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Certificate in Human Resource Management
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Collective bargaining

Employee Relations

Habari Mwanafunzi! Welcome to Our Class on Collective Bargaining!

Have you ever heard the saying, "Umoja ni nguvu, utengano ni udhaifu"? (Unity is strength, division is weakness). This powerful Swahili proverb is the perfect way to start our discussion today. Imagine trying to ask your boss for a pay rise all by yourself. It can be a bit intimidating, right? Now, imagine you and all your colleagues asking for it together, with one strong, clear voice. That, my friend, is the power we are about to explore. Welcome to the world of Collective Bargaining!


So, What Exactly is Collective Bargaining?

Let's break it down. "Collective" means as a group. "Bargaining" means negotiating or discussing to reach an agreement. So, Collective Bargaining is a formal process where a group of employees (usually represented by a trade union) negotiates with their employer to determine their working conditions.

These conditions are not just about salary! They can include:

  • Wages and salary scales
  • Working hours and overtime pay
  • Leave days (annual, sick, maternity/paternity)
  • Medical cover and insurance
  • Job safety and workplace conditions
  • Rules for promotions, discipline, and termination

The final agreement reached is a legally binding contract called a Collective Bargaining Agreement (CBA). It's the rulebook for how the employer and employees will relate for a specific period, usually 2 to 4 years.

Think of it this way: If you are buying a kilo of sukuma wiki at the market, you might bargain with the mama mboga on the price. Collective bargaining is similar, but instead of one person bargaining for vegetables, a whole team of workers is bargaining for their rights and welfare at work, and the stakes are much higher!

The Main Players on the Field

In Kenya, this process involves a few key teams. Let's visualize them:


   +-----------------+         +----------------------+
   |    EMPLOYEES    |         |       EMPLOYER       |
   | (e.g., Teachers,|         | (e.g., A company,    |
   |  Nurses, Pilots)|         |  the Government)     |
   +-----------------+         +----------------------+
            ^                             ^
            |                             | Represents
            | Joins & Elects              | Joins & is
            | Representatives             | represented by
            v                             v
   +-----------------+         +----------------------+
   |   TRADE UNION   |<-------->| EMPLOYER'S ASSOC.  |
   | (e.g., KNUT,    | NEGOTIATE | (e.g., Federation of |
   |  KMPDU, COTU)   |   THE CBA |  Kenya Employers-FKE)|
   +-----------------+         +----------------------+
  • The Employees: The workers themselves. Their concerns and needs are the starting point.
  • The Trade Union: A registered organization that represents the employees. Think of big names in Kenya like the Kenya National Union of Teachers (KNUT) for teachers, or the Central Organization of Trade Unions (COTU), which is the umbrella body for many unions.
  • The Employer: The company or organization that hires the employees.
  • Employer's Association: Sometimes, employers also form a group to negotiate with unions. The most well-known in Kenya is the Federation of Kenya Employers (FKE).

The Collective Bargaining Process: A Step-by-Step Journey

Negotiating a CBA isn't a one-day affair. It's a structured process with clear steps, much like building a house. You must lay the foundation first!


(Step 1: PREPARATION)
   - Union gathers ideas from members (what do we want?)
   - Research on company profits, inflation, industry rates.
          |
          V
(Step 2: NOTICE TO BARGAIN)
   - The Union formally writes to the Employer requesting to start negotiations.
          |
          V
(Step 3: NEGOTIATION MEETINGS)
   - Teams from both sides meet.
   - Proposals and counter-proposals are made. This is the main "bargaining" part.
          |
          V
(Step 4: DRAFTING THE AGREEMENT)
   - If they agree, a draft CBA document is written with all the agreed terms.
          |
          V
(Step 5: RATIFICATION)
   - The Union takes the draft CBA back to its members to vote and approve it.
          |
          V
(Step 6: REGISTRATION & IMPLEMENTATION)
   - The signed CBA is registered with the Employment and Labour Relations Court to make it legally binding.
   - The new terms (e.g., new salary) are put into effect.
Image Suggestion:

An AI-generated image in a realistic, vibrant style. The scene is a modern boardroom in Nairobi. On one side of a large table, a diverse group of Kenyan union representatives (men and women, different ages, wearing smart-casual attire) are looking positively at the other side. On the other side sits the management team in formal suits. In the center, the lead union negotiator, a confident Kenyan woman, is shaking hands with the lead employer representative. Documents labeled 'CBA' are on the table. The mood is professional, respectful, and successful.

