This document provides an overview of labor relations and industrial relations. It discusses key topics such as the meaning and importance of good labor relations, challenges faced by trade unions, grievance procedures, collective bargaining, and improving industrial relations. The document also outlines the components of an industrial relations system according to Dunlop's theory, including the actors (managers, workers, government), environmental context, rules, and outcomes. Overall, the document serves as an introductory guide to understanding labor relations concepts.

1. (Mt) – BHR 3352 Labor Relations Questions
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PAUL’S UNIVERSITY SPU Distance Learning Course Handbook BMA 402: LABOUR
RELATIONS [ERIC SIELE] © 2014 1 LECTURER: ERICK SIELE- 0722582224 BMA 402
LABOUR RELATIONS esiele@spu.ac.ke COURSE OBJECTIVE: This course is designed to
make students understand and appreciate the role of labour relation in business
organization. This is basically the various aspects of labour relations including methods of
promoting good industrial relations for harmonious co-existing of all parties involve.
Appreciate the importance of good
bargaining in promoting good labour relations COURSE CONTENT: WEEK 1 TOPIC
Introduction to labour relations 2-3 Historical Background of industrial relations SUB
industrial and labour relati
organization and
Challenges face by trade union in Kenya Industrial Relations Charter Meaning of grievance
and disputes Causes of grievance and disputes in an organization Grievance machinery
7 Centr
and its role 8-
Principles of collective bargaining Issues cover in collective bargaining Factors consider in
Quality circles Workers

2. CATS Final examination
Total 10% 20% 70% 100% 4 TOPIC 1: INTRODUCTION Every suggestion must have an
objective either to produce goods or provide services. This could be for commercial
purposes or charitable. In order to produce goods and services an organization must have
the necessary factors of production. The most important factor of production is the human
resource. This resource must be handled with a lot of care if the organizations to achieve its
intended goals. Employee relations is a course unit which examines various aspects on how
people at interrelate. Meaning of Employee Relations An employee is defined as a person
engaged to perform an activity leading to production of goods or provision of service for
payment. Relation on the other hand is the way in which one individual is connected to
others. Employee relations therefore are the interaction between the employees themselves
and also with their employer. Such interaction can either be formal or informal. It
encompasses all areas of management that include:(i) (ii) (iii) (iv) Labour relations
Employee involvement / participation Employee communication Industrial relations
Labour Relations This refers to the direct relationship between employer and employees
with involvement of trade unions and employers associations. Employee
involvement/participation This means getting employees involved in the affairs of
organization by participating in policy formulation be being given an opportunity to make
suggestions. Employee Communication This is having a two way communication channel
between management and employees. Industrial Relations This is interaction between
employer associations and employee representatives. (Trade Union). In this relationship
there is formal recognition. Industrial relation therefore involved fixation of term and
condition of employment and issues arising from employment. Broadly the term industrial
relation is used to denote the collective relationship between management and employee
sin industrial organizations. individual relationship of workers with the management are
thus excluded from the scope of industrial relations and form part of dispute between two
parties or existence of understanding, corporation and partnership between them. 5 The
significance/Importance of good industrial relations 1. Good industrial relations helps in
the economic progress of the country. When there is good industrial relations (IR) there is
smooth running of business and this result in increase in production. Therefore the overall
economic progress can be realized only in there is a harmonious relationship between
management and workers. 2. Good industrial relations help in establishing and maintaining
of industrial democracy which is a prerequisite in establishing a social society. 3. Good
industrial relations help management both in the formulation of informal labour relation
policies and in their hands into action. 4. Good industrial relations encourage collective
bargaining as a means of self regulation. They consider the negation process as education
opportunity a chance for both to learn and teach. 5. Good industrial relations helps the
government in making Laws to check unfair labour practices of union and employers. 6.
Good industrial relations reflect itself in several ways for instance when there is good
industrial relations there is no inter union rivalry e.g. KUPPET and KM. Employers give
unions their right recognition and encourage them to participate in all decisions. And

3. unions direct their activities from fighting to productive. 7. Good industrial relations boosts
discipline, workers orderly, effective and morals of workers. Maintenance of discipline
ensures orderliness, effectiveness and economic use of resources. On the other hand lack of
discipline will waste, accidents and at times in subordination among the staff. Conditions for
Good Industrial Relations 1. History of industrial relations in an organization (culture of the
unions e.g. consultancy, bread and butter). 2. Economic satisfaction of workers (worker’s
basic needs) conductive working environment). 3. Social and psychological satisfaction of
workers (Consideration for workers when not at work). 4. Off-the job condition of worker
(well informed negotiations) – educate members on responsibilities. 6 5. Enlightened and
responsible labour union (be able to read the round-table mood) – be ready to justify
arguments. 6. Negotiating skills of and attitude of management and workers. 7. Public policy
and legislation (avenue for resolving conflicts). 8. Nature of industry and business cycle.
FACTORS CAUSING POOR INDUSTRIAL RELATIONS (i) Uninteresting nature of work. The
problem of poor industrial relations is essentially a product of large skill production which
has made man subordinate to the machine. This has made him lose his sense of pleasure,
pride and satisfaction form work. This dissatisfaction of the worker on the shop floor
generally results into big strikes and lock-outs. (ii) Political nature of trade unions (TUS)
Another major irritant to good industrial relation is the politicization of the labour union by
outside political leaders. This has led to multiple unions on one hand and inter-union
rivalry. This depresses union membership and its finances and as such unions are unable to
be effective and play their role in collective bargaining. Their status is reduced to a mere
strike committee. (iii) Poor Wages Too much right or complicated wages and incentive
payment systems are also a source of poor industrial relations. Wage and salary
differentials between occupation also create a feeling of inequality and affect industrial
relations. (iv) Occupational Instability Occupational stability makes workers feel secured of
their jobs. It produces an energizing effect on them. Workers who have held a job for several
years show confidence on the job and they do not like any change being made in that job
because they fear the following consequences. 7 a) b) c) d) e) (v) The new job will reduce
their wages and seniority structure. New jobs will not give them as much satisfaction as the
earlier job. The new job will require them to undergo some training. The new job will
change existing social relationships. New jobs will reduce opportunities for growth and
development. Poor Behavioral Climate. The behavioral climate of an enterprise which is
made up of traditions and method of action may be either favorable or unfavorable.
Favourable climate is one which helps him meet his economic, social and psychological
needs. It produces a good image of the enterprise in his mind. On the other hand
unfavourable climate is one which prevents him from meeting the various types of needs
and produces a poor image of the enterprise. This eventually drives him to seek
membership of a militant labour organization where he can then case his negative feelings
against his employer this becomes a course of poor industrial relations. Suggestions to
Improve Industrial Relations In the light of the above discussions the following can be the
suggestions to improve industrial relations:(i) Both management and union should develop
constructive attitude towards each other. (ii) All basic policies and procedures relating to
industrial relations should be made clear to everybody in the organization and to the union

4. leaders. (iii) The personnel manager should remove any distrust by convincing the union of
the company’s integrity and its own sincerity and honesty. (iv) The manager should not
view with the union to gain workers loyalty. (v) Management should encourage right kind
of union leadership. (vi) After the settlement is reached the agreement should be properly
administered. COMPONENTS OF INDUSTRIAL RELATIONS 1. Industrial relations is to do
with philosophies and policies of major players i.e. government, trade unions and
management. 8 2. It is involved with the development, negotiation and application of formal
processes of interaction between management and workers. 4. It ensures formulation of
policies and practices of employee involvement and communication. 5. Industrial relations
facilitate contribution of parties with different roles i.e. government, trade unions and
management. The System Theory of Industrial Relations. Dunlop 1958 Dunlop proposed
that Industrial Relations System comprise the following components:1. Actors – The actors
are the managers, workers and government agencies who take part in the rule making
process. 2. An Environmental Context – This means technological and economic factors
together with locus of power, distribution in the larger society form the environment which
infringes upon the actors. 3. Common Ideology – while each actor may have their own
ideology and Industrial relation system requires that these ideologies must be sufficiently
compatible and consistent so as to permit a common set of ideas which recognizes an
acceptable role for each actor. 4. A Set of Rules to Regulate Labour Relations. Rule making
and application of such rules via agreed procedures is regarded as a central aim of
industrial relation system. Unitary and Pluralistic Industrial Relations Unitary Industrial
Relations by Fox 1971 Says that Fox proposed that most employers favour the autocratic
unitary approach which is based on the following premises:(i) There is no room for
opposition groups or functions in the work place. (ii) The boss role is perceived as
legitimate and is coupled with the perceive right of management to unilaterally control all
decision making. 9 (iii) Commitment to the organization and loyalty to its leaders. (iv)
Conflict is perceived as a unnatural. (v) Where conflict does occur it is perceived as the
outcome of the breakdown in communication or the results of the work of agitators. (vi)
The presence of the union in the work place is seen to be an intrusion to otherwise satisfied
employees who are encouraged to make unreasonable demand and to strike when those
demands are not accorded. PLURALISTIC VIEW Fox rejected unitary system. He claimed
that the organization is a “plural society” containing many related but separated interest
and objectives which must be maintained in some kind of equilibrium. Liberal pluralism in
broad political terms accept that the society is composed of diverse competing interest
groups and extend each of this freedom of association and the right to further their interest
the legitimate means. Pluralism is characterized by the following:1. Conflict is accepted as
natural and fundamental part of relationship between employer and employees. 2. Trade
Unions and employee organizations are seen as legitimate and functional organization
through which workers and employers protect and further their interest within the frame
work of rules provided by the state. 3. Collective bargaining is regarded as generally
decentralized, dynamic and democratic process for processing and controlling conflicts. 4.

