Comparative Analysis of the industrial relations system of russia, taiwan, cameroon, and venezuela

UNIVERSITY OF LAGOS.

FACULTY OF BUSINESS ADMINISTATION

DEPARTMENT OF INDUSTRIAL RELATIONS AND

PERSONNEL MANAGEMENT

COURSE TITLE AND CODE:

COMPARATIVE INDUSTRIAL RELATIONS SYSTEMS AND THEORIES. (IRP 410)

LEVEL: 400L

GROUP 2

NAMES MATRIC NO

AWOLESI TOYIN. I 030206013

BABALOLA FOLURNSHO. K 030206014

BODUNRI IBILOLA. T 070206027

GODWIN MICHAEL. S 050206054

KEHINDE KAYODE. M 060206063

MATTI OLARENWAJU 060206064

MOJEKWU DORIS 060206068

ODESOLA OREOLUWA 060206076

1

OMIDIJI TOLUWALOPE 070206060

OMISORE. J. AYOOLA 050206090

OPITOKE ESTHER OSHORENOYA 070206063

OYEWOLE OLUWASENI 060206113

PAUL GOVERNMENT 060206115

SULE MUSHOOD BOLANLE 070206068

WLEGBENU OMOLOLA. D 060206130

2

TABLE OF CONTENTS. PAGES

1.0 Introduction of comparative methods 5

1.1Meaning of comparative industrial relations 6

1.2 Relevance of comparative industrial relations 7

Chapter 1

2.0 History on Russia and Political System 8

2.1 Trade Unions in Russia 10

2.2 Collective Bargaining 13

2.3 Employers’ Association 14

2.4 Industrial conflict in Russia after the collapse

Of Communism 15

2.5Workers Participation in Decision Making 16

2.6 Globalization on Industrial Relations Multinationals

Corporations in Russia 17

Chapter 2

3.0 History on Taiwan 19

3.1. Trade unions in Taiwan and Political structure 20

3.2 Collective Bargaining and Dispute Resolution in Taiwan 22

3.3 Employers Association 23

3.3.1 Statutory Requirement in Taiwan 24

3.3.2 Other Labour Regulations 24

3.3.3 Working hours 24

3.4 Effect of Globalization in Taiwan 25

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Chapter 3

4.0 Comparative analysis of Industrial Relations in Russia and Taiwan. 27

4.1 Difference in Practice of Trade Union 27

4.2 Similarities in their Trade union 28

4.3 Difference in Taiwan and Russia`s collective bargaining 28

4.4 Similarities in their Collective Bargaining 29

4.5 Differences in Employers Association 29

4.6 Similarities in Employers Association 29

4.7 differences in Industrial Conflict and Strikes 30

4.8 Similarities in Industrial Conflict and Strikes 30

4.9 Similarities in Workers Participation 30

Chapter 4

5.0 History of Venezuela 31

5.1 Political environment 34

5.2 Photo Gallery 35

5.3 Trade union Composition in Venezuela 35

5.4 Employers Association 37

5.5Industrial Conflict 39

5.6 Workers Participation in Decision Making 39

5.7 Industrial Relation in MNC 39

5.8Impact of Globalization in Venezuela 40

Chapter 5

6.0 Overview of Cameroon 42

6.1 Land & Resources 48

6.1.1 History of Cameroon 50

6.2Trade union Composition in Venezuela 51

6.3 Collective Bargaining 51

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6.4 Role of State 52

6.5 Industrial Conflict 52

6.6 Impact of Globalization in Venezuela 53

7.0Comparism (Venezuela and Cameroon) 55-57

Introduction on Comparative Methods.

In all sciences, be it social or pure; the comparative approach is an approach in

looking at a phenomenon. Although, the meaning of the term “comparative

approach’’ can not be found in any dictionary but one can have an idea of the two

words. Comparative means to compare while method means procedure. From the

definition above, comparative method is said to mean the procedures for

comparing. Comparative method can be found in various studies or disciplines like

sociology, philosophy and also in industrial relations.

According to Stumthal (1958), he defined comparative investigation as research

dealing with the same, similar or related phenomenal in different countries.

Bean (1974) also defined comparative industrial relations as a systematic method

of investigation relating two or more countries which have analytical rather

descriptive implications.

Comparative industrial relation is the study of industrial relations in two or more

countries where the similarities and differences between them are analysed. The

study of industrial relations provides the basis for comparison across regions,

sectors, countries and more importantly from a macro-perspective. The tools for

comparisons are trade unions, employers associations, collective bargaining, role

of the state, workers participation in decision making, industrial conflict and

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strikes, industrial relations in multinationals corporations, industrial relations in

developing countries and the effect of globalisation. The study of industrial

relations in one country can not be transplanted into another country. Even the

industrial relations of a company in one country can not be transplanted into the

branch of the same company in another country. For example Unilever Nigeria can

not transplant its industrial relations practices into Unilever Ghana.

But comparative industrial relations make it possible to assess whether there are

any features of industrial relations system in other countries that should be

imported and applied.

Comparative industrial relations is a global or societal review, analysis and

interpretation of all work related relationship. It reviews on the basis of work life

associations. Comparative industrial relations is the most exciting area of study in

industrial relations.

Relevance of Comparative Industrial Relations.

1. It is an aid to practitioners in utiliusing ideas, approaches and techniques.

2. It can lead to greater understanding of the factors which determines

industrial relations phenomenal because it can lead to questions regarding

the reasons for the observed similarities and differences.

3. It gives insight to a wider social and economic aspect of society which

influences industrial relations policies.

4. It provides insight into major issues and theories which explains the

different national patterns of industrial that is peculiar issues that makes a

country different from others.

5. Comparative analysis across countries provides understanding of various

factors such as legal institutional framework, technology, economic and

industrialisation strategies, central functions, role of the state amongst

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others as determining the type of industrial relations adopted by different

countries,

Relevance of Comparative Industrial Relations to Human Resource Managers.

1. It helps to provide more knowledge and experience to use. It can bring about

policy alteration or deviation.

2. It enables management of a firm to know whether a system borrowed from

elsewhere is practicable or not within their own framework.

3. It can provide a new method of production for a firm; this could be achieved

through suggestions from other quarters.

