Employment Relation Notes - Ghana HRM Course PDF

October 4 EMPLOYMENT RELATION 2013 THIS IS A THIRD YEAR COURSE FOR HUMAN RESOURCE MANAGEMENT STUDENTS 3RD YEAR Contents PART I – INTRODUCTION AND PERSPECTIVES OF INDUSTRIAL RELATIONS............ 4 1.0 Introduction to Industrial Relation............................................................................................ 4 1.1 Related Terms........................................................................................................................... 4 Industry........................................................................................................................................ 4 2. Employer................................................................................................................................. 4 3. Employee................................................................................................................................. 5 4. Employment............................................................................................................................ 5 5. Labour Market......................................................................................................................... 5 1.2 Employment relationsSystems.................................................................................................. 5 1.3 Importance of Industrial Relations............................................................................................ 6 1.4 Objectives Of Industrial Relations............................................................................................ 7 1.5 Scope Of Industrial Relations................................................................................................... 7 1.6 Theoretical Perspectives of Industrial Relations....................................................................... 7 1.6.1 Unitarist Perspective.......................................................................................................... 8 1.6.2 Pluralist Perspective........................................................................................................... 8 1.6.3 Radical Perspective............................................................................................................ 8 1.7 ISSUES IN INDUSTRIAL RELATIONS................................................................................ 9 1.7.1 Freedom of Association..................................................................................................... 9 1.7.2 Tripartism and Labour Policy Formulation........................................................................ 9 1.7.3 The Role of the Law......................................................................................................... 10 1.7.4 Labour Courts................................................................................................................... 11 PART II – PARTICIPANTS IN EMPLOYMENT RELATIONSIN GHANA............................ 12 2.0 PARTIES IN THE EMPLOYMENT RELATIONS.............................................................. 12 2.1 MANAGEMENT AND EMPLOYERS AND THEIR ASSOCIATION............................... 12 2.2 Management and Employers................................................................................................... 12 2.3 Management Style.................................................................................................................. 13 2.4 THE GHANA EMPLOYERS’ ASSOCIATION (GEA)........................................................ 13 2.3 EMPLOYEES, TRADE UNIONS AND OTHER COLLECTIVE EMPLOYEE ASSOCIATIONS.......................................................................................................................... 17 2.4 TYPES OF EMPLOYEE ORGANISATIONS...................................................................... 17 1 2.4.1 Labour Unions:................................................................................................................. 17 2.4.2 Theories of Labour Union:............................................................................................... 18 2.4.3 Types Of Labour Unions.................................................................................................. 19 2.4.3.1 Business unions......................................................................................................... 19 2.4.3.2 Welfare organisations................................................................................................ 19 2.4.3.3 Life-embracing unions............................................................................................... 19 2.4.3.4 Ideological unions...................................................................................................... 19 2.4.3.5 Constitutional / government dominated unions......................................................... 20 2.5 TRADE UNION..................................................................................................................... 20 2.5.1 Functions Of Trade Unions.............................................................................................. 20 2.5.2 Factors that distinguishes trade unions............................................................................ 21 2.7 LABOUR ENTERPRISE TRUST COMPANY LIMITED (LET)........................................ 23 2.8 GHANA FEDERATION OF LABOUR (GFL) - A SECOND LABOUR CENTRE IN FORMATION............................................................................................................................... 24 2.9 THE STATE / GOVERNMENT (AND ITS AGENCIES).................................................... 25 2.9.1 The objectives of the State in employment relations....................................................... 25 2.9.2 The scope and methods of state intervention................................................................... 26 2.10 The Government/ State......................................................................................................... 26 2.11 National Labour Commission............................................................................................... 27 2.11.1 Meetings......................................................................................................................... 27 2.11.2 Functions of the Commission......................................................................................... 28 2.12 National Tripartite Committee.............................................................................................. 28 2.12.1 Regional and District Tripartite Committee................................................................... 29 2.13 INTERNATIONAL INFLUENCE ON INDUSTRIAL RELATIONS................................ 29 2.13.1 THE ROLE OF THE ILO IN INDUSTRIAL RELATION........................................... 29 PART III – PROCESS OF INDUSTRIAL RELATIONS............................................................ 31 3.0 COLLECTIVE BARGAINING.............................................................................................. 31 3.1 Nature of Collective Bargaining............................................................................................. 32 3.2 BARGAINING POWER........................................................................................................ 33 3.3 FORMS OF COLLECTIVE BARGAINING......................................................................... 33 3.3.1 Conjunctive Bargaining.................................................................................................... 33 2 3.3.2 Cooperative Bargaining.................................................................................................... 33 3.4 PROCESS OF BARGAINING............................................................................................... 34 3.5 Advantages of Collective Bargaining..................................................................................... 34 3.6 CONFLICT AND INDUSTRIAL DISPUTES....................................................................... 38 3.7 INDUSTRIAL ACTION........................................................................................................ 38 3.8 STRIKES AND LOCKOUTS................................................................................................ 39 3.8.1 What is strike?.................................................................................................................. 39 3.8.2 Purposes of Strike............................................................................................................. 39 3.9 Forms of Strike....................................................................................................................... 39 3.10 HOW TO REPORT STRIKE............................................................................................... 40 3.10.1 How to calculate Man Days Lost in Strike.................................................................... 41 3.11 PROHIBITION OF STRIKE OR LOCKOUT IN RESPECT OF ESSENTIAL SERVICES....................................................................................................................................................... 41 3.12 CRITICISMS AGAINST STRIKES.................................................................................... 41 3.13 Employers Reaction To Strike.............................................................................................. 42 3.14 PICKETING......................................................................................................................... 42 3.15 LOCKOUT........................................................................................................................... 43 3.16 What Justifies a Strike or Lockout Action?.......................................................................... 43 3.17 SETTLEMENT OF DISPUTES........................................................................................... 43 3.18 NEGOTIATION................................................................................................................... 45 3.18.1 Negotiation Procedures.................................................................................................. 45 3.19 MEDIATION PROCEDURES............................................................................................. 45 3.20 VOLUNTARY ARBITRATION.......................................................................................... 47 3.21 COMPULSORY ARBITRATION....................................................................................... 48 3.22 RESOLUTION OF DISPUTES FOR ESSENTIAL SERVICE PROVIDERS.................... 49 3.24 CONCLUSION..................................................................................................................... 51 References..................................................................................................................................... 53 3 PART I – INTRODUCTION AND PERSPECTIVES OF INDUSTRIAL RELATIONS 1.0 Introduction to Employment Relation Employment relations is used to denote the collective relationships between management and the workers. Traditionally, the term employment relations was used to cover such aspects of industrial life as trade unionism, collective bargaining, workers’ participation in management, discipline and grievance handling, industrial disputes and interpretation of labour laws and rules and codes of conduct. In the words of Salamon (1998), ‘Employment relations is a set of phenomena, operating both within and outside the workplace, concerned with determining and regulating the employment relation. In the employment relations, there are three parties: employees represented by the union, management/employers represented by the employers association and the state and it agencies. Employment relations itself may again be described as being concerned with the rules, processes and mechanisms (and the results emanating thereof) through which the relationship between employers and employees and their respective representatives, as well as between them on one hand and the state and it agencies on the other, is regulated. 