Partnering with Trade Unions to Boost Competitiveness

Stephen Olieka
Director of Human Resources umias Sugar Compan!

Contents
"ntroduction # Before Trade Unions Trade Unions Benefits Challenges Partnering with Unions $%isting echanisms Partnerships

"ntroduction & Before Trade Unions

Before Trade Unions

Before the emergence of trade Unions' work conditions were ver! poor(
)ong hours )ow pa! *ew +enefits Dangerous and poor work environments *ew rights # no power to influence decisions a+out own ,o+

Trade Unions

Trade Unions
"n the U- Unions emerged during the "ndustrial Revolution +ut +ecame legal in ./01 "n the US unions emerged in the ./12s "n -en!a the Trade Unions Ordinance enacted in .341 & allows 5fricans to organi6e themselves in Trade Unions COTU esta+lished in .307 -en!a currentl! has 48 unions affiliated to COTU and 7 not affiliated to COTU

Trade Unions
Union is a group of workers who have come together to make collective decisions Union is democratic # mem+ers elect their leaders through an elective process Through Collective Bargaining their elected leaders negotiate with their emplo!er over(

9ages 9orking conditions and hours Safet! and Health Other +enefits

"ndustrial Relations Charter

Product of Tripartite eeting of 8th a! .310 consisting of(

:overnment of the Repu+lic of -en!a ; inister of )a+our< *ederation of -en!a $mplo!ers Central Organi6ation of Trade Unions ;-<

Recogni6es the importance of consultation and cooperation to the efficienc! and productivit! of an undertaking or enterprise

O+,ectives of "ndustrial Relations

To improve peace and sta+ilit! in industries To secure the interests of +oth parties= To enhance industrial democrac! # involve emplo!ees in decision making To enhance collective +argaining To minimi6e or eliminate disputes' strikes' lock outs To increase productivit! of the enterprise

Benefits of Trade Unions

Benefits for workers include(
Satisfactor! rates of pa!= Research shows unioni6ed workers get +etter levels of wages Protection of workers ,o+s & union mem+ers are less likel! to +e dismissed= Securing ade>uate work facilities Satisfactor! work conditions' includes areas such as health and safet! and e>ual opportunities= ?egotiating +onuses for achieving targets

Challenges

Challenges
)ack of fle%i+ilit! # union workers work set hours' must take specific +reaks irrespective of workload Difficult to multiskill workers # each worker has one role # will not carr! out an! task outside current ,o+ Communication is a challenge # must go through union reps ?ot eas! to fire pro+lem emplo!ees

Challenges
Union contracts inhi+it the effectiveness of a team # CB5 ma! fi% num+er of allowa+le a+sences or sick&offs *airness # e>ual provision of +enefits to ever!one at the same level ;union< vs fair reward for hard work ;emplo!er< 5dversarial approach and @fighting over the spoilsA does not take into account the sustaina+ilit! of the +usiness

$mplo!ersB Challenge
@9hen the growth of the econom! is slow' the cost of living goes up and emplo!eesB purchasing power is eroded= "t is hard to remem+er that enterprises operate in the same environmentCC=the emplo!er has to consider productivit! and sustaina+ilit! of the enterpriseA
Jacqueline Mugo, CEO - FKE Management Magazine October 2013

The Case of British 5irwa!s

@Pilots accept pa! cut to DsaveB British 5irwa!sB
Mail Online Dail Mail 1!t" Jul 200#

@B5 Pilots to accept E=0F pa! cutA

$$C %e&' (&&&)bbc)co)u*+ 13t" Jul 200#

The! also accepted E2F cut on allowances Other emplo!ees agreed pa! cuts' Go+ cuts ;HE222<' unpaid leave and to work for nothing=

The Case for anagement to Partner

Strateg! making has evolved over the !earsI
Competitive 5dvantage
But who has an! competitive advantage not replica+leJ

Resources Based Kiew

How do !ou manage Resources in a d!namic e%ternal environment

D!namic Strateg! D!namics

?o certainties # onl! pro+a+ilities # that evolve and change in real time

Trust and Colla+oration # ?ew theor!

Partnering with Unions

Partnering with Unions

Use e%isting mechanisms to engage the union on +usiness related issuesI
Departmental Development *orums ;DD*< Goint Consultative Committee ;GCC< Goint "ndustrial Council ;G"C<

5pproach the union as a +usiness partnerI

Union not an adversar! an!more *orge a strong working relationship *ormali6ed through a partnership agreement

Use $%isting echanisms

Departmental Development *orums ;DD*<

onthl! meetings to discussI
Performance of departments including pro,ects 9elfare of emplo!ees Records management Training of emplo!ees Tools of work edical services Challenges and wa! forward Unions reps reports

Goint Consultative Committee ;GCC<

Corporate level monthl! meetings +etween management and union reps Discuss high level issuesI
CB5 implementation $mplo!ee welfare' reward and +enefits Safet! Health and $nvironment Tools of work

Can +e used to discuss overall +usiness performance' challenges and remedial actions

Goint "ndustrial Council ;G"C<

Corporate level meetings +etween management and senior union officials Usuall! less fre>uent i=e= once a !ear Convened for high level ,oint activities such as CB5 negotiation a! +e convened in times of +usiness crisis

Union as a Business Partner

anagement&la+our Partnerships
Can take various formsI
Co&ownership and co&management of the enterpriseI Partnership forum comprising of representatives of management' unions and non&unionised workersI 9orks council comprising management and trade union representativesI anagement&union review councilsI anagement&union non&crisis meetingsI 5n informal open door polic!=

O+,ectives of Partnership 5greements

O+,ectives at the enterprise level should +e to(
transform the la+our&management relations from adversarialism to partnership +uild trust +etween management and trade unionsI Contri+ute directl! to productivit! and competitiveness of enterprises

O+,ectives of Partnership 5greements

$sta+lish standards for the development of human resources and la+our&management relationsI Consensus +uilding within the enterpriseI "ncorporate international la+our standards within the workplace

Contents of a Partnership 5greement

Partnership is a formal agreement signed +etween management and the union definingI
Parties to the agreement Purpose of agreement Shared commitments $sta+lishment of partnership forum Commitment of anagement

Contents of a Partnership 5greement

Commitment of Union :uiding principles Relationship with CB5 )egal status of Partnership *orum 5mendments to the agreement Commencement and duration of agreement

Trust Building
Trust enhancers includeI
Sharing of information' esp= corporate financial informationI Team workI "nvesting in emplo!ee training and developmentI $>ualit! of status and e>uit! at the +argaining ta+leI The involvement of workers in decision makingI utuall! accepta+le operating principles or working agreements to guide corporate polic!I

Trust Building
Perceived credi+ilit! of the compan!Bs management in the e!es of the union e%ecutives and emplo!eesI Lualit! of leadership e%ercised +! managers and union representativesI and 5+sence of political interference in the affairs of the compan!=

References

http(MM www=ilocari+=org=ttMPromalcoNtoolMproductivit!&toolsMma http(MMwww=revisionguru=co=ukM+usinessMunions=htm http(MM www=mindtools=comMpagesMarticleMmanaging&unioni6ed

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