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2.0 HISTORY ON RUSSIA

Russia was founded in the 12th century from more than two centuries of Mongol

domination with its capital city named Moscow. During the 19th century, more

territorial acquisitions were achieved in Europe and Asia and consequent to that,

was the revolution of 1905 after the defeat of Russia by the Japanese war of 1904

to 1905. The brutal or fierce rule of Losif Stalin (1928-1953) strengthened

communist rule in Russia which in advertently increased their dominance of the

Soviet Union economy and society stagnated in the proceeding decades. By 1991,

the USSR was splintered into Russia and 14 other Independent Republics.

Russia has the largest city in the world with an estimated population of

141,927,297 million people. Russia covers a total 17,075,400 square kilometers.

The official language is Russia and ethnic groups’ ranges among Tatars,

Ukrainians, Bashkirs, Churash, Chechen and Armenians. The Current President is

Dmitriy Anatolyevich Midvale and the Prime Minister Vladimir Putin. Russian

federation is in Northern Eurasia. It is a federal, semi-presidential democratic

republic comprising 83 federal subjects. Russia shares borders with Norway,

Finland, Estonia, Latvia, Lithuania and Poland (both via Kaliningrad oblast)

Belarus, Ukraine, Georgia, Azerbaijan, Kazakhstan, China, Mongolia and North

Korea.

The vibrancy of the Russian economy is a pointer to the relevance of industrial

relations practice and analysis.

Russian has a large reserve of Mckel in the world’s national resources. It is blessed

with crude oil, natural gas, mineral resources and energy resources.

Russia extends across the whole of northern Asia and 40% of Europe, spanning

eleven time zones and incorporating a wide range of environment and land

reforms.

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Russia established worldwide power and influence from times of Russian Empire

to being the largest and leading constitutionally socialist state and a recognized

super power that played a decisive role in the allied victory in World War II.

Russian Federation was founded following the dissolution of the Soviet Union in

1991.

Russia has the world’s eight largest economy by nominal GDP or the sixth largest

by purchasing power parity with the eight largest nominal military budgets with

the possession of world’s largest stockpile of weapon of mass destruction.

Russia is a permanent member of the United Nations Security Council and a

member of 98,920 council of Europe, Asia-Pacific Economic Cooperation and is

the leading member of the Commonwealth of Independent State. The Russian

nation has a long tradition of excellence in every aspect of the arts and sciences

and as well as a strong tradition in technology including such significant

achievement as the first human space of light.

RUSSIA’S POLITICAL SYSTEM

According to the Constitution, which was adopted in 1993 following the 1993

Russian Constitutional crisis, Russia is a federation which is fundamentally

structured as representations of democracy whose government is composed of

three branches.

Executive power is exercised by the government (The President is the

Commander in Chief of the Military).

Legislative power is vested in two chambers of the federal assembly (State Duma

and the Federation Council).

Judiciary comprises of the Constitutional Court, Supreme Court and the Supreme

Court of Arbitration.

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The government is regulated by a system of checks and balances defined by the

constitution of Russian Federation. The President is elected by popular vote for a

six-year term and eligible for a second term. But constitutionally barred from a

third term. Election was last held in 2008. Ministers are composed of premier and

his deputies, minister and selected other individuals. The National Legislature is

the Federal Assembly consisting of two chambers, 450 member state Duma and

176 member Federation council. Leading political parties in Russia include United

Russia, the Russian Communist Party, the Liberal Democratic Party of Russia and

Fair Russia.

2.1 TRADE UNIONS IN RUSSIA

According to the International Labour Organization, the primary role of trade

union is to protect the interest of its members at the expense of the employers.

Since Russia used is a socialist economy trying to move forward what is called a

communist ‘market’ economy, the role of her trade unions continue to change

from time to time.

Before the Bolshevik revolution of 1917 unions were not independent they were

made to be what is called ‘production unions’ that would manage compulsory

labour programmes, improve productivity and enforce labour disciplines.

In the present day Russia, the Federation of Independent Trade Unions of Russia

(FNPR) is the largest National Trade Union Center in Russia with a membership

estimated between 28 and 31.5 million. The FNPR is widely recognized as the

defector successor to the Soviet era trade unions system. Although the General

Confederation of Trade Unions as the umbrella organization of trade unions in the

former Soviet Republic, that is which is technically the equivalent of the former

system.

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The FNPR was established in 1990, one year before the dissolution of USSR

(Union of Soviet Socialist Republics). After the break up, with the exception of

the military, the FNPR was one of the few national institutions to restrain its

power and function. The abilities included:

Control over the disbursement of insurance and funds

The right to contest and veto dismissal of workers

Automatic deductions from workers wages.

FNPR continued to operate in a manner similar to Soviet as a union. Members of

the FNPR included both workers and management and often, labour unrest was

aimed at the government rather than employers in an effort to preserve the

command market economy as opposed to the free market economy. The FNPR

clearly professed support for a socially regulated market economy, trade union

independence and political democracy.

FNPR espouses government intervention in the economic process, if such

intervention is required for social reasons.

THE STRUCTURE OF TRADE UNION IN RUSSIAN FEDERATION

Federations of Independent Trade Union of Russia

The LEGAL RUSSI

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Central Committee of Balance union

Regional Federation

Regional branch committee

District Committee City Committee

Primary Organization Primary Organization Primary Organization

That of social partnership within a framework of tripartism (Article 15.1)

- Voluntarism, the law specifying the minimum of obligations of trade

unions, leaving them to regulate their internal relations including conditions

of membership, form of government, formation of primary groups and

designation of its representation according to their constitution.

- Sources of funds and its use are determined by its own constitution

- Equality of rights of all trade unions under law

- Welfare Corporation: Although trade unions have lost many of their former

state functions, the law still defines their rights and responsibilities in

relation to labour and social issues within a capitalist framework.

- Existence of any other representative body of employees cannot be used to

impede the activity of the trade unions.

In 1998, Russia was hit by a severe financial crisis, and the FNPR was at odds

with Yeltsin calling for his resignation in an open letter. The union preferred

Yevgeny Primakov, the dismissed Prime Minister and the Otechestro coalition.

However, this support appears to have been relatively weak, as regional trade

unions had their own positions and interest, and it was Vladimir Putin who was

appointed Prime Minister and then Acting President, four months later.

In 2001, a new labour code was introduced in the State Duma and it was strongly

opposed by all but one of the trade unions.

