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EMPLOYMENT
RELATION
October 4
2013 THIS IS A THIRD YEAR COURSE FOR HUMAN RESOURCE MANAGEMENT
STUDENTS 3RD YEAR
1
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
2
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
3
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
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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
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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)
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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.
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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
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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.
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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.
10
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.
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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.
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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.
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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
14
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:
15
(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
16
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:
17
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.
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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
19
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[1958] and
supported by Seidman et al[1958] 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.
20
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 [1960] 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)
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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
22
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).
23
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,
24
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
25
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
26
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.
27
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.
28
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.
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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...'
30
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.
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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.
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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.
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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.
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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
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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
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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.
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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
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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 obstruct management by raising trivial grievances,
declining to undertake demarcated tasks, and insisting on all contractual rights no matter how
petty they may be. The workers may ban overtime, refuse to cover sick colleagues and ultimately
go on strike. Employers too can exert pressure by withdrawing cooperation, insisting that
procedural agreements be followed to the letter, refusing workers’ request for overtime etc.
Ed (2004) names the various forms of collective industrial action as strikes and lockout:-
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3.8 STRIKES AND LOCKOUTS
3.8.1 What is strike?
Strike is any action by two or more workers acting in concert, which is intended by them to
restrict in any way the service they normally provide to the employer or diminish the output of
such service, with a view to applying coercive pressure upon the employer (Obeng-Fosu, 2002).
This includes those activities commonly called a work-to-rule, a go-slow or a sit-down strike.
3.8.2 Purposes of Strike
Employees embark on strike for various reasons. Among the reasons are:
To obtain an improvement in pay or working conditions. Most of the strikes in the
educational sector of Ghana recently were due to this reason. First was the case of the University
Teachers Association of Ghana (UTAG). This was closely followed by the Polytechnics
Teachers Association of Ghana (POTAG), and currently the National Association of Graduate
Teachers (NAGRAT) who are complaining bitterly against the Single Spine Salary Structure as
worsening the plight of the teacher in Ghana.
To resist worsening in terms and conditions of employment. Employees normally undertake
strike for this reason to proactively protest against future worst conditions in their terms of
employment.
To register dissatisfaction with some action that management has taken. Employees may go
on strike to collectively protest some actions that management may take that may not be in the
favour of the employees.
To bring the employer to the negotiating table. When employers refuse to negotiate with the
trade unions, strike acts as the last resort to pull the employers to the negotiating table. Some
researchers have concluded that the only language that employers understand is strike.
3.9 Forms of Strike
Official strike - These are strikes or sanctions called by the certified trade union of the workers
concerned. Unofficial strikes are called by local employees’ representatives without union
backing.
Sympathy Strikes - This is where workers in one firm demonstrate their solidarity with striking
employees in another firm even though their own employer is not involved in the dispute. The
Labour Act 2003 (Act 651) s 168(3) states that ‘the form of a strike or lockout in sympathy with
another body or organization shall be in a form agreed upon with the management of the
sympathizers and shall not disrupt the operational activities of the enterprise whose workers are
sympathizers’.
Constitutional Strikes - These strikes take place only when all agreed management/union
negotiating procedures have been exhausted. They are legal and acceptable forms of strike.
Unconstitutional strikes occur in breach of agreed procedure between management and union.
Lightning strike - These strikes are called without notice and lasts for a short period
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Wildcat strikes - These are unofficial lightning strikes taken by workers without the
authorization of their trade union officials.
Political strike - these are intended to influence the government rather than employers.
Akonor (2000) commenting on the political nature of the Sekondi-Takoradi railway strikes of
1950, 1961 and 1971, observed that the strikes were consciously directed against the government
rather than the management. Striker’s protests were caused by government’s policies and
characteristics of regimes, rather than occupational grievances.
General strike - this involves a simultaneous withdrawal of labour by workers in all industries
in all parts of the country. A general strike is a strike action by the critical mass of the labour
force from multitude of workplaces in a city, region or country. It could be for political or
economic goal or both. The 1926 general strike in the United Kingdom lasted for nine day in
protest against the British government to act to prevent wage reduction and worsening conditions
for coal miners. Current general strike action was in Greece in June 2011. This was a 24-hour
general strike against the cutbacks, which the country must pass to continue receiving funding
from a €110bn (£95bn) international bailout that is preventing Greece from defaulting on its
debts.
