labour laws and

Economics
Labour relation's act

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Introduction-Application
This Act shall not apply to any person in respect of
his employment or service—
(a) In the armed forces (Kenya defence forces)
(b) In the Kenya Police, the Administrative Police
Force, the Kenya Prisons Service and the National
Youth Service, or in any reserve force or service
thereof.

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Employee’s right to freedom of
association
(1) Every employee has the right to—
(a) Participate in forming a trade union or
federation of trade unions;
(b) Join a trade union; or
(c) Leave a trade union.
(d) Participate in lawful activities of the trade union
the employee belongs to;
.

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e) Participate in the election of officials and
representatives of a trade union which the employee
belongs to;
f) Stand for election and be eligible for appointment
as an official of the trade union the employee belongs
to

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Establishing a trade union or
employers’ organization
• "Trade union ” means an association of employees
whose principal purpose is to regulate relations
between employees and employers, including any
employers’ organization.

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• "Employers’ organisation” means any number of
employers associated together for the purpose of
regulating relations between the employers and
their employees or the trade unions representing
those employees.

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Application to register a trade
union
• A trade union or employers’ organization shall
apply to the Registrar for registration within six
months of receiving the initial certificate of
establishment.

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Requirements for registering a trade union

(1) A trade union may apply for registration if—

(a) The trade union has a certificate of the initial
establishment issued by the registrar
(b) The trade union has adopted a constitution for
the trade union

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(c) The trade union has an office and postal address
within Kenya;
(d) No other trade union already registered is
sufficiently representative of the whole or of a
substantial proportion of the interests in respect of
which the applicants seek registration
• (e) Only members in a sector specified in the
constitution qualify for membership of the trade
union;

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(f) The name of the trade union is not the same or
similar to that of an existing trade union
(g) The decision to register the trade union was made
at a meeting attended by at least fifty (50) members of
the trade union;
NB. 1. At least four members incase of registering an
employers’ organization
2.Federation: the federation was established at a
meeting attended by the representatives of at least
three members of the trade unions or employers’s
organization championing for the registration of the
federation.
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(h) The trade union is independent from the control
of any employer or employers’ organizations
(i) The trade union’s sole purpose is to pursue the
activities of a trade union.

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Cancellation or suspension of registration

• The Registrar may cancel or suspend the

registration of a trade union, employers’
organisation or federation if the Registrar is
satisfied that the trade union, employers’
organisation or federation if—

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 Grounds for
suspension/cancellation
a) was registered as a result of fraud,
misrepresentation or mistake;
(b) is operating in contravention of the law e.g. does
not file returns.
(c) is being used for an unlawful purpose e.g.
corruption, criminal activities etc.
(d) has failed to conduct elections in accordance with
the requirements of its constitution
(e) is not independent e.g. joins an employers’
organization or political party.
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Roles of trade unions

1. Collective Bargaining: Trade unions were

developed to grant employees equal bargaining power
with their employers, who traditionally had the ability
to exclusively set the terms and conditions of work
and pay.
2. Informing and consulting: trade union informs
and consults with members about broader business
and workplace issues on a regular basis.

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3. Representing workers at disciplinary and
grievance hearing: Employees have the right to be
accompanied by a representative at a disciplinary or
grievance hearing.
4. Employee Welfare: Unions have successfully
fought for better terms and conditions for workers
such as higher wages, work-life balance, job
security and protection from arbitrary action by
employers.

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5. Legislation: Unions also play a key role in
lobbying for development of labor laws and
regulations for effective worker protection.
6. Productivity: Trades unions can help to
negotiate and implement new practices which
motivate employees to improve productivity e.g.
training.

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7. Increase wages for its members: Industries with
trade unions tend to have higher wages than non-
unionized industries.
8. Conflict resolution: If the trade union is on
board, it can help create good working relationships
between the employers and workers hence reducing
conflicts between the two parties.

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9. Improved Job Security: Trade unions ensure
that employees are not fired randomly without
following the law and hence they create job security
for members.
10. Employee training/sensitization: Trade unions
should train/sensitize their employee employees on
their rights and obligations in the workplace.

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Limitations of trade unions

1. Creates Unemployment: If labour markets are

competitive and trade unions are successful in
pushing for higher wages, it can cause disequilibrium
of wages in the market and thus a potential for
unemployment (classical unemployment).

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2. Ignore non-members: Trades unions only
consider the needs of its members; they often ignore
the plight of those excluded from the labour markets,
e.g. the unemployed.
3. Lost Productivity: Trade unions can encourage
workers to go on strike hence causing a decline in
revenues to the organization. The organization may
go out of business and be unable to employ workers
at all.
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4. Wage-inflation: If unions become too powerful
they can bargain for higher wages above the rate of
inflation. If this occurs it may contribute to general
inflation in a country and hence poor economic growth.
4. Hard Workers Are Devalued: Fair wages implies
that all employees at the same level are paid the same.
This is very bad for a business because some workers
simply deserve higher pay than others due to their
productivity.

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• 5. A System of Abuse: In today’s modern times,
the labor union systems are greatly abused. Some
trade unions have turned political and rarely
represent the interests of trade employees but their
self-interests and political agendas.

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• 6. Group thinking mentality: This is a situation
where members become reliant on groups in making
every decision. This decisions made by the groups
may not be the best but members will accept the
decisions in order to show solidarity or conformity
to the groups norms.

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COLLECTIVE BARGAINING
AGREEMENTS
• Collective agreement:- a written agreement
concerning any terms and conditions of
employment made between a trade union and an
employer, group of employers or organization of
employers

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Collective Bargaining Process
• 1. Choosing a negotiation team - Choosing a
negotiation team and representatives of both the
union and employer. Both parties should be skilled
in negotiation and labor laws, and both examine
available information to determine whether they
have a strong standing for negotiation.

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• 2. Ground rules - Both parties meet to set ground
rules for the collective bargaining negotiation
process e.g time allocation to each party, scope of
the negotiation etc.
• 3. Proposal - Both representatives make opening
statements and their argument outlining options and
possible solutions to the issues at hand.

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• 4. Bargaining - Following proposals, the parties
discuss potential compromises, so as to create an
agreement that is acceptable to both parties. If an
agreement is achieved, it becomes a “draft”
agreement, which is not legally binding, but a
stepping stone to coming to a final collective
bargaining agreement. If an agreement is not
reached then the meeting is postponed for further
consultations

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• 5. Final Agreement - Once a draft agreement is
made between the parties, it must be put in writing.
The final collective agreement shall be signed by—
(a) The chief executive officer of any employer
organization that is a party to the agreement or a
representative designated by that person; and

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• (b) The general secretary of any trade union that is a
party to the agreement or a representative
designated by the general secretary.

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6. Registration of collective agreement
(1) Every collective agreement shall be submitted to the
Industrial Court for registration within fourteen days of its
conclusion.
(2) The employer or employer’s organization which is
party to an agreement to be registered under this section shall
submit the agreement to the Industrial Court for registration.
(3) If an employer or employers’ organization fails to
submit the collective agreement to the Industrial Court
within fourteen days, the trade union may submit it.

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NB.
A collective agreement becomes enforceable and
shall be implemented upon registration by the
Industrial Court.
The terms of the collective agreement shall be
incorporated into the contract of employment of
every employee covered by the collective agreement.

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 • The end
• Thank you

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