The FNPR was granted observer status in the International Confederation of Free

Trade Unions (now the International Trade Union Confederation) in April 2000,

and was accepted as an affiliated member in November of the same year. Since the

affiliation, the FNPR has been active in supporting ITUC in the area, providing

facilities for an ITUC regional office. The key people in the FNPR are President

Mikhail Shmakov and International Secretary Eugene Sidorov

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2.3 COLLECTIVE BARGAINING IN RUSSIA

Collective bargaining refers to the process by which workers and their

representatives, one hand come together with the employer or its representatives

on the other hand for the purpose of determining and regulating terms and

conditions of employment. It is a form of industrial democracy which allows

workers in the determination of terms and conditions of employment. The core of

this part is to look at how collective bargaining has faired in Russia.

In Russia, the liberalization of the labor market, with the removal of a large part of

the statutory and administrative control of payment systems and of the terms and

conditions of work. The law on trade union specifies the right of trade unions to

conduct collective bargaining and conclude collective agreement in the name of

employees and in conformity with federal law.

In Russia, employers are required to conduct collective bargaining with trade

union bodies, if the latter initiative such bargaining. The implementation of

collective agreement, the trade union has the right to monitor the implementation

should the employer violate the terms of the collective agreement. The trade

unions in Russia have the right to report these violations to the employer, who

must respond within a week, and failure will be at the Federal Law discretion.

In Russia, there are different levels of bargaining which are branch bargaining,

regional level bargaining, and local level bargaining.

Branch Level Bargaining: At this level of specific sector, the representative of

the trade unions meets with representative from relevant ministries or with

employer’s association representatives. Here, the trade union representatives try to

reach branch agreement on minimum standards for specific sector.

Regional Level Bargaining: At the regional level, trade unions try to bargain

with the regional employers’ representative or regional public authorities to

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improve the general standards put forward in the general agreement and the branch

level agreements. The success of the trade union at this level depends heavily on

the strength of the trade unions regionally and how important the sectors for the

regional economy.

Local Level Bargaining: the ability to implement general standards at the local

level, enterprise depends on the strength of the local trade union. Sometimes

general agreements, branch level agreements or regional agreements are not being

obtained, as the local union is not being obtained. The local union is not strong

enough to force the employers to implement common policies. At other times,

local trade union is strong enough to greatly improve the standards and the

leverage to force the employers to implement higher standards.

Since the structure of the trade union representative in Russia gives considerable

decision power over economic resources to the local representatives, the quality of

the local representatives decides the effectiveness of trade unions locally and the

standard may differ widely between enterprises in the same sector.

2.4 EMPLOYERS’ ASSOCIATION IN RUSSIA FEDERATION

The law that allowed for the formation of employers’ association was passed by

the State Duma on October 30, 2002 and endorsed by the Federation Council on

November 13, 2002.

The summary of the law as stipulated from article 1 to 15 are:

Scope of Federal Law which shall apply to all employers’ association that conduct

their activities on the territory of the Russian Federation.

That employer shall have right to local self-governance with the objective of

representing their legitimate interest and protect rights of members.

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That employers’ association legal status shall be defined under the constitution of

Russian Federation, International Treaties and Agreements.

That member of employers’ association shall have equal right to participate in

formation of governing bodies as prescribed under the Russian charter of

employers’ association

- The obligation of members of employers association in Russia shall be

abide and comply with terms, conditions and requirements, provided by

those contracts and agreements.

- The employers’ association shall have the right to work out a coordinated

position of the employers’ association members regarding the regulation of

social-labour relationships.

It is quite evident that employers’ association in the Russian federal is distinctly

organized according to the democratic tenets of industrial and labour relations.

2.5 INDUSTRIAL CONFLICT IN RUSSIA AFTER THE COLLAPSE OF

COMMUNISM IN EARLY 1990

Industrial conflict can be defined as the inability of employers and workers to

reach an agreement on any issue connected with the object of employer or

employee relationship or interaction, whether or not this inability results in strikes

or lock outs or other form of protestations (Fon, 1971).

Conflict arising within the enterprise can be internal and external.

According to Simon Clarke on Russia (Journal of Communist studies, 1993). The

Russians independent unions are weak which was reflected in union leaders

playing secondary role in revolution.

The independent unions generally supported Yeltsin in 1991 but got little support

from the government. In analyzing patterns of industrial conflict in Russia, it will

be helpful to examine past nature of unions in Russia before the collapse of

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communism which is evident in the stiff degree of autonomy which unions do not

enjoy. The unions had little status compared to proletarian parties until March

1992 law on collective agreement paved way for equal rights to all properly

constituted trades union. After the collapse of communism, the forms of industrial

protest in the Russian federation nosedived into a staggering low level which

became resolved peacefully in all ramifications as result of the 1993 law of

collective agreement. Various statistics is evident to show the increase in wage

survey from 60% to 70% and the wave of strikes also declined from 23% in 1993

to 19% in 2005.

2.6 WORKERS PARTICIPATION IN RUSSIA

In Russia, the socialist economy was practiced during the Soviet Era, but now they

are moving towards a socialist market economy. According to the theory of the

socialist market economy an enterprise continues to be a unit any body securing

the social reproduction of its labour collectively and serving the interests of

society as whole increased enterprise independence. The resurrection of

democracy in Russian various workplaces which replaced weak monitoring role of

the state are evidence that worker participation is inherent in the industrial

relations system in Russia.

In Russia, the 1983 law on labour collective established the elected labour

collective council as an advisory body with very limited powers. The law on state

enterprise (Association) of July 1987 strengthened the STN, which had power to

decide all production and social questions. Although, it simultaneously reaffirmed

the traditional principle of one man management. This is a form of which workers

participate in the work place.

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There is social partnership between workers and employers which was a means of

securing their institutional reproduction. In a nutshell, employee participation is

the process of whereby employees are involved in decision making processes,

rather than simply enacting an order. It is part of a process of empowerment in the

work place.

Employee participation is in part a response to the quality movement within

organizations. In Russia, individual employees are encouraged to take

responsibility for quality in terms of carrying out activities which meet the

requirement of their customers. Employee or workers participation in Russian

federation is hampered on the ideology of improving human resource development

in modern organizations.

To this end, the form of workers participation is place through labour collective

council, social partnership and collective bargaining.

2.7 GLOBALISATIONAL EFFECTS ON INDUSTRIAL RELATIONS IN

MULTI-NATIONAL CORPORATIONS IN RUSSIA

Due to globalization in the world, multinationals emerge through establishing

business across countries of the world. Also in the wake of foreign direct

investment, many countries embraced foreign investment and also encouraged

them through favorable legislation and labour practices.

Immediately after the break up of the Soviet Union, the Russian federation was

defined as a nation in transition to democracy, Russia was termed in the global

setting back them as a prodigal son coming back to the family of western nations.

