LABOUR LAWS AND COLLECTIVE BARGAINING AND THE GRIEVANCE

UNIT 1 SECTION
INDUSTRIAL 4
RELATIONS Unit 1, section 4: Collective bargaining and the grievance procedure
PROCEDURE

Most industrial relations matters are resolved through the collective

bargaining process or the grievance procedure. The two tools are used for
developing and maintaining a positive working environment for all parties
in the industrial relations climate. They also encourage communication
between unions and management on all issues of concern to both parties,
thereby ensuring that there is a rapid management response to issues raised
by a union. These mechanisms are discussed into details in section 4 of unit
1.

This section seeks to explain the main elements in industrial relations

practice, including collective bargaining, settlement of industrial disputes
and workers participation in decision making at the workplace. Upon a
successful completion of this session, students are expected to:
 Understand the legal framework that governs the practice of collective
bargaining in Ghana
 State the major roles of each party in the collective bargaining process
 Gain knowledge of the grievance handling procedures in Ghana
 Appreciate the need to have both collective bargaining and dispute
handling procedures in industrial relations practice

Meaning of collective bargaining

The contractual agreement between employers and labour unions that
governs wages, hours of work and conditions of service are reached through
a process called the collective bargaining. Collective bargaining is the
process by which working people, through their unions, negotiate contracts
with their employers to determine their terms and conditions of
employment. The terms of employment are likely to include the conditions
of service, working hours, job health and safety policies, salary scales,
overtime pay, work holidays, sick leave, vacation time, retirement benefits
and health care benefits. The result of collective bargaining procedures is a
collective agreement. The collective agreement is a document that defines
the terms and conditions of employment of a worker, and can be enforced
against both the employer and the union for failure to comply with its terms.

Features of collective bargaining

Collective bargaining may take place at the enterprise, industry or national
level. At both the enterprise and industry, collective bargaining takes the
form of a bipartite process involving employers and employees of the same
enterprise or industry. Collective bargaining at the national level however, is
tripartite in nature as it involves the employer, employee and the
government. Regardless of the level at which it is practiced, collective
bargaining has the following features:
 It is a collective process in which representatives of both the
management and employees participate;
 It is a continuous process which aims at establishing a stable relationship
between the parties involved;

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 It does not only involve the signing of the collective agreement, but also
the implementation of such agreement;
 It plays an important role in the effort toward the achievement of
discipline in the workplace; and
 The parties involved have to adopt a flexible attitude towards
negotiations.

Collective bargaining in Ghana

A collective agreement, relating to the terms and conditions of employment
of workers, may be concluded between one or more trade unions on one
hand and representatives of one or more employers or employers’
associations. Under section 97 of the Labour Act, 2003 (Act 651), the
parties to a collective bargaining agreement are required to negotiate in
good faith and make every reasonable effort to reach an agreement. Three
conditions are considered in determining whether a collective bargaining
agreement was negotiated in good faith:
 Either party to the negotiation shall make available to the other party
information relevant to the subject matter of the negotiation;
 When any information disclosed for the purpose of the negotiation of a
collective agreement is not made public, the information shall be treated
as confidential by the party receiving the information and shall not be
disclosed to a third party without a prior written consent of the party
providing the information;
 The parties to the negotiation of a collective agreement shall not make
false or fraudulent misrepresentations as regards matters relevant to the
negotiation.

Content of the collective bargaining agreement

The Labour Act, 2003 (Act 651), section 98 has spelled out the basic
elements that should go into a collective bargaining agreement in Ghana:
 The class or category of workers to which it relates;
 The conditions of work, including the hour of work, rest period, meal
breaks, annual leave, occupational health and safety measures;
 The remuneration and method of calculating the remuneration of the
worker;
 The period of probation and condition of probation;
 The period of notice of termination of employment, transfer and
discipline;
 The procedures for the avoidance and settlement of disputes arising out
of the interpretation, application and administration of the agreement;
 The principles of matching remuneration with productivity; and
 The essential services within the establishment.

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Legal framework of collective bargaining in Ghana

The Labour Act, 2003 (Act 651) provides the legal basis for conducting
collective bargaining in Ghana. The Act requires a trade union to acquire a
certificate from the Chief Labour Officer, appointing that trade union as the
appropriate representative to conduct negotiations on behalf of the class of
workers specified in the collective bargaining certificate with the employers
of the workers concerned. The chief labour officer shall subject to
regulations by the Minister, determine which union is qualified to possess a
collective bargaining certificate for the class of workers in a situation where
there is more than one trade union at the workplace. A certificate issued
shall have effect irrespective of the fact that some of the workers of the class
specified in the certificate are not members of the trade union appointed
under the certificate.

At any time period after the certificate has been issued, the chief labour
officer, in consultation with the trade union specified in the certificate and
the employer organization, issue an amending certificate, varying the class
of workers specified in the original certificate. When an amending
certificate is issued, and there is in force a collective bargaining agreement
which applies to all workers, the executives shall take appropriate steps for
bringing that agreement to the attention of all the workers to whom the
agreement is extended by the amending certificate. The chief labour officer
is required to publish the certificate or an amending certificate in the
Gazette.

Institutional framework of collective bargaining

The Labour Act, 2003 (Act 651) requires that the trade union so appointed
in the certificate and the employer of the class of workers specified in the
certificate to nominate their representatives to conduct negotiations on their
behalf. The representatives from both parties shall constitute a Standing
Negotiating Committee (SNC) or the Joint Standing Negotiating Committee
(JSNC). The SNC or JSNC shall perform functions such as making rules for
governing collective bargaining process and negotiating on matters of
importance to either party. The Committee shall negotiate on matters
connected with the employment or non-employment or with the terms of
employment or with the conditions of employment of any of the workers of
the class specified in the certificate. Under section 102 (2) of the Act, either
party represented on the committee shall give notice to the other party
requiring them to enter into negotiations on any matters which may properly
be dealt with by the committee.

