COLLECTIVE BARGAINING

 The word collective means a group.

 Bargaining means negotiations. It’s therefore considered as negotiation of a dispute between
the labour and management.
 Collective bargaining is a process by which employers and representatives of employees attempt
to arrive at an agreement covering the conditions under which employees will contribute and be
compensated for their services.
 It’s the backbone of trade unionism.
 Trade unions can protect the interest of workers more effectively through direct negotiations
and consultations rather than through strikes.
 Negotiations are always peaceful democratic and constructive.
 They achieve the purpose without disturbing the normal production activities.
 It’s a peaceful but equally effective method of solving the problems and demands of workers.
 It’s also treated as an essential element of economic democracy.
 Collective bargaining is a procedure of direct negotiations between the employer and trade
union on various outstanding issues and demands of workers.
 In this procedure the union first puts the demands before the management.
 The management also considers the demands.
 During the negotiations both parties put forward proposals, counter proposals and suggestions.
 Finally as a result of negotiations a joint agreement is entered between the parties.
 The agreement made is binding on both parties.
 According to words of R.F Hoxie collective bargaining is a mode of fixing the terms of
employment by means of negotiation between organized body of employees and the employer
of an association of employers, usually acting through organized agents.

PREREQUISITES OF COLLECTIVE BARGAINING.

1. Both parties should realize the need for collective bargaining.

2. Both parties should try to solve problems through negotiation sincerely and honestly
3. A single plant bargaining is considered better than multiple plant bargaining.
4. Both parties should present facts and figures on the discussion table.
5. Management should pay reasonable wages and any unfair labour practices should be avoided.
6. If any agreement is reached it must be a written document.
7. Parties should ensure that the agreement reached is respected.
8. There should be provision o arbitration if there is any dispute regarding interpretation of
agreement and its implementation.

LEVELS OFCOLLECTIVE BARGAINING.

Collective bargaining takes place in the following levels:

1. At plant level – such bargains is limited to a particular unit or undertaking enterprise only.
 2. At the industry level – here all unions of an industry enter into an agreement with the
employers in general.
3. At the national level – here bargaining is mutual and agreement usually takes the form of
bipartite agreements entered into between labour union and management in the presence of
government representatives.

TRADE UNION.

 It’s an association of workers formed with the objective of improving the condition of workers.
 It’s formed for protecting the interest of workers.
 Unorganized workers have little bargaining capacity.
 Trade union bargainer was formed against the exploitation of workers by management under
capitalist system.
 Trade union has been defined by different authors as follows:
1. Webb – trade union is a continuous association of wage earners for the purposes of
maintaining or improving the conditions of their working life.
2. LESTER – a trade union is an association of employees designed to maintain or improve
the conditions of employment of its members.
3. Indian trade act – trade union is any combination whether temporary or permanent
formed for thepurpose of regulating the relations between the work men and
employers.

OBJECTIVES OF TRADE UNION.

1. To improve the economic lot of workers by securing better pay for them.
2. Secure workers better working conditions
3. Secure bonus for workers from the profit of the enterprise.
4. To ensure stable employment for workers.
5. To provide legal assistance to workers in connection with dispute regarding work and payment
of wages.
6. To protect the jobs of labour against retrenchment and layoffs
7. To fight for workers provident fund, pension and other benefits
8. Ensure workers better safety and wealth welfare schemes.
9. To secure workers participation in management.
10. To generate a committed industrial workforce for improving productivity of the system.

FUNCTIONS OF THE TRADE UNION.

1. Provides security to workers and keeping check over the hiring and firing of workers.
2. Helps management in redness of workers grievance at the appropriate level.
3. If matter remains unresolved they refer it for arbitration.
4. To negotiate with management certain matter like hours of work, fringe benefits, wages,
medical facilities and other welfare schemes.
5. To arouse public opinion in favor of labour workers.
 6. To develop cooperation with employees.

BENEFITS OF TRADE UNION.

Workers join trade union because of a number of reasons:

1. A worker feels very weak when he is alone. Union provides him with an opportunity to achieve
his objectives with the support of his fellow colleagues.
2. Union protects the economic interest of workers and ensures a reasonable wage rate and wage
plan for them.
3. Union helps the workers in getting certain amenities for them in addition to higher wages.
4. Union sometimes provides cash assistance at the time of sickness or some other emergencies.
5. Union organizes negotiation between workers and management and are an instrument for
settlement of disputes
6. Trade union imparts self confidence to the workers and they feel that they are an important part
of the organization.
7. It ensures stable employment of workers.

INDUSTRIAL LEGISLATION.

 Industrial legislations are the laws enacted by the government to provide economic and social
justice to the workers in industries.
 These laws provide guidelines to the employers, industrialist in dealing with the matters of
wages, wage incentives, facilities for workers and the working conditions of labour.
 According to Mr. V.V. Giri industrial legislation is a provision of equitable distribution of profits
and benefits emerging from industry between industrialist and workers and affording protection
to the workers against harmful effects to their health, safety and mortality.

LABOUR LAW.

