UNIVERSITY OF NAIROBI

SCHOOL : CONTINUING AND DISTANCE EDUCATION

DEPARTMENT : EXTRA-MURAL STUDIES

NAME : CHRISTINE ADHIAMBO ODONGO

REGISTRATION NO : L125/19275/2017

UNIT NAME : FUNDAMENTALS OF LABOUR ECONOMIC

TASK : QUESTIONS

DATE OF SUBMISSION : 27TH SEPTEMBER 2018

LECTURER’S NAME : MR. WAINAINA

(a) Define Labour union and trade union.
(b) Using relevant examples from Kenya, explain the relevance and role played by labour
union.
(c) Explain the difference between primary and secondary sectors of the labour market.
(d) To what extent can labour unions be effective in each of the above two sectors in
protecting workers.

(a) A labour union is an organization that represents the collective interests of workers. The
labour union helps workers unite to negotiate with employers over wages, hours benefits
and other working conditions.
Trade unions are organizations formed by workers from related fields that work for the
common interests of its members. They help workers in issues like fairness of pay, good
working environment, hours of work and benefits. They represent a cluster of workers and
provide a link between the management and workers.
(b) The main body of trade union usually consists of individual workers, sometimes
professionals and past workers. Their primary aim is to ensure that the employment
conditions of employees are respected and that fair conditions are offered. However,
labour unions engage in issues like negotiation, representation, information and advice and
member services.

Negotiation
One of the main targets of labour unions is to negotiate with employer about matters
affecting their members and other employees at work. If a union is formally recognized by
an employer, it can negotiate with the employer over terms and conditions. These
negotiations are commonly known as collective bargaining agreements.
Any trade union works to protect and advance the interests of its members. One of the
ways it achieves this is by collectively bargaining with employers about the pay and
conditions under which its members work. The negotiation process normally deals with
matters such as working rules and regulations, complaint procedures, hiring principles,
dismissing or promoting employees, workplace safety and policies. Some trade unions
 even have the power to negotiate rates of pay, bonuses for target achievement,
employment conditions and job descriptions on behalf of the employees.

Representing Body
Employees and other workers have the right to be accompanied at a disciplinary of
grievance hearing.
They can either choose a co-worker or union representative. Often the union
representative will be a work place representative who is also a co-worker and will support
the employee on the board meeting.

Information and advice

If someone forms part of a union, he/she can also ask them for advice. Unions are experts
at solving problems at work. Trade unions provide staff with information, advice and
guidance about any work related problems.

Member Services
Trade unions provide its members with a variety of services such as training, insurance,
financial assistance and legal advice, sickness benefits, education facilities in some cases,
guarantee of satisfactory work conditions in areas such as health and safety as well as
equal opportunities.

Voice in decision affecting workers

Trade union acts as a spokesperson for the staff. When matters concerning an individual
employee or a group of workers arise, the trade union’s job is to negotiate for a solution.
In case no agreement is settles or respected, the trade union members may enforce strikes
or resistance to lockouts. They can also intervene in order to resist schemes of the
management which reduces employment.

(c) Primary labour market is a market that generally consists of high wage paying jobs,
social security and longer lasting careers. It can also be defined as jobs that require
formal education or white collar jobs like teaching, accounting and the law. It also
 includes the skilled traders. It is contrasted by the secondary labour market which usually
consists of low wage paying jobs, limited mobility within jobs, and temporary careers. In
secondary sector, jobs are sufficiently plentiful to employ all workers but they are low
paying, unstable and generally unattractive.

(d) Offcourse, labour unions were created for the benefit of their members. The union
represents the workers to the employers and negotiates on their behalf to secure better
wages and working conditions. Unions also run the largest non military job training
service in the country and often partner with organizations to perform various community
services.

Research that tracks wages of unionized versus non-unionized employees indicates that
the wages of unionized workers exceeds that of the non-unionized employees by about 8
to 12%.

Modern union contracts make it more difficult for a company to fire an unproductive
employee.

The union is also involved through consultation in the development, implementation, the
review and the modification in anything that concerns its members, protecting employees
from unfair labour practices, encourage training of employees after incentives to
members like medical insurance, legal advice and reduction in working hours.
Trade union also set standards in relation to jobs and terms and conditions. It also creates
industrial democracy at work.
References

1. Bacon, N. and Storey, J. (1996) ‘Individualism and Collectivism and the

Changing Role of Trade Unionism’ in P. Ackers, C. Smith and P. Smith (ed.) The
New Workplace and Trade Unionism London: Routledge.

2. Allen, V.L. 1960. Trade Unions and the Government, Longman, Green and Co.
Ltd, London, UK.