5. Existence of contravening powers supported by the employee’s right to strike, employer’s
right to lock out is seen as ultimately conducive to maintaining some balance of power
between the parties. 5. Pluralism does not imply that equal power must exist or that even
conflicts must be settled by compromise. Compromises must not always be possible and
they will be test of strength resulting in the emergency of winners and losers. 6. Plurarism
does not survive where one of the parties constantly make gains at the expense of the other
party. 10 Parties must sometimes have to exercise their potential power with restrain in the
sense that they have their vested interest in the overall stability of the relationship. The
Role of Employee Relations Employee relations has a great role in the management of an
organization. It is concerned with:1. Building staple and co-operative relationship between
management and employees. It aims at avoiding or minimizing conflicts. 2. Achievement of
commitment through employee involvement and communication. 3. Development of
mutuality of common interest in order to achieve organizational goals. 4. Development of
suitable organizational culture i.e. the way an organization handles matters of welfare of
employees based on shared values between management and employees. 11 TOPIC 2:
COLLECTIVE BARGAINING. According to Webbs the classical approach (CB) is an act of
exchange involving the adjustment of supply and demand of labour. Therefore Webbs view
the union as a cartel involved in bargaining and regulating the labour market. CB is seen as a
process of negotiating for terms and conditions of labour. According to Flanders CB is a joint
regulation of activities between employers and the union. CB can also be seen as being
about rules that are jointly made together and administered together. International Labour
Organization ILO Definition ILO defines CB according to ILO recommendation no 91 which
looked at CB as negotiation about working conditions and terms of employment between
employer and employee’s organization. At international level CB is governed by convention
98 of 1949 which is about the right of workers to collectively organize and collectively
bargain. STRUCTURE OF COLLECTIVE BARGAINING. 1. Bargaining extent / unit. This
indicates the numbers of categories of workers involved which is usually contained in the
‘preamble’. It is important to do this to avoid conflicts as to who in the organization is
covered or not covered. For instance the CBA may indicate as i.e. this agreement does not
cover those in management like personal secretaries. 2. The Bargaining Level. This refers to
the level at which bargaining takes place and its coverage. These may be 4 levels of
bargaining: a) National Bargaining: Here it normally consists multi-employers and covers
various agreements at national level. b) Company / enterprise bargaining. This covers one
firm or collection of firms within an industry. c) Plant Bargaining. This covers particular
workers within one work pale or plant in domestic bargaining. d) Domestic Bargaining. It
covers work groups within a particular plant (office bargaining) or workplace. 12 3.
Bargaining Depth. This refers to the extent that local union branches, shop stewards are
involved in the bargaining process either in making arrangements or administering them. 4.
Union Security. This refers to the support given by employers to union to recruit members
through “closed shops” or “cheque off” arrangements. Close shop means when you join
employment you automatically become a member of existing union. Open shop means you
can choose to be a member of existing union or not. According to the employment act,
employee salary is deducted only when employee writes to effect deductions. Employees

6. become members of a union by signing to be members. 5. Union Density. This refers to the
percentage of the potential membership who have been recruited by the union for instance
if 50 out of 100 employees are union members then the union density is 50%. 6. Degree of
Control. This means the extent which the agreement sets out obligation standards and
influences the bargaining outcome including the machinery for observance of an agreement.
This means that there is no room for speculation left and the agreement is clear in examples
and procedures. 7. The Scope. The scope is linked to the degree of control and it answers to
some of these questions what is the agreement? Does the agreement indicate the number of
aspects covered? e.g. unfair labour practices. 13 ISSUES COVERED BY THE COLLECTIVE
BARGAINING AGREEMENTS (CBA). These are divided into 3 categories:a) Basic issues This
include wages (bread and butter), holidays, hours of work, allowances, sick off, leave, etc. b)
Frictional issues These are issues that can bring function and include discipline and
disciplinary procedures, manning levels, workload etc. c) Solidarity issues This is where the
employees of one firm may come in support of employees of another firm on industrial
issues. This may also include the concept of close shop arrangement where workers will
become automatically members of a union. Types of Collective Bargaining Agreements.
There are 2 types of collective bargaining agreement:a) b) a) Statutory Agreement Common
Law Agreement Statutory Agreement For an effective CB to occur it’s important to
differentiate between a static and statute law agreement. An agreement that can be
enforced by law e.g. all collective bargaining agreements in Kenya are statue law agreement
and are static in nature i.e. they run for a specific fixed duration and only matters of
interpretation are discussed during its life time. In practice collective bargaining
agreements in Kenya run for two years and the breach of the agreement is illegal. b)
Common Law Agreement. This is only binding in honour (gentlemen agreement). However,
it’s dynamic because matters can be openly agreed on through discussion. The dispute of
interpretation of matters can become a demand and results to a collective dispute.
Importance of Collective Bargaining Agreement. 1. Collective Bargaining is an important
tool in that it provides a regulative frame work for the conduct of industrial relation in the
work place. 2. It allows workers to look at issues analytically because it provides a forum for
dialogue. (Teaching and learning). 14 3. Its an industrial safety valve that allows
disagreement to come to the open. Its not only asking for bread and butter, value for raising
up issues that could have been suppressed. 4. It provides a forum for regular meetings
which promote working relationships. No master servant relationship. 5. Its an instrument
for distribution of rewards in the industry. Sharing of the cake i.e. welfare, facilities,
monetary and non momentary = constitute a wage bill (profit sharing). 6. It provides
consistency and uniformity. Working within those provisions. Issues to be considered by
Human Resource Management in determining collective bargaining. 1. Financial resources
of the company (in terms of present and future prospects). 2. Discipline and disciplinary
procedure. 3. Cost of living index – this is usually given by the ministry of finance and can be
used to determine compensation. The instrument of analyzing i.e. understand issues such as
medical bills. 4. Comparative analysis of industry or work place – this is by checking
particular industry with a comparative one and finding out the level of sale. 5. The ability of
the employer to pay. The ability to pay is usually determined by the industrial court in

7. terms of assets turn over, economic set up etc. 6. Past practices or tradition of the company.
7. Wage guidelines which in most cases are tied to the cost of living index. (minimum wage
guile lines). Barriers in Collective Bargaining. 1. None co-operation of either party in the
process of bargaining. This happens usually when the union present their proposal and
indicate that “that is what they want only.” The management on its part comes up with
counter proposal giving indication on what they can offer. This can lead to an impasse
between the two parties. 15 2. Non-recognition. Collective bargaining requires recognition
and therefore there is need for both parties to recognize each other. But in practice it’s the
union that seeks recognition. 3. Unrealistic Demand. In most cases union tend to have
unrealistic demand with no basis. Beyond Collective Bargaining Collective bargaining is not
an effective instrument for distribution of rewards. It gives workers pay rises because of
inflation, cost of living index and not through negotiation. It is also traditional in approach
because in some organizations workers get pay rise on the basis of cost of living may
eventually get higher pay than some management staff. Thus some union members could be
earning more than those in management. This may affect the morale of the management
staff. Therefore the management should understand that any increment cushion to the
union should also get to the management. 16 TOPIC 3: EMPLOYEE PARTICIPACTION
OPTION These are several ranges of options for employee participation:1. Share options.
This option often the employees the chance to own shares in their company and this
participate in its financing as well as in receiving all the information normally made
available to share holders. 2. Consultation. This can be seen as ‘participation’ only in the
sense that employees are consulted about decisions affecting their world lives 3. Job
environment. It is a participation in the sense that employees are given greater discretion
over immediate work decision. It can also add to employee’s motivation by increasing their
responsibility for their more outputs and increasing job interests. 4. Empowerment through
delegation. A participating management style that encourages real delegation of authority
implies that all employees will be encouraged to play a past on the decision making
affecting their work. 5. Collective bargaining. Collection bangaining is also an indirect
environment of employees through their representatives, management are currently in a
strong negotiating position because of. i. The continuing levels of relatively high
unemployment ii. The increase competitiveness of the market place. Employees are
therefore less indirect to engage on negotiation with their employees since this may
increase their flexibility in responding to changes in market. 6. Work councils. These are
essentially joint bodies of mangers and employees established to consider and agree key
matters affecting employment within the employees only as one not for unionized
employees only as on the case in collecting bangaining groupings of employees regardless of
any union membership. Councils is especially concerned with the consultative aspects of
participation but at strategic as well at an operational levels. 17 7. Board representatives
(worker directors). One of the forms of workers participation within an organization is
direct workers participation at board level in major organizational decisions relating to
their work situation Work directors are expected to see the implication of proposals for
their members and give option on likely reactions. They are also supposed to convey
options and value judgment of workers to the board. Directors need not be highly skilled in

