THE UNIVERSITY OF ZAMBIA

DEPARTMENT OF ADULT EDUCATION AND EXTENSION STUDIES

INTERNAL MEMORANDUM

THIRD HAND OUT

INDUSTRIAL RELATIONS

ACTORS IN IR
There are a number of actors or participants in IR. These include the following:

1.0 EMPLOYEES AND TRADE UNIONS

1.1 Definition of a Trade Union

 A trade union is any organization, whose membership consists of employees,

which seeks to organize and represent their interests both in the workplace and
society and, in particular, seeks to regulate the employment relationship through
the direct process of collective bargaining with management.
 Functionally, trade unions are described as organizations of workers set up to
improve status, pay and conditions of employment of their members. They are
also described as associations of workers who by means collective bargaining
endeavor to improve their working conditions, economic and social position.
 Legally, a trade union is described as an organization whether permanent or
temporary which consists of wholly or mainly of workers of one or more
descriptions and is an organization whose principal purpose include the regulation
of relations between workers of that description and employers or employers’
association.

 In Zambia the law defines a trade union as, ‘any group or organization of
employees registered under the industrial and labor relations Act, whose principal
objectives are the representation and promotion of interests of the employees and
regulation of relations between employees and employers and includes a
federation of trade unions’.

 It is easy to view trade unions as simply ‘economic’ organizations which

negotiate pay and conditions of employment on behalf of their members.
However, trade unions are more than this.
 They are in reality an expression of the fundamental right of men and women to
organize themselves in order to protect and promote their interests by collective
action.
  They are much more than engines for converting bargaining power into improved
pay and conditions for their members, but are an integral and important part of the
system of checks and balances which compose capitalist, liberal democracies
 The function and activities of a trade union are not confined exclusively to
workplace, or even employment issues. But are concerned about a spectrum of
economic, industrial and social matters and this requires them to participate in a
range of ‘political’ activities outside the workplace if they are to represent their
members’ interests.
 It is important to recognize that the term ‘trade union’ can encompass a wide
variety of organizations – ranging from traditional ‘manual unions’ through
‘white collar unions’ and ‘staff associations’ to some ‘professional associations’.
This is the generalist definition of a trade union.
 These organizations may use quite different means in pursuit of their objectives.

1.2 Elements Distinguishing a Trade Union

Three elements are crucial in distinguishing trade unions from other

organizations. These are:
 The nature of their membership – those who rely on the sale of their labor to
provide their livelihood
 Their purpose – to protect and represent employees, provide them with collective
power and support, and regulate their terms of employment
 The means they employ to achieve their purpose – emphasis on direct
negotiations with the employer.
 However, it is important to recognize that the term ‘trade union’ can encompass a
wide variety of organizations – ranging from traditional ‘manual unions’ through
‘white collar unions’ and ‘staff associations’ and to some ‘professional
associations’.
 This is the generalist definition of a trade union. At the same time, these
organizations may use quite different means (at different levels of action) in
pursuit of their objective. It is the combination of membership, purpose and
means which determines the character of the organization and its members.

1.3 Grades of Trade Unions

 The law recognizes three general grades of trade unions;
i) Registered Trade union – registration provides the trade union with
certain advantages in the handling of its finances and related affairs.
ii) Independent Trade Union – a registered trade union may apply to the
Registrar of association for a declaration that it is ‘not under the
domination or control of an employer and not liable to interference by an
employer.
iii) Recognized Trade Union – a union which is recognized by management
as representing all or part of the workforce for the purpose of collective
bargaining.
1.4 Aims and objectives of Trade Unions

 To help reduce the causes of industrial unrest by encouraging and protecting

freedom of association for employees.
 To promote sound and stable industrial peace by the settlement of issues i.e. terms
and conditions of employment through collective bargaining.
 To discourage and prevent unfair labor practices such as infringing on freedom of
association by preventing, dismissing or discriminating against or deterring an
employee from exercising any of his rights.
 To help the employee be represented in both bargaining and industrial matters by
a legally recognized body.