The experience of Russia can provide a series of lessons of imperative importance

in considering the range of development paths that are open in the face of

globalization.

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The Russian case clearly supports the theme of the task force of the need for a

negotiated compromise between democracy and the market. The Russian case

strongly supports the need for social guarantees negotiated with government and

employers at the national level and the need to strengthen industrial relations

framework, especially tripartism, to link economic and social organization and

restore social organization and restore social stability and social integration. While

the institutional framework exists in Russia, the weak mass of trade unions as

independent framework exists in Russia.

It is clearly the case that globalization has destroyed the traditional soviet system

of national social policy and industrial relations, and has destroyed a lot of good

together with bad.

Russia has been particularly ill served by foreign experts and advisers in the fields,

who have proposed quiet inappropriate neo-liberal policy reforms which have

been of dubious success in the west but which have proved disastrous in the

Russian content.

On the aspects of globalization, only liberalization of product markets are the

growth of trade and is really relevant to Russia, where it has played an important

part in deepening the economic crisis, as booming exports of fuel and metals have

pushed up the exchange rate to the detriment of domestic industry and agriculture.

There has been little industrial restructuring or new investment, restructuring

deriving only from relatively smaller or greater rates of decline.

To this end, it is clear that specific national arrangement are being undermined by

growing international competition and the changed balanced of power between

capital and labour.

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3.0 HISTORY OF TAIWAN

Taiwan is mostly mountainous in the east with gently sloping in the west of

Taiwan is called PENGHY ISLAND.

Taiwan is known as Formos in an island located in the Western Pacific and East-

Asia with a tropic climate, annual typhoons and occasional earthquakes. It is

governed as Taiwan province under the Republic of China (ROC), along with the

Islands of Pescadores, Orchid, Green, Taiping and Pratas.

The Island of Quemoy and Matsu Island are administrated under a separate Fukien

province by the ROC government. Although Taipei city and Kaohsiung city are on

Taiwan Island, they are directly administered by the ROC government under the

municipal system.

Taipei city is the defected capital of ROC and the government of Taiwan province

is located in Jhongsing village, Nantou County.

POLITICAL STRUCTURE

The political status of Taiwan is complex because it is claimed by the People’s

Republic of China (PRC) established in 1949. The political status of Taiwan is a

sensitive issue due to the existence of two Chinese governments that both claim

sovereignty over all of China.

Since the 1970s, many nations switched diplomatic recognition of China from

Taipei to Beijing after the ROC lost its seat at the United Nations to the PRC. The

ROC government has governed Taiwan since 1945, whereas the PRS has never

had any jurisdiction over the island.

The capital of Taiwan is Taipei. Taiwan has a population 22,974,347(July 2009

estimate). It is located on the Eastern Asia, islands bordering the East China Sea,

Philippine Sea, South China Sea and Taiwan Strait, North of the Philippines, off

the Southeastern Coast of China.

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The Chief of state is President Ma Ying-Jeou

Head of State: President of the Executive Yuan Liu Chao Shiuan.

Vice president - Vincent C. Siew

Government structure:

Five government Branches ate the executive Yuan, the legislative Yuan, the

judicial Yuan , the examination Yuan and the control Yuma

Provincial governments are Taiwan provincial government and Fuchien provincial

government

The major political parties are Democratic progressive party (DPP), Kuomintang

(KMT), New party (NP), People first party (PFP) and Taiwan Solidarity Union

(TSU)

3.1 TAIWAN’S TRADE UNION ASSOCIATION

Taiwan’s Confederation of Trade Unions (TCTC) was founded in 1997 and as at

year 2000, it had 280,000 members. The name of the President is LU Tien-Lin

whose office is located at Taipei, Taiwan.

Taiwan Confederation of Trade Unions is a National Trade Union Centre in

Taiwan. It was established in 1997 but did not receive official recognition from the

government until May 1, 2000. The TCTC has 21 affiliated unions, including

telecommunication, petroleum, tobacco, alcohol, railway, bus, and banking

industries and 9 Local Trade Union Federations. Local Unions in unrepresented

countries are also actively working towards the formation and plan to affiliate with

TCTC.

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To deal with the changing environment in Taiwan, TCTC has established several

committees. First, the organizing committee promotes the formation of Union

federations among industries or regions, and raises the union participation rate in

Taiwan.

Second, the Labour Law Polian Committee fights for reforms of the present

system of labour-regulations and prepares for future attacks on worker’s interest

by the government national pension Plan. TCTC has set up a committee on

privatization to critique and monitor the government’s privatization schemes. To

deal with the crisis of unemployment and plant closures, it established a committee

for unemployment and employment.

Under the globalise capitalist economy, the situation, conditions and struggles of

Taiwan’s workers are shared by the working class around the world. Therefore,

TCTC also tries to communicate and cooperate with the International Labour

Organization, participating in conferences, and international campaign through its

international department.

The Taiwanese’s labour movement has fought towards the creation of TCTC for

more than a decade Kuomintang’s Trade Union policy: From the state contract to

societal controls.

In view of the fact that labour management relationships are a major factor

in business operations, the Taiwan government has initiated a review of Taiwan’s

labour Union laws in recent years. In this review process, cultural social, and

environmental factors as well as and corporate structures, were taken into

consideration with the aim of better developing smooth labor-management

relationships.

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According to the department of statistics, LCA, as of the end of 2007 there were

approximately 4,588 unions (including the Chinese National Federation of

industries) in Taiwan, with almost three million members. During this review

process, however, it was discovered that the structure of Unions in Taiwan is

different from the structure of Unions in western countries unlike traditional

western Unions; Unions in Taiwan do not mainly function to exercise collective

bargaining power.

3.2 COLLECTIVE BARGAINING AND DISPUTE RESOLUTION IN

TAIWAN

Collective bargaining in Taiwan is conducted on a voluntary basis. Provisions in

“The Settlement of Labour Disputes Law” are usually applied to reconcile labour

disputes. A recent proposal to enhance effectiveness of labor dispute settlement

was approved by the Executive Yuan in September 2007. The proposal set forth

new legislations to regulate labor dispute behaviours and procedures. The proposal

also amended the existing “Labour Union Law” and the “Collective Agreement

Law” to ensure that the rights of labors bargaining power are fully secured and

protected. Due to regulatory restrictions on workers’ rights to organize, the small

scale of most private establishment, and the more generally limited effectiveness

of unions, collective bargaining is not regarded as an important channel for

negotiating employment terms and conditions in Taiwan.