Sick-out (or sick-in) - All, or a significant number of union members call in sick on the same
day. They haven't broken any rules, because they just use sick leave that was allotted to them.
However, the sudden loss of so many employees all on one day can show the employer just what
it would be like if they really went on strike.
Slow-down - All the union employees continue coming to work on time, and they continue to
perform their jobs, but they do them more slowly. This might mean that they start doing
everything "by the book," following every guideline and performing every safety check to the
point that their work slows down. The resulting drop in production hurts the employer, but again,
the employees aren't actually breaking any rules. This is sometimes called a partial strike.
Sit-down strike - Employees show up to their place of employment, but they refuse to work.
They also refuse to leave, which makes it very difficult for anyone to defy the union and take the
workers' places.
3.10 HOW TO REPORT STRIKE
When reporting on a strike action undertaken, the following information should be supplied.
I. Date and time of strike action
II. Industry involved
III. Number of persons involved
IV. Cause of the strike action
V. Action taken
VI. Result of the action taken
VII. Number of man-days lost*
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3.10.1 How to calculate Man Days Lost in Strike
• Let number of men involved in the strike be N=10
• The normal working hours be H=8
• The number of hours lost be h=4
• Then number of man-days lost = N h
H
= 10 4
8
= 5
3.11 PROHIBITION OF STRIKE OR LOCKOUT IN RESPECT OF ESSENTIAL
SERVICES
An employer carrying on or a worker engaged in, an essential service shall not resort to a lockout
or strike in connection with or in furtherance of any industrial dispute involving the workers in
the essential service.
The Ghana Labour Act 2003 (Act 651) defines “essential services” to include areas in an
establishment where an action could result in a particular or total loss of life or pose a danger to
public health and safety and such other services as the Minister for employment and Social
Welfare may be legislative instrument determine
In the case of Essential Services, the parties shall endeavour to settle the dispute within three
days. If after three days the dispute remains unresolved, the parties shall within twenty four
hours refer the dispute to the National Labour Commission for settlement by compulsory
Arbitration by members of the Commission.
3.12 CRITICISMS AGAINST STRIKES
Strikes and strikers have been criticised on philosophical grounds that strikes:
a. represent the abuse of economic freedom and a return to the ‘law of the jungle’
b. encourages retaliations and the harmful exercise of power
c. may have to be paid for by other groups less privileged than those organising the disruptive
action
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d. are a direct challenge to economic and social stability and as such inappropriate in
democratic countries
However,
a. Strikes are the only language understood by some management
b. Collective bargaining is meaningless unless the union has the ultimate sanction of calling a
strike
c. The possibility of a strike action keeps management on its toes
d. Strikes are expressions of individuals freedom rather than a violation of it
e. Strike restores the balance of power as management possess the financial and physical
resources
3.13 Employers Reaction To Strike
Unexpected and sudden stoppage in production due to strikes does not allow management to plan
for the situation.
Some of the measures that employers use in their response to strikes include:
1. Physical protection of the employers’ property (keys, vehicles, computer etc)
2. Rescheduling of maintenance programmes so that plant and equipment can be serviced
and repaired while employees are on strike
3. Invocation of legal action against the union(s) calling the strike
4. Reallocation of tasks among workers not involved in strike action
5. Establishment of a small team of senior managers to coordinate the firm’s responses to
the strike
6. Issue of formal warnings to strikers advising them that they are in breach of contract
3.14 PICKETING
“Picketing” means the action whereby workers outside a place of work intend to persuade other
workers not to enter the place of employment during labour unrest. The Ghana Labour Act (Act
651) s 171(1) states that ‘it is lawful in furtherance of a lawful strike or lockout for any person to
be present at or near not less than ten meters away from his or her workplace or former
workplace or place of business of the employer or former employer, for the purpose of
peacefully communicating information or peacefully persuading any other person not to enter the
workplace or place of business, work or deal in or handle the employer’s product or do business
with the employer’.
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Picketing is lawful beyond ten meters away from the workplace of the worker during a lawful
strike or lockout. It is however, unlawful if it is conducted at less than ten meters away from the
workplace.
3.15 LOCKOUT
This is management's equivalent of a strike. It can only occur legally when an existing labour
agreement has expired and there is truly an impasse in contract negotiations.
Lockout means the closing of a workplace, the suspension of work by an employer or refusal by
an employer to employ to re-engage any number of his or her workers, in consequence of an
industrial dispute.