1.5 Functions of a Trade union

 Whilst the overall role of a trade union is seen as representing sectional needs and
interests, there are six distinct aspects of their function.
1) Power – to protect and support individual by providing a collective strength to
act as a countervailing force to the employer and as a pressure group within
society. Without an organization to represent them, individual employees are
at a serious power disadvantage in their relationships with management.
However, by employees acting in concert, management is less able to treat
employees as individual, replaceable units of commodity but rather is required
to regard them as one collective and indivisible. This union power is exercised
in three directions – within the labor movements, towards government and
towards employers.
2) Economic regulation – to maximize the wages and employment of their
members within the framework of the wage/work contract of employment.
3) Job regulation – to establish a joint rule making system that protects
members from arbitrary management actions and allows them participate in
decision making.
4) Social change – to express the social cohesion, aspirations or political
ideology of their membership and seek to develop a society which reflects this
view.
5) Member services – to provide a range of benefits or services to the individual
member.
6) Self-fulfillment – to provide a mechanism whereby individuals may develop
outside the immediate confines of their jobs and participate in decision-
making processes.

1.6 Reasons for joining unions

 Employees who are dissatisfied with their wages, job security, benefits, the
treatment they receive from management, and their chances for promotion are
likely to vote for union representation.
  Some reasons may be sociological, psychological, or economical. While wages,
benefits, working conditions, and job security are the main issues contributing to
the decision to join the union.
 Other factors include employees’ desire for:
i) Better communication with management
ii) Higher quality of management and supervision.
iii) Increased democracy in the workplace.
iv) Opportunity to belong to a group where they can share experiences and
fellowship
v) Respect for others and society.
vi) Independence in, and control over, one’s own affairs.
vii) The degree of comfort and economic security.

1.7 TYPES OF UNIONS

i) Occupational Unions
 These are trade unions organized by workers who perform a particular craft, trade
or grade of skill, irrespective of industry in which they happen to be engaged.
 There is a notion of possession of a skill, by training or experience on the part of
members of such union and this provides the basis for eligibility for membership.
Examples of occupational unions include the following:
a) Craft unions – these are distinguished from other occupational unions on the
basis of a qualitative difference resulting from their exercise of control over
entry into the trade and their concern for the skill basis of that trade.
b) Promotion union – referring to unions in industries such as iron and steel and
cotton spinning which were developing at the same time as craft unions but
covered skilled manual workers who were not apprenticed-served craftsmen.
The skill was acquired not from a formal apprenticeship but from on-the-job
experience and a system of internal promotion.
c) Semiskilled/unskilled union – these came about in the late 19 th Century and
concentrated on organizing semiskilled and unskilled workers.
d) Non-manual (white collar) unions – these are unions whose area of
recruitment is confined to non-manual categories of workers.

ii) General Unions

 General unions are unions which are very open in their recruitment and are
basically willing to recruit without restrictions.
 The suggestion here is that most of what were traditionally referred to as crafts
unions are now general unions. The examples here in Zambia are the Zambia
National Union of teachers(ZNUT) and Civil Servants Union of Zambia (CSUZ).

iii) Industrial Unions

 The term refers to a union trying to organize workers in an industry regardless of
their individual craft, trades, occupations or grades of skill. Examples include
Mine workers Union of Zambia (MUZ), NUBGEG, NUCIW etc.
1.8 Employer’s Registration
By the Industrial and Labour Relations Act every employer who employs twenty
five or more eligible employees must register himself or herself with the labor
commissioner. It is an offence to fail to register.

1.9 FORMATION OF A TRADE UNION

1.9.1 Legality and the rights of employees

 The Constitution of Zambia Cap 1 Article 21 (i) states “Except with his own
consent, no person shall be hindered in the enjoyment of his freedom of assembly
and association, that is to say, his right to associate with other person and in
particular to form or belong to any political party, trade union or other association
for protection of his interests”.
 Further, in accordance with the provisions of the freedom of Association and
Protection of the Right to Organize Convention No. 87 of 1948 which Zambia
ratified on 2nd September, 1966, the ILR Act has laid down the following rights:
i) The right to take part in the formation of a trade union.
ii) The right to be a member of a trade union of one’s choice.
iii) The right to take part at an appropriate time in the activities of a trade union;
Hold office, seek selection or accept appointment and hold office in the union.
iv) The right to seek leave of absence in order to participate in union affairs.
v) The right not to be prevented, dismissed, victimized or discriminated against.
vi) The right not to be a member of a trade union or be required to relinquish
membership of a trade union.
vii) The right not to do work done by an employee who is lawfully on strike or
who is
Locked out, unless such work constitutes essential service. Section 5(2) of the
ILR Act gives the right to any employee to lay a complaint before the IR court
(IRC), if he has reasonable grounds to believe that he has been victimized.