SETTLEMENT AND MEDIATION PROCEEDINGS

Advisory

Conciliation

Arbitration services

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LABOUR DISPUTES IN TAIWAN FALL INTO THE FOLLOWING

CATEGORIES

Wages

Labor contracts

Occupational hazards

Retirement

Labor insurance

Welfare benefits

Management

Most disputes revolved around an issue of rights. Means to seek relief included

Civil Litigation and Alternative Dispute Resolution (ADR), both offered by local

authorities. The manufacturing industry was involved in the bulk of the disputes,

followed by the wholesale/retail industry other services industries, and the

restaurant/hotel industry.

Conciliation and mediation are effective methods for resolving labor disputes.

Dispute usually occurred when employers do not follow the legal requirements

with regards to the payment of retirement benefits, severance pay, or wages. Most

petition and protests that government encounters are a result of such disputes.

3.4 EMPLOYERS’ ASSOCIATION IN TAIWAN

There are many employers’ trade associations and industrial associations in

Taiwan. One of the most influential representatives of employers in Taiwan, apart

from the legislators who represent employers in various industries, is the Chinese

National Federation of Industries (CNFI)

CNFI serves as a forum for views and opinions on Taiwan’s industrial sector, with

the aim of upgrading and promoting economic development.

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The CNFI is a nonprofit organization consisting of almost 150 members

associations in their respective manufacturing industry with each member

association representing its specific manufacturing area, all the associations

together represents more than 80,000 industrial companies in Taiwan. CNFI is an

influential body on the enactment and amending labor laws, as well as in

formulating government labor policies.

3.4.1 STATUTORY REQUIREMENT IN TAIWAN

The Labour Standard Law (LSL) as promulgated in 1984. LSL establishes

employers’ minimum obligations for employment terms and conditions. The LSL

has covered all industries since the end of 1998 and was amended in December

2002. Many companies use the LSL to set their internal policies for personal

matter.

3.4.2 OTHER LABOUR REGULATIONS (THE MINIMUM WAGES)

The government adjusted the minimum wages became effective July, 1, 2007 to

better reflect Taiwan’s general economic growth as well as increases in the

average consumer price index while also enhancing the living standard and

purchasing power of laborers, for full time workers, the minimum salary was

adjusted from NT$66 to NT$95 per hour.

3.4.3 WORKING HOURS

Employees have regular working time not in excess of 8hours per day and 84hours

within any 2-week period. With the consent of the relevant labor union, or if no

labor union exists for a business entity with the approval of the related labor

management conference participants, an employer may distribute paragraph of any

2 workdays within any 2 week period, to other workdays provided that no more

than 2 hours shall be distributed to each of the other workdays. The total number

of working hours, however, shall not exceed 48 hours per week.

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3.5 EFFECT OF GLOBALISATION IN TAIWAN

Taiwan is a country with only limited natural resources. In 1960’s a lot of foreign

capital was attracted, and labour intensive industries were developed due to this

Taiwan developed a great deal economically.

During late 80’s, many of Taiwan’s labor intensive industries were moved to

Southeast Asia according to the southward policy, a worldwide trend then.

Local industries in Taiwan, on the other hand, were transformed into high value

added and capital and technology intensive industries. These upgrade industries

distinguished Taiwan from other Asian countries in terms of the world

specialization system.

Also, they allowed Taiwan to reach a higher level in technology. However, not all

people benefited from these structural changes. From the 50’s to the 80’s,

educational resources were mainly confined in the plain areas where the Han

people, the ethnic majority among the Chinese lived, while many indigenous areas

could not share those resources. At that time, Taiwan’s indigenous people were

not aware of the importance of education and skills. The Chanars in the 80’s did

bring any brighter chance for them.

Deprived of education and long discriminated by Han people, these unskilled

indigenous people still worked for poor wages. This has resulted in a gap of

average income between the indigenous and the other people, which has widened

over the years. Other problems faced by Taiwan due to its globalization centered

economic structures have been problems related to jobs or work, housing

problems, and losing of land rights by the indigenous people.

25

Foreign laborers soon substitutes for the Taiwanese indigenous people as the main

work force because of their low wage rate. Exploitation of these foreign labourers

is very rampant. The urban indigenous people, therefore, lost their regular jobs of

about 10 to 15 days per month and turned into temporary labourers working only 3

to 10days per month. In 1997, the number of foreign labourers in Taiwan (256,246

legal foreign workers), including the illegal ones, was greater than that of all

Taiwanese indigenous people (total 357, 582). Unemployment forced the

indigenous people, who worked in the urban areas, to move to slum areas, usually

new garbage dumps, where no water and electricity are supplied. The places where

the indigenous people are dwelling have now become targets for future bullet train

railways or golf courses.

Indigenous people staying in the mountains however are no better than those

living in the suburbs of cities. They do not have access to lands. All of the land

was possessed by the government. Only the plutocrats possess large pieces of

lands.

4.0 Comparative analysis of industrial relations in Russia and Taiwan.

Having examined the economic and political path in both countries, it is

imperative to comparatively analyse the industrial relations of each country using the

following tools: trade unions, collective bargaining, workers participation, employers

association, industrial conflict and strikes. The two countries will be for easy

discerning.

4.1 Differences in trade union practice

1. In Russia, trade unions declared themselves independent of the communist

party in the late 1980s. While in Taiwan, having been carved out of China

26

Republic continued to be kept under strict party control.

2. Trade unions in Russia are said to possess more independence compared to

unions in Taiwan.

3. Russian trade unions represented themselves immediately after the collapse of

the Soviet Union and were duly recognised by the International Labour

Organisation as real trade union. Whereas in Taiwan, the possibility of having

real trade unions is still being checked by the suppression of workers activism.

4. Trade unions labour unrest in Russia was aimed at the government rather than

employers.

5. Trade unions in Russia sourced for funds and the use of it was determined by

its own constitution.

6. All trade unions in Russia were organized voluntarily and had equal rights

under the law. While the small scale of most private establishment in Taiwan

had restriction on workers rights to organize.

4.2 Similarities in their trade unions.

In Russian and Taiwan, trade unions were subject to severe structural constraints

which hindered them from being transformed into real trade unions.

4.3 Differences in Taiwan and Russia’s collective bargaining .

1. Collective bargaining in Taiwan was conducted on voluntary basis.

2. Employers in Russia are required to conduct collective bargaining with trade

27

union bodies as stated in the collective agreement.