3.16 What Justifies a Strike or Lockout Action?
It could be seen from the above definition of Industrial Dispute that a Strike or Lockout Action
can only be embarked upon in respect of dispute of interest or conflict of interest and dispute of
rights, conflict of rights or issues of rights.
3.17 SETTLEMENT OF DISPUTES
The parties to an industrial dispute are under an obligation to negotiate in good faith, with a view
to reaching a settlement of the dispute, in accordance with the dispute settlement procedures
established in their Collective Agreement or Contract of Employment.
Duty to negotiate in good faith means an obligation placed on both employers and unions to:
� Actively participate in deliberations with the intent to find a basis for agreement
� Put sincere efforts to reach a common ground
� Create binding agreements on mutually acceptable terms
It also means the duty to furnish information during negotiations. This means:
� Employer must supply information that union requires to represent its constituents
in collective bargaining
� Information requested by both parties must be relevant
� Financial information about the company should be provided when employer
claims financial hardship in meeting union demands
� Information must be delivered promptly and in workable form
� Information must be supplied on all matters related to mandatory bargaining items
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The following are indications of bad faith on part of the employer:
� Employer’s attempt to reach agreement with employees directly instead of
with the union
� Employer’s refuses to put agreement in writing
However, obligation to bargain does not compel either party to agree to a proposal or to make a
concession
If the parties fail to settle the dispute by negotiation within seven days after the occurrence of the
dispute, either party or both parties by agreement, may refer the dispute to the National Labour
Commission and seek the assistance of the Commission for the appointment of a Mediator.
However, when the commission is satisfied that the necessary procedures have been exhausted,
but the parties have failed to settle the dispute and none of the parties has sought the assistance of
the commission to appoint a Mediator, the parties shall be requested to settle the dispute within
three days of the commission becoming aware of the non-resolution of the dispute.
If the dispute is settled, the agreement of the settlement shall be recorded in writing and signed
by the Mediator and the parties. It shall be binding on all the parties and replace any existing
agreements.
If the parties are not able to settle their dispute at the end of the mediation, the dispute shall be
referred to the National Labour Commission immediately. The commission shall, with the
consent of the parties, refer the dispute to Voluntary Arbitration or Panel of Arbitrators to help
resolve the dispute. The award of the arbitrator or a majority of arbitrators shall be binding on all
the parties. The award shall be communicated to the parties and the Commission within seventy-
two hours after the award has been made, except where then commission is arbitrator.
However, if the parties fail to agree to refer the dispute to Voluntary Arbitration, or terminate the
proceedings, either party within seven days can give written notice to the other party and the
National Labour Commission of its intent to embark on strike or lockout. The concerned party
can only do so after the expiration of seven days from the date of notice. Within this period of
seven days, it will be illegal to embark on strike or lockout.
If the dispute remains unresolved within seven days from the commencement of the strike or
lockout, the dispute shall be settled by Compulsory Arbitration by members of the National
Labour Commission
When a dispute is referred to Compulsory Arbitration, the Commission shall be the arbitrator.
The composition of the arbitration shall be three members of the commission; one member each
representing Government, organized labour and employees’ organization. In compulsory
Arbitration, the decision of the majority shall constitute the award and be binding on all the
parties.
The powers of arbitrators shall be that of a High Court in enforcing attendance and also
examining such persons on oath or affirmation, as well as the production of documents.
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No party to an industrial dispute shall resort to a strike or lockout action when negotiation,
mediation or arbitration proceedings are in progress. This period is regarded as a ‘Cooling-off
Period’.
3.18 NEGOTIATION
3.18.1 Negotiation Procedures
Negotiation in good faith
1. Parties to the industrial dispute shall negotiate in good faith in the first instance to
resolve the dispute in accordance with the dispute settlement procedures established I n
their respective Collective Agreement or Contracts Employment.
Time for concluding negotiations
2. The negotiation shall be concluded within seven working days after the occurrence of
the dispute.
Records of negotiation process
3. (1) The parties shall keep written records of the negotiation process and the outcome
signed by both parties
(2) Where the parties cannot agree to sign a consensus record together, each party may
present its own record duly signed.
Failure to resolve dispute by negotiation
4. If the dispute remains unresolved after seven working days, either party shall refer to the
Commission for the appointment of a mediator.
Failure to exhaust procedures in Collective Agreement
5. Where the Commission is satisfied that the parties have not exhausted the procedures
established in the Collective Agreement or have not agreed to waive those procedures,
the Commission shall order the parties to comply with those procedures within the time
determined by the commission.