1.1 Related Terms For better understanding of industrial relations, various terms need to be defined: Industry An industry is a group of firms that market products which are close substitutes for each other (e.g. the car industry, the travel industry) An industry could also be defined as ‘any systematic activity carried on by the cooperation between an employer and his workmen for the production, supply or distribution of goods or service with a view of satisfying human wants or wishes. 2. Employer An employer can be defined from different perspective as: A person or business that pays a wage or fixed payment to other person(s) in exchange for their services A person who directly engages a worker / employee in employment 4 Any person who employs, whether directly or through another person or agency, one or more employees in any scheduled employment in respect of which minimum rates of wages have been fixed. According to the Ghana Labour Act 2003 (Act 651), an “employer” means any person who employs a worker under a contract of employment. 3. Employee An employee is a person who is hired by another person or business (public or private) for a wage or fixed payment in exchange for personal services as part of an independent business. "A person in the service of another under any contract of hire, express or implied, oral or written, where the employer has the power or right to control and direct the employee in the material details of how the work is to be performed."- Black’s Law Dictionary (471:1979). 4. Employment Employment is a contract between two parties, one being the employer and the other being the employee. It is a state of being employed or having a job. 5. Labour Market This is a market in which workers compete for jobs and employers compete for workers. It acts as the external source from which the organisation attracts employees. 1.2 Employment relations Systems An employment relations system consists of the whole range of relationships among employees on one hand and between employees and employers on the other hand which are managed by the means of conflict and cooperation. A sound employment relations system is one in which relationships between management and employees (and their representatives) on the one hand, and between them and the State on the other, are more harmonious and cooperative than conflictual. Employment relations system operates at three levels 1. The enterprise or organisational level (within a particular organisation) 5 2. The industry level (within a particular industry) 3. The national level (within a particular nation e.g. between the Trade Union Congress, the Ghana Employers Association and the State) Thus the elements which reflects a sound employment relations system at all these levels are not necessarily the same. 1.3 Importance of Employment relations The importance of good industrial relation in any country can be seen in the following: 1. It helps establish and maintain industrial democracy. Industrial democracy is the involvement of staff in making decisions (through structures and processes) which involve the sharing of authority and responsibility in the workplace. This ensures better communication, job satisfaction, personal fulfilment and commitment to corporate objectives while reducing the number of industrial disputes. More recently, the terminology of "industrial democracy" has tended to give way to "employee participation and consultation", though it is clear that trade unions are unconcerned about the labels, rather they are interested in the substance of the influence that employees are able to exert over decision-making (Davis and Lansbury, 1995, p. 2). 1. High morale. Good employment relations improves the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employees and employers are one and the same i.e. to increase production. The efficiency of an industry is directly related with the quality of relationship, which is built up among the individuals who work together. In a good employment relations atmosphere, employers give unions their rightful recognition and encourage them to participate in all decisions. Unions divert their activities from strikes and antagonism to increase the productivity of the industry. 2. Reduction in Industrial Disputes. Disputes are reflections of the failure of the basic human motivations to secure adequate satisfaction. Good employment relations reduces industrial disputes. It encourages collective bargaining as a means of self-regulation and helps to promote co-operation. 3. It helps in economic progress of a country through uninterrupted and increased productivity. The most important benefit of employment relations is that it ensures continuity of production. This can only be achieved in a climate of industrial peace where there is a harmonious relationship among the industrial parties. This also means continuous employment for all. Resources are fully utilised, resulting in the maximum possible production. This is why industrial harmony forms an important part of the economic development plan of every civilized nation. 6 1.4 Objectives of Employment Relations 1. To avoid industrial conflict or dispute (strike or lockout) and develop harmonious relations which is an essential factor in the productivity of workers and the industrial progress of a country. 2. To preserve the interest of labour and management in the process of production by securing the highest level of mutual relations and goodwill between the two groups. 3. To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequency absenteeism. 4. To establish and nurture the growth of an Industrial Democracy based on labour partnership in the sharing of profits and of managerial decisions, so that ban individuals personality may grow its full stature for the benefit of the industry and of the country as well. 1.5 Scope of Industrial Relations The concept of employment relations has a very wide meaning and connotation. In the narrow sense, it means that the employer employee relationship confines itself to the relationship that emerges itself out of the day to day association of the management and labour. In its wider sense, employment relations include the relationship between an employee and an employer in the course of the running of the industry. It may include quality control, marketing, disposition of profit etc. The scope of employment relations includes: Collective bargaining Machinery for settlement of industrial dispute Workers participation in management Unfair labour practices etc 1.6 Theoretical Perspectives of Industrial Relations Many authors and practitioners have perceived employment relations differently. Some view it in terms of conflict while others view it as mutuality of interest of different group. There are three main perspectives in Industrial Relations. These are: 1. Unitarist 2. Pluralist 3. Radical 7 1.6.1 Unitarist Perspective In the Unitarist approach (Unitarism), the organization is perceived as an integrated and harmonious whole with the ideal of "one happy family", where management and other members of the staff all share a common purpose, emphasizing mutual cooperation. This perspective also has a paternalistic approach where it demands loyalty of all employees, being predominantly managerial in its emphasis and application. Consequently, trade unions are deemed as unnecessary since the loyalty between employees and organizations are considered mutually exclusive, where there can't be two sides of industry. Conflict is perceived as disruptive and the pathological result of agitators, interpersonal friction and communication breakdown. 1.6.2 Pluralist Perspective In pluralism the organization is perceived as being made up of powerful and divergent sub- groups, each with its own legitimate loyalties and with their own set of objectives and leaders. In particular, the two predominant sub-groups in the pluralistic perspective are the management and trade unions. Trade unions are deemed as legitimate representatives of employees; conflict is dealt by collective bargaining and is viewed not necessarily as a bad thing and, if managed, could in fact be channelled towards evolution and positive change. This view of employment relations looks at the nature of the capitalist society, where there is a fundamental division of interest between capital and labour, and sees workplace relations against this history. This perspective sees inequalities of power and economic wealth as having their roots in the nature of the capitalist economic system. Conflict is therefore seen as inevitable and trade unions are a natural response of workers to their exploitation by capital. 1.6.3 Radical Perspective This view of employment relations was the pronouncement of Karl Marx who looked at the nature of the capitalist society, where there is a fundamental division of interest between capital and labour i.e. those who own capital (employers) and those who supply labour (employees). He saw workplace relations against this history. Management’s main aim is profit, and control over work is enforced by management towards that aim. Industrial conflict is a natural and evitable part of the system and trade unions are a natural response of workers to their exploitation by capital. Collective bargaining is seen as a way of co- opting trade unions into the capitalist system. In summary, Unitarism emphasis the organisation as a coherent team united by a common purpose. Pluralism sees the organisation as an amalgamation of separate homogeneous groups within some kind of dynamic equilibrium. 8 Radical perspective is based on class analysis and class conflict in society 1.7 ISSUES IN INDUSTRIAL RELATIONS 1.7.1 Freedom of Association The fundamental premise of a sound employment relations system is the recognition and existence of the freedom of association accorded to both employers and workers. This freedom should include recognition of organizations of workers and employers as autonomous, independent bodies, subject neither to their domination by each other or by the government. Observance by states of the basic principles of the ILO Convention relating to Freedom of Association and Protection of the Right to Organize No. 87 (1948) is often regarded as the yardstick by which a country's recognition of this freedom is measured. In essence, the Convention postulates that workers and employers, without distinction whatsoever, have the right to establish and to join organizations of their own choosing with a view to defending their respective interests. The Ghana Labour Act 2003, Act 651 article 79(1) notes that every worker has the right to form or join a trade union of his or her choice for the promotion and protection of the workers economic and social gains. The Ghana Labour Act 2003, Act 651 article 79(2) however provides the exceptions to the law: The following workers may not form or join a trade union: a) Policy maker b) Decision making c) Managerial d) Holding a position of trust e) Performing duties that are of highly confidential nature; or f) An agent of a shareholder of an undertaking’ 1.7.2 Tripartism and Labour Policy Formulation Tripartism is the process through which the foundation for a sound employment relations system can be laid at the national level. Ideally, tripartism is the process whereby the government, the most representative workers' and employers' organizations as independent and equal partners, consult with each other on labour market and related issues which are within their spheres of competence, and jointly formulate and implement national policies on such issues. 