3. In most small scale private establishment in Taiwan, collective bargaining is no

regarded as an important tool for negotiating employment terms and

conditions. Whereas in Russia collective bargaining was the right of all trade

unions.

4. Collective bargaining in Russia took place at three different levels such as the

branch, regional and at the local level.

5. Russia labour laws gave trade unions the right to ensure that employers

implemented agreements reached at the end of each bargaining exercise and

failure to respond within a week will be at the Federal Law discretion.

4.4 Similarities in their collective bargaining.

1. Both made provision for the regulation of labour relation on the basis of

collective agreement negotiated between trade unions and employers.

2. In both countries, the centralised administrative regulation of the terms and

conditions of employment gave way to the regulation of employment relations

on the basis of the collective agreements negotiated between trade unions and

the employer.

4.5 Differences in their employers’ association.

In Russia, the employers’ association was organized according to democratic

28

tenets of industrial and labour relations passed by State Duma of the Russia

Federation. Whereas in Taiwan, employers association was organized along

international economic and industrial cooperation.

4.6 Similarities on employers’ association.

1. Both had laws established to ensure the formation of an employer association. It

also includes that they abide and comply with the terms and conditions of

employment.

2. Both had equal rights to participate in the formation of governing bodies and

labour policies as prescribed under the laws that allowed for their formation.

4.7 Differences in industrial conflict and strikes.

1. In Taiwan, the laws made provision for the settlement of conflict and this was

used to regulate labour dispute behaviours and procedures.

2. Industrial protests in Russia were at a staggering low level and were peacefully

resolved in all ramifications as a result of increase in wages as the statistics are

evidence to show the increase and the wave of strike also declined.

3. Taiwan had procedures that had to be followed in the settlement of dispute from

Advisory, to Conciliation and Mediation and Arbitration services.

29

4.8 Similarities between both countries industrial conflict and strijes.

The reasons for industrial conflict and strikes fall into wages, benefits, hours of work

and the rights of workers.

4.9 Similarities in workers participation.

1. Both countries encouraged workers participation. This was done through

collective bargaining, social partnership and labour collective council.

2. Individual employees were encouraged to participate in decision making and to

also take responsibility for the quality in terms of carrying out activities which

meet up the requirement of their customers.

5.0 HISTORY OF VENEZUELA.

Venezuela, a country on the northern coast of South America bordering the

Caribbean Sea. Venezuela’s landscapes range from the towering peaks of the

Andes Mountains in the north to tropical jungles in the south. In the middle of the

country are grassy plains and rugged highlands. Beautiful beaches fringe the coast,

and islands belonging to Venezuela lie offshore. The country’s capital and largest

city is Caracas.

A Spanish colony for more than 300 years, Venezuela became one of the first of

Spain’s South American colonies to declare its independence in the early 19th

century. Formerly known as the Republic of Venezuela, the country changed its

official name to the Bolivarian Republic of Venezuela in 1999. The name is in

reference to Simon Bólivar, the military leader who helped win independence for

30

Venezuela and other South American countries. Since becoming a sovereign

nation, Venezuela has undergone periodic episodes of civil conflict and

dictatorship, with the military exerting a strong influence over politics. Since the

late 1950s, democratically elected governments have ruled the nation.

POLITICAL PARTIES

The leading political parties in Venezuela are the Fifth Republic Movement Party

(Movimiento V República, MVR), led by President Hugo Chávez; the Democratic

Action Party (Accíon Democrática, AD); Movement Toward Socialism

(Movimiento al Socialismo, MAS); Project Venezuela (Proyecto Venezuela); and

Social Christian Party of Venezuela (Partido Social Cristiano de Venezuela,

COPEI).

Basic facts

Official name Bolivarian Republic of Venezuela

Capital Caracas

Area 916,445 sq km

Population 26,414,815 (2008 estimate)

Government

Form of government Federal Republic

Head of state President

Head of government President

National assembly 165 members

Legislature Unicameral legislature

Highest court Supreme Tribunal of Justice

31

Valencia 829,926 (2008 estimate)

Cicudad Guyana 940,477 (2008 estimate)

Ethnic group

Mestizo 67 percent

White 21 percent

Black 10 percent

Native America 2 percent

Languages

Spanish (official), English, Portuguese, Native America dialects

Religion

Roman Catholic 94 percent

Protestant 2 percent

Non-religion 2 percent

PHOTO GALLERY OF VENEZUELA

PRESIDENT: HUGO CHAVEZ

MAP OF VENEZUELA

Largest cities with population

Caracas 2,085,488 (2007 estimate)

Maraca Ibo 1,450,665 (2008 estimate)

Barquisimeto 1,085,483 (2008 estimate)

32

FLAG OF VENEZUELA

5.2 TRADE UNIONS IN VENEZUELA

Unions in Venezuela are extremely weak, this is due to the government opposition

of the Confederation of Venezuela Workers (CTV) as part of the political

opposition, and to the fact that it is not recognized as a partner in negotiations. On

the other hand new unions that are faithful to the regime, and whose goal is not so

much in improving wages and working conditions as providing political support

for Chavez’s “revolutionary” projects, have formed under the hospices of

National Union of Workers (UNT).

The CTV which is the main opposition in Venezuela has the largest size of

members leaving the three other unions with little membership base.

Political parties and unions have no place in President Chavez’s political concept

of “delegative democracy” because they will only disrupt direct communication

between the leader and the people and the will of the people will be falsified.

Organisation of employees only makes sense if and only if they are an integral part

of the revolutionary unity party. The Bolivarian Revolution in Venezuela, which is

working to change the political and economic structure of Venezuelan society in

favour of the poor majority, is also creating a mini-revolution in the nation’s

labour movement.

May 2003, the National Union of Workers (UNT) was formed in opposition to the

existing corrupt and bureaucratic Trade Union Federation, the confirmation of

Venezuela worker involvement and demand for workers control over production.

Although, the GV initially spoke against the aggressive neoliberal legislation

unordered in1989, by the mid- 1990 it abandoned all such criticism, even gone so

33

far as to sign on to Venezuela- IMF agreement. With increasing unemployment

made a unionization rate reduced by 50%. According to Jonah Gind who write a

two part article on union for Venezuela analysis (Published on October 28 and

January 2003) respectively. It was discovered that 14% of those employed in the

formal sector were organized into unions.