 It’s a body of law that applies to matters such as employment, wages, conditions of work, labour
unions and labour management relations.
 It can also be defined as a body of law that governs the employer- employee relationship
including individual contracts etc.
 Its an area of law that deals with the rights of employers, employees and labour organizations.
 Labour law mediates the relationship between workers, employers, trade unions and the
government.
 Collective labour laws relates to the tripartite relationship between employee, employer and
union.
 Secondly individual labour laws concerns employee’s rights at work and through contract for
work.
 Government agencies like the ministry of labour enforce employment standards codified by
labour laws.
  Labour laws arose due to the demand for workers to have better conditions, the right to
organize or the right to work without joining a labour union and simultaneous demand of
employers to restrict the power of workers many organizations and to keep labour cost low.
 The state of labour law at any one time is therefore both the product of and a component of
struggles between different interests in the society.

LABOUR LAWS IN KENYA 2007

 Labour laws of 2007 improved the environment for employers, employees and trade unions
 Parliament enacted five labour laws these are:
1. Employment act
2. Labour institution act
3. Labour relation act
4. Occupational safety and health act
5. Injury benefits act.
 The aim of these laws was to repeal and replace six core labour laws and bring them in to
conformity with the current challenges and demands of national development and international
labour standards.

EMPLOYMENT ACT.

 Replaced the employment act and regulation of wages and conditions of employment act.
 It defines :
1. Probatory contract, migrant workers worst form of child labour, dependants forced or
compulsory labour and HIV.
2. It provides prohibitions against forced labour, discrimination in employment basis of
race, sex, colour, religion, political opinion, nationality, ethnic or social origin, mental or
HIV status and sexual harassment
3. Deals with payment, disposal and recovery of wages, allowances and deductions of an
employee. Employer cannot deduct employee wages exceeding 2/3
4. It provides for basic conditions of a contract of service i.e. hours of work and annual
maternity and sick leave, housing, food, water etc.
5. It deals with termination and dismissal.
 Employers should justify termination of employment.
 Employers are required to keep records and make them available for inspection.
6. It sets minimum age and conditions of employment of a child.

LABOUR INSTITUTION ACT.

Law establishes institutions and organizations to manage labour relations:

1. The national labour board.

2. The industrial court
3. Committee of inquiry
 4. Labour administration and inspection.
5. Wage council and employment agencies
6. Commission on salary review.

NATIONAL LABOUR BOARD.

 Members are appointed by the minister for labour.

 They advice the minister on employment and labour legislation, trade unions and code of good
conduct.
 It advices on issues of ILO.
 It sets compensation benefits, manpower development registration suspension and cancellation
of registration of trade unions and employees organization.

INDUSTRIAL COURT

 It’s a pillar of industrial peace. It was established to hear and determine industrial disputes
referred by the minister for labour register.
 It was established in 1964 under trade disputes act (cap 234)
 It got its current shape in 1971
 It can order compensation or reinstatement.
 Its decisions are final.
 Judge or industrial court once appointed holds office until retirement, resignation or removal or
death.

COMMITTEES

Laws allows minister for labour to appoint a committee of inquiry to look into trade disputes

WORK INQUIRY ACT

 It replaced the workman’s compensation act

 It introduced a legal framework compliant with I.L.O conventions related to compensation of
employees injured at work or who or who contract diseases and to extend insurance cover.
 Law provides for procedure of reporting accidents during employment.
 Limitation period for reporting is 12 months
 Compensation for disablement and death is also provided.
 Law provides for employers to provide medical aid to employees.
 This includes first aid facilities and payment of medical expenses for employees.

LABOUR RELATION ACT.

 Provides for promotion of freedom of association, the right to collective bargaining and
registration of trade unions.
 It provides for registration and cancellation of registration of trade union and employers
association.
  It introduces urgent referral of cases to industrial court.

OCCUPATIONAL SAFETY AND HEALTH ACT

 It repealed the factories and other places of work act.

 The new law provides for safety and health of workers at work places, including offices, schools,
academic institutions and plantations.
 It established a council for occupational safety and health
 It advices the minister on occupational death, injury and diseases
 It provides for safety advisors who carry out audits.
 The law provides safety requirements including how to use dangerous liquids, storage ladders
and evacuation procedures at work places.
 Safety handling storage and use of chemicals and hazardous substances are also provided.
 The health and safety rules should be strategically placed somewhere.

LEAVES

Employees are enticed to sick, maternity and paternity leave. They are also entitled to compassionate
leave, annual leave, study leave and trade union purposes.

IMPORTANCE OF LABOUR LAW.

1. Improves industrial relations i.e. employer employee relations and minimizes industrial
disputes.
2. Protects workers from exploitation by employers or management.
3. Helps workers in getting fair wages.
4. Minimizes labour unrest
5. Reduces conflicts and strikes.
6. Ensures job security for workers.
7. Promotes a welcoming environment conditions in the industrial system.
8. Fixes rest pauses and work hours.
9. Provides workers with compensation those who are accident victims.