9 However, this ideal situation is seldom reflected in practice, especially in developing countries or in societies with fairly authoritarian governments which believe that the direction of economic and social development is largely their responsibility. A more realistic model where developing countries are concerned is one in which a government consults the most representative employers' and workers' organizations on labour market and related issues which are within their spheres of competence, and takes account of their views in national policy formulation and its implementation. There are many examples of tripartite mechanisms at the national level, as well as informal applications of tripartism. In many countries there are minimum wage fixing bodies which reflect the participation of all parties, often leading to a consensus on minimum wages, and sometimes on other minimum terms of employment. In some countries (as in Australia in recent years), agreements are reached at the national level among the three partners (employee, employers and government) after a process of bargaining on important social policy issues. Acceptance of the principle of sharing power entails recognition of the fact that capital and labour represent two important pressure groups in society, if for no other reason than that both of them taken together are the principal providers of goods and services and wealth-creators in a market economy. The Government of Ghana has been practicing tripartism in Employment relations even before the enactment of the first Employment relations law in 1958. In this regard the Government established two committees which provided two forums for consultations among the social partners. These were the Tripartite Committee on salaries and wages Guidelines which discussed among other things issues of national interest and then the determination of the national minimum wage and also the National Advisory Committee on Labour which advised the Minister on all matters of policy and all proposals for legislation affecting labour relations in Ghana. These two Tripartite Committees have been fused into one “National Tripartite Committee”. 1.7.3 The Role of the Law Employment relations systems are founded on a framework of labour law which exerts an influence on the nature of the employment relations system. However, recourse to the law and its potential to influence the resulting employment relations system may sometimes be over- emphasized. It is useful, therefore, to examine, from three points of view, the role of the law in influencing an employment relations system - what its objectives should be and the areas it should cover, as well as what the law cannot achieve. The three main functions of the law in an employment relations system are auxiliary, regulatory and restrictive. 10 The auxiliary function is the support that the law gives to the autonomous system of collective bargaining, its operation and observance of agreements. The second function (regulatory) is one of providing a set of rules governing the terms and conditions of employment and supplementing those created by the parties themselves. The greater the coverage by collective bargaining, the less will be the regulatory function of the law. The third function (restrictive) prescribes what is permitted or forbidden in industrial conflict with a view to protecting the parties from each other, and the public from both of them. One major objective of labour law is to create the legal framework which is necessary for employers, workers and their organizations to function effectively and as autonomous groups in the employment relations system. Hence the law should protect the freedom of association so that the two parties are accorded the protections and guarantees found in the ILO Convention on the Freedom of Association and Protection of the Right to Organize No. 87 (1948). Since one of the major purposes of such association is to enable workers and employers to protect and further their interests, the law should also provide the legal framework needed to promote collective bargaining. In this connection the ILO Convention on the Right to Organize and Collective Bargaining No. 98 (1949) would provide the necessary basis for such legislation. 1.7.4 Labour Courts The agents of change in employment relations are usually trade unions, employers and their organizations, governments through legislation and administrative action, and the system of courts which may be a combination of the normal courts and special courts or tribunals set up to deal with matters pertaining to labour. These special courts vary in nature from country to country. They include labour courts and tribunals and arbitration systems. Labour courts have been established in several countries because the normal system of courts and the system of law they administer cannot adequately deal with labour relations issues, which require an equitable rather than a purely legal approach. Therefore labour courts are often empowered to decide employment relations issues on a mixture of equitable and legal principles. For instance, a demand for higher wages cannot in many legal systems be decided by the civil courts except on the basis of what has been contracted for or has been prescribed by a statute if any; in short, only as an enforcement matter. Courts and tribunals have generally not been a major factor in bringing about change in employment relations in industrialized countries. The role of the 'courts would normally be limited to their powers of interpretation, which do not provide much scope to effect major changes in industrial relations. 11 As in the case of legislation, the role of the courts can have little impact on the basic attitudes of management and workers towards each other at the enterprise level and can, therefore, do little to improve relations as such. PART II – PARTICIPANTS IN EMPLOYMENT RELATIONSIN GHANA 2.0 PARTIES IN THE EMPLOYMENT RELATIONS The parties in the employment relation are: management / employers and their associations, trade unions and other collective associations of employees, and the state and its agencies. The parties will be looked at separately and into details. 2.1 MANAGEMENT AND EMPLOYERS AND THEIR ASSOCIATION 2.2 Management and Employers The word ‘management’ can be used in two different ways: first to distinguish those members of the organisation who usually have some formal authority over other employees and, second, to describe a set of activities that are concerned with running an organisation. In employment relations, the term is more often used in the first way. Thus management will be used in this regard to refer to line management or staff management. Line management: members of an organisation who normally have formal authority over other employee. Staff management: those managers in specialist roles who advise line managers, or act on their behalf. Apart from sole proprietorship and small enterprises, ownership of enterprises is divorced from management. In such cases, management acts as agency of the ultimate owners i.e. management has a duty of stewardship to protect/safeguard and advance the interest of shareholders. The term ‘employers and managers’ is used to denote the general characteristics of management, who act as the agent of the owners of the firm. Although some managers would argue that they too are only employees, most would also assert that because they are given control of resources (which includes employees) and made responsible for their efficiency and effective utilisation, this makes them different from other workers. Therefore to some extent, it is the manager who will be held responsible for the conduct of employment relations. 12 In addition to managers/ employers as agents of owners, there is also another potentially significant party that is strongly connected to the process of managing. This is the employers association which is an organisation of employer that exists for the purpose of regulating relations between employers and employees, or trade unions. 2.3 Management Style The expression management style has a particular meaning in employment relations. This is quite different from the way it is used in other subjects such as organisational behaviour, where it is most often employed to distinguish between different leadership styles. In employment relations, style is used in a more global way to refer to a manger’s preferred approach to handling employment relations, which reflects the way that he/she exercise authority over subordinates. While managers have a variety of ways of influencing the actions of employees, they are also likely to inject their own ideas, values and beliefs into the processes used to manage people in organisations. The origins of these ideas and beliefs often lie in the extent to which they perceive that they have a legitimate right to exercise authority over employee actions. The original scheme for describing style was devised by Alan Fox (1966) who drew a fundamental distinction between two contrasting management frames of reference: Unitarist and pluralist. Managers with a Unitarist frame of reference make the assumption that an organisation is basically an integrated and harmonious whole. These managers are likely to see any conflict in the organisation as unnecessary, unnatural and probably the result of otherwise loyal employees having been led astray. Conversely, with pluralist managers, the organisation is assumed to consist of a number of competitive groups, all of whom legitimately have different interests to pursue. As such there is always some potential for conflict to exist, and more importantly, such conflicts can have a positive function if it is harnessed and managed through effective employment relations institutions and procedures. 