8. modern management techniques but they require sufficient knowledge to be able to follow
proceedings and sport the implications of policy proposal of their members. Senior
management have to be relied upon for detailed admica on the formation of corporate
policy and implementation of board decision. The ability of workers directors to have
effective influence on management decision can be affected by: a. Infrequency of formal
board meeting b. The exclusion from other directors c. The predominant role of the board
being the formal endorsement of proposal made on decision taken by the management.
recognizes employees demand for more information from management and the
in
management and employees together with trade union official discussing matters of mutual
interest at work place The meeting is in the form of joint consultative committees at the
company level and joint industrial council at the industry level They meet regularly to
discuss problems which are outside the normal area of negotiation Joint consultation
supplement collective bargaining OBJECTIVES OF JOINT CONSULTATION i. Promote
increase productivity for the benefit of both the organization , workers and the society in
general 18 ii. Provide a better understanding to employees about their role and place in the
process of attainment of organizational goals iii. To satisfy the workers social and esteem
needs iv. To strengthen labour- management cooperation and thus maintaining peace and
harmony v. Develop social education for effective solidarity among working community and
for tapping the latent human resource vi. As ideological point of view to develop self
management in industry vii. As an instrument for improving efficiency of the company and
establishing harmonious industrial relations viii. To build the most dynamic human
resource This is a process that can be used together with/or be complimentary to the
collection bargaining process. It involves joint consultation committees whereby employees
seek to deepen their relationship with employees in a non – negotiating environment. Joint
consultation can be:i. A means for management to impact efficiency within the organization.
It can be used to enlist the co – operation of all the employees in the efficient operation of
the organization and in the implementation of management decision. ii. Instrumental in
fostering industrial peace between management and employees particularly where
management and employees have established common interests. iii. A means towards
industrial democracy making process is subject to a form of partnership between
management and employees. iv. Grievance form. It can be used in matters of personal
concern to employees when their nature is not appropriate for formal grievances. This can
happen when employee’s representative draws the management attraction to issues which
are of concern to employees. The management response justifies whether the trade union
will raise the matter subsequently in formal negotiation. 19 Forms and structure of joint
consultation The process of joint consultation may be applied without any formal structure.
However, it is advantageous for both portions to establish formal joint consultative
machinery because it can help to overcome the organizational complexity; many
organizations tend to hinder informal consultation particularly between employees and
senior management It can facilitate the processing of issues of general nature which
otherwise could have to be handled by each manger individually with time consuming,

9. cumbersome and subject to variation in its treatment. Through regular meeting and record
of minutes, it can ensure that joint consultation are accorded proper recognition in the
organizational and confirm the management commitment to consultation with employees.
Establishment of joint consultation committees does not mean that they will in place
collective bargaining process. They are supposed to minimize conflicts which may
otherwise lead to grievances on disputes. Since the purpose of industry democracy is to
minimize and resolve conflict at the work place. There should be an integration of
consultation and negotiating machinery within an organization. In forming, consulting and
negotiating should be linked together in handling labour relation matters. At the same times
trade union representation feels the need to be fully involved in the consultation process.
Formalized joint consultation is an indirect method of employee involvement in decision
making. The consultation must make sure that there are adequate links between the
representatives who are discussing the issues within the committees and the people they
represent. The parties (management and employees representatives) must make sure that
their agenda is known in advance to the members they are representing so that their
members can discuss with them the issues and give their views before the meeting. After
the meeting, representative should report back the outcome of the discussion. Factors
considered for successful joint consultation i. There should be mutual trust, faith among all
parties concerned ii. Should be progressive management in the enterprise and should
reorganize their obligation and responsibilities to towards workers and trade union iii.
There should be strong democratic and representative union which should represent their
cause of workers without neglecting the management interest 20 iv. Closely and mutually
formulated objectives for participation of trade unions and management v. All parties
concerned with JC should feel that they should participate at all levels vi. Effective
communication between workers and management and effective consultation of workers
by management vii. Both parties should develop a favorable attitude towards each other.
Factors affecting successful joint consultation i. The apathy and even hostility of the
workers and employers ii. Lack of proper understanding between employees and
employers of the concept, purpose and benefits of joint consultation iii. Workers indirectly
participate in the management through their representatives. Their latent abilities &
qualities are therefore largely unutilized iv. delay in implementing the suggestions and
recommendation of these committees often leads to the wading of workers interest. 21
Benefits of joint consultation i. Workers develop self esteem. ii. Conflicts are reduced
considerably because workers are involved in decision making iii. Improvement of
productivity may realized iv. Improved self motivation among employees v. Makes
employees understand their role in the organization and therefore making them attain their
objectives as well as the organization vi. Reduced staff turnover hence the cost of
recruitment and training vii. Organization image is improved and therefore can attract and
retain staff viii. Introduction of change may be made easier because employees are involved
hence less resistance 22 TOPIC 4: GRIEVANCES AND DISPUTE SETTLEMENT MACHINERY.
What is a Grievance A grievance is an aspect of condition of employment thought by an
employee to hurt him/her or cause injustice and which he complains about bringing it to
the notice of the management. It is important to distinguish among 3 aspects i.e.

10. dissatisfaction, complaint and grievance. Dissatisfaction is any feeling of discontent but
unaccompanied by any verbal or written expression against its cause. A dissatisfaction
which is orally and known by one employee to another employee without informing the
management is called a complaint. A complaint becomes a grievance when this complain
which is work related is formerly brought to the attention of the management. A grievance
could affect one or more employees and the commonly affected areas are salaries/wages,
overtime, leave, transfer, promotion style of supervision in the interpretation of service
agreement and termination of service. A grievance can be real or imaginary, valid or invalid,
genuine or false. NB: A grievance is different from a trade dispute (i.e. industrial disputed
when it’s a state of collective disagreement between an employer (a union of employers)
and employees (a union of employees). A trade dispute is often procreated by a poorly
handled grievance. Most union – management agreements include procedures of handling
employee grievances. Causes of grievances in an organization Grievances usually arise out
of misinterpretation or misapplication of organizational policies and practices. Specifically
the following may be the following cause of grievance in an organization. 1. Poor working
conditions – This can create problems if workers feel that what is being provided for is not
adequate. 2. Lack of understanding of labour laws and practices by both management and
union officials. 3. Lack of effective communication system. 23 4. Lack of training by
managers especially on human relations. 5. Supervisors who play favorites and or ignore
workers. 6. Supervisors who engage in excessive controls over workers (commands)
application of so many rules. 7. Over application of rules – thus giving rise to too many
disciplinary eases. 8. Lack of proper and sound disciplinary procedures which will lead to
biasness. 9. Lack of clear promotion procedures which may lead to either keeping an
employee at a certain grade for too long or that a young and inexperience employee is being
promoted a head of the older and experienced employees. 10. Lack of proper compensation
policy which may lead to poor pay structure which can directly affect employees. 11. Failure
to implement collective bargaining or misinterpretation of the same or generally neglecting
fresh problems or questions of the union. 12. Excessive application of management
prerogatives such as transfers unfair evaluation of jobs provision of welfare facilities and
benefits which may lead to dissatisfaction among employees. Why have grievance
procedure / Dispute Settlement Procedure. 1. Absence of procedure can lead to industrial
unrest, dissatisfaction among employees and poor level of morale. 2. They provide for
industrial democracy i.e. it gives workers an opportunity to air their grievance. 3.
Procedures are importance for they provide management on opportunity to identify trouble
spots. 4. It provides an orderly outlet for workers protest. 5. They supplement collective
bargaining in the service that they provide an avenue for negotiations. 6. It provides for
interpretation of the collective bargaining agreement. 24 Arbitrator Top Management Top
Management Middle Level Management Supervisor Decision Decision Non Unionisable
Branch Official Union Official (shopsteward) Unionisable Aggrieved Employee 25
PROBLEMS IN OPERATING GRIEVANCE PROCEDURE 1. Fear of Workers This is where the
workers fear to submit any grievance in writing perhaps of victimization perceived which
may make the workers not to commit themselves. 2. Short-circuiting This is where the
workers do not comply with the prescribed machinery or grievance handling procedure. 3.