1.9.2 The unionization Process

Internal organi Petition

zational effort Card buying labor
and/or external campaign 30% Commissi
organizational oner
effort. For elec
Of workers tions

50

Election of officials registration of Union

Employees or any
Lesser number, as
Indicated by the
 Minister
 The process is shown diagrammatically above. It starts with a membership drive
that is undertaken normally with the help of senior trade union officials from
outside
 Card buying campaign organized internally.
 Petition to Labor Commissioner for election, if 30% of the workers append their
signatures.
 Elections of officials - if not less than 50 employees or any lesser number as
prescribed by the Minister append signatures and employer agrees.
 Registration of Union.

1.9.3 The Legal Requirements

 Any group of employees not less than 50 or any lesser number as prescribed by
the Minister of Labor, may sign an application to be registered as a trade union.
 The application for registration must be accompanied by two duly certified copies
of the constitution of the proposed union and any other documents as may be
required by the Labor Commissioner.
 The Constitution must include the following:
i) The name of the union and its registered office address
ii) Its principal objectives and class(es) of employees it shall represent.
iii) The purpose to which its funds may be applied, which must include “the
advancement of workers education and their participation in national
development programmes in Zambia”.
iv) The organization structure, the powers and duties of the office bearers and
how they are appointed and removed.
v) The amount and collection methods for subscriptions, and the grounds for
refusing a member his vote on any matter.
vi) Arrangements for safe custody, banking and investments of funds and
property; and for accounting and regular auditing.
vii) Disqualification or removal from offices involving the funds of the union;
persons that are:
a) Convicted of dishonesty
b) Insolvent or un discharged bankruptcy/of unsound mind
viii) The election of office bearers within 6 months, and then regularly at least
every 4 years.
ix) The appointment of 2,3 or 4 trustees
x) Procedure for amending the constitution.
a) Upon being satisfied with the application, the Commissioner is then
under obligation to register the group as a trade union. The
Commissioner then issues it with a certificate of registration in the
prescribed form upon payment of the fee.
1.9.4 Union Organization Structure

 Unions vary widely in their organization structure, but it is possible to identify

five basic levels of organization in the majority of them, although names given to
each level may differ.

1) The Place of Work and the Shop Steward.

 The basic level is the place, the shop floor, garage, depot, office, store mine and
so on. At this level one finds the actual members of the union and their local
representative. The shop steward.
 The strength of the union within a particular organization is largely dependent on
the drive, initiative and characteristic of the shop steward. The shop steward is
elected by fellow unionists. Sometimes a shop steward is called a “staff
representative” or “site steward” etc.
 In the past a shop steward carried out his union duties in his own time. Nowadays
in large organizations, a shop steward is given an office and allowed time off
during working hours to deal with union business. Under the employment
protection, employers must now allow union representatives reasonable time, off
work to attend to union duties.
 Responsibilities of a shop steward.
The responsibilities of a shop steward vary from industry to industry. They
include the following;
- The encouragement of workers to join the union.
- The collection of union subscriptions.
- The representation of workers in dealing with individual grievances or in
collective negotiations with management.
- The responsibility for checking that management is adhering to its
agreements.
- Being the main channel of communication between the worker on the shop
floor and the next level of union organization – the branch.

2) The Branch
 Every member of a union becomes automatically a member of a branch. He may
be a member of the branch where he lives or where he works.
 The main duties of the branch are;
- To collect subscriptions via shop stewards.
- To distribute benefits.
- To appoint delegates to certain local organizations such as trades council and
the local branch of the political party.
- To vote for executive members or national officials.
- To formulate resolutions which are passed up to the national executives
- No direct authority to deal with local labor disputes.
3) The District
 This level is sometimes called the divisional area or regional committee or
council. It has a full time paid district secretary who attends district committee
meetings composed of delegates elected by local branches.

 The chief responsibilities are:

- Local negotiations with employees
- Overseeing the branch functions
- No power to authorize strike actions
- Sort out and discuss the various resolutions from branches and decide which
will be submitted to the annual conference.

4) The Executive level

 This level controls the main executive function of the union. It does not decide on
policy. It is responsible for day to day decisions and functioning of the union. It
has a permanent headquarters. Full-time salaried officials, especially the
President, Vice President, General Secretary and treasurer. Some unions allow at
this level interested group representation e.g. women. Most executive committees
have less than twenty members who are elected for periods of one to three years.
 The main functions of the executive committees are:
- Supervision and administration of the union
- Coordination of its activities
- Controlling its funds
- Responsible for national negotiations of wages and conditions of employment.
- Considers national employment policies and the state of the national economy
as it affects union members.
In addition to controlling union funds, the executive committee has the
responsibility for maintaining funds. To do this the executive must regulate strike
action. Indiscriminate strike action rapidly depletes union funds.