5.4 EMPLOYERS’ ASSOCIATION IN VENEZUELA.

Venezuela has three dominant Employers Association namely:

Fedecamaras

Consecomercio

Fedenagas

Employers associations in Venezuela are not very powerful due to the fact that

workers have huge say in decision making. For example, A firm with a unionised

woke force must enter into collective agreements or contract with the union if

more than 50% of the members so request.

5.5 COLLECTIVE BARGAINING

Most collective bargaining agreement in Venezuela are negotiated at the plant

level although there is a trend towards industry -wide bargaining to set minimum

conditions for all plants in a given sector including the petroleum, steel, paper and

tobacco.

Collective agreements run from one to three years and may cover everything

from wages and fringe benefits to work-rules, grievance procedures and the

prerogative of unions officials

In Venezuela, collective bargaining has enlarged its scope and issues

negotiated between labour and capital now include functional flexibility measures

and industrial restructuring. But the labour market, where collective bargaining

takes place has shrunk dramatically. Collective bargaining in Venezuela has never

34

been a steady process, halted by social dialogue intents, by authoritarianism or by

autocratic economic process.

The government policies on freedom of association contained to be heavily

influenced by the political context, which has seen a deterioration of the

arrangement for dialogue between unions, employers and government, which has

impractical, been virtually the only actor involved in the devising labour policies

collective bargaining arrangements have been considerably weakened as a result,

largely owing to the interference by the CNE (National Electoral Council) in union

elections. This has undermined the union works and their involvement in national

social policies, despite the fact that for the first time an appeal court judge and the

Director General of the Ministry of Labour have questioned the CNE’s

interpretation role.

It is of important to lay emphasis on gender issues as it related to collective

bargaining. Collective bargaining constitutes a major instrument for promoting

equal opportunity in the world of work. However, introducing gender issues

within collective bargaining process is still in the early stages Venezuela. The

main reason for this lag is the fact that women workers are less covered by

collective bargaining processes, because they are over- represented in the most

precarious sectors of labour force and the least regulated segment of the job

market, the lack of women among union leadership and on bargaining teams, the

lack of training of workers of both sexes to negotiate equal opportunity clauses

covering opportunities and treatment, and still low priority that unions assign to

these issues with their strategies.

As a result important progress has been made as reflected by advances in

maternity and paternity protection. In a climate in which collective bargaining

remains weak, such as that apparent in several Latin America Countries.

INSTANCES

35

Transnational companies violating workers right: the general secretary of Sintra

(Sindicato de trabajalones). The union at the Jan Yan Mining Company, which

belongs to the Chinese Company shading gold, was arrested on the 28 June 2003.

The union had called an indefinite strike at a gold minute in EL called on 9th June,

which was joined by more than 350 members belonging to the union, as a result of

the company’s failure to respond to various demands from SINTRA to guarantee

their rights.

COCA COLA avoided collective bargaining with its workforce: the workers at

Femsa de Venezuela, the distribution company for coca cola in much of Latin

America, have waited two years but still failed to obtain a collective agreement.

Reacting to the stalled negotiations and the company’s stonewalling, on the 2nd of

October 2003 the workers held a 24 hour strike to call for the speeding up on the

negotiations on the agreement.

5.6 INDUSTRIAL CONFLICT AND DISPUTE SETTLEMENT

PROCEDURE IN VENEZUELA

Few years back, the General Secretary had criticized the repression of the striking

workers by the National Guard, who attacked them with machetes, ten yards and

rubber bullets, in breach of the constitution of the LIT, which guarantee the right

to strike. The strike lasted 60 days. When the employees had returned to work the

company sacked 10 workers, which prompted ministry of labour to assume

responsibility for arbitration of the dispute between the company and its workers.

November 2001 the “enabling law” of the federation was set to expire , just before

its expiration, Chavez presented the 49 laws and passed them by decree. These

laws allowed the President to restructure the oil industry, forced banks to dedicate

a portion of their loans to micro-credits and agriculture, made large fishing

companies fish further from the shore, so small scale fishers could fish closer, and

threatened large landowners with land redistribution, among many other things.

36

The outcry against these laws was immediate. The first to protest was

Fedecamaras, the country’s largest and most important chamber of commerce,

which unites most of Venezuela’s big businesses. Their main complaint that was

that these laws were anti-business, undermined private property rights, and was

passed without consulting them or anyone outside of government circles.

Venezuela’s main union federation, the Confederation of Venezuelan Workers

(CTV) quickly joined the fray. Ironically, their main argument against the laws

was that they were harmful to Venezuela’s business community and therefore

harmful to Venezuelan workers. A more likely explanation for the CTV’s support

of the employer federation, however, was that the CTV had just gone through a

pitched battle with the government over who would control the organization. A

month earlier the Chavez government had forced the CTV leadership to submit

itself to a grassroots vote, which the federation’s old established leadership won

amid the government’s claims of fraud, resulting in the government’s non-

recognition of that leadership to this day.

The result of this vehement CTV and Fedecamaras opposition to the government

was that the two organizations decided to call for a “general strike” on December

10, 2001. The strike met with moderate success, but the media and the private

sector’s lockout of their employees for a day gave the “strike” a heightened visible

effect.

5.7 WORKERS PARTICIPATION IN DECISION-MAKING

The rate of workers participation in decision making Venezuela is not very

impressive, though the current government of Hugo Chavez has tasked the

workers to take the bull by the horn and be more involved in the running of their

organisations. Though the “co-management” policy which allows equal

participation from both the employers and employees in decision making has only

been implemented by one organisation “ALCASA”. The report is cited in the

report the company released to their website

37

Venezuelan aluminum reducer Alcasa, a subsidiary of state heavy industry holding

CVG, will implement its co-management plan from Friday (Feb.11) with the

objective of recovering and re-launching the company through the participation of

its workers in the management process. Under the co-management process,

workers will participate in the plant's direction, which will imply a revision of the

labour conditions, including the question of wages and other benefits as well as

their families and living conditions. Carlos Lanz, the new president of Alcasa, said

the process of co-management will be a success despite the difficult economic and

operating situation the company is going through. He noted that the transformation

will be made with the workers' participation without affecting labour conditions or

the workers' recent advances. Alcasa is 92%-owned by CVG, with the other 8%

belonging to US aluminum giant Alcoa

5.8 INDUSTRIAL RELATIONS IN MULTI-NATIONAL CORPORATIONS

MNC has a very large presence in Venezuela, of which they are dominant in the

oil and gas industry of the country.