Alternatively, an officer or a member of a trade union who is duly appointed

by his or her trade union may conduct negotiation on any matter connected
with the employment or non-employment or with the terms of employment
or with the conditions of employment of any of the workers who belongs to
the class of workers specified in the certificate. A party on whom a notice is

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served for negotiation is required within 14 days to take steps to enter into
negotiation. Where a party fails to respond within this period, the
commissioner shall direct the party concerned to enter into negotiation
immediately, and the party shall comply with the directive.

An agreement reached by trade union through a Standing Negotiating

Committee shall be brought to the notice of all the workers concerned.

Every collective agreement shall be for a term of at least one (1) year. In
recent years however, the practice is to have a two year contract agreement
with one year wage re-opener. An agreement concluded through
negotiations becomes binding on both employers and employees.

Grievance and grievance handling procedures

Every collective agreement contains a provision for the final and conclusive
settlement of all grievances (disputes) between the persons to whom the
agreement applies. In the context of labour relations, a grievance is an
allegation concerning any discontent or dissatisfaction, arising out of
anything connected with the employment relationship which the employee
thinks, believes or feels to be unfair, unjust or inequitable. A grievance may
be expressed in writing or orally on a job-related matter. It is a formal
expression of dissatisfaction about a work situation which may be real or an
imagined feeling of personal injustice that an employee has concerning his
employment relationship. A complaint becomes a grievance when brought
to the notice of management. The complaint is made when the employee
feels that the company has violated a term in the collective agreement.

Grievances are usually lodged by employees, acting as individuals, in a

group or by a trade union on behalf of the workers. The employer can also
lodge a grievance complaint alleging that the union or a member of the
union has violated his part of the collective agreement or some specified
injustice has been committed.

Sources of employee grievances

The following are the most possible sources of employee grievance in
Ghana:
 Unfair management practices regarding postings, transfers, promotions,
training, scholarship and so on
 Unfair treatment by supervisors
 Inconsistency in the disciplinary procedures and actions
 A violation of health and safety standards; and
 A violation in the normal procedure of work or work processes

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The grievance handling procedure

A grievance handling procedure is the procedure specified in the collective
agreement for the resolution of grievances or disputes arising during the life
of the agreement. The grievance handling procedure plays the following
four important roles in industrial relations practice:
 It assumes a compliance role by ensuring that both parties adhere to and
respect the collective agreement
 It assumes a judicial and adjudicative role for industrial organizations by
interpreting the collective agreement and rules of behavior and by
serving as the dispute resolution procedure for disagreement which arise
during the life of the collective agreement
 It serves an administrative role by applying the rules of the contract and
offering guidance in the administration of the collective agreement
 It serves as a forum for fractional bargaining where one party attempts to
secure concession it could not obtain at the bargaining table

An effective grievance procedure may have the following basic elements:

 Existence of sound channel.
 The procedure should be simple, definite and prompt.
 It should be clearly defined.
 Helpful attitude of management.
 Fact-oriented system.
 Respect for decisions.
 Adequate publicity.
 Periodic Review.

Steps in the grievance handling procedure

Grievance handling procedures may differ from one organization to another.
However, a four-step process has often been followed by most organizations
as follows:
 Statement of grievance
An employee who believes or feels that there is an unfair violation of a term
in the collective agreement must set out details of the grievance, informing
the employer of the need for an action to restore equity. The grievance
statement must be in writing and signed by the aggrieved employee.
 Grievance investigation
Having received an allegation from the employee, the employer is required
to gather the facts from the grievant, fellow workers, witnesses to the event
or sometimes union representatives as the case may be. During the
investigation, the employer must consider the 5 Ws: (i) Who is involved?
(ii) What is involved? (iii) When did it happen? (iv) Where did it happen?
(v) Why did it happen? The employer must carry out all reasonable
investigations and all necessary witness statements, in order to determine
whether at least the issue is serious enough before considering a response.
 Arranging for a grievance meeting

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A written notice must be forwarded to the employee of the intended

meeting, together with all appropriate documents. Witnesses must also be
informed about the meeting. In each case, the place, time and agenda of the
meeting should be disclosed.
 Conducting the grievance meeting
During the grievance meeting, the following steps must be carefully
considered:
− Explain the purpose of the meeting
− State what you understand to be the grievance
− Ask the employee to confirm whether your understanding is correct
− Ask the employee to state the case in detail, commenting on all
evidences
− Listen carefully and do not interrupt
− Call on witnesses to explain what they know about the grievance
− Ask the remedy the employee is seeking through the grievance

After a detailed discussion of the issues in the grievance, and within a

reasonable time, inform the employee of the decision. Where necessary,
inform the employee of his right to appeal against the decision. The appeal
must be heard by a director of the company who is not part of or involved in
the earlier investigation and grievance proceedings.

Collective bargaining and grievance handling are the two most important
tools for resolving many of the problems at the workplace. The collective
bargaining agreement serves as the basis for determining whether a
particular issue amounts to a grievance, and of course, a violation of a term
in the collective agreement.

Self-assessment questions
(1) What is a collective bargaining agreement? What are the likely elements
of a typical collective bargaining agreement in Ghana?
(2) Explain the four main stages of a grievance handling procedure. What
role does a grievance handling procedure play in industrial relations
practice?
(3) Discuss the legal and institutional framework of collective bargaining in
Ghana

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