2.4 THE GHANA EMPLOYERS’ ASSOCIATION (GEA) The Ghana Employers’ Association was established in 1959. The need for the Association was to consolidate Employers into one joint body; represent and promote their interests in their dealings with organized labour and Government; and also to promote good working relations between employers and their employees. The Mission Statement of the Ghana Employers’ Association has been as follows: To proactively support and promote the economic and social interests of employers and employers’ organizations through the provision of top quality advisory, consultancy and advocacy services; primarily in the areas of labour relations, human resource 13 management and organizational development; thereby enhancing flexibility; productivity and competitiveness in a changing business environment The objects of the Association as laid down in its Constitution and Rules are as follows: (a) To watch over and keep members informed on the operation of existing laws and practices, the activities of Government and Government Committees and all legislative proposals which may affect or tend to affect the interests-of employers, in industrial matters, and to take such action as maybe necessary or expedient with regard thereto. (b) To provide the machinery of nominating suitable employer representatives to Committees or Delegations as and when considered desirable. (c) To co-operate with any organization of Employers, international or otherwise, or become a member or associate thereof, whose main objects are similar to those of the Association. (d) To provide a means of consultation and exchange of information on questions arising out of the relations between Employers and their workpeople, and to promote co-operation when possible in this field between Associations of Employers in various industries, trades and business in Ghana and between individual Employers. (e) To collect from members such statistical and other data as may be deemed to be necessary or desirable for study of the wages structure and conditions of employment obtaining in Ghana, and to collect from other appropriate sources statistics and other data which may have relevance to industrial matters in Ghana. (f) To bring to the notice of members important labour laws, regulations and administrative instructions affecting Employers and their workers. (g) To do all things as are incidental or conducive to the attainment of the above objects, provided that the Association shall not act in such a way as to interfere with complete individual autonomy and independence of its members in the conduct of their affairs, or in a manner which would constitute it as a Trade Union, and further provided that the Association shall not communicate to any outside body any information furnished to the Association by any member except with that member’s consent. ‘In practice, therefore, the Association consolidated Employers and organization of Employers into one joint body; represents Employers’ interests to Government; promotes good relations and better understanding between Employers and Employees; and assists affiliated Employers or organizations of Employers in negotiations with organized labour’ (Obeng-Fosu:2002). The governing body of the Association is a Council that controls its affairs. The membership is not more than forty (40) representatives as follows: 14 (i) One for the Group with Mining Interests; (ii) Four for the Group with Commercial Interests; (iii) Two for the Group with Shipping/Port Interests; (iv) Two for the Group with Timber Interests; (v) Two for the Group with Building and Civil Engineering Interests; (vi) Two for the Group with Banking/Financial Interests; (vii) Two for the Group with Petroleum and Power Interests; (viii)One for the Group with Press and Publishing Interests; (ix) Two for the Group with Agricultural and Fishing Interests; (x) Seven for the Group with Manufacturing Interests; (xi) Two for the Group with Airways/Inland Transport Interests; (xii) One for the Group with Insurance Interests; (xiii)One for the Group with Hotels, Catering and Tourism Interests; (xiv) One for the Group with Pharmaceuticals Interests; (xv) One for the Group with Information Communication Technology Interests; (xvi) One for the Group with Education and Learning Interests; (xvii)One for the Group with Healthcare Interests; (xviii) One for the Group with Small and Medium Scale Enterprise and Organizations with Diverse Interests; (xix) One for the Group with Life and Property Security and Protection Interests (xx) One for the Group with Utility Services Provision Interests; (xxi) The remaining seat may be allocated by Council to a representative of members whose interests are not represented or inadequately represented. Members of the Council are elected every second year at an Annual General Meeting. Each Employer’s Group is to elect from within the Group its allotted number of representatives of the Council. A member wishing to be elected to the Council has to send the name in writing to the Executive Director, at least seven days before the date fixed for the Annual General Meeting. The Council meets as often as it deems necessary or desirable, and not less than four times a year. Quorum for meeting shall be twelve (12) members and that for a General Meeting (Annual or Special) fifteen (15) members with such members present and voting. Each Council member present shall have one vote. Officers of the Association 15 The Association has an elective President and Vice President, who hold office for two years. The President chairs over meetings of the Council and Executive meetings and in his absence, the Vice-President presides over meetings. The Council appoints the Executive Director who is responsible for the day-to-day administration of the Association and carries out such duties as may be assigned by the Council from time to time. The Executive Director is accountable to the Council. The Council has the power to appoint other Executive staff but who shall be responsible t o the Executive Director in the performance of their duties. However, other subordinate staffs are appointed by the Executive Director. ‘Below is part of the speech delivered by Mr. Kojo Botsio, then Minister responsible for Labour Matters, at the inauguration of the Employers’ Association of Ghana in January, 1959. “The Government welcomes the formation of this Association, the lack of which has been long felt by Government and workers alike……..Good employment relations are based on a tripartite foundation of the Government… Government attaches the greatest importance to industry peace and stability and hopes the work of your Association will help in our objective in intensifying the economic reconstruction of our country. The Association is represented on the National Advisory Committee on Labour, the Tripartite Committee on Salaries and Wages Guideline. The Association is also a member of the Tripartite Delegation to Africa Union Labour Commission Conference and the International Labour Organization Conference and, also of all national and international labour conference, where Employer participation is required’ (Obeng-Fosu : 2002). The GEA also provides many services to its members as well as all employers, at both local and international levels. These include: 1. Collective Bargaining Advice 2. Settlement of Industrial disputes 3. Employee Reward and Compensation Advice 4. Employee Performance Appraisal 5. Human Resource Audit 6. Remuneration Survey 7. Employee Training and Development 8. Outsourcing/Rightsizing Services 9. Executive Selection 10. Enterprises Development/Restructuring Members also have access to the following materials: 16 11. Management of HIV/AIDS at the Workplace 12. Legislation and Government Policy Affecting Labour/Industrial Relations 13. Library rich with literature in Human Resource Management/Industrial Relations. The GEA publishes a quarterly newsletter, The Ghanaian Employer, which reviews the activities of the Association, especially significant events on the industrial relation scenes, consumer price index and other economic data for the information of members. 2.3 EMPLOYEES, TRADE UNIONS AND OTHER COLLECTIVE EMPLOYEE ASSOCIATIONS In employment relations, trade unions are by far the most significant form of collective employee association. The evolution of trade union has generally been perceived as a power response to managerial authority (Miller&Form 1969: 368). Max Weber defines power as “the probability of securing obedience”. However, trade union is an example of one of the types of employee associations. 2.4 TYPES OF EMPLOYEE ORGANISATIONS Labour unions (This will be treated in details) Professional societies: any organisation which directly aims at the improvement of any aspects of professional practice e.g. by providing a qualification, by controlling conduct, by coordinating technical information, by pressing for better conditions of employment (Millerson, 1964) Staff Association: a voluntary in-house collective association that caters for particular employees, mainly salaried staff, who all work for the same employer. Internal employee forum: this is a management –initiated employee body, such as a company committee. 2.4.1 Labour Unions: Miller & Form (1969: 297) defined labour union as one of the number of possible organisational responses to unstable situations generated in all large scale organisations and characterise by technological, economic and social changes. Trade Unions are one of the formal organisations which forge to meet emerging problems as an organisations increase in size, heterogeneity and complexity. 17 2.4.2 Theories of Labour Union: Industrial sociologists have tried to develop a general theory which takes into account the common factors responsible for the emergence of all types of employee associations as well as specific explanations which accounts for the appearance of special types of associations. Up to date, not much progress has been made. Perlman (1949) has attributed the emergence of labour unions to the tendency of workers to achieve job control and job ownership. He examined work rules such as hiring, firing, discipline, lay-offs, apprenticeship training, sharing work, re-allocating hours of work and techniques to protect the jobs, he suggests that the consciousness of job scarcity underlies the union movement – predominantly in America. He asserts that the American worker is concerned with the development of pragmatic goals and not political actions. Tannebaum in 1951 proposed a second theory. He attributed the emergence of trade unions to the drive on the part of the workers to create a collectivity similar to the medieval guilds. He believes industrialisation has alienated the worker from his job and from society. Workers thus, attempt to create a community (labour unions) in the work place in an attempt to minimise his loss of security. The consequence of this activity is the creation of estates which carefully defines the rights and duties of all participants. Tannebaum is of the view that economic drives are secondary to trade unions’ effort to create a meaningful community. The third theory was from the British perspective and emphasized labour’s efforts to reduce the negative impact of economic competition. This was introduced by Webb and Webb in 1926. One of their suggestions is that the adverse effects of economic conditions mostly affect workers. Hence the workers form a solidarity organisation with principles of common rule to regulate conditions of employment and restrict the number of workers in a given field. These goals are achieved by the unions through economic and political means. Moore (1960) made an attempt at a general theory for emergence of all Trade Union by reviewing the existing theories. He concluded that each of them may be correct for different types of unions in different historical epochs. He suggests that the basic question concerns the type of cohesion which binds workers together. It could be plant, the industry, the craft, occupation or general social rank. Thus Perlman’s theory may account for the rise of craft 18 unions in a mature industrial society while Webbs may explain the development of class- conscious (social rank) unions in the middle stages of industrial maturity (Miller and Form, 1969:299). Moore notes that the groups may differ economically, socially and politically but they all have one thing in common: - attempting to control external conditions (socio-political conditions). 2.4.3 Types of Labour Unions Dubin (1958) identified three main types of unions in the United States – Business Union, Welfare Union and Life embracing Unions. Neufeld (1960) added a fourth one, the Ideological Union. Constitutional/government Unions may be regarded as the 5th type. 2.4.3.1 Business unions These are run by staff whose primary function is to increase the economic well-being of the members. They are business or wage oriented unions. 