5) The Annual Conference

 The conference level is the policy making organ of the union. The conference
consists of delegates elected by the branches, plus the executive committee. The
general pattern of the conference is for the executive committee to present a
report on its work which is then debated by delegates. This is followed by a series
of motions and amendments on a variety of subjects submitted by branches and
committees.
 Usually officers of the executive committee have the right to speak at these
conferences, but not to vote. These conferences last for two to three days and are
held at two, three etc. yearly intervals. Subjects discussed range from narrow
union matters to national economic and political policies on issues that affect
trade unionism. Nevertheless, the two main subjects are policy formulation and
rules revision, and at the end of each conference a report is produced defining the
policies and strategies to be put in operation for the succeeding future months.
1.9.5 Summary

 A group of employees will not be registered as a trade union under a name

identical to or by which any other trade union has been registered or resembles
such a name as likely to deceive its members or members of the public.
 A group of employees will not be registered if the proposed union does not
comply with the conditions of registration.
 Any person aggrieved by the refusal by the Commissioner to register a group as a
union or by the cancellation of a registration certificate has a right of appeal to the
IR Court, not later than 30 days after being notified of the refusal or cancellation.
 If the Commissioner refuses to register a new union within 6 months, then such
union must be dissolved forthwith otherwise every officer of such a union is liable
to a fine for every day it continues illegally.
 Further, any activities of any group as a trade union prior to registration are illegal
carrying a penalty and individuals prohibited from holding office in any other
trade union.

1.10 LEGAL PERSONALITY OF TRADE UNIONS

 All real and personal property belonging to the trade union rests in the trustees of
the union for the use and benefits of the trade union and its members.
 Actions by and against trade unions are brought and defended by trustees of the
union or any other officers authorized by the Union’s constitution.
 Trustees are not personally liable for any deficiency in trade union funds unless
due to negligence or willful default.

1.11 RECOGNITION AGREEMENT

 A registered employer or employer’s organization is obliged to enter into a
recognition agreement with a trade union to which the employee belongs.
 This must be done not later than 3 months from the date of registration of the
union.
 The recognition agreement is a contract which must be in writing and signed by
the representatives of the union and the employer, as regards the relationship
between the union and the employer in terms of:
i) Negotiations, disciplines and grievance procedure.
ii) Obligation of the two settlements.
iii) Legality.
iv) Termination of recognition.
v) Participation in decision-making committees as regards welfare.

1.12 DE-RECOGNITION
 This event may occur when either party terminates the agreement when the other
party is deemed not to be following the agreed conduct of IR.
 Generally, it is management which revokes the agreement.
1.13 FACTORS INFLUENCING RECOGNITION OR DE-RECOGNITION
 The perceived value or lack of value of having a process for regulating collective
bargaining.
 If there is an existing union, the extent to which management has freedom to
manage, for example, to change working arrangements and introduce flexible
working or multiple skilling.
 The history of its relationship with the union.
 The proportion of employees who are union members and the degree to which
they believe that they need protection from their union that it provides.

1.14 Single Union Recognition

 This situation pertains to the existence and recognition of only one union within
one organization.
 A multiplicity of unions within the same organization is often citizen for the
complexity of the bargaining arrangements and the union – demarcation for
disputes.

1.15 Multiple-Unions’ Recognition

 Take the example of the Ministry of Education. It is easy to see disunity in the
teaching sector arising from the power struggle amongst the various trade unions.
 There are more unions in this sector organization on the same shop-floor as
compared to one teacher’s union that existed before the labor market was
liberalized.
 The obvious result is the weakened bargaining positions of the trade union(s) vis-
à-vis management. The above scenario shows that the Ministry of Education has
taken advantage of the weakened employee’s bargaining position.

1.16 THE ZAMBIA CONGRESS OF TRADE UNIONS (ZCTU)

 There are more than 18 national unions affiliated to the ZCTU. The Congress is
the biggest umbrella union in the country.
 However, there is another splinter union umbrella union called the Federation of
Free trade Unions of Zambia (FFTUZ) with an affiliation of four unions. These
include PETUZ, ZUFIAW, SESTUZ and MUZ.
 The ZCTU represents all unions at tripartite meetings that also involve the
government and the employers’ representatives.
 This meeting has an influence on changes in the IR Act and in the country.

2.0 EMPLOYERS AND EMPLOYERS’ ORGANIZATIONS

 Just as employees join trade unions to protect their collective interests against
employers and management, so employers have formed and join their own
organizations to defend their collective interests, not only against trade unions but
also for general purposes.
  These bodies, being collectivities of organizations rather than of people, are often
described as employers’ associations.