PRINCIPLES OF INDUSTRIAL LEGISLATION:

Industrial legislation is based upon the following principles:

1. Social justice
2. Socially equality and welfare
3. National economy
4. International uniformity
SOCIAL JUSTICE

 The first step in establishing social justice is to protect those who cannot protect
themselves.
 Industrial law provides social justice to the workers by ensuring suitable distribution of
profits and benefits among employer and employees.
 It also provides better working conditions in industry.

SOCIAL EQUALITY AND WELFARE.

Another objective of labor law is to ensure social welfare of workers. These laws help the employees to
improve their social status i.e. material and morale of the workers by providing adequate wages and
safety measures ensuring appropriate working hours and health facilities.

NATIONAL ECONOMY

It ensures normal growth of industry for the development of a nation.

It increases the efficiency of workers and satisfies their needs. Thus efficiency in industry finally
contributes a lot to improve national economy.

INTERNATIONAL UNIFORMITY

 In attaining international uniformity international labour organization has played an important

role.
 It aims at securing minimum standards on a uniform basis in respect to all labour matters
 Uniformity of standards can be maintained only by enforcing various industrial laws.

FACTORY ACT

 The factory act is applicable to any industry/factory in which 10 more people are working
 Factory act cap 514 came into operation on 1st September 1951
 Factory act is a law passed by parliament of any county that deals with the rights of employees
and labour organizations.
 These are laws regulating working conditions in factories and plants in the era of industrial
capitalism
 The emergence and development act resulted from the economic and political struggle of the
working class against capitalist exploitation.
 The factory act has a provision in respect to health, working hours, environment, working
conditions, employee welfare and leave with wages.
 Factory act includes the following:

1. Registration and licensing of factories
 The state government through the ministry concerned makes rules for approval and
registration of factories.
 It states that its necessary to obtain prior permission in writing from the government for
construction or extension of a factory.
 The application should have the necessary papers attached to it about what the factory
will produce alongside a plan or a drawing of the factory.
2. Health.
 The conditions under which workers perform their task have great bearing of their
health and efficiency
 Conditions must therefore be given great attention which includes:
i. Cleanliness – every factory should be kept clean and free from noise, dirt and
refuse should be removed.
ii. Disposal of waste – efficient arrangement for the disposal of waste and effluents
caused due to manufacturing process should be provided.
iii. Ventilation and temperature – there should be adequate ventilation so that
fresh air can circulate. Temperature in the workshop should be maintained to
give reasonable comforts to the workers.
iv. Dust and fumes – in every factory where there is any production of dust or
fumes or other impurity which is likely to be harmful to the health of workers
effective steps should be taken to prevent its inhalation and accumulation I the
factory.
v. Artificial humidification – where humidity of air is artificially increased it has to
be regulated for the comfort of workers.
vi. Overcrowding – act states that no room in the factory should be overcrowded
to an extend of causing injuries to workers.
vii. Lighting – act ensures compulsory provision of sufficient and suitable lighting.
viii. Drinking water – act state that in every factory which employs more than 250
workers employees water coolers should be installed at convenient points.
ix. Latrines and urinals – they should be provident sufficient at convenient location
accessible at all working times.
3. Safety measures
 Fencing of machinery – all should be securely fenced by safeguards of substantial
construction.
 Working on or near machinery in motion – act provides that it should be done by
specially trained male workers with the right gears.
 Hoists\lifts – hoists and lifts must be properly maintained and be used and examined by
a competent person.
 Employment of young persons on dangerous machines is not allowed unless he has
been informed about the danger.
  Lifts, machines, chairs, ropes and lifting tackles must be of good construction made of
sound material with required tensile strength.
 Pressure plant – plants operating above atmospheric pressure should be examined by a
competent person
 All floors and stairs, passage and gang ways should be of sound construction and
properly maintained
 Excessive weight – no person should carry or move load so heavy to cause injury or
health problems.
 Precaution against dangerous fumes – no one should enter any chamber where
dangerous fumes are present.
 Explosive or inflammable dust or gas – such rooms should effectively enclose.
 Precautions incase of fire – there should be means of escape incase of fire. Doors
written exit should not be closed or fastened.
4. Welfare activities:
 Washing facilities
 Facilities for sitting
 First aid
 Canteens
 Shelter rest rooms and lunch rooms.
 Welfare officers – to look after welfare of workers.
5. Working hours:
 Agreed working hours – 48 hours a week
 Holidays /weekly holidays/Sunday.
 Compensatory holidays – if one has not gone for the weekly holiday should be paid.
 Daily hours – 9 hours a day
 Interval of rest – I.e break time and lunch time.
 Restriction of double employment.
6. Employment of young persons
 Prohibition of employment of children.
7. Special provision
Dangerous operation which causes injury or death may be confirmed by government as
dangerous and thus closed.
8. Obligation of workers
 Should not misuse appliances provided in the factory
 They are entitled for a minimum wage of 11,000 ksh per month
 Entitled for pension paid through NSSF by employers
 Entitled to be paid for NHIF in case of hospitalization
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