2.4.3.2 Welfare organisations This type seeks economic improvement as well as welfare services of the union and the government. They supplement the wages of the workers through Insurance and fringe benefits from employers and also get governments to broaden their social security provisions. The Welfare organisation provides direct services like hospitals, clinics, credit unions and counselling. 2.4.3.3 Life-embracing unions This is a central institution in the life of the worker and seeks to help him in every way that is why it is called Life-Embracing. This type of union was identified by Dubin and supported by Seidman et al as being the character of the United Mine workers in US.{this type of organisation is often found in a small one- industry community 2.4.3.4 Ideological unions This group is concerned mostly with the social improvement of their members as compared to the growth or improvement of the economy. They have an ideology or dream of how the society should be and tends to support governments with the same ideology. [Political nature of TU], such groups are prevalent in countries like Germany, France and Italy. Examples; Catholic trade unions embrace the principles of the church and endeavour to ‘put’ or ‘keep’ the ‘catholic party’ in power. 19 Communist Trade Unions support the programs of their party first and then consider the achievement of specific local government objectives Democratic Trade unions have their own ideologies but tend to be less affiliated directly to political parties. Neufeld came out with his belief that Trade Unions’ arise and persist in countries with low levels of technology where government primarily determine economic development. In such settings the unions’ goals are attainable only through political achievements. 2.4.3.5 Constitutional / government dominated unions This is where governments intervene in the affairs of the labour Unions. Such types of Unions exist in third world countries. The Unions are government dominated and form part of government administrative structure and control apparatus of the state e.g. Ghana; governments role in the formation and promotion of unionism in Gold Coast and during Nkrumah’s rule after independence. 2.5 TRADE UNION A trade union is an organisation of workers that have banded together to achieve common goals such as better working conditions. Trade unions through their leadership, bargain with employers on behalf of union members and negotiate employment contracts with employers. The purpose of trade union is to protect and improve the interests of union members, vis-a-vis those of management or the employing organisation. 2.5.1 Functions of Trade Unions The functions of trade unions refer to the methods used to achieve their aims, which can vary considerably from one union to another. Some for example, may rely on collective bargaining to advance and protect their members’ interest, whereas others may seek to change employment laws through political lobbying. Some unions favour a partnership arrangement with employers as the best means to achieve their purpose, while others eschew the very idea of cooperating with management. However, while it is sufficient to note that there are many ways in which even very similar aims can be pursued, there are four broad classification that help explain the diversity of union functions: 1. Economic regulation: this broadly consists of securing the highest possible real wages for their members in order to counteract the vulnerability of individuals in the labour market (Hyman, 2001) 20 2. Job regulation: this is where union representations become joint authors of the rules and procedures that govern employment in a firm e.g. rules to specify working hours, equal opportunities or health and safety obligations (Hyman, 2001) 3. Power holding: this is a function of acquiring power relative to management, so that it is capable of taking retaliatory action in pursuing its objectives. (Hyman, 2001) 2.5.2 Factors that distinguishes trade unions Miller and Form (1969) have identified 5 factors that distinguish trade Unions. These are: i. The particular objective of the trade union: this vary in specificity, content and priority (i.e. whether economic, political or social goals) ii. How they articulate to other segments of society: this depends partly on their legitimacy and status. Unions could be independent of government, business or church or part of a larger structure) iii. Their distinctive internal structure: Unions’ structure could be organised around plant, industry, occupation or class. iv. Their sources of strength: economic strength e.g. large treasuries or property, sympathy, the government, intellectuals or church v. The types of tactics they use: either legalistic, orderly processes or violent clashes. 2.6 History of trade union congress The Trades Union Congress (TUC) of Ghana was formally inaugurated in 1945 when the existing 14 unions registered under the Trades Union Ordinance of 1941 came together under a central coordinating body. Associations of workers for mutual protection had existed in the Gold Coast from about the 1920s, but organized trade union activity is usually dated from 1941 when the Trades Union Ordinance provided for the registration of unions, which could be formed by any five workers. The 1941 Ordinance, however, did not confer bargaining rights on the unions. Employers could agree or refuse to negotiate with their employees. Four years after the formation of the Trades Union Congress, a militant nationalist party, the Conventions Peoples Party (CPP) was formed. The CPP was devoted to seeking immediate self government, and the ending of colonial rule in the Gold Coast. The party courted organized labour, many union leaders were active in the party, and there appeared to be some coordination of activities between the party and the unions. Thus although a general strike called by the Congress in 1950 was ostensibly to protest against 21 dismissals in the Meteorological Department, the demands made by the workers included a call for the immediate grant of Dominion Status to the Gold Coast; and a day after the outbreak of the strike, the CPP decided to embark on a “positive action” campaign for immediate self- government. The collaboration between the Congress and the CPP appeared to pay off when the party led the country to independence in 1957. A year after independence, the CPP-led government introduced the Employment relations Act of 1958 (Act 56) designed to strengthen trade unions in Ghana. The 1958 Employment relations Act gave legal backing to trade unions for the first time. It gave legal recognition to the Trades Union Congress as a corporate body. It made collective bargaining compulsory, and the provisions of collective bargaining agreements legally binding on employers and workers. It gave legal backing to the check-off system under which trade unions dues were deducted at source. An amendment in 1959 made it impossible for any union to stay outside the TUC's new structure. The CPP government also passed the Civil Service Act and the Civil Service Interim Regulations of 1960 which had the effect of making trade union membership compulsory for all civil servants. This was intended, among other things, to strengthen the financial standing of the TUC. In 1958 the government provided the TUC with the building which houses its Headquarters as a “tribute to the contribution that Ghana labour has made in our struggle for liberation.” The Employment relations Act of 1958 was replaced by the Employment relations Act of 1965 which remains the principal instrument governing employment relations in Ghana. [A new Labour Code has been prepared but yet to be enacted.] The 1965 Act echoed the 1958 Act, including the provision making the TUC the sole representative of the trade union movement in Ghana. This monopoly status has been criticized as contravening ILO Convention No. 87, and the country’s constitution. The proposed new Code seeks to make changes in this area. Collaboration between the TUC and the CPP government did not only produce benefits for the labour movement; it also entailed costs in terms of a loss of independence. From about 1959 onwards, the CPP regarded the TUC as a wing of the party and felt free to interfere in union matters in several ways, including making appointments to leadership positions in the TUC. This generated resentment among some unionists, and the difficult economic situation in the mid-1960s turned many rank-and -file workers against the government. When the CPP government was overthrown by the military in 1966, many workers welcomed the change. The arrival of Ghana’s first military regime, however, represented a setback to the TUC in some respects. Some of its leaders were arrested and held in custody for a while, and the new government, the National Liberation Council (NLC), repealed section 24 of the Civil Service Act of 1960, which made trade union membership compulsory for civil servants. This naturally led to a loss of membership. Membership in the Public Services Workers Union fell from 40,000 in January 1967 to 26,000 by June 1968 (Arthiabah and Mbiah, 1995). 22 The NLC also implemented an IMF-supported stabilization programme which involved the retrenchment of an estimated 60,000 workers in state-owned enterprises over the period 1966-67. These developments adversely affected the financial position of the TUC. The TUC was to suffer an even more serious setback with the return to civilian rule in 1969. The party which won the 1969 elections had been in opposition to the CPP before and after independence. It was not known to be a natural ally of workers and their unions. Indeed the claim was made that many of the party’s leaders had “a class-based disdain for union leaders”. There was soon to be cause for confrontation between the government and the TUC. At the third biennial congress of the TUC held in August 1970, a resolution was passed calling for a 100 percent increase in the minimum wage (from C 0.75 to C 1.50). The request was turned down by the government as unreasonable and potentially inflationary. Given the initial mutual suspicions, and fearing that a national strike might be called to support the demand for an increase in the minimum wage, the government decided to strike first at the TUC. On 13 September 1971, under a certificate of urgency, Parliament passed the Industrial R elations (Amendment) A ct 1971 (A ct 383) to replace the Employment relations Act 1965 (Act 229). The new Act dissolved the TUC with immediate effect and empowered the government to appoint a board of receivers to dispose of all the properties of the TUC. The government argued that the TUC as set up by the Employment relations Act of 1965 was undemocratic and an infringement on the rights of workers to associate freely. The new Act, therefore, in addition to dissolving the TUC provided that: “Any group of trade unions shall have the right to constitute themselves into any association, federation, confederation or congress of trade unions for the attainment of their common aims.” There can be no doubt that the primary motivation for introducing the Employment relations Act of 1971 was to disorganize and weaken the labour movement. However, the government was able to claim that the Act of 1971 was for the “purposes of protecting the rights or freedoms of other persons in terms of the spirit of the constitution”. This claim was justified by the legitimate criticism of the monopoly status conferred on the TUC by the 1 965 Act. The military took power again only four months after Act 383 was passed. The new rulers who came into power in January 1972 promulgated the Employment relations (Amendment) Decree of 1972, which repealed the 1971 Act and restored the Employment relations Act of 1965 and the TUC. 2.7 LABOUR ENTERPRISE TRUST COMPANY LIMITED (LET) The Trade Union Congress (TUC) launched a twenty five billion cedis Labour Enterprise Trust Company Limited (LET) during the latter part of 1996. This was the outcome of a five-day workshop involving top officials of Trade Unions and representatives from the media to brainstorm the strategies, held at Koforidua from Monday, June 5, 1995, with the support of Friedrich Ebert Foundation (FES) of Germany, the HISTADRUT of Israel and the Israeli Labour Federation. The proposal was adopted by the 5th Quadrennial Congress of the TUC at Cape Coast in August, 1996. Workers are to buy shares of ¢2,500.00 up to ¢50,000.00 (Obeng-Fosu, 23 2002). Even though the labour movement is not primarily charged with the responsibility to create jobs, it accepted a challenge thrown by President Rawlings in his sessional address to the first parliament of the fourth Republic in 1994 for Trade Unions to join in job-creation activities to help alleviate the plight of the unemployed. This is the second time the TUC, in the 50 years of existence of the labour movement, is making an attempt to establish business ventures. The TUC pointed out that since Trade Unionists are not businessmen, they were prepared to employ high calibre business oriented persons to manage their businesses. 