2.1 Definition

 An employers’ association may be defined as any organization whose

membership is composed of employers and whose purposes include the regulation
of relations between employers and their employees or trade unions.
 The employers’ associations are concerned with such matters as wages and
salaries, recruitment, training, safety and conclusions of employment in a given
industry.
 Trade Associations – These represent the commercial and trading interests of
employers. They are concerned with such matters as pricing policies, technical
innovations, lobbying for general legislation to protect them unfair competition.
These include ZACCL, ZAM, ZNFU, LAZ etc.

2.2.1 Origin of Employers’ organizations.

- Their origin is a defensive mechanism for the protection of employers from the
pressures of trade unions, with the need for the provision of countervailing
powers.
- Some employers organizations were formed for collective determination of wages
before trade unions came into existence.
- Some employers’ organizations were formed specifically to cooperate with trade
unions in the improvement of industrial relations, e.g. Gas Industry in the UK.
- Some employers organizations were formed purely as defensive measures against
labor, e.g. cotton and shipbuilding in the UK.
- In general employers association were formed to provide machinery for the
collective determination of wages and working conditions and for protection
against strikes. These remain as the main functions of the associations. However,
once established they soon developed arrangements for the exchange of ideas and
information on a wide range of subjects in the industrial relations field and the
promotion of common services for the benefits of their members.

2.2 Functions

 The primary function of an employers’ association is to support and promote the

commercial objectives of its members. Its major activities fall into four
categories:
a) The direct negotiation of collective agreements with trade unions
b) Assisting its members in the resolution of disputes.
c) Providing general help and advice to its members on IR matters such as
recruitment, job evaluation, collective bargaining etc.
d) Representing its members’ views and interests to government and other
agencies.
2.3 Zambia federation of Employers (ZFE).

 In Zambia the umbrella body of the employers’ association is known as Zambia

federation of Employers (ZFE). Affiliated to ZFE are MCM, KCM, Bankers
(Financial Institutions, Manufacturers etc.
 It is a formal forum which aggregates the interests of employers and their
associations in their respective industries.
 The Federation’s sole purpose is to influence the IR policy and law to the
advantages of the employers. Employers are investors and hence require favorable
conditions for them to have a good return on their investment.
 Like the Congress of Trade unions, the ZFE has a full time secretariat headed by
an executive director and have a policy and research department.
 The Federation represents these interests at all tripartite and other business for a
within and outside the country.
 Just like the ZCTU, the federation also works with the local office of the
International Labor Organization (ILO) on issues pertaining to workers’ rights
and obligations.
 It must be understood that the aim of employers is to have a good balance sheet
and also run their organizations as a going concern and hence their contribution
are more sympathetic to employers than the worker.
 The worker is only there to reduce the profits that would otherwise go to the
investor.

3.0 MANAGEMENT IN INDUSTRIAL RELATIONS

3.1 Definition

 The characteristics which delineates management, as a group, from other roles in

the organization is that, through the formal authority structure of the organization,
they represent, make decisions and act on behalf of the organization as an entity.
 Management as a term, may be applied to both a process and a distinct group of
roles within an organization.
 The process of management has been described in functional terms of planning,
controlling, etc. but from IR perspective, management should be looked at as the
existence of a hierarchical superior/subordinate authority relationship through
which organizational control is exercised.
 Traditionally, management is, from a legalistic or labor/capital frame of reference,
perceived to be (equated to) the employer.
 Conversely, managers are often at pains to point out that they are employees like
anyone else in the organization.
 Today the role of managers has shifted from being agents of owners appointed
and given authority to run the organization.
  Managers are now those in possession of expertise in which authority derives
from belief and acceptance that they have the requisite knowledge and ability to
direct the affairs of the organization.
 In analyzing the role of management in IR, it is useful to examine the following:
i) Interrelationship between ‘constraints’ and ‘choices’ which shape
managerial strategy in IR
ii) Managerial objectives and alternative styles of IR management.
iii) Aspects of the organizational and IR system which impinge on the
development and execution of managerial strategies.