11. Time span of grievance handling. Most of the grievance handling procedures does not have
a time limit within which a grievance reported should be resolved. 4. Lack of clear policy on
the link-point. This is a situation whereby workers are not aware who to go to in the event
of grievance. 5. Use or misuse of procedure to press for collective bargaining demand. And
organization may take long to agree with their demands. FACTORS INFLUENCING
GRIEVANCE PROCEDURE 1. The size of the firm or company. The bigger the company the
elaborate grievance procedure is. In small organizations the procedure is clearer and can be
well understood by employees. 2. The nature of the workforce in terms of literacy level. If
the literacy level is high there is high possibility the procedure may be well understood. 3.
The presence of a union in the workplace. If there is no union the question posed to who
will be the link on for the workers and who is to speak on behalf of others. The presence of a
union creates a focal point where there is no union management may choose to have which
has representatives from both management and workers. The process would involved
management choosing its own representative mostly from the HR section while workers
will also choose an equal numbers. Thereafter a Chairman and Secretary will be chosen
among the committee members. This work committee is then sued to resolve conflicts
between management and workers. There may also be a worker’s committee whereby its
constituted from the workers themselves with no representation of management. This
worker’s committee will then represent workers in matters of employee relations. THE
MAIN FEATURES OF GRIEVANCE PROCEEDING PROCEDURES 26 The main features of
grievance proceeding should specify the following. 1. Machinery for managements or
supervisor responsible at each stage and it should specify who reports to who and the
procedures to be followed. 2. The procedures must take into account industrial democracy
i.e. to accept in right of workers to be represented by a group or individual. 3. It is important
to establish at what stage trade union representative is to be involved. A clear standard
should be set on what matters the trade union is to be involved and the specific issues to be
addressed. 4. The grievance procedures should indicate at what stage/time the full time
official of the trade union should get involved. This is the time a trade union official who
deals with union matters on full time basis should get involved and these officials are not
workers like chief shop steward or branch official. 5. The number of stages and levels and
time limits should be indicated e.g. these should be a time frame for grievance reported and
shop floor level – they should indicate when the grievance should be resolved. 6. There has
to be a status quo clause or “stand still” clause. This will assist the parties to break through
an “impasse” i.e. parties will always get back to where they started. 7. Its important to have
separate procedures for separate issues e.g. procedures for retirement on medical grounds
e.g. when and what stage an employee can be retired on medical ground. 8. Indicate
provisions for collective dispute i.e. at what stage a grievance may become collective. An
individual dispute should not be allowed to become collective. 9. Decide at what state
dispute becomes external i.e. allow for external intervention through (a) labour officers, (b)
trade union official or (c) tripartite appeal. 10. Its important to have a written recording of a
grievance or dispute. 11. The procedures must have “a peace clause” which is normally
related to “status quo clause”. And this is used in recognition of the 2 parties meeting
together to cultivate ground for mutual understanding and making sure that the individual

12. interest are overruled by the overall interests of the company or organization. THE
ECONOMIC IMPACT OF INDUSTRIAL DISPUTES:1. There is lose of man hours and man days
– the cost when the strike is on and the time spent resolving any dispute whether for the
employees or individuals 27 2. Disputes affect employee relations in the work place directly
and indirectly for instance the morale of employees or the pay during the period of strike. 3.
It may lead to loss of material or resources of the company. 4. Industrial dispute may also
affect the image of the company and this may lead to a reduction in the number of
customers. 5. Dispute may also lead to lose in management time in the course of resolving
dispute. 6. Dispute may also lead to lose in terms of employment for instance employees
may be dismissed after the strike. 7. Industrial dispute may have an economic impact not
only to the organization but also for the whole economy – this is because it may create
unemployment which leads to less purchasing power. SOURCES OF GRIEVANCE HANDLING
PROCEDURES 1. Staff regulations and rules which are usually derived from the policy of the
organization. 2. The contract of employment. 3. Collective bargaining agreement which
indicates the kind of procedures to be followed as far as staff belonging to union are
concerned. 4. The labour laws e.g. labour relation act. 5. Recognition agreement and this
provides the basis for recognizing the relationship between the employer and employee
representative. This usually comes in after the union has indicated a simple majority of 51%
of employees who are unionized and also when there is no other rural union claiming
representation. 6. Industrial relations charter. 7. Part practices or traditions of the
organization which is to do with cultures, norms and values. 8. Policy statement which may
be issued from time to time and they may be internal or external. Considerations when
dealings with grievance of the work place: 28 1. Each party must be given a fair hearing and
participation when settling grievances i.e. each party must be given an opportunity to be
heard and defend him. 2. Grievance procedures and indeed all avenues must be fully
exhausted. 3. Its also important for the messenger to consider whether its violation of the
agreement law or part practices. 4. Grievance handling requires the management to have
counseling techniques. 5. The 7 ways investigation methods should be used i) Who ii) When
it happened iii) Whom to report to iv) Where – places where the problem arose v) Why –
reasons for the problem vi) Which – which instruments to use e.g. CBA vii) What – what
decision to take. Role of human resource management 1. The managers must be counselors
and not policemen. 2. They must be human that is use human effort to resolve issues. 3.
Must be fair, firm and strict. 4. Use public relations techniques and this will assist in
projecting positive corporate image. 5. Job of the HR is to correct not to punish. 6.
Consultation is important especially for employees in all areas whether upward,
downwards or horizontal. 7. Channeling counseling to the organizational goals – do not
counsel for the sake of counseling. 8. Legitimize decision making by following the rules of
the organization. 9. Control and regulate the workforce so that the company can meet its
economic criteria. 10. Monitor employment legislation and be progressive. Machinery for
dispute handling, investigation and conciliation 29 Dispute can be categorized into two:1.
Disputes of Rights e.g. disciplinary like termination, dismissal, suspension, compulsory
leave, retirement or medical grounds etc. 2. Dispute of Interest i.e. economic interests e.g.
bread and butter, wages, allowances, benefits, etc. According to section 62 of the labour

13. relation act 2007. A dispute can be recorded to the minister on behalf of or any party within
the dispute e.g. union or agent of the employees. The practice is that the letter reporting the
dispute must be signed by the general secretary. The report should be in writing with
sufficient copies to the parties involved in the dispute and specific detail includes:a. Parties
to the dispute i.e. employers and employees. b. Party concerned or on whose behalf the
report is made c. The nature of authorization given to the party to whom the dispute is
reported e.g. industrial relation officer. e. Each and every matter over which dispute has
risen must be indicated. f. Each party to the dispute is furnished with the report by the
claimant. g. Dispute of dismissal or termination should be reported with 90 days however
the minister has discretion to accept a late dispute. h. Dispute concerning redundancy of
one or more employees, a trade union may report to the minister of any stags after the
employer has given notice of its intention to terminate. Consideration of factors that a
minister should make before accepting the dispute The minister has to consult the tripe
titite committee (trade dispute committee) which comprises government, trade union and
employer representative. The committee vets the dispute and advises the minister on issues
arising from the dispute. After this consultation, he can take the following steps:1. The
minister can decide that the matter is not suitable to be dealt under the act. 2. The minister
may refuse to accept the dispute if the matter is not negotiable as per the provision of the
act. 30 3. The minister may inform the parties that he has accepted or rejected the trade
dispute having regard to any matter relevant to the dispute. In this case he may reject the
dispute if the matter is not a trade dispute as defined by the labour relation act. 4. The
minister may refer the matter back to the parties for further negotiation. 5. The minister
may effect the conciliation of the parties by appointing a conciliator. 6. The minister may
cause investigation be trade – a point an investigation to investigate the matter who should
make the report of the findings to the minister. Dispute of conciliation include the economic
dispute e.g. wage increase, working hours, overtime, allowances etc. while investigation of
dispute may include dispute of right e.g. termination, dismissal, compulsory leave,
suspension, retirement on medical grounds, etc. 7. The minister may comment to the parties
that the trade dispute may be referred to industrial court for final arbitration and this can
be done per industrial court regulation. PROCEDURES FOR REGNITION OF TRAE UNION
ACCORDING TO THE LABOUR RELATION ACT 1. Union must first show that it has recruited
a simple majority of 51%. 2. The union must also satisfy the minister that it is the rightful
union to represent the workers. 3. The minister must be satisfied that there is no rival union
i.e. no other union claiming representation. After the minister is satisfied with the above, he
will give an order in writing that the union be accorded recognition for collective bargaining
purposes. The recognition agreement in writing must indicate:a) b) The parties to the
agreement. The procedure to be followed if the parties disagree. If there is a dispute as to
the right of a trade union to be recognized for the purposes of collective bargaining in
accordance with this act or cancellation of the recognition agreement the trade union may
refer the dispute to conciliation. If the dispute is not resolved through conciliation then the
dispute may be referred to industrial court under certificate of urgency. METHODS OF
CONCILIATION AS PROVIDED IN SECTION 65 OF LABOUR RELATION ACT 2007 In
conciliation the minister may take the following action:31 1. The minister may appoint a