2.8 GHANA FEDERATION OF LABOUR (GFL) - A SECOND LABOUR CENTRE IN FORMATION Eight (8) Labour Associations, not affiliated to the Ghana Trades Union Congress organized a two-day Workshop, under the theme, "Re-organizing to Face the Challenges of the 21st Century", on 10th and 11th November, 1997, at the Teachers Hall, Accra. The aim of the workshop was to form the Ghana Federation of Labour (GFL), the second labour centre in the country (Obeng-Fosu, 2002). The Associations/Unions are the Ghana National Association of Teachers (GNAT), the Ghana Registered Nurses Association (GRNA), the Judicial Service Association of Ghana (JUSAG), Civil Servants Association (CSA), the Textiles, Garments and Leather Employees Union (TGLEU), Lotto Receivers Union, Co-operative Transport Association and the Tailors and Dressmakers Association. The Workshop was sponsored by the Democratic Organization of African Workers Trade Union (DOAWTU), which has its headquarters in Lome, Togo, and an affiliate of the World Confederation of Labour (WCL). According to Obeng-Fosu (2002), the first four Associations/Unions now negotiate with Government (Employer), under the Public Services (Negotiating Committees) Law, 1992 (PN DL L. 309). Textiles, Garment and Leather Employees Union (TGLEU) is the 18th registered Trade Union, under the Trade Unions Ordinance of 1941 (Cap.9l), but not affiliated to the Trades Union Congress. It, however, has Collective Bargaining Certificate (which it applied for through the TUC) and negotiates under the Employment relations Act, 1965(Act 299). The remaining three Associations/Unions are Informal Sector Operators’ Unions and do not have direct employers, since they work on their own account. In his Welcome Address, Mr. Paul Osei-Mensah, General Secretary of GNAT, said the idea behind the formation of the Federation was to bring together workers who are not under the protection of the TUC. He said the Federation would not compete with.the TUC, but rather work 24 together with it to exert greater pressure on the Government and provide better protection for all workers. Alhaji Mohammed Mumuni, M.P., Minister of Employment and Social Welfare, in his Address, read for him by Mr. F.B. Aasoyir, Director of Finance and Administration of the Ministry of Employment and Social Welfare, said the Government was not against Trade Union pluralism, but what Government did not want was the pursuance of pluralism in Union organization for the mere sake of it. He continued that government would not presume to dictate the pace or direction of Trade Union development but would ensure that workers’ organizations were nurtured to serve the interest of their members, the social partners and society as a whole. Ile hoped that the emergence of any organized workers’ body would not introduce rivalry, rancour, dissention or other disruptive tendencies in labour organizations in the country. He advised the new Centre, when finally and firmly established, to have harmonious working relations with the TUC, which has rich experience at defending and protecting the working people of Ghana. The Workshop was attended by Mr. Adrien B. Akuoete, Deputy Secretary-General of DOAWTU, who stressed the need for Trade Unions to establish strong financial bases to meet the dictates of the time. However, the Civil Servants Association has withdrawn its membership from the Ghana Federation of Labour, and so has the Ghana National Association of Teachers (GNAT). 2.9 THE STATE / GOVERNMENT (AND ITS AGENCIES) This is the third important player in employment relations. The state consists of the government of the day and includes all those agencies such as the civil service, the police, the judiciary and military who carry out its will. Governments of all nation-states pass laws that influence how managers, workers and unions interact with each other, and in so doing shape the ‘rules of the game’. 2.9.1 The objectives of the State in employment relations In broad terms, it is often reasoned that the state’s objective in intervening in employment relations is to achieve economic and social goals for the nation as a whole. The state achieves this through some broad economic policies: To maintain high levels of employment To ensure price stability 25 2.9.2 The scope and methods of state intervention Armstrong (1969) has described several potential methods of state involvement in employment relations: 1. State’s role as an employer, paymaster and buyer of goods: The state employs a sizeable number of the Ghanaian workforce e.g. civil service, local government, Ghana education service, Health services etc. By virtue of its role as an employer, the State is able to intervene in employment relations. 2. State’s role as income regulator: This is an employment relations role where the government seeks to control prices and wages, either through direct intervention or in its management of the economy. 3. State’s role as manpower manager This is a role adopted by the State to promote effective manpower utilisation e.g. by providing return to work incentives, or by operating employment exchanges to link those seeking work with those who have employment to offer (through the labour department, National Youth Employment etc). 4. State’s role as protector This role of the State establishes the minimum standards in employment through states agencies. These standards exists in different ways e.g. standards on health and safety, laws on unfair dismissal, discrimination and equal pay. This role also sees to the creation of specialist State agencies such as the Fair Wages Commission in Ghana. 5. State’s role as rule maker This is a role adopted by the State in which the State enacts legislation to create auxiliary, restrictive and regulatory rules of conformity for the parties in the employment relations. 2.10 The Government/ State The Government’s role as a third party in the settlement of industrial disputes has been taken away with the passage of the Labour Act 2003 (Act 651). Act 651 establishes an independent National Labour Commission made up of seven members—a Chairperson and two representatives each from Government, Organized Labour and Employers’ Organization—that is charged with the settlement of industrial disputes, through negotiations and other alternative methods of dispute resolution, such as Mediation and Arbitration. 26 The Government plays an active role on the National Advisory Committee on Labour and also the Tripartite Committee on Salaries and Wages Guidelines. These two committees have also been merged into the National Tripartite Committee, with the Minister for employment and social welfare as Chairperson, under the Labour Act 2003 (Act 651). The Government is the employer of workers in the Civil Service, Education Service, Local Government, Service and some autonomous services, such as the Police and Fire Services. The Government also gives sizeable monetary grants to the Universities, as well as Public Boards, Corporations and other statutory institutions and establishments, including Joint Public-Private Enterprises. Government policy, as regards labour relations and labour disputes, is governed by the principle that the parties concerned should always endeavour to settle their differences mutually, and that settlement should, as far as possible, as reached at the closest to the place of employment where those differences arise. 2.11 National Labour Commission The National Labour Commission has been set up with the principal function for the settlement of industrial disputes, through negotiations and other alternative methods of dispute resolution, such as mediation and arbitration rather than recourse to the Courts. The Commission is composed of two representatives each from Government, organized labour and employers’ organizations. The chairperson of the Commission is to be nominated by the employers’ organization and organized labour, except where there is failure on their part to do so within sixty days as provided, the employers’ organization in consultation with organized labour shall submit the matter to a Mediator agreed on by them. The person to be appointed members of the Commission shall not hold office in a political party. A commissioner shall also have knowledge and expertise in labour relations and management, except the Chairperson who should also have knowledge in Industrial Law. The Chairman and the other members of the commission shall be appointed by the President, acting in consultation with the Council of state. Members of the Commission shall hold office for a period of four years and are eligible for re- appointment after the expiration of their tenure of office. Membership of the Commission is not full time. 2.11.1 Meetings Members of the commission may as it considers necessary to settle industrial disputes. However, it shall meet at least once every two months to consider matters affecting its administration and the performance of its functions. The quorum of the meeting shall consist of the Chairperson, or in the absence of the Chairperson, the deputy Chairperson, and four other members of the Commission, with at least one party form the social partners. 