3.2 ‘Constraints’ and ‘choices’

 Management’s decisions and actions in IR can only be appreciated fully if it is

recognized that they result from an interaction between constraints and choices.
 The constraints which surround management, stem from economic and political
pressures within the organization’s environment, set boundaries to the probable
strategic choices, place certain identifiable limitations upon the total amount of
control vested in organizational members, and tend to direct choices along
particular channels while curtailing other modes of initiatives. Two examples of
environmental constraints are:
i) Both Marxist and capitalists argue that free enterprise market ideology
imposes limitations on managerial discretion mitigating against policy and
strategy implementation that are employee – centred rather than
production – centred. Labor is seen as a cost that should be subservient to
production and
ii) Government concern for management of the economy, whether directly
through corporatist political ideology or indirectly through a laissez – faire
one, imposes a restriction on managerial freedom and initiative at the
organizational level. In IR this has led to an increasing expression of
concern for order (through control of wages, strikes and industrial power)
and unity (through increased cooperation between management and
employees).
 Thus management’s strategies and decisions in IR are not simply imposed by
circumstances but are the result of conscious choices..
 Since management, despite constraints is still able to exercise choice in how it
responds to these general pressures and the more specific pressures resulting from
the organization’s particular market and technological position. Choices are in
form of three types rationality:
i) Rationality based on material interest – those, which best serve
managements’ economic, productive and power interests for example,
minimizing wage costs and maximizing productivity.
ii) Rationality based on moral individualistic values that hold some issues as
a matter of principle or intrinsically right in achieving an ideological goal
for example, strategies to avoid, resist or remove trade union recognition,
and
 iii) Rationality derived from technocratic values which adopt strategies that
bring about least harmful repercussions i.e. win-win situation.

3.3 IR management Objectives

 So far as management is concerned, the primary purpose of IR objectives are to

support its strategies aimed at maintaining efficient and effective operations and
improving organizational performance.
 Within this, there is a further implicit objective of maintaining managerial
security, which is concerned with the distribution of power, control and decision
making within the organization.
 Such security may be achieved through two basic, but very different, approaches:
i) Safeguarding its managerial prerogative by seeking and maintaining
unilateral control of the organization.
ii) Extending, ‘managerial prerogative’ or including employees (and, where
appropriate, their representatives) in the decision-making process thus
‘management by agreement’.

3.4 Management Styles in IR (Individualism & Collectivism)

 In the context of IR, management style is defined as the existence of distinct set of
guiding principles, written or otherwise, which set parameters to and signposts for
management action in the way employees are treated and particular events
handled.
 Management style in IR can be related to two dimensions – individualism and
collectivism
 The Individualism dimension is defined as the extent to which personnel policies
are focused on the rights and capabilities of individual workers, and in particular,
the extent to which the organization gives credence to the feelings and sentiments
of each employee and seeks to develop and encourage each employee’s capacity
and role at work. Individualism is developed along three stages:
i) Commodity status - the employee is regarded as an individual unit of
production to be hired and fired in the light of operational requirements
giving rise to low employee job security and the justification of direct
overt managerial control of the employee in the achievement of profit.
ii) Paternalism – the employee is regarded as a natural subordinate
deferential role whose freedom is limited by well meant regulation –
management accepts a degree of social responsibility to provide
benevolent welfare care for employees.
iii) Resource status – employee is regarded as a potential resource to be
developed and nurtured (career development, strategies); the management
focus is on communication and employee involvement to secure
commitment.
 The Collectivism dimension is defined as the extent to which management policy
is directed towards encouraging the development of collective representation by
 employees and allowing employees a collective voice in management decision-
making. This dimension, is reflected in two ways:
i) The existence of democratic structures through which employee interests
may be expressed and pursued (this may be based on independent trade
unions or other forms of employee representation such as works councils
and may range from consultation through bargaining to full participation,
including worker-directors.
ii) The degree to which management opposes or accepts, and thereby gives
legitimacy to, the collective processes.
Again the development of collectivism is along three stages:
i) Unitary – management overtly or covertly opposed to collective
relationship;
ii) Adversarial – management focus is on stability, control and
institutionalization of conflict; containment of collective relationships to
limited and clearly identified areas of operational decision making;
reluctance to concede or compromise even within areas of bargaining.
iii) Cooperative – management focus is on ‘constructive’ beyond simple
bargaining of terms and conditions of employment, greater incorporation
of employees and their representatives into organizational structures and
in strategic discussions; openness and preparedness to modify
plans/decisions in light of discussions.