14. public officer or any other person he considers suitable for that job. In practice conciliations
are usually labour officers from the ministry. 2. The minister may appoint a conciliation
panel consisting of an independent chairman and one or more to represent employers and
employee. 3. The minister may refer any matter with the consent of the parties to a
conciliation panel composed in accordance with the wishes of the parties. 4. The minister
has power to withdraw or temporarily suspend the operation of the above conciliation
measures. The terms of every settlement should be in writing and should be endorsed by
conciliations and where appropriate by the chairman of the conciliation party and signed
copy given to the minister. Where the minister anticipates any dispute in the order and
investigation of the matter through a penal or individual. Any investigation or member of
the committee of investigation must appear to the minister as qualified as independent for
such an appointment. REGISTRATION OF COLLECTIVE BARGAINING AGREEMENT 1.
Industrial courts is mandated to maintain a register of all CBA’s in Kenya. 2. Collective
agreements cannot be effective until they have been registered by the industrial court. 3.
Every employer or organizational employers that have entered into a collective agreement
shall lodge within 14 days of its execution i.e. employer have an obligation to lodge to the
court collective agreement for registration. 4. The minister has an obligation to provide the
industrial court with a copy of every CBA that has been lodged with him and may provide
the court with such information with comments as he considers necessary. 5. Where a
minister objects or rejects registration of the CBA a copy given to the court should be
accompanied by reason of the same. 6. The minister may make rules to require the
employers to provide him with information necessary for registration. 7. Failure to lodge a
CBA within the specified period, the trade union may submit it for registration. 32 THE
POWERS OF INDUSTRIAL COURT ON CBA 1. The industrial court may accept CBA for
registration if its satisfied that the agreement is in compliance with the rules and
regulations. 2. The court has been mandated to accept CBA with modification but with the
consent of the parties. 3. The court has power to refuse or accept and refer the CBA back to
the parties for further negotiations. 4. The industrial court ahs power to interpret labour
contrats incase of disputes. The industrial court shall not register a CBA if: a) Conflicts with
the act or any other law. b) Does not comply with any directive or guidelines concerning
wages or salary levels and other conditions of employment issued by the minister. 33
TOPIC5: THE ORIGIN OF TRADE UNIONS IN KENYA PRE-INDEPENDENCE PERIOD. Before
independence, labour policies and laws were oppressive towards the employment of
African Workers Industrial relations was based on master movement relation club.
Employment was in four tiered structure which European were at the top followed by
Indians, Arabs and Africans at the bottom. Employers determined the working conditions
unilaterally. The introduction of the “Kipande” system was used to discriminate African
workers and to control labour movement. Africans worked in order to pay discriminatory
tax such as poll tax or hut tax. This official discrimination made the problem of African
Workers worse. The workers were not only discriminated in working places but also on the
basis of racial colour. African workers therefore used every opportunity to protest against
poor working conditions and official discrimination on racial grounds. The fight against
colonial rule can not be differentiated from the fight for workers rights. And this could

15. explain why the current labour movement is politicized in a way. As earlier as 1920s strikes
were reported in some areas but were more of political than industrial in nature. The 1st
strike recorded was a strike by tribal constable (APS) in 1920. Officially trade unionism was
registered in Kenya 1934. The Indian collies played on important role in the early trade
unionism in Kenya. After 1943 going into 1945 the trend of industrial relation changed with
the advent of international trade unionism (the global movement dealing with trade unions)
and the British trade union congress in particular played on important role in the Kenya
trade unionism. After 1945 the government took trade union seriously and set up an office
for the registration of trade union to regulate and control unionism. In 1946 and protective
labour code was introduced which improved the situation of labour. In 1952 after the
declaration of the state of emergency the direction taken by trade union changed. The
political leaders were detained and trade unions started playing the role of agitation for
independence. In reaction to this the government took up the development of staff
association, workers committees (e.g. statutory wage determination council). The
committees formed can be seen as the basis for the current tripartite bodies e.g. abour
advisory board, currently known as National Labour Board, the tripartite wages council etc.
POST INDEPENDENT PERIOD. 34 Before independence Tom Joseph Mboya was the general
secretary of Kenya Federation of Labour till 1857 and this was when (KNUT) was formed.
Later after independent Tom Mboya became the Minister of Labour and his rationale of
accepting to be the minister was for the “Development purpose”. As a result other aspects of
trade union were forgotten. In 1962 Tom Mboya called the trade unions and employees
associations and formulated the Industrial relations charter. And this document became
social agreement between the 3 social partners that is Government Trade Union and
employers. This document also determined who can be unionized and who cannot. In 1965
there was a split in the Kenya Federation of Labour which led into 2 unions. Because of this
split the two unions were disbanded and an umbrella body was formed in 1965 through
OBJECTIVES AND PURPOSE OF TRADE UNION 1. To improve the terms and conditions of
employment i.e. the workers’ working condition which means that unions are supposed to
continually review the working conditions and provide for alternative positive working
condition of service through suggestion. 2. To fight for improved physical environment of
work place – this is through ensuring that the working environment is safe for work. 3. To
enhance security of employment and income – that is unions are interested in making sure
that their members do not loose employment and income. 4. Union has a purpose for
improving social security and services. This is through making sure that systems are kept in
place to meet the social obligation e.g. provident fund, gratuity, pension fund and social
services like health facilities. 5. Unions are interested in getting a fair share of national
income diverse methods for fighting the workers and wealth i.e. they are interested in
wealth distribution among citizens ensure that the output of labour is equally distributed to
those who participated. 6. Industrial democracy – that is union are interested in industrial
democracy where they become the voice of the workers. 7. Union are interested in having a
voice in the government but awareness of the distinct role of government and trade union
should be paramount. 8. Unions are interested in public control and planning of industry.
Planning of industry is crucial for trade union for it affects employment and environment.

16. METHODS TRADE UNIONS USE IN FURTHERANCE OF THEIR INTERESTS 35 The union can
use various methods to achieve their objectives. These methods can be categorized into
three:a) b) c) Industrial action Political International. a) Industrial Action. Through
industrial action trade union can use the following: (i) Collective bargaining and negotiation
to achieve their objectives. (ii) Through joint consultation in which they have regular
meeting to discuss on issues arising out of employment. (iii) Through autonomous job
regulations and this is where union impose a close shop strategy. (iv) They can also use
industrial action such as strikes, go slow, etc. b) Political action. Union can use the following
political action: i) Union can secure legislative change by lobbying for the enactment of
various labour laws. ii) They can use political action by electing members to parliament who
are their core members. c) International Action. Trade unions can affiliate itself to
international bodies such as international labour organization, confederation of free trade
union and world confederation of labour and other regional trade unions. All these will
assist in terms of research and training of their leaders on issues of labour. IMPACT OF
TRADE UNION IN DEVELOPMENT 1. Trade union have provided a fair work of legal restrain
that has ensured some measure of protection the weaker party in labour and industrial
relations. 2. They have balance power relation structure through collective bargaining
(lecture defense of workers’ rights) 36 3. They have encouraged negotiation in the spirit of
good faith and mutual understanding through collective bargaining. 4. They have promoted
industrial peace in most cases. 5. In collaboration with other social partners they have
increased employment opportunities including those of their members. 6. Unions have
protected fully employment by being aware of the dynamics operating in the labour market.
7. Unions have participated in matters of national interest that affect their members e.g.
compacting inflation through wage restrain or wage freeze. 8. They have promoted a more
equitable distribution of national income through collective and productivity bargaining. 9.
Unions have also provided a forum for lobbying and influencing government policy through
alliance with other social movement. 10. They have also represented their members in
grievance and dispute settling by promoting the spirit of industrial relation charter. 11.
They have been involved in workers’ education or welfare including workers
cooperativeness. CURRENT PROBLEMS AND CHALLENGES FACING TRADE UNIONS IN
KENYA 1. Changes in the structure of industry through business process like re-energizing.
2. New technology and production system which necessitate multi-skilling and rich skill
through re-training. 3. Economic crisis as a result of liberalization and globalization
whereby trade barriers being removed. 4. Changes in labour markets and the characteristic
in the work force e.g. peripheral workers being the majority (part timers, home workers,
commission workers, subcontractors, etc.) 5. The use of traditional strategies and
orientation attitude towards trade union, the public and other partners. 6. Trade unions
have tended to be conservative in nature and they have always had one thing that is fixation
of wages. Therefore there is need for redefining and refocusing so as to make ti more
effective tools of development. 37 7. The labour laws and trade union control that is the
extent to which they are controlled. 8. New management practices, strategies and initiative
in response to current changes in dealing with employees through involvement and
participation. FUTURE OF TRADE UNIONS IN KENYA 1. They have to build alliance and

17. capacity which should be in terms of: a) Human resources – professional people who can
deal with matters professionally. b) Institutional capacity – this is in terms of organization
structure. c) Individual leadership capacity – to have outward looking leaders. d) They can
build alliance with other general movement – that is trade union needs support of other
social movement as well as the public. 2. They have to invest in research and development.
They should do this by having their own research centres which should not only be limited
to union matters but also to matters of social justice. 3. They should have visions and
mission to guide members on management expectation so as to avoid issues like
redundancies and retrenchment. 4. Unions have to guide their members on how to help
management cope with manage crisis e.g. financial problems of the organization 5. Union
should also promote multi-skilling of their members. 6. Union have to be pro-active rather
than being reactive by being trouble shooter and not trouble maker of the organization.
They should strive to maintain industrial team spirit in areas that need discussion. 7. Unions
have to start being innovative by updating themselves with new legislation and negotiation
skills. 8. Union should assist their members in promoting income generating activities such
as co-operative organizations. 9. Union have to diversify their recruitment constituent –
they should identify what kind of people to be recruited into the union. 38 10. Union have to
tailor workers education to address the issues of co-existence with management. 11. Unions
have a responsibility to train and retrain officials especially in areas of counseling which
should not be left to management alone. 39 TOPIC 6: THE FEDERATION OF KENYA
EMPLOYERS (FKE The Federation of Kenya Employers (FKE), which was first established in
1956 under the name of Association of Commercial and Industrial Employers, was
registered in January 1959 under the Trade Unions Act, Cap 233, as an Association
representing the collective interests of Kenya employers. The Federation of Kenya
Employers (FKE) is Kenya’s leading employers’ organization in advocacy, industrial
relations, employment laws and related value-add services through management,
consultancy and training. FKE has been representing employers’ interest both locally and
internationally since 1959. 40 Looking into the future, FKE is repositioning itself to continue
championing employers’ interests and strengthening partnerships with other stakeholders.
OBJECTIVE OF FKE 1) promote good relations between employers and employees through
their trade unions 2) encourage fair labour practices among employers 3) provide a forum
for consultation between and among members on matters affecting them 4) collect, collate
information statistics and advice members on their rights and obligations on employment
matters 5) initiates, promotes and support legislative measures which are likely to benefit
employers interests 6) presents advocate and defend their interest of employers generally
1. Scope of activities Social, labour and economic affairs, training and management
consultancy 2. Founding and registration of the organisation The Federation of Kenya
Employers (FKE), which was first established in 1956 under the name of Association of
Commercial and Industrial Employers, was registered in January 1959 under the Trade
Unions Act, Cap 233, as an Association representing the collective interests of Kenya
employers. 3. Historical overview Since its foundation, the FKE has developed as the
industrial relations system in Kenya has progressed. Now, the Federation has become an
essential partner in the country’s tripartite labour relations machinery, which includes the