27 The commission may co-opt any person to attend the meeting as an advisor or consultant but that person would not have the right to vote. 2.11.2 Functions of the Commission The functions shall include: i. the facilitation and settlement of industrial disputes; ii. investigation of labour related complaints, in particular unfair 2.12 National Tripartite Committee The Government has embraced and encouraged tripartism. There used to be two tripartite bodies: the Tripartite Committee on Salaries and Wages Guidelines and the National Advisory Committee on Labour. The Labour Act 2003 (Act 651) fused the two into one, and called, it the National Tripartite Committee. The composition of the Committee is made up of the Minister, as the Chairperson and the five representatives each from the Government, employers’ organization and organized labour. The functions of the committee are as follows: i. Determine the national daily minimum wage; ii. Advise on employment and labour laws, international labour standards, employment relations and occupational safety and health; iii. Consult with partners in the labour market on matters of social and economic importance; and iv. Perform such other functions as the Minister may request, for the promotion of employment development and peace in the labour sector. Whenever a minimum wage is determined, the minister shall publish it in the Gazette, and such other public media as the Minister may determine. It should, however, be backed by Legislative Instrument (LI), to make it have the force of law, so that it could be enforced. Secretariat of the National Tripartite Committee shall be provided by the Minister responsible for labour affairs, for the effective performance of its functions. The committee shall meet at times and at places determined by the members but shall meet at least once in every three months. The quorum for a meeting shall be nine members, with at least two members each representing the Government, organized labour and employers’ organization. The Committee may invite any interest group to its meetings. The Committee shall regulate its proceedings. 28 2.12.1 Regional and District Tripartite Committee i. The National Tripartite Committee may set up sub-committees of the committee, in such Regions and Districts as it considers necessary, for the effective performance of its functions. ii. The composition of a Regional or District sub-committee of the National Tripartite Committee shall determine by the National committee, except that there shall be equal representatives of Government, organized labour and employers’ organizations. iii. The ministry shall provide a sub-committee with such secretarial services as the sub- committee may require. It should be noted that it may not be all the regional and district towns that sub-committee of the National Tripartite Committee may be established. 2.13 INTERNATIONAL INFLUENCE ON INDUSTRIAL RELATIONS 2.13.1 THE ROLE OF THE ILO IN INDUSTRIAL RELATION The ILO is the international organization responsible for drawing up and overseeing international labour standards. It is the only 'tripartite' United Nations agency that brings together representatives of governments, employers and workers to jointly shape policies and programmes promoting Decent Work for all. This unique arrangement gives the ILO an edge in incorporating 'real world' knowledge about employment and work. The main aims of the ILO are to promote rights at work, encourage decent employment opportunities, enhance social protection and strengthen dialogue on work-related issues. The ILO was created in 1919, as part of the Treaty of Versailles that ended World War I, to reflect the belief that universal and lasting peace can be accomplished only if it is based on social justice. The Constitution was drafted between January and April, 1919, by the Labour Commission set up by the Peace Conference, which first met in Paris and then in Versailles. The Commission, chaired by Samuel Gompers, head of the American Federation of Labour (AFL) in the United States, was composed of representatives from nine countries: Belgium, Cuba, Czechoslovakia, France, Italy, Japan, Poland, the United Kingdom and the United States. It resulted in a tripartite organization, the only one of its kind bringing together representatives of governments, employers and workers in its executive bodies. The Constitution contained ideas tested within the International Association for Labour Legislation, founded in Basel in 1901. Advocacy for an international organization dealing with labour issues began in the nineteenth century, led by two industrialists, Robert Owen (1771- 1853) of Wales and Daniel Legrand (1783-1859) of France. The driving forces for ILO's creation arose from security, humanitarian, political and economic considerations. Summarizing them, the ILO Constitution's Preamble says the High Contracting Parties were 'moved by sentiments of justice and humanity as well as by the desire to secure the permanent peace of the world...' 29 There was keen appreciation of the importance of social justice in securing peace, against a background of exploitation of workers in the industrializing nations of that time. There was also increasing understanding of the world's economic interdependence and the need for cooperation to obtain similarity of working conditions in countries competing for markets. Reflecting these ideas, the Preamble states: 1. Whereas universal and lasting peace can be established only if it is based upon social justice; 2. And whereas conditions of labour exist involving such injustice hardship and privation to large numbers of people as to produce unrest so great that the peace and harmony of the world are imperilled; and an improvement of those conditions is urgently required; 3. Whereas also the failure of any nation to adopt humane conditions of labour is an obstacle in the way of other nations which desire to improve the conditions in their own countries. The areas of improvement listed in the Preamble remain relevant today, for example: 1. Regulation of the hours of work including the establishment of a maximum working day and week; 2. Regulation of labour supply, prevention of unemployment and provision of an adequate living wage; 3. Protection of the worker against sickness, disease and injury arising out of his employment; 4. Protection of children, young persons and women; 5. Provision for old age and injury, protection of the interests of workers when employed in countries other than their own; 6. Recognition of the principle of equal remuneration for work of equal value; 7. Recognition of the principle of freedom of association; 8. Organization of vocational and technical education, and other measures. The two ILO Conventions concerning equal treatment - Conventions 100 and 111 have been ratified by Ghana. Convention 111 seeks to promote equality of opportunity and treatment in respect of employment and occupation. Convention 100 ensures the application to all workers of the principle of equal remuneration for work of equal value. The Constitution of Ghana and the labour laws outlined above guarantee the equality of treatment and prohibit discrimination on the basis of race, sex, ethnic origin, religion, creed, colour, social or economic status. Ghana has also ratified ILO Conventions 87 and 98 which guarantee freedom of association and the right to bargain collectively. 30 PART III – PROCESS OF INDUSTRIAL RELATIONS 3.0 COLLECTIVE BARGAINING Collective bargaining involves negotiations between two or three parties for example between employers and workers or their representatives (such as unions) to determine substantive rules (compensation and benefits) and procedural rules (due processes and procedure for resolving disagreement over the implementation of the employment contract e.g. grievance and disciplinary procedures and rules for handling conflicts) within the framework of the employment relations. In industrial relations, the state through government also participates either as an employer or as a regulator or referee between management and labour. A key purpose of collective bargaining is to protect the interests of the parties by entering into an agreement. Flaunders (1970) defined collective bargaining as a social process that ‘continually turns disagreements into agreements in an orderly fashion’. Collective bargaining is a regulating process that uses negotiations and discussions, in agreed rules, on matters of mutual concern to employers, trade unions as well as conditions of employment. Thus collective bargaining provides the platform or framework within which the views of management and unions about disputed matters that could lead to industrial disorder can be considered with the aim of eliminating the disorder. It can be regarded as an exchange relationship between employers and employees through the agency of a trade union. Trade unions offset / balance the inequalities of the bargaining power between the employers and employees in the labour market. In recent times within the Ghanaian employment relations terrain, the use of threats is gradually becoming a norm for resolving industrial disputes. Article 153 of the Labour Act 2003 Act 651 makes it an obligation for the parties to negotiate in good faith. The use of threats in collective bargaining can create more antagonism although there are other potential advantages. Threats by parties in employment relations do not permit the establishment of goodwill and trust, necessary ingredients for industrial peace and economic growth in Ghana. 31 Chamberlain and Kuhn (1965) view collective bargaining as a political relationship in which wage-work bargains take place between employers and employees through the trade union. 3.1 Nature of Collective Bargaining The ILO Convention No. 98 (1949) relating to the Right to Organize and to Bargain Collectively describes collective bargaining as: "Voluntary negotiation between employers or employers' organizations and workers' organizations with a view to the regulation of terms and conditions of employment by collective agreements." There are several essential features of collective bargaining, all of which cannot be reflected in a single definition or description. They are as follows: i. It is not equivalent to collective agreements because collective bargaining refers to the process or means, and collective agreements to the possible result, of bargaining. There may therefore be collective bargaining without a collective agreement. ii. It is a method used by trade unions to improve the terms and conditions of employment of their members, often on the basis of equalizing them across industries. iii. It is a method which restores the unequal bargaining position as between employer and employee. iv. Where it leads to an agreement it modifies, rather than replaces, the individual contract of employment, because it does not create the employer-employee relationship. v. The process is bipartite, but in some developing countries the State plays a role in the form of a conciliator where disagreements occur, or may intervene more directly (e.g. by setting wage guidelines) where collective bargaining impinges on government policy. vi. Employers have in the past used collective bargaining to reduce competitive edge based on labour costs. 32 3.2 BARGAINING POWER Bargaining power is the ability to induce the other side to make a decision that it would otherwise not make. Bargaining power is ‘inherent in any situation where differences have to be reconciled’ - Singh (1989). ‘Power is the crucial variable which determines the outcome of collective bargaining’ – Fox and Flanders (1969). PRUIT (Negotiations in Social Behaviour, 1993) notes that there are three basic strategies to be chosen by the bargainer in the process of bargaining: To concede unilaterally. This reduces the distance between the two parties and allows them to reach an agreement earlier. The use of coordinative behaviour. This involves collaborating with the other party in search of a mutually acceptable solution. This may take the form of proposals for compromise, participation in a problem solving discussion, a unilateral tension reducing initiative, or cooperation by dealing through a third party to resolve the issue at stake. 3.3 FORMS OF COLLECTIVE BARGAINING Chamberlain and Kuhn (1965) noted two basic forms of collective bargaining. 1. Conjunctive Bargaining 2. Cooperative Bargaining 3.3.1 Conjunctive Bargaining Arises from the absolute requirement that some agreement-any agreement- may be reached so that the operations on which both are dependent may continue, and result in a working relationship in which each party agrees explicitly or implicitly. 