Let's Talk Money: A CBA Calculation Example

This is where the rubber meets the road! Let's see how bargaining affects an employee's payslip. Sawa?

Scenario: The Jua Kali Workers Union is negotiating with "Bidii Ltd". An average employee, Akinyi, currently earns a basic salary of KES 35,000 per month.
- Bidii Ltd Management is offering a 6% salary increase.
- The Jua Kali Workers Union is pushing for a 10% increase based on the rising cost of living.

Let's calculate the difference this negotiation makes for Akinyi.


--- CALCULATION OF PROPOSED NEW SALARY ---

1.  **Employer's Offer (6% Increase):**

    Formula: New Salary = Current Salary + (Current Salary * Percentage Increase)

    Step 1: Calculate the increase amount.
            KES 35,000 * 6% = KES 35,000 * (6 / 100) = KES 2,100

    Step 2: Add the increase to the current salary.
            KES 35,000 + KES 2,100 = KES 37,100

    ==> Under the employer's offer, Akinyi's new salary would be KES 37,100.


2.  **Union's Demand (10% Increase):**

    Formula: New Salary = Current Salary + (Current Salary * Percentage Increase)

    Step 1: Calculate the increase amount.
            KES 35,000 * 10% = KES 35,000 * (10 / 100) = KES 3,500

    Step 2: Add the increase to the current salary.
            KES 35,000 + KES 3,500 = KES 38,500

    ==> Under the union's demand, Akinyi's new salary would be KES 38,500.


3.  **The Difference:**
    The difference between the two positions is:
    KES 38,500 - KES 37,100 = KES 1,400 per month.

    Over a year, that's KES 1,400 * 12 = KES 16,800!

As you can see, the union's role in bargaining for that extra 4% makes a huge difference in an employee's pocket over time! This is the financial power of collective action.

What Happens When They Don't Agree?

Sometimes, the two sides can't reach an agreement. This is called a stalemate or a deadlock. When this happens, a few things can occur:

  • Conciliation: A neutral third party from the Ministry of Labour is brought in to help the two sides talk and find a compromise.
  • Arbitration: If conciliation fails, an arbitrator (like a judge) may be brought in to listen to both sides and make a decision that is often legally binding.
  • Industrial Action (as a last resort): If all else fails, the union might call for a strike (workers refuse to work) or the employer might institute a lockout (employer refuses to let workers in). These are serious actions and are highly regulated by Kenyan labour laws.
Image Suggestion:

A detailed, close-up shot of a document titled "COLLECTIVE BARGAINING AGREEMENT (CBA)". The document is open on a wooden desk. A hand is shown signing the last page with a fountain pen. Next to the document is an official-looking stamp of the "Employment and Labour Relations Court of Kenya" and a small, elegant Kenyan flag on a stand. The style should be professional and convey the seriousness and legality of the agreement.

Conclusion: A Win-Win for Kenya

Collective bargaining is a cornerstone of healthy employee relations. It provides a peaceful and structured way to resolve workplace issues. For employees, it means a stronger voice, better pay, and secure working conditions. For employers, it leads to a more stable, predictable, and motivated workforce. By working together, both sides help build a stronger and more prosperous Kenya. Keep this principle of "umoja ni nguvu" in mind as you prepare to enter the world of work!

Pro Tip

Take your own short notes while going through the topics.

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