Features of collective bargaining

Essential Features of collective bargaining are as follows:

Collective bargaining is regarded as a constructive response to industrial conflict as it reflects a
willingness to remove the conflicts by discussion and understanding rather than by warfare.
Collective bargaining is not an ideal system. At best, it is an imperfect institutional process that
works reasonably well in an imperfect society. No one has now come forth with any alternative
procedure that will work better. Collective bargaining is necessarily a pragmatic process.
(1) It is a two-way process. It is a mutual give and take rather than takes it or leave it method of
arriving at the settlement of a dispute. Both parties are involved in it. A rigid position does not
make for a compromise settlement. Collective bargaining is a civilized confrontation with a
view to arriving at an agreement, for the object if not warfare but compromise.
(2) It is a continuous process which provides a mechanism for continuing an organised
relationship between the management and trade unions. Collective bargaining begins and ends
with the writing of a contract.
(3) Collective bargaining is not a competitive process but it is essentially a complementary
process.
(4) Collective bargaining is a negotiation process and it is a device used by wage earners to
safeguard their interests. It is an instrument of an industrial organisation for discussion and
negotiation between the two parties

PRINCIPLES OF COLLECTIVE BARGAINING

The following principles for efficient functioning of collective bargaining are identified by
Human Resource experts:
For Union and Management:
1. Collective bargaining should be made an educational as well as a bargaining process. It should
offer to trade union leaders an opportunity to present to the management the wants, the desires,
the grievances and the attitudes of its employees and make it possible for the management to
explain to union leaders and, through them, to its employees, the economic problems which
confront it.

2. The management and the trade union must look upon collective bargaining as a means of
fining the best possible solution, and not as a means of acquiring as much as one can while
conceding the minimum. There must be an honest attempt at solving a problem rather than at a
compromise.
3. Both the parties must bear in mined the fact that collective bargaining is, in a sense, a form of
price fixation and that any successful collective bargaining depends, in the last analysis on
whether the management and the trade union do a good job of ensuring that the price of labor is
properly adjusted to other prices.
For the Management
1. The management must develop and consistently follow a realistic labor policy, which should
be accepted and carried out by all its representatives.
2. In order to ensure that the trade union feels that its position in the organization or factory is
secure, the management must grant recognition to it without any reservations and accept it as a
constructive force in the organization and the industry.
3. The management should not assume that employee goodwill will always be there for it. It
should periodically examine the rules and regulations by which its labor force is governed. In
this, way it will able to determine the attitudes of its employees, promote their comfort, and gain
their goodwill and co-operation.
4. The management should act upon the assumption that in order to make the trade union a
responsible and conservative body, it is essential that it should be fairly treated. It should,
moreover, establish such a satisfactory relationship with the trade union and its representatives
that the latter will not lightly do anything that is capable of jeopardizing that relationship.
5. The management should deal with only one trade union in the organization. If two Trade
Unions seek recognition, no negotiations should be undertaken with one until one of them
establishes the fact of having a majority of the membership of the employees in its organization.
For the Trade Union:
1. In view of the rights granted to organized labor, it is essential that trade unions should
eliminate racketeering and other undemocratic practices within their own organization.
2. Trade union leaders appreciate the economic implications of collective bargaining, for their
demands are generally met from the income and resources of the organization in which their
members are employed.
3. Trade union leaders should assist in the removal of such , restrictive rules and regulations as
are likely to increases costs and prices, reduce the amount that can be paid out as wages, and tend
to make for low employment and the long-run lower standard of living of all sections of society.

The principles mentioned above are guide lines in the interests of both management and Trade
Union. If there are any deviations or malaise in the intentions of any one may lead to industrial
conflict.
Trade Unions in Kenya Trade unionism and the Kenya Constitution

The Constitution of Kenya 2010, which provides for industrial action under Article 41 in the Bill
of Rights, has led to a fresh vibrancy in trade unionism. Some 14 trade unions have been
registered since the promulgation of the Constitution on August 27, 2010, bringing the total
number to 79.
The sudden push for new trade unions was just the beginning of an intensified boldness in
industrial relations in the country. In particular, 2012 registered an unprecedented series of
strikes and other forms of industrial action by discontented employees in different sectors.
A number of them are notable. In March 2012, nurses in public hospitals went on strike to push
the Government to commit to a pay deal agreed on earlier. The strike lasted two weeks before the
outstanding issues were resolved.
The nurses were at it again in December 2012 to demand for the registration of a new trade union
they had created the year before, namely the Kenya National Union of Nurses (KNUN). Officials
of the new union had applied for its registration in July 2012. The Registrar of Trade Unions had
declined, arguing that there were trade unions that could sufciently cater for the interests of the
nurses.
Angry nurses put down their tools in protest on December 3, 2012. The unions officials later
appealed at the Industrial Court, upon which Principal Judge Mathews Nduma later ruled in a
judgment dated April 16, 2013, that KNUN be registered on the basis of sections 12 and 18 of
the labour Relations Act 2007, and Article 41(2c) of the Constitution.
Just before the nurses went on strike, public school teachers represented by the Kenya National
Union of Teacher (Knut) and the Kenya Union of Post-Primary education Teachers (Kuppet) had
stopped working to demand a 300 per cent pay rise in fulfilment of an agreement that had been
signed With the Government in 1997. That had been on September 3, 2012. The strike ended
three Weeks later on September 24 after talks yielded an agreement and the Government released
a lumpsum payment.
In the meantime, starting September 6, 2012, public university Lecturers represented by the
University Academic Staff Union, made good their threat to strike to demand a 200 per cent pay
increase, in addition to pushing the Government to commit to negotiations for a collective
bargaining agreement (CBA) for 2012 to 2014.