3.3.2 Cooperative Bargaining This recognises that each party is dependent on the other and can achieve its objectives more effectively if it wins the support of the other. 33 3.4 PROCESS OF BARGAINING Ghana Labour Act 2003 Act 651 article 99(1) provides that a trade union shall make an application to the Chief Labour Officer for a certificate appointing that trade union as the appropriate representative to conduct negotiations on behalf of the classes of workers specified in the collective bargaining certificate with the employers of the workers. The trade union appointed in the certificate issued and the employer of the workers of the class to which the certificate relates, shall each nominate their representative authorised to conduct negotiations on their behalf and the representative shall constitute a standing negotiation committee to negotiate on matters referred to it. Labour Act 2003 Act 651 article 101(1) The standing committee shall make rules and regulations. It shall also have the power to form sub committees. Labour Act 2003 Act 651 article 103(1) states that an officer or a member of a trade union who is duly appointed by his or her trade union may conduct negotiations on any matter connected with the employment or non employment or terms of employment or conditions of employment of any worker who belongs to the class of workers specified in the certificate. If a party on whom a notice is served does not within 14 days after service of the notice take any steps to enter negotiation, the commission shall direct the party to enter into negotiations immediately and the party shall comply with the directive 3.5 Advantages of Collective Bargaining It is sometimes claimed that in non-industrialized countries settlement of wage issues through collective bargaining - especially on a national or industry wise basis - can be an obstacle to a wage policy to promote specific economic objectives because wage rates are not necessarily fixed on criteria designed to promote specific economic and social objectives (other than as compensation for cost of living increases), and that they often tend to reflect the bargaining strength of the parties or the supply and demand conditions of labour. With some exceptions (such as Japan) wage increases through collective bargaining in Asia pay little attention to productivity, individual or group performance and to skills. However, collective bargaining has many advantages which have been claimed for it as a means of resolving differences between 34 management and employees, though it has made little positive contribution to higher productivity and higher earnings by linking pay to performance and skills. Collective bargaining has the advantage that it settles issues through dialogue and consensus rather than through conflict and confrontation. It differs from arbitration because the latter represents a solution based on a decision of a third party, while arrangements resulting from collective bargaining usually represent the choices or compromises of the parties themselves. Arbitration may invariably displease one party because it usually involves a win/lose situation, and sometimes it may even displease both parties. Collective bargaining agreements often institutionalize settlement through dialogue. For instance, a collective agreement may provide for methods by which disputes between the parties will be settled. This has the distinct advantage that the parties know beforehand that if they are in disagreement there is an agreed method by which such disagreement may be resolved. Collective bargaining is a form of participation. Both parties participate in deciding what proportion of the 'cake' is to be shared by the parties entitled to a share. At the end of an agreed term labour again insists on participating in deciding what share of the fruits of their labour should be apportioned to them. Collective bargaining is a form of participation because it involves a sharing of rule making power between employers and unions, and this has eroded areas which in earlier times were regarded as management prerogatives e.g. transfers, promotion, redundancy, discipline, modernization, production norms. However, in some countries such as Singapore and Malaysia, certain subjects such as promotion, transfer, recruitment, termination of employment on grounds of redundancy or reorganization, dismissal and reinstatement, and assignment of duties within the scope of the contract of employment, are regarded as management prerogatives and outside the scope of collective bargaining. But collective bargaining suffers from the drawback that it seldom deals with how to enlarge the "cake", as the way of increasing the share of each party without eroding competitiveness. Collective bargaining agreements sometimes renounce or limit the settlement of disputes through trade union action or lock out. Therefore collective bargaining agreements can have the effect of 35 guaranteeing industrial peace for the duration of the agreements, either generally or more usually on matters covered by the agreement. Collective bargaining is an essential feature in the concept of social partnership towards which labour relations should strive. Social partnership in this context may be described as a partnership between organized employer institutions and organized labour institutions designed to maintain non-confrontational processes in the settlement of disputes which arise between employers and employees. Collective bargaining has valuable by-products relevant to the relationship between the two parties. For instance, a long course of successful and bona fide dealings leads to the generation of trust. It contributes towards some measure of understanding by establishing a continuing relationship. Once the relationship of trust and understanding has been established, both parties are more likely to attack problems together rather than each other. In societies where there is a multiplicity of unions and shifting union loyalties, collective bargaining and consequent agreements tend to stabilize union membership. For instance, where there is a collective agreement employees' are less likely than otherwise to change union affiliations frequently. This is also of value to employers who are faced with constant changes in union membership and consequent inter-union rivalries, resulting in more disputes in the workplace than otherwise. Collective bargaining agreements which determine wage rates on a national or industry level, place business competition on a more equal footing as a result of some standardization of the costs of labour. This is probably a less important advantage today in the face of technological innovations and productivity drives. Perhaps most important of all, collective bargaining usually has the effect of improving industrial relations. This improvement can be at different levels. The dialogue tends to improve relations at the workplace level between workers and the union on the one hand and the employer on the other. It also establishes a productive relationship between the union and the employers' organization where the latter is involved in the process. 36 As between the employer on the one hand and his employees and union on the other, collective bargaining improves relations for the following reasons or in the following ways: a. It requires a continuing dialogue which generally results in better understanding of each other's views. b. Where collective bargaining institutionalizes methods for the settlement of disputes, differences or disputes are less likely to result in trade union action. c. It could lead to cooperation even in areas not covered by collective bargaining arrangements. As between unions on the one hand and employers' organizations on the other, collective bargaining improves the employment relations climate in the following ways: a. It acts as a means of exerting influence on the employer or the employee, as the case may be, where the unreasonable position of one party results in a deadlock. The employers' organization or the union, as the case may be, has an interest in exerting influence on its respective members; the maintenance of the relationship between the two parties is seen as important to issues well beyond the current dispute. Both parties know that the current dispute is only one of many situations which are likely to arise in the future, and that a good relationship needs to be maintained for the overall benefit of their respective members. b. The entry of a union and employers' organization into a dispute facilitates conciliation or mediation. Sometimes one or both parties are able to divorce themselves from the main conflict, or from their position as representatives of their members, and mediate with a view to narrowing the differences and finding compromise solutions. c. Collective bargaining often leads employers' organizations and trade unions to establish links, and to look for and increase areas of common agreement. This in turn ensures to the benefit of their respective members. As between unions and their members, collective bargaining tends to enhance the stability of union membership. Employees, who perceive that their union is able to secure collective 37 bargaining agreements, or obtain concessions through collective bargaining, are less likely to frequently change their union affiliations. 3.6 CONFLICT AND INDUSTRIAL DISPUTES In industrial relations, conflicts occur when differences between employees or trade unions and management occur. Most importantly it depends on what happens after the difference. Conflict will only occur when an industrial action occurs. Conflict implies a negative and openly hostile situation (Oxford dictionary, 1968). It is a disagreement between management and employees that lead to industrial action / dispute The Ghana Labour Act 2003 (Act 651) defines an “industrial dispute” to mean any dispute between an employer and one or more workers or between workers and workers which relates to the terms and conditions of employment, the physical condition in which workers are required to work, the employment and non-employment or termination or suspension of employment of one or more workers and the social and economic interests, of the workers but does not include any matter concerning the interpretation of this Act(Labour Act 2003), a collective agreement or contract of employment or any matter which by agreement between the parties to a collective agreement or contract of employment does not give cause for industrial action or lockout; 3.7 INDUSTRIAL ACTION Industrial action has been defined in many ways. Industrial action was defined by Rose Ed (2004) as stoppages of work, instigated both collectively and individually by employees or trade unions on one hand, or more rarely, by management on the other. It is also defined as a concerted action taken by employees, to pressure employers to accede to a demand, usually work related, but sometimes of a political or social nature. Industrial actions are sanctions imposed by employees (normally acting through a trade union) against an employing firm in furtherance of an industrial dispute. Action normally begins with co-operation, meaning that workers will only perform those duties specified in their contract of employment and will refuse to use their initiative. Next the unions may instruct members deliberately to obstruc

Employment Relation Notes - Ghana HRM Course PDF

Document Details

Tags

Related

Summary

Full Transcript