3.19 MEDIATION PROCEDURES
Complaint to be in writing
6. The complaint shall submit a written complaint to the commission or complete Form ‘A’
(Complainant Form) specified in the schedule to these Regulations and submit it to the
Commission.
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Time within which to respond to complaint
7. (1) The commission shall within three working days serve the other party with a copy of
the complaint and request the other party to the dispute to respond to the complaint in
writing within fourteen working days after the receipt of the Commission’s request.
(2) Where a party to the dispute fails to respond to the request of the commission within
the stipulated period of fourteen working days, the commission shall send a final notice
to the party concerned to respond within a further seven working days after which the
commission shall proceed to determine the case.
Choice of mediator
8. After receipt of the response in regulation 7, the commission shall provide both parties
with the list of mediators for the parties to make a selection of mediator or mediators.
Appointment of mediator
9. The commission shall appoint the mediator or mediators jointly chosen by the parties to
mediate in the dispute.
Failure to agree on choice of mediator
10. Where the parties to a dispute fail to agree on a choice of mediator the Commission
shall, within two working days, appoint a mediator or mediators to mediate the dispute.
Time within which to conclude mediation
11. The mediation shall be concluded within fourteen days after the date of appointment of
the mediator.
Dispute settled through mediator
12. (1) Where at the end of the mediation there is a settlement of the dispute, the terms of the
settlement shall be recorded and signed by the mediator and the parties to the dispute.
(2) A copy of the signed terms of settlement shall be lodged with the Commission.
Binding settlement
13. The settlement referred to in regulation 12 shall be binding on the parties.
Duty to co-operate in mediation efforts
The parties to the mediation process shall co-operate in the mediation efforts.
Failure to settle through mediation
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Where there is no settlement at the end of the mediation process, the mediator shall
immediately declare the dispute as unresolved and refer the dispute to the commission
within three working days for voluntary arbitration
Conflict of interest
(1) A mediator shall disclose in writing any interest of whatever nature in dispute referred
for mediation.
(2) Upon consideration of the interest by the Commission, the mediator may be changed
unless the parties to the dispute consent in writing to retain the mediator.
3.20 VOLUNTARY ARBITRATION
Reference to voluntary arbitration
Where the dispute is referred to the commission under regulation 15, the Commission shall,
with the consent of the parties, refer the dispute to the arbitrator or an arbitration panel for
voluntary arbitration.
Failure to agree on choice or arbitration
Where the parties to voluntary arbitration fail to agree on the appointment of an arbitrator or
an arbitration panel, the commission shall, within three working days, appoint an arbitrator
or arbitration panel.
Disclosure of interest
(1) An arbitrator shall disclose in writing any interest of whatever nature the arbitrator may
have in dispute referred for voluntary arbitration.
(2) Upon consideration of the interest by the commission, the arbitrator may be changed
unless the parties to the dispute consent in writing to waive this option.
Time within which to submit statement of issues or question in dispute
Within three working days after the appointment of an arbitrator or arbitration panel, the
parties to an industrial dispute shall submit to the arbitrator in writing a statement on the
issue or question in dispute signed by one or more of the parties or their representatives.
Failure or refusal to sign a statement of issues or questions in a dispute
(1) Where a party to a dispute fails or refuse to sign a statement as required in regulation 20,
the statement may be submitted without that party’s signature.
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(2) A statement pursuant to sub-regulation (1) shall state that the other party has failed or
refuse d to sign the statement and the commission shall authorize the arbitrator to
proceed with the arbitration despite the fact that only one party has signed the statement
of the issue.
Failure to appear before an arbitrator
If a party fails to appear before the arbitrator or arbitration panel after the expiration of seven
working days after being notified, the arbitrator or the arbitration panel shall proceed to hear
and determine the dispute.
Time within which to conclude voluntary arbitration
The voluntary arbitration process shall be concluded within fourteen working days after the
date of appointment of the arbitrator or arbitration panel or within the extra time determined
by the commission.
Voluntary arbitration award binding
The decision of the arbitrator or majority of the arbitrators shall be binding on the parties.
Arbitration award to be communicated
The arbitrator or arbitration panel shall within seven working days of the last sitting make an
award and communicate the award to the parties and the commission within seventy-two
hours.
