20-08-2014, 03:53 PM
Industrial Relations System as a Factor of Tripartite Consultation
Influencing the Performance of State Corporations in Kenya
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Abstract
The study sought to establish the effect of Industrial relations system in Kenya on the performance of state
corporations. Methodology: Data was obtained through a descriptive design involving 279 employees both unionized
and non-unionized of state corporations in Nairobi County. A structured questionnaire with likert scale questions
was used to collect data from the selected subjects of the study. Interviews were also conducted with human
resource managers/ employee relations officers, shop floor union officials, officers of the Ministry of Labour, officers
of Federation of Kenya Employers (FKE), officers of Central Organizations of Trade Unions, Kenya. The study used
the Dunlop’s systems model credited with the application of the systems approach to Industrial Relations (IR). The
model explains the input acquisition, input transformation, output and feedback to explain the process of Kenyan
Industrial Relations System. Finding: The study found that there existed a prescribed Industrial Relations System
in Kenya, but its adherence had been faced with a lot of challenges namely, reluctance to recognize trade unions,
delay in conclusion of collective agreement, and partial implementation of collective agreements resulting to high
rate of industrial actions in the country and delayed settlement of cases submitted to the industrial court. Besides,
tripartite consultation as the study's intervening variable had intervened positively enhancing the performance of
state corporations. Moreover, partnership approaches such as training, harmonization of partners' interests and
high commitment had been experienced, translating to enhanced performance of organizations. Limitation: The
study was concentrated in unionised state corporations and therefore cannot be generalized in the private sector
and non unionised state corporations. Practical implications: provide evidence on the effect of the industrial
relations system on tyhe performance of state corporations in Kenya and offer recommendations on what the three
social partners and specifically the Kenya government needed to do to improve effectiveness of the industrial
relations system in the country. Originality: This is the first study of this nature to be conducted in Nairobi County
focusing on industrial relations system and intervention of tripartite consultation in the performance of state
corporations.
Introduction
Kenya has one of the oldest institutions for
tripartite consultation for effective functioning of
the prescribed industrial relations system in the
country. However, the established mechanism
appeared not to have been used with degree of
consistency [1]. A number of studies had shown
that trade unions had been subjected to severe
restrictions by the government, and were weak in
influencing key managerial decisions [2]. The
industrial relations system arrangement in Kenya
appears a good intervention practice by the
government in industrial relations. However, the
arrangements are not only powerful variables in
Industrial relations process, but also a dominant
source of delay, frustration and hopelessness on
the other partners [1]. The government statistics
shows that in 2010, 82 strikes were recorded,
involving 12,773 employees and 405,278.5 man
hours were lost. Besides, the industrial court
disputes register recorded an increase in reported
disputes from 159 in 2007 to 1,624 in 2010. In
addition, between 7th September 2011 to 17th
November, 2012 Kenya had been plunged by
industrial actions. They covered paralysed
learning in all public secondary schools, all the
public universities were involved in a eight days
strike affecting negatively 170,000 students,
besides the only source of electricity supply
namely, Kenya Power and Lighting Company’s
strike was averted on the last hour, threatening
Method of Data Collection and Analysis
A descriptive design was adopted to establish the
effects of industrial relations system on the
performance of state corporations in Kenya.
Tripartite consultation was used as an
intervening variable between industrial relations
system and performance of state corporations.
The population of the study was concentrated on
the state corporations in Kenya, which specific
attention to unionized state corporations in
Nairobi County. Nairobi County houses 108 state
corporations out of the 172 nationally, hence
making a 62 percent. Out of the 108 state
corporations 34 are unionized and fourteen were
chosen from which study subjects were drawn.
The sample size of the study was 341
respondents. These constituted, unionized and
non-unionized employees, officers from the
Ministry of Labour, Federation of Kenya
Employers, Central Organization of Trade Unions
Kenya, and shop floor union officials.
Summary and Conclusions
The findings of this study revealed that the
existing industrial relations system in Kenya is
adhered to but with a lot of challenges. There are
established structures and mechanisms of
handling labour issues but these had not been
fully optimized. The study found that
management of state corporations had entered
into recognition agreements with trade unions.
The agreements however were not arrived at
without challenges. The statistics gathered from
the Industrial Court Disputes Register indicated
that between 2002 and June 2012, 343 cases of
failure to recognize trade unions had been
submitted to the Court for arbitration. After the
Court’s Intervention, the non-recognized unions
were recognized.
The study also established that there had been
delay in conclusion of collective bargaining
agreements in some state corporations. Where the
agreements existed, some management had
hesitated implementing some parts of the
agreement; culminating to industrial actions.
Besides, statistics gathered from the Industrial
Court Disputes Register showed that registered
agreement had reduced from 292 in 2008/2009 to
220 in 2011/ 2012 financial years. The delay in
conclusion of collective agreements and
inadequate implementation had been caused by
the hard economic situations which had faced the
country. As far as employers associations are
concerned, collective bargaining had been
hampered by lack of data on productivity and the
fact that negotiations were based on the cost of
living, leading to compensation of labour at the
expense of capital. Besides, there was lack of
transparency in negotiations and government
concealed information. Hence, negotiations were
political instead of being economic. Government
was viewed to have worked to be popular and thus
there was no line between technocrats and
politicians. Hence, labour issues had been
politicized.
Industrial actions in form of strikes were very
common in many state corporations, occasioned
by stalemates in negotiations and failure to