18. Central Organisation of Trade Unions, the Industrial Court and the Ministry of Labour. The
FKE bargains directly on behalf of its members and, if necessary, appears for them at the
Industrial Court. 4. Present structure Subject to the overall control of the Annual General
Meeting of the Federation, the formulation and control of its policy is in the hands of a
broadly-based 41 Management Board which consists of the Chairman, two Deputy
Chairmen, three Vice-Chairmen, the Immediate Past Chairman and not more than twenty
four members elected annually by members in addition to co-opted members. The
Management Board is aided by an Executive Committee in the general administration of the
Federation. Other Committees include the Rural Employers’ Standing Committee, a Standing
Advisory Committee and various Branch Committees, all of which have distinct roles and
functions. The day-to-day management of the Federation’s affairs is in the hands of the
Executive Director, assisted by the Deputy Executive Director and a multidisciplinary team
of professional and administrative staff comprising management analysts, manpower
specialists, industrial relations specialists, personnel management experts, organizational
behaviourists, economists, legal experts and accountants. 5. Functions At present, the
overall objective of the Federation is to defend the employers’ interests, harmonize the
interests and to raise the social and economic consciousness of the employers in order to
enable them to realize the full potential of their enterprises by promoting increased labour
productivity, sound management techniques, better industrial relations, fair labour
practices, effective work organization and staff motivation. The bulk of the Federation’s
activities are in the field of employment, general representation of employers’ interests and
industrial relations. These activities, which are free of charge to members, involve in
particular: Representation of employers’ interests to relevant authorities on any policy
matter. 1. Promotion of the spirit of tripartism, involving the Government, employers and
workers in formulating and implementing social and employment policies as enunciated in
the Tripartite Industrial Relations Charter, or generally. 2. Provision of a forum for exchange
of views by employers. 42 3. Conducting of collective agreement negotiations between
employers and trade unions. 4. Representation of employers before both the Ministry of
Labour and Manpower Development and the Industrial Court. 5. Secretarial services: FKE
Executive officers assist members in negotiating with their trade union by providing up to
date data, acting as employers spokesperson in negotiations, drafting of CBA proposals or
counter proposals on behalf of employers and presenting CBA for registration in industrial
court 6. Dissemination of information. They keep its members well informed of
development in matters relating to employment e.g. changes in labour laws and practice.
The Federation also undertakes, on payment of competitive fees, general manpower
consultancy services consisting of: organizational analysis, identification of manpower
problems, preparation of staff manuals, installation of staff appraisal systems, undertaking
comprehensive job evaluation exercises, preparation of manpower plans, career paths,
succession plans and schemes of service, general personnel audits, and salary surveys.
General advice on labour, employment and economic matters. Representation of employers
in tripartite boards or other bodies. The Federation handles executive selection
assignments including advertising, short listing, interviewing, taking up references and, if
requested, medical examination of candidates. The courses cover a wide range of fields. The

19. Federation also prepares specialized studies on labour market issues and disseminates such
information to the general membership. The Federation is the sole representative of
employers on the following tripartite meetings: General Wages Advisory Board, Agricultural
Industry Wages Council, National Social Security Board of Trustees, Labour Advisory Board,
National Industrial Training Council and 15 Industrial Committees. 43 6. Membership
Membership of the Federation is open to trade associations and to individual enterprises,
large or small, engaging any number of employees both in the private and public sectors,
including local authorities in the form of the following categories: Individual Firms, Group of
Companies and Firms, Association of Employers and Statutory Bodies but excluding the civil
service and Teachers Service Commission. The total membership, including members of the
18 affiliated associations is about 3,000, with an aggregate workforce of approximately
500,000. 7. Affiliations The Federation is affiliated to the International Organization of
Employers (IOE) and the Pan-African Employers’ Confederation, and as the most
representative employers’ body in Kenya, is accredited by the Government to represent
employers at the ILO Conferences. 8. Publications FKE publishes a monthly Newsletter. 44
BEFORE COTU (K) – HISTORICAL BACKGROUND OF THE TRADE UNION MOVEMENT IN
KENYA The trade union movement in Kenya, which became an important feature of our
country’s life, is a child of economic, social and political strives. It has evolved through
difficult situations created mainly by the colonial government during that time which
persistently defended Employers in order to avoid seeing a strongly organized Trade Union
of the workers. However, with the change of attitude in the British Labour Policy in her
colonies resulted in the enactment of 1937 Trade Unions’ Ordinance which stipulated
conditions under which Africans could organize themselves into trade unions. After the
publication of the above Ordinance, three unions were registered in Kenya by the Registrar
of Trade Unions: 1. East African Standard Union. 2. Ease African Standard Staff Union. 3.
Labour Trade Union of East Africa. In 1940, the 1937 Ordinance was amended,
consequently the number of trade unions in Kenya rose from three to six. With the rising of
political tempo immediately after the end of the Second World War, the situation began to
change rapidly when Kenya African Study Group was formed which was later replaced by
Kenya African Union (KAU) which started agitation for the return of African land, better
wages and conditions and terms of service in Industry. As the situation continued to grow
tense, Makhan Singh organized an Asian Railway Trade Union in which he openly associated
himself with Africans despite the existence of colour bar and racial discrimination. He
associated with Fred Kubai and Chege Kebachia. More trade unions came into being such as
Nairobi Taxmen Union and General Maskini (Poor People’s) Union. 45 Pre-Independence
Period. The Pre-independence saw the emergence of a number of unions registered among
them were. Transport and Allied Workers’ Union, Domestic and Hotel Workers’ Union,
Quarry Workers’ Union, Night watchmen Workers’ Union, East African Federation of
Building Construction Workers’ Union and Tailors’ Union. This was followed by the
formation of a National Trade Union called the KENYA FEDERATION OF REGISTERED
TRADE UNIONS in 1952 with Aggrey Minya as the Secretary General. It was not registered
because it was a Federation of already registered unions. It was affiliated to the
International Confederation of Free Trade Unions (ICFTU) in 1952 and was receiving

20. advisory service from ICFTU. After the break of Emergency in October 1952, the Trade
Union movement suffered great setbacks because all leaders of several unions were
arrested and detained for allegedly being associated with MAU MAU. Tom Mboya became
the General Secretary of Kenya Local Government Workers Union and was later elected the
General Secretary of the Kenya Federation of Registered Trade Unions which gave way to
the formation of KENYA FEDERATION OF LABOUR (KFL). It is this period of KFL when trade
union movement was very exciting and militant and was in the fore front in the fight for
freedom in Kenya. More trade unions were registered. However, it is also at this time that
when rivalry for leadership almost ruined the movement. Nevertheless, the industrial
relations machineries were bad and the employer/employee relations grew worse. This
time also saw emergence of splinter groups, which was brought under control. One most
striking event was the erection of the workers Headquarters – SOLIDARITY BUILDING. The
greater part of the money, which was used for building the Headquarters, was raised by
Tom Mboya when he visited United States of America after his study at Ruskin College,
Oxford. The building cost was over Kshs. 700,000/= part of which was raised locally by the
workers. 46 TOPIC7: CENTRAL ORGANIZATION OF TRADE UNIONCOTU (K) FORMATION,
ESTABLISHMENT AND REGISTRATION IN 1965 1. FORMATION OF COTU (K) PERIOD –
1965 Prior to the formation of the Central Organisation of Trade Unions COTU (K) in 1965 a
negative occurred when confusion ensued in the labour movement being created by
splinter groups, which unsuccessfully tried to form the Kenya Trade Union Congress. These
splits continued until after Kenya had become Independent when the government was
forced to internee into the conflict by appointing a Presidential Ministerial Committee to
look into the matter with a view to 1. Review the trade union situation, 2. To make
recommendations on the policy contained in page 56 of Sessional Paper No. 10. African
Socialism and its Application to Planning in Kenya, which calls for “one central organisation
for trade unions in the country”. 3. To protect the workers and advance the interests of the
Nation as a whole. Ministerial Recommendations: The important recommendations were
-registered
Organisation of Trade Unions (Kenya)” -off system be compulsory for
all trade unions. These recommendations and other which are not listed here were
approved by the then President of Kenya. Since then, the membership of COTU (K) grew to
about 400,000 workers in the late 1980s. The number then declined with implementation
of the 47 Structural Adjustment Programmes and the effect of Globalization. However with
further organization COTU (K) membership has since shot-up to thirty-one (31) affiliates
with a membership of over 1.5 million. 2. ESTABLISHMENT AND REGISTRATION Central
Organisation of Trade Unions was established in 1965. Prior to its registration, the Kenya
Federation of Labour was the Apex Body of Trade Unions in Kenya. It is a registered
organisation under the Trade Unions’ Act – Cap 233 of the laws of Kenya. COTU (K) –
Current Organizational Structure 48 NDUSTRIAL RELATIONS DEPARTMENT The core
functions of any trade unions has been recruitment of members and handling their
grievances which is the mantle of the Industrial Relations department. The operations of
this department are guided by the Trade Disputes Act Cap 234, the Industrial Relations