3.21 COMPULSORY ARBITRATION
Compulsory arbitration by the commission
If a dispute remains unresolved within seven working days after the commencement of a
strike or lockout, the dispute shall be settled by compulsory arbitration by the commission.
Content of notice to be served by the commission
(1) Where a dispute is referred to the commission under regulation 26, the commission shall
serve a notice on the parties
(a) Stating what in its opinion the unresolved issues are between the parties, and
(b) Asking the parties whether they agree to those issues.
(2) The parties shall respond within three working days.
Composition of Compulsory Arbitration Panel
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A compulsory arbitration shall comprise three members of the commission, one member
each representing Government, Organized Labour and Employers Organization.
Time within which to conclude compulsory arbitration
A compulsory arbitration process shall be concluded within fourteen working days after
service of the notice in regulation 27.
Compulsory arbitration award binding
The award of the majority of the arbitrators in a compulsory arbitration shall be binding on
the parties.
Publication of compulsory arbitration award in Gazette
A compulsory arbitration award shall immediately on completion be published in the
Gazette and other State media by the Commission and copies shall be given to the parties to
the dispute.
Appeals against compulsory arbitration award
Appeals against a compulsory arbitration award shall lie to the Court of Appeal on questions
of law only, within seven working days after the publication of the award under regulation
31.
Summary settlement of dispute by the Commission
(1) After the receipt of a complaint in accordance with regulation 6 and a response to the
complaint in accordance with regulation 7, the Commission may, after gibing the parties to
the dispute the right to be heard, settle the dispute summarily without recourse to the
mediation or arbitration.
(2) Where a party to a dispute fails to respond to a complaint in accordance with
regulation 7, the Commission may determine the complaint without recourse to that party
and the decision of the commission shall be binding on the parties to the dispute.
(3) The Commission may re-open a dispute which has been determined under sun-
regulation (2) if a party to the dispute on application within fourteen working days after
the determination of the case provides reasonable explanation for the failure to respond
to the complaint.
3.22 RESOLUTION OF DISPUTES FOR ESSENTIAL SERVICE PROVIDERS
Dispute resolution in Essential Services
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Parties to an industrial dispute in essential services shall endeavour to settle the dispute
within three days after the occurrence of the dispute by negotiation.
Referral to the Commission after failure to resolve dispute
If the dispute remains unresolved after the expiration of the three days referred to in
regulation 34, the parties shall within the next working day refer the dispute to the
commission for settlement by compulsory arbitration.
Compulsory arbitration by the commission
The commission shall, not later than three working days after the dispute has been referred
to it, constitute a compulsory arbitration panel to settle the dispute by compulsory arbitration
within fourteen working days.
Notice of the intention to strike or lockout
Where (a) the parties fail to agree to refer a dispute for voluntary arbitration, or
(B)A dispute remains unresolved at the end of the arbitration proceedings, either party
intending to take strike action or prepare for lockout, shall give written notice of the
intended action to the other party and the Commission shall, within seven working
days after the failure of the parties to agree to refer the dispute to another arbitration,
terminate the arbitration proceedings.
Time within which strike or lockout action can be undertaken
Strike action or lockout may be undertaken after the expiration of seven working days from
the date of the notice referred to in regulation 37 and not at any time before the expiration of
the period.
Effective date of notice of strike or lockout
The seven working days referred to in regulation 38 shall begin to run from the date of
receipt of the notice by the Commission.
Prohibition of strike or lockout in respect of essential services
An employer carrying on, or a worker engaged in an essential service shall not resort to a
lockout or strike in connection with or in furtherance of an industrial dispute in which
workers in the essential service are involved.
Cooling-off period
A party to an industrial dispute shall not resort to strike or lockout during the period when
negotiations, mediation or arbitration proceedings are in progress.
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3.24 CONCLUSION
The fundamental purpose of employment relations is to achieve productivity through harmonious
working relations among the parties in the industrial relations. There is however, no known
system that is conflict free. The presence of a good employment relations system is not to avoid
conflicts entirely but rather to create efficient machinery for their prompt and fair solution.
Employment relations in Ghana takes cognisance of organised workers engaged in the formal
sector to the negligence of un-unionised worker in the formal and informal sectors. It is about
time that the informal sector is brought into the lime so far as employment relations is concerned.
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References
Obeng-Fosu,O., (2002), Employment relations in Ghana, 3rd
edition, pp 104-113
The Ghana Labour Act 2003 (Act 651)