4.0 THE STATE AND ITS AGENCIES

4.1 The Government in IR

 The government is defined as the politically based body which directs and
controls the institutions of regulation within an organized society. Government
determines the direction, policies and actions of the state machinery.
 Its importance, as far as IR is concerned, stems from the fact that it is the only
actor in the situation which can change the rules of the system by virtue of its law
making role and the judiciary’s interpretive role.
 However, the role of government in IR is unwelcomed by both trade unions and
employers. Both are opposed to government or legal intervention in the regulation
of IR and that the government, irrespective of its political persuasion has
supported this principle of voluntarism in IR.
 However, the government has constantly intervened in regulating both individual
and collective employment relationship.
 In this respect there are two observations to make:
i) Government’s legislation has represented a series of ad hoc responses
rather than a planned strategy of legal intervention in IR.
ii) Trade unions and employers are not opposed to legislation per se –
certainly not when it is perceived to support their interests.

4.2 Objectives of Government in IR

  The government’s prime overall objective is economic in character – to maintain
and enhance the stability and productivity of the economy through the pursuit of
four goals:
i) Full employment
ii) Price stability
iii) A favorable balance
iv) Protection of the exchange rate
 It is also important to recognize that the representative position of the government
and the basis for its policies and legislation, may be, viewed as:
a) The expression of an inherently distinct national interest which in the area of
IR, occupies a neutral position between the conflicting interests of employers
and management on the one hand and employees and trade unions on the
other.
b) The expression of sectional interests within a society, which coalesce into a
political party legitimatized by the electorate.
c) From a Marxist/radical perspective, the government may be seen as a little
more than ‘democratic icing’ on the top of a political system which,
irrespective of the political party in power, inherently supports the
maintenance of the capitalist interests.

4. 3 Government Intervention and Strategies

 Government interventions and strategies are based on the ruling party’s ideology
which may include:
a) The corporatist ideology – this supports trade unions and collective
bargaining, promotes the use of conciliation and arbitration process to resolve
disputes, regulate incomes, promote employee participation and enhance
employee protection during and at the end of the contract period.
b) The liberalist/laissez – faire ideology – this redresses the perceived power
imbalance in favor of trade unions and allows management to re-exert its
prerogative, promote ‘responsible’ trade unionism and protect individual
members against union ‘tyranny’ and promote employment opportunities and
labor flexibility through deregulating employment.
Government implements both corporatist and liberalist strategies through methods
of influencing or intervening in IR systems: principally as an employer, law
maker ‘umpire’ and regulator.

4.4 Government as an Employer

 Government is the largest public sector employer. Consequently, its policies and
actions have a significant impact on the IR systems as a whole
 Privatization, self management boards and setting up of independent agencies
such s ZRA, have contributed to a decrease in government’s ability to control or
influence IR in these sectors.
 The government’s concept of a good public employer has changed. Previously, in
the 2nd Republic, government held good IR in the public sector as stability based
 on implicit understanding that as long as government discharged its responsibility
of a ‘good’ employer, then employees and their unions would accept a reciprocal
obligation to avoid industrial conflict.
 Today the public sector has become as the major source of instability in IR. This
is attributed to:
i) Pay increases within the public sector are perceived to be setting the level
of annual wage agitation and thereby significantly contributing to general
wage inflation.
ii) An increasing need to reduce the growth of public sector expenditure to
redirect resources to the private sector as a necessary precursor of
economic growth.
iii) A tighter application of incomes policy within the public sector and a
consequent increase in industrial conflict.
iv) Disputes generated within the public sector seriously affect the public.

4.5 Government as a Legislator

 The principal purpose of labor law is to regulate, to support, and to restrain the
power of management and the power of organized labor. Government’s activities
is in three areas:

i) Individual legal rights in employment protection Act:

a) Provides for the issue of contract of employment notices, minimum periods
of notice, unfair dismissal, redundancy, guaranteed payments for lay-offs or
medical suspension, maternity leave and payment, time off for public duties
etc.
b) These apply to all employees whether members of trade unions or not. These
are as a result of, rather than replacement for, trade unions and collective
bargaining.
c) Government’s important intervention in this area is the establishment of
industrial tribunals to provide an easily accessible, quick, inexpensive and
informal form in which employees could seek legal redress for any
infringement of the statutory rights.
d) The tribunals are supplemented by Employment of Appeals tribunals.
ii) Legislation establishing collective bargaining machinery.
 The government’s role is to regulate the low level of wages in the manual
employment wages Act.
 The legislation refers to the establishment of Wages Councils – tripartite bodies
composed of representatives from trade unions and employers plus independent
members whose role is to conciliate between two sides and finalize an agreement.
 Functions of Wages Councils are:
i) To deal with the problem of low pay.
ii) To serve as a precursor and aid to the development of a collective
bargaining arrangement.
iii) To use state power to maintain collective bargaining.
4.6 Government as a Regulator

