with Unions
Partnering with Unions
Use existing mechanisms to engage the union
on business related issues;
– Departmental Development Forums (DDF)
– Joint Consultative Committee (JCC)
– Joint Industrial Council (JIC)
Approach the union as a business partner;
– Union not an adversary anymore
– Forge a strong working relationship
– Formalized through a partnership agreement
Use Existing Mechanisms
Departmental Development Forums (DDF)
HoD and section managers meet with union reps
Monthly meetings to discuss;
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Performance of departments including projects
Welfare of employees
Records management
Training of employees
Tools of work
Medical services
Challenges and way forward
Joint Consultative Committee (JCC)
Corporate level monthly meetings between
management and union reps
Discuss high level issues;
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CBA implementation
Employee welfare, reward and benefits
Safety Health and Environment
Tools of work
Can be used to discuss overall business
performance, challenges and remedial actions
Joint Industrial Council (JIC)
Corporate level meetings between management
and senior union officials
Usually less frequent i.e. once a year
Convened for high level joint activities such as
CBA negotiation
May be convened in times of business crisis
Union as a Business Partner
Management-labour Partnerships
Can take various forms;
– Co-ownership and co-management of the enterprise;
– Partnership forum comprising of representatives of
management, unions and non-unionised workers;
– Works council comprising management and trade
union representatives;
– Management-union review councils;
– Management-union non-crisis meetings;
– An informal open door policy.
Objectives of Partnership Agreements
Objectives at the enterprise level should be to:
– transform the labour-management relations from
adversarialism to partnership
– build trust between management and trade unions;
– Contribute directly to productivity and
competitiveness of enterprises
Objectives of Partnership Agreements
– Establish standards for the development of human
resources and labour-management relations;
– Consensus building within the enterprise;
– Incorporate international labour standards within the
workplace
Contents of a Partnership Agreement
Partnership is a formal agreement signed
between management and the union defining;
– Parties to the agreement
– Purpose of agreement
– Shared commitments
– Establishment of partnership forum
– Commitment of Management
Contents of a Partnership Agreement
– Commitment of Union
– Guiding principles
– Relationship with CBA
– Legal status of Partnership Forum
– Amendments to the agreement
– Commencement and duration of agreement
Trust Building
Trust enhancers include;
– Sharing of information, esp. corporate financial
information;
– Team work;
– Investing in employee training and development;
– Equality of status and equity at the bargaining table;
– The involvement of workers in decision making;
– Mutually acceptable operating principles or working
agreements to guide corporate policy;
Trust Building
– Perceived credibility of the company’s management
in the eyes of the union executives and employees;
– Quality of leadership exercised by managers and
union representatives; and
– Absence of political interference in the affairs of the
company.
Contents
Introduction – Before Trade Unions
Trade Unions
Benefits
Challenges
Partnering with Unions
Existing Mechanisms
Partnerships
Personal Philosophy
“I refuse to accept the idea that man cannot
influence the unfolding events that surround him”
Martin Luther King, Jr.
References
http://www.ilocarib.org.tt/Promalco_tool/productiv
ity-tools/manual04/m4_3.htm
http://www.revisionguru.co.uk/business/unions.ht
m
http://www.mindtools.com/pages/article/managin
g-unionized.htm
Any Questions?