21. Charter, existing labour laws and type International Labour organisation corrections. This
department has handled trade disputes of employees and affiliates. There are four main
dispute –
collective dispute – This involves a group of workers or their representatives and one or
more employers. Each and every claimant in this dispute must have the same kind of
– This involves the interpretation or application of an
existing right as laid down in labour legislation, collective bargaining agreement, an
– Involves a
claim for future rights and this normally result from a deadlock in collective barging
negotiations The d
grievances of both the members of our affiliates and nonmembers. Most of their kind of
affiliates disputes with employers as regards the collective bargaining agreement and its
Kenya Employers (FKE) and the Ministry of Labour and Human Resource Development on
MINISTRY OF LABOUR AND HUMAN RESOURCE DEVELOPMENT FUNCTIONS MINISTRY OF
LABOUR (AS PER
Safety at Work. Industrial Relations. Vocational Training Youth Polytechnics. Promotion of
self-employment
and Structure The following are the core functions of the Ministry of Labour and Human
Resource Development. 1. Promoting harmonious industrial relations in the country. 2.
Ensuring compliance with national and international labour standards,laws, and codes of
practice as well as review of labour standards and domestication of international standards.
3. Promotion of Occupational Safety and Health Services. 4. Human Resource Planning,
Development and Employment. 5. Judicial Determination of Industrial Disputes and
Registration of Collective Bargaining Agreements. 6. Development of the Micro and Small
Enterprises. 7. Provision of Labour market information . Provision of Industrial training 51
In addition to the above core functions the Ministry is also responsible for the promotion of
Productivity Improvement in all sectors of the economy. The newly established Productivity
Improvement Center that is managed jointly with the FKE and COTU performs the activities
under this function. Background The Ministry of Labour and Human Resource Development
is one of the oldest government ministries having existed, as a department of the Ministry of
Education, before independence. After independence it was made a full Ministry of Labour
with mandates of labour administration issues and industrial skills development. In
subsequent changes in the organization of Government a number of other functions have
either been added or transferred to other ministries. The current organizational structure
of Ministry of Labour and Human Resource Development was created in 1999 by merging

22. the then Ministry of Labour and the Ministry of Manpower Development and Employment
and the transfer of a number of functions from other Ministries to the enlarged Ministry.
Between 1999 and 2000 a Ministerial Rationalization and Staff Rightsizing exercise for the
Ministry was undertaken as part of the Government-wide Civil Service Reform Programme.
In line with the Government thrust of reducing the size of government, the rationalization
report recommended that the Ministry’s technical departments be grouped into two
Directorates and all the support Divisions be under one department of Finance and
Administration. These recommendations were based on the need to “re-align organizational
processes and procedures so as to minimize areas of unnecessary overlapping, duplication
of efforts, ambiguities and redundancies in operations.” In our view the grouping of the
technical departments into the two directorates reflected the correct focus on the core
issues that concern the Ministry of Labour and Human Resource Development, namely
Labour Administration and Human Resource Development. However some of the
recommendations that arose from the rationalization exercise have not yet been
implemented fully. The last reorganization of Government (prior to the preparation of this
52 Plan) was undertaken in July 2003 and the details thereof were specified in the
Presidential Circular No.3/2003. According to that Circular the Ministry of Labour and
Human Resource Development is r
iding mechanisms for speedy and fair resolution of
provide a healthy and safe working environment that encourages high levels of
ties for skills development to match the requirements of
creation of employment opportunities.Ensuring the implementation of the relevant
provisions in other international agreements such as the WTO General Agreement on Trade
labour market informa
requirements. 53 The mandates of the Ministry are intended to ensure that Kenya’s human
resources are fully developed, utilized and fairly compensated in order to ensure higher
productivity that will underpin our economy’s competitiveness. Goals and Objectives The
following are the Ministry’s goals: 1. Efficient Administrative Services for Efficient Service
Delivery 2. Timely provision of policy and planning services for effective decision making 3.
Prudent Financial Management 4. Provision of quality accounting services 5. Prudent
Procurement and Management of Stores 6. Prudent Management Human Resources in the
Ministry 7. Safe workplace 8. Optimum utilization of labour force 9. Adequate skilled
manpower for the economy 10. Development MSE sector in the country 11. Ensure
adequate facilities for vocational skills development,trade testing and certification 12.

23. Decent Work for All 13. Industrial peace and harmony Objectives The Ministry’s key
objectives include: 1. To provide comprehensive up to date labour market information
annually. To have well informed working population and support from stakeholders on
occupational health and safety by end of the plan period 2. To establish an up-to date
information system on occupational health and safety by 2006 54 3. Finalize review of laws
and codes of practice relating occupational health and safety to address the current
challenges 4. Establish skills development policy by 2006 5. Promote employment of
Kenyans within the country and in other countries. Modernize and upgrade DIVT centers
training facilities by 2005 6. Continuously improve competitiveness of MSE sector products
to both local and external markets 7. To increase coverage of workplace inspections by 90%
in 5 years 8. Clear the number of abandoned industrial court cases by the end of the Plan
period. TOPIC 9: INTERNATIONAL LABOUR ORGANISATION (ILO) CONVENTION. 55 The
ILO came into existence on 19th April 1919 after the World War I. In 1946 when the United
Nation Organization came into being ILO became the 1st specialised agency of the
organization. The ILO is a tripartite body constituting of representative from government,
employers and workers of member states. It is based in Geneva. Its primary duty is to set
international labour standards on laws and practice. Each year they look at various issues
affecting labour relation. They discuss and come up with labour standards in that particular
area to be achieved by the member countries. The international labour standards are
designed to protect the interests of employers, workers and governments in matters
concerning labour relations. The ILO passes other supplementary instruments collect that
support the implementation of the conventions. These recommendations only act as a guide
for nation and not for ratification. Kenya became a member of ILO in 1964 immediately
after attaining independence. By then Kenya indicated that it was going to be bound by ILO
convention that had been previously ratified on its behalf by the British government.
OBJECTIVES OF ILO 1. To achieve full employment and to raise standard of living. 2. To
provide employment to workers in the occupation in which they have the satisfaction of
giving the fullest measure of their skill and make their contribution to their common well
being. 3. To provide facilities for the training and transfer of labour. 4. To formulate policies
in regard to wages and earnings and other condition of work calculated to ensure a just
share of fruit of progress to all and a minimum living wage to all employed. 5. To get
effective recognition of the right of collective bargaining, co-operation of management and
labour in continuous improvement of productivity and collaboration of workers and
employers in social and economic measures. 6. To extend social security measures and to
provide a basic income to all in need of such protection and comprehensive medical care. 7.
To adequately protect the life and health of workers in all occupation. 56 8. To provide child
welfare and maternity protection. 9. To provide adequate housing and recreational
facilities. 10. To assure equality of education and vocational opportunity. The Structure of
ILO The members of the ILO are all independent states who are members of the United
Nation Organisation. The ILO consist of 3 principle organizations namely:(a) International
Labour Office. The International Labour office is located in Geneva. The Director General is
the Chief Executive appointed by the governing body for 10 years. He is assisted by 2
Deputy Directors and 6 Assistant Directors. One Director for internal institute for labour