In August 2012, the Kenya Medical Practitioners, Pharmacists and Dentists Union called its
members to strike in support of trainee doctors, who had stopped working to demand a monthly
stipend of Kshs92, 000 as agreed With the Government in December 2011. The union was also to
force the Government to fulfil its part of a pay bargain negotiated in December 2011.
On September 4, 2012, a decision by Kenya Airways to go ahead with the laying off 447 workers
was met with spirited resistance by the Aviation and Allied Workers Union (AAWU). In addition
to calling a strike, the union successfully petitioned the Industrial Court to overturn the
redundancy of the affected employees. In a judgment dated December 3, 2012, Judge James Rika
ordered the airlines management to reinstate the affected workers to the positions they held at
the time the redundancy letters were issued to them.
Trade Unions in Kenya

Trade union is the Labour Relations Act defines a trade union as an association of employees
whose principal purposed is to regulate relations between employees and employers, including
any employers organisation.
The Central Organization of Trade Unions, COTU (K) is the sole national trade union centre in
Kenya. COTU (K) was founded in 1965 upon dissolution of the Kenya Federation of Labour and
the African Workers Congress. COTU (K) is registered and operates within the provisions of the
Trade Union Act (Chapter 233) of the Laws of Kenya.
These are Trade Unions in Kenya affiliated to COTU:
Amalgamated Union of Kenya Metal Workers
Kenya Petroleum Oil Workers Union
Bakery, Confectionery Manufacturing & Allied Workers Union (K)
Dock Workers Union
Kenya Building, construction, Timber, Furniture & Allied Trades Employees Union
Kenya Chemical & Allied Workers Union
Kenya Engineering Workers Union
Kenya Game Hunting & Safari Workers Union
Kenya Union of Printing, Publishing, Paper Manufacturing & Allied Workers
Kenya Plantation & Agricultural Workers Union
Kenya Scientific, Research, International, Technical & Allied Institutions
Banking Insurance & Finance Union (K)
Communications Workers Union (K)
Railway Workers Union (K)
Kenya Long Distance Truck Drivers and Allied Workers Union
Trade Unions in Kenya Non Affiliates
Kenya National Union of Teachers (KNUT)

Union of Kenya Civil Servants

Kenya Union of Post Primary Education Teachers (KUPPET)
National Nurses Association of Kenya
Kenya Airline Pilots Association

The objectives of trade unions in Kenya

1. To improve the terms and conditions of employment i.e. the workers working
conditions. This means that unions are supposed to review, continually, the
working conditions and provide for alternative positive working conditions of
service through suggestions.
2. To fight for improved physical environment of the work place - this is by
ensuring that the working environment is safe for work.
3. To enhance security of employment and income - unions are interested in
making sure that their members do not lose employment and income.
4. Unionism has a purpose for improving social security and services. This is
through making sure that systems are kept in place so as to meet the social
obligations e.g. provident funds, gratuity, pension funds and social services like
health facilities.
5. Unions are interested in getting a fair share of the national income
diversification methods. This enables them to fight for the workers welfare i.e.
they are interested in wealth distribution among citizens to ensure that the
output of labor is equally distributed to those who participate in it.
6. Industrial democracy - unions are interested in industrial democracy whereby
they become the voice of the workers.
7. Unions are interested in having a voice in the government. However,
awareness of the distinct roles of the government and trade unions should be
paramount.
8. Unions are interested in the public control and planning of industry. Planning of
industry is crucial for trade unions. This is because it affects peoples
employment patterns and their environment.

Advantages of Trades Unions.