 Government is always concerned about the level of incomes as part of its role in
managing the economy. Regulation is not only indirectly through fiscal and
monetary policies (incomes management) but also directly through regulating the
results of collective bargaining (incomes policy).
 Incomes policy is defined as a package of measures, which seek to intervene
directly in the process of income determination and the working of labor markets
for the purpose of moderating the rate of price inflation, and which also seeks to
contribute to greater equality in the distribution of pay and improvements in labor
market efficiency.
 Acceptability of incomes policies depends on key issues such as:
i) Criteria to be used as the norm for pay increases – these must: make some
sort of economic sense; they must be simple enough to be easily
understood and; they must also be flexible enough to encompass accepted
notions of fairness.
ii) Exceptions to the norm – the range of exceptions must be broad enough to
allow flexibility and the correction of anomalies, but not so broad as to
undermine the goal of restraining income growth.
iii) Control and enforcement – must be a voluntary one based on the support
of those affected and must be largely administered by the concerned
parties themselves.
iv) Cooperation – the effectiveness of an income policy depends on the
cooperation of both employers and trade unions. Management is in the
forefront of policing the income policies. Unions are wary of being seen or
perceived as party to policing as this may erode their credibility with their
members.

4.7 Government as a Conciliator

 Government policy of seeking to maintain industrial peace within the IR system is

to encourage trade unions and management to utilize conciliation and arbitration
processes and the IR Court, to resolve their disputes rather than industrial action.
 Government seeks to use arbitration as a means of influencing the outcome of
negotiations by indirectly enlisting an independent arbitrator or conciliator.
Ultimately, arbitration or conciliation is seen as an unreasonable restriction on
management’s freedom and responsibility to make right decisions in the best
interest of maintaining profitability, and competitiveness of the business.

4.0 THE INDUSTRIAL RELATIONS COURT (IRC)

 The Industrial Relations Court (IRC) is an institution provided for and created by
the Industrial relations Act of 1971.
  The Court was established to resolve industrial disputes. It has similar jurisdiction
as that of the high Court of Zambia all appellants to its decisions do so to the
supreme court of Zambia.
 Its main function in the IR of this country is to interpret all agreements entered
into between the employers and employees and also the employment Act (CAP
268), Workers’ Compensation Act, Factory Act, Minimum Wages Act, NAPSA
Act and many other statutory Acts.

5.0 CONCILIATION AND ARBITRATION

 Conciliation and Arbitration are intended primarily as adjuncts to the collective
bargaining processes.
 The establishment of formal systems and institutions of conciliation and
arbitration within the IR system reflects the fact that ‘most systems of labor
relations presuppose the possibility of disagreement and disputes’ between the
parties involved.
 The two processes are available where the parties to a negotiation fail to
determine a solution on their own, that is, when they have reached an impasse
with no further prospect of movement by either side and, generally, with no
further levels of joint negotiating machinery to which the issue may be referred.
 The two strategies should be viewed principally as intervention strategies, which
utilize the involvement of an independent third party in the conduct of collective
bargaining process.
 The intervention may be initiated by the parties themselves (unilaterally or
jointly) or by the state, through its delegated agency.
 However, the two strategies of conciliation and arbitration are fundamentally
different in their method of operation and, in particular in the relationship
between the ‘third party’ and the other two parties.

5.1 The Conciliator

 Conciliation may be defined as a strategy wherein the’ third party’ supports the
direct bipartite negotiating process by assisting the parties to identify the case and
extent of their differences, to establish alternative solutions and their various
implications and to develop and agree a mutually acceptable settlement.
 The responsibility for making decisions and reaching a solution still remains a
joint one between management and union – as it would if there was no
intervention. The Conciliator acts as a medium for the continuation of the
dialogue.

5.2 The Arbitrator

 Arbitration, on the other hand, may be defined as a strategy wherein direct
negotiation between management and union is replaced with a process of
adjudication, which involves the third party in making a decision (award) between
the two conflicting positions.
 The arbitrator ‘is empowered to take a decision which disposes of the dispute’
and, therefore is not required to seek a direct reconciliation between the two
parties; ‘the parties lose their power over the settlement entirely’.
  It is the arbitrator’s decision, rather than a joint decision of the two parties, which
determines the settlement and he/she may accept one or other of the positions put
to him/her or, as is perhaps more often the case, determine a point somewhere
between the two positions.

6.0 LABOUR COMMISSIONER, LABOUR OFFICER, FACTORY

INSPECTOR

 These have power to enter any workplace at anytime to inspect, carry out any
examination, test or enquiry which they may consider necessary regarding that
workplace.

END