24. studies and one director for international centre of advanced technology and vocational
training. (b) The Governing Body. This is a tripartite body consisting of 56 members of
which 28 represents government, 14 employers, and 14 workers. The period of this body is
3 years. The main functions of the body include:(i) To coordinate the work of the
organization. (ii) Draw up the Agenda of the International Labour Conference. (iii) Appoint
Director General. (iv) To scrutinize the budget. (v) To follow-up the implementation of
member states of the conventions and recommendation. (vii) To fix the dates, duration and
agenda of the regional conferences. (viii) To seek opinion from the international board of
justice on the direction of the ILO conference. 57 (c) The International Labour Conference.
This is also a tripartite body consisting of two representatives of government of the
member states and one representative for employers and one representative of workers
from the member states, Their main functions include:(i) To formulate international labour
standards (conventions). (ii) To fix the amount of contribution by each member state. (iii)
To select once in three years members of the governing body. (iv) To elect its president (v)
To ask the governing body to seek opinion from the international court of justice. (vii) To
decide the budget prepared by the governing body. (viii) To appoint committees to deal
with different matters during each session. (ix) To regulate its procedures. (x) To make
amendment of the constitution (xi) To confirm the powers, functions and procedures of
regional conference. ISSUES DISCUSSED IN THE ILO CONFERENCE. The annual general
meeting discuss the following:(i) (ii) (iii) (iv) (v) Hours of work. Issues of unemployment.
Maternity protection of women. Right work for women. Minimum age of admission into
employment mainly because of issues of child labour. (vi) Right work for young person. (vii)
Right of association e.g. through employers organization or workers organization (Trade
Unions). (viii) Social security e.g. pension schemes, workmen’s’ compensation, etc. (ix)
Occupational health and safety including other welfare of workers. (x) Weekly rest days.]
(xi) Medical examination. 58 From the above we can see that conventions are instruments
which guide employers, workers and government, the best practices of labour in order to
increase productivity. Core Conventions Significant to the Kenyan Situation. ILO have many
conventions when a state ratified the convention is bound to follow the rules set up by the
convention which will influence labour laws and practice. Many countries may not ratify the
convention due to:a) Lack of finance to implement. b) Some clauses may not be applicable in
the country situation because e.g. cultures and traditions. c) Many conventions do not hold
much significance because they relate to industries which are not important to the member
state. d) Trade Union Movement in some countries are too weak to exert pressure to their
government to accept the convention. The core convention which are of significance
include:(i) Convention Number 87 of 1948. This convention is for freedom of association
and protection of right to organizations it establish the right of all workers and employers
to organize, form and join association of their choice without prior authorization and lay
down a series of guarantees for the free functioning of organization without interference by
the public authority. (ii) Convention Number 98 of 1949. This convention is on the right to
organize and bargain collectively. It provides for the protection against anti-union,
discrimination and for protection of workers. It also protest against employers act of
interference and for measures to protect collective bargaining. (iii) Convention Number 100

25. of 1951. This convention is on equal remuneration for work of equal value. This convention
calls for equal pay for men and women for work of equal value. (iv) Convention Number
111 of 1958. This convention is for discrimination of employment and occupation. 59 This
convention calls for a national policy to eliminate discrimination in access to employment,
training and working conditions on grounds of race, religion, political opinion, social origin
and to promote equality of opportunity. Article 14 of the convention states that all parties
shall aim at abolishing any discrimination on grounds of race, colour, sex, beliefs, tribal
association or trade union affiliation including discrimination in respect of the following:(i)
Admission to employment (ii) (iii) Condition of work, health and safety. Participation in
collective bargaining and any negotiations. (iv) Wage or salary i.e equal pay for equal work.
(v) Engagement / promotion Further the government is expected to safeguard the health
and safety as well as welfare of working women and children. (v) Convention Number 29 of
1930 on Forced Labour. This convention requires the suppression of force or compulsory
labour in all its form. Certain exemptions are permitted such as convicts in prison, labour
which is properly supervised. Military service, emergencies such as fires, earthquake, etc.
(vi) Convention Number 105 of 1957 on Abolition of Force Labour. This convention prohibit
the use of any form of force or compulsory labour as a means of political coercions. It is
against punishment of political or ideological views or participation in strike. (vii)
Convention Number 138 of 1973 Minimum Age for Admission to Employment. This
convention aims at abolishing child labour by stipulating the minimum age for admission
for employment which shall not be less than the age of completion of compulsory schooling
or basic education. (viii) Convention Number 180 on Worst form of Child Labour (1999).
This is the latest convention as addition to fundamental convention which is calling for
immediate and effective measures to secure the prohibition and elimination of the worst
form of child labour as a matter or urgency. 60 RATIFICATION OF ILO CONVENTIONS. The
following should be noted in the case of all ILO conventions:Conventions are designed to be
ratified by the member state and hence creating binding obligations. Formal ratification of
all convention must be communicated to the ILO Director General for registration. A
convention is binding only to the members whose ratification has been registered. A
convention comes into fore 12 months after the date on which the ratification of 2 members
have been registered with the ILO Director General. A convention shall come into force for
any member 12 months after the date on whci hits ratification was registered. When a
convention is ratified and registered by the Director General it must be communicated to all
member state who have ratified the conventions. Decision to Ratify any Convention. The
final decision whether or not to ratify the convention or recommendation is reached by the
elected representatives of the people in parliament i.e. after recommendation by the various
competent authorities e.g. National Tripetite Labour Advisory Board which is the
composition of representative of employers, trade unions and government. Normally the
instrument will be submitted to competent authorities for evaluation and eventually for
ratification. Ratification is voluntary i.e. it is a free decision of each country. It carries with it
the legal obligation to apply the ratified convention through domestic law and to submit to
supervision by the appropriate ILO bodies e.g. committee of experts on the application of
standards or conference committee. Recommendations which are often the compliments to

26. conventions are guidelines for national legislations and practice and they are not subject to
ratifications. How Applicable are the ILO Conventions to Kenya. Kenya joined ILO in 1964
and she has since ratified. Some of the convention relating to work and has continued to
apply the convention in all or in part. The conventions are included in the labour
administration. 61 Other than the eight conventions there are other various conventions
and recommendations that Kenya as a national has ratified and these have impacted in
Kenya’s labour laws and industrial relation system. To what extent do the conventions and
recommendations affect Kenya’s labour administration system. 1. The conventions set the
standard and guidelines for international world of work national labour relations are
developed from these therefore the convention act as watchdog. The ILO cannot sanction
states for not implementation these conventions but it has instruments that can be used to
enforce sanction such as:- 2. (i) probing with other member state any member country that
violates the conventions. (ii) asking for yearly report to find out to what extent the
convention has not been implemented. (iii) making adverse report against the violating
member state. Conventions influence national labour standard by impacting on employee
relations, Human Resource Development system including training and development has
also impacted on labour practices, labour organizations, enforcement of labour and
industrial laws, contracts of employment especially on issues like dismissal and
termination, collective bargaining including grievance and dispute settlement, social
security in terms of workmen compensation, workers welfare, health and safety provisions,
provident pension schemes, gratuity arrangements, employability of old age, issues of
employment such as under employment, full employment and generally labour market the
convention has also influenced issues such as overtime, productivity, flexibility of labour,
mobility of labour, sexual division of labour especially accessibility of labour. It has also
impacted on issues such as maternity leave, annual leave, compulsory leave, sick lead and
all issues to do with terms and conditions of work. Constraints with regard to ratification of
ILO Standards. 1. Premature ratification of ILO standard i.e. ratification before ensuring
harmony between the countries labour laws with relevant provisions of the convention to
be ratified. 2. Problem of acute shortage of staff in the ministry with the requisite
knowledge on the standards. 62 3. Recent introduction of “social clause” in international
trade agreement in which the trading partners are expected to comply with ILO standard
and any alleged violation may result to sanctions. 4. Difficulties caused by economic
conditions which may lead to failure to implement such convention. 5. Several conventions
are based on different cultures and traditions of difference countries hence may be difficult
to implement in other countries. 63 TOPIC10: THE LABOUR LEGISLATION IN KENYA. 1. The
Labour Institution Act 207. 2. The Labour Relation Act 207. Issues of Termination Issues of
Wage Deductions. The Labour Institution Act 2007 The Act was enacted to provide for the
establishment of labour institutions and to provide for their functions, powers and duties
and other connected matters. The following institutions are established under the Act:1. 2.
3. 4. 5. The National Labour Board. The Industrial Court Committee of Inquiry. Labour
Administration and Inspection Wages Councils. The National Labour Board This board
composed of the following:a) b) c) d) e) f) g) h) i) j) k) l) A Chair Person General Secretary of
the Federation of Employers. Chief Executive of Federation of Employers 2 Representatives

27. of Federation of Employers. 2 Representatives of Federation of TU Not more than 2 other
independent members Director of Employment Director of Micro & Small-enterprises
development Director of Occupational Safety and Health Services Director of Industrial
Training Registrar of Industrial Court Registrar of Trade Unions. The functions of the board
is to advice the minister on the following:a) b) c) d) e) f) All matters concerning
employment and labour. Legislation affecting employment and labour. Any matter relating
to labour relations and trade unions. Any issues arising from the ILO and the ILO
Conventions. Codes of good practice. Any issues raised by an international or regional
association of state of which Kenya is a members. 64 g) h) i) j) k) l) m) n) o) Systems of
labour inspection and the administration of labour laws. Any aspect of public employment
services, vocational training and employment of persons with disabilities. The general state
of employment training and man power development in the country. productivity
measurement and improvement. The appointment of wage councils. The appointment of
members of Industrial Court. The setting of compensation benefits in accordance with the
provisions of the laws relating to work injury benefits. The registration, suspension and
deregistration of trade unions and employers organizations. Any other matter related to
any of the boards functions. The board shall in consultation with the minister from the
following committees:a) b) c) d) e) Work Permits Committee….