1. Increase wages for its members.
Industries with trade unions tend to have higher wages than non-unionised
industries.

2. Counterbalance Monopsony Power

If a trade union bargains for W3, it does not create unemployment, but employment stays
at Q2.
In the face of Monopsony employers, Trades Unions can increase wages and increase
employment. Monopsony employers are those who have market power in setting wages
and employing workers. Traditionally, monopsonies occur when there is only 1 firm in a
town, or type of employment. However, in modern economies, many employers have a
degree of market power (monopsony).
3. Represent Workers
Trades Unions can also protect workers from exploitation, and help to uphold
health and safety legislation. Trades unions can give representation to
workers facing legal action.
4. Productivity deals.
Trades Unions can help to negotiate productivity deals. This means they help
the firm to increase output; this enables the firm to be able to afford higher
wages. Trades unions can be important for implementing new working
practices which improve productivity.
5. Important for Service Sector.
Modern economies have seen a fall in trade union power. This is because of
a decline in manufacturing and rise in service sector employment. Service
sector jobs tend to more likely to be part time and temporary; unions are
needed to protect workers in these kind of jobs.
Problems of Trades Unions.
1. Create Unemployment.
If labour markets are competitive, higher wages will cause unemployment
(Q3-Q2). Trades unions can cause wages to go above equilibrium through
the threat of strikes e.t.c. However when the wage is above the equilibrium
it will cause a fall in employment.
2. Ignore non Members
Trades unions only consider the needs of its members, they often ignore the
plight of those excluded from the labour markets, e.g. the unemployed.
3. Lost Productivity.
If unions go on strike and work unproductively (work to rule) it can lead to lost
sales and output. Therefore their company may go out of business and be
unable to employ workers at all.
4. Wage Inflation.
If unions become too powerful they can bargain for higher wages, above the

rate of inflation. If this occurs it may contribute to general inflation. Powerful

trades unions were a significant cause of the UK's inflation rate of 27% in 1979.

The benefits of trades unions depends on their circumstances. If they face a

monopsony employer they can help counterbalance the employers market
power. They can increase wages without causing unemployment.
If unions become too powerful and they force wages to be too high, then they
may cause unemployment and inflation
It also depends on whether they cooperate with firm or not on increasing
productivity.

The Disadvantages of Being a Union Member

Union Dues

The most obvious burden that unions place on their members is the charging of annual
dues. These are to support the activities of the union organization. However, they are not
entirely optional; in some cases, non-union workers who are employed at a unionized
workplace are forced to pay partial dues despite their non-membership. The amount of
the dues varies across occupations, but they can be hundreds of dollars per year, and
workers can face penalties if they fail to pay their dues.

Strikes

The primary tool that unions use to force employers to meet their demands is the strike.
When a union declares a strike, workers do not go to work. The point of a strike is to
inflict financial damage on the employer so that the company will listen to the union.
Strikes can be difficult for workers, too, who are forbidden to work and earn their
paychecks. Striking employees face the fear of losing their jobs and the reality of missed
wages.

Loss of Individual Bargaining Power

The union has a monopoly over worker negotiation with the employer. This means that
any issues that employees want to raise must be approved by the union. If an employee
has a complaint or a suggestion that runs counter to the interests of the union, he cannot
bring it to the attention of the company. He thus gives the union the power of issue
selection in exchange for being represented by its greater negotiating power.

Fines

Many of the disadvantages associated with unions are conflicts between individual and
community interests. The union is a voluntary membership organization; however, its
stability is undermined if its members are allowed to leave it whenever their interests
diverge. Thus, unions levy fines against their employees for taking certain actions. These
include working during strikes and engaging in negotiations outside of the union. These
fines are enforced by the courts, so workers cannot flout union rules and hope to avoid
repercussions.

The Benefits of Being a Union Member

Collective Bargaining

Collective bargaining is the heart and soul of the labor union. Collective bargaining
occurs when a group of people, such as the workforce at a company, bands together to
increase its negotiating power. For instance, a single worker might feel that a certain new
safety measure should be implemented in his factory, but he might have limited power to
get the company to install the new measure. If the entire workforce is made aware of the
need for the new measure and bands together to pressure the company to install it, there
is a much greater chance that the company will comply. Labor unions band workers
together, allowing the voices of individual workers to be heard and possibly made into a
goal of the union. Unionized workers typically elect representatives to bring concerns to
the union's attention.

Wages and Benefits

Because labor unions can negotiate on behalf of workers, unionized workers often enjoy
higher wages and better benefits than nonunionized workers. Labor unions can negotiate
wages as well as pay raises and benefits like health care insurance, overtime pay,
seniority, pensions, shift differentials (getting paid more for working odd hours) and
vacation leave. Unions can also alter work hours and attempt to implement new safety
regulations. It may be more difficult for an employer to fire a unionized worker, as
contracts between labor unions and companies are legally binding and help guarantee
worker rights.

Striking

In extreme cases, a labor union can bestow the benefit of a strike. Striking usually occurs
when the union cannot reconcile its differences with employers, so the unionized workers
cease production until demands are met. Striking hurts the workers and the employer, as
the workers are not paid and the companies do not produce. The goal of a strike is to
force the employer to meet the demands of the union, or at least make some bargain more
favorable than initially offered. The ability to call for a strike acts as a threat that can give
unions increased bargaining power.

Employee association
1. (Industrial Relations & HR Terms) an organization, other than a trade union,
whose members comprise employees of a single employing organization. The
aims of the association may be social, recreational, or professional