Between 1974 and 1976 the country’s oil industry, which had been controlled by

several transnational corporations, such as Exxon, Mobil, Shell, and Chevron, was

gradually nationalized. Also, and more importantly, the oil price shocks provoked

by OPEC in the 1970s caused the price of oil to quadruple in very little time,

which in turn led to a quadrupling of state revenues over the period of just two

years. It was this sudden rush of income which would eventually turn the country

upside-down.

5.9 IMPACT OF GLOBALIZATION IN VENEZUELA

While Venezuela enjoyed significant rates of growth in the period 2004-2007, the

largest figures clearly demonstrate that the country`s economy has now definitely

38

been hit by the effects of the world crisis. In the second quarter of 2009, GDPfell

by 2.4%. The figure for the first quarter was minimal growth of 0.5%

Since the second quarter of 2009, Venezuela GDP FELL BY 2.4%. Part of the

reason for this is the lack of private investment in industry and manufacturing.

According to the central bank of Venezuela, private economic activity dropped by

4% in the second quarter of this year. A recent study revealed that the Venezuelan

bourgeoisie has closed 4,000 large or medium sized enterprises during the last ten

years.

One should also add to this the huge fall in state income from oil production. In

the second quarter of 2008 the state earned US$28.597 million from oil production

compared to only US$13.576 million in the same period of 2009.

This represents a drop of 51.9%. This is particularly bad in a country where

income from oil exports account for 30% of GDP and for 50% of the state budget.

World markets prices of other raw materials that Venezuela exports, such as

aluminium and iron has fallen.

Together with other Latin – American countries, Venezuela has also been hit by

the effects of the overall fall in FDI (Foreign Direct Investment). Already in 2008,

in the period between January- October, FDI fell by 18% compared to the same

period in 2007. All these factors have contributed to worsening the situation the

Venezuelan economy find itself in.

Whatever the immediate prospects are, any possible slight recovery of oil income

cannot make up for the serious problems that the Venezuelan economy is facing;

such as the strike of capital, sabotage, speculation and hoarding, on the part of the

bourgeoisie. To the normal effects of the economic cycle, in Venezuela we need to

add three other factors which are affecting the economy. One is the fact that there

is a revolution unfolding and the ruling class does not feel confident to invest. The

second is the conscious campaign of economic sabotage on the part of the

oligarchy. And finally, the fact that all the attempts on the part of the reformists to

regulate the market economy only serve to create further economic dislocation

39

6.0 CAMEROON

Cameroon, Republic in Western Africa, bounded on the north by Lake Chad; on

the east by Chad and the Central African Republic; on the south by the Republic

of the Congo, Gabon, and Equatorial Guinea; and on the west by the Bight of

Biafra (an arm of the Atlantic Ocean) and Nigeria. The country is shaped like an

elongated triangle, and forms a bridge between West Africa and Central Africa.

The country has a total area of 475,442 sq km (183,569 sq mi). Yaoundé is the

capital, and Douala is the largest city.

40

LAND AND

RESOURCES

Geography of Cameroon

Area475,442 sq km

183,569 sq mi

Coastline402 km

250 sq mi

Highest pointCameroon Mountain

4,095 m/13,435 ft

Cameroon has four distinct topographical regions. In the south is a coastal plain, a

region of dense equatorial rain forests. In the center is the Adamawa Plateau, a

region with elevations reaching about 1,370 m (about 4,500 ft) above sea level.

This is a transitional area where forest gives way in the north to savannah country.

In the far north the savannah gradually slopes into the marshland surrounding

Lake Chad. In the west is an area of high, forested mountains of volcanic origin.

Located here is Cameroon Mountain (4,095 m/13,435 ft), the highest peak in

Western Africa and an active volcano. The country’s most fertile soils are found in

this region. Among the principal streams, the Sanaga and Nyong rivers flow

generally west to the Atlantic Ocean, and the Mbéré and Logone rivers flow north

from the central plateau into Lake Chad. A network of rivers in the Chad Basin,

including the Benue River, links the country with the vast Niger River system to

the east and north.

41

A. Climate

Cameroon has a tropical climate, humid in the south but increasingly dry to

the north. On the coast the average annual rainfall is about 4,060 mm (about

160 in). On the exposed slopes of Cameroon Mountain and the other peaks of

the west, rainfall is almost constant and in places can reach 10,000 mm (400

in) a year. In the semiarid northwest annual rainfall averages about 380 mm

(about 15 in). A dry season in the north lasts from October to April. The

average temperature in the south is 25°C (77°F), on the plateau it is 21°C

(70°F), and in the north it is 32°C (90°F).

B. Plants and Animals

Cameroon’s valuable rain forests contain a number of species of trees, including

oil palms, bamboo palms, mahogany, teak, ebony, and rubber. Wildlife is diverse

and abundant and includes monkeys, chimpanzees, gorillas, antelopes, lions, and

elephants, as well as numerous species of birds, squirrels, frogs, and snakes

C. Natural Resources

Cameroon has significant offshore petroleum reserves. The country’s economy is

also dependent on its agricultural and timber resources. Other important mineral

reserves in Cameroon include gold, bauxite, uranium, and limestone.

Hydroelectric power stations on Cameroon’s rivers, particularly the Sanaga,

provide enough electricity to meet almost all of the country’s needs.

People of Cameroon

Population 18,467,692 (2008 estimate)

Population density 39 persons per sq km

42

102 persons per sq mi (2008 estimate)

Urban population distribution 53 percent (2005 estimate)

Rural population distribution 47 percent (2005 estimate)

Largest cities, with populationDouala, 1,494,700 (2001)

Yaoundé, 1,616,000 (2003 estimate)

Garoua, 160,000 (1992 estimate)

Official languages English, French

Chief religious affiliationsRoman Catholic, 26 percent

Indigenous beliefs, 24 percent

Muslim, 21 percent

Life expectancy 53.3 years (2008 estimate)

Infant mortality rate 65 deaths per 1,000 live births (2008 estimate)

Literacy rate 81.1 percent (2005 estimate)

The population of Cameroon (2008 estimate) is 18,467,692, giving the country an

overall population density of 39 persons per sq km (102 per sq mi). About half of

all Cameroonians live in urban areas. The other half of the population are farmers

who live in small towns or villages in southern and central Cameroon or semi

nomadic herders inhabiting the north.

Principal Cities

43

The capital of Cameroon is Yaoundé. Douala, on the Bight of Biafra, is the largest

city and the country’s chief port. Other principal towns include the northern river

port of Garoua, the northern market center of Maroua, the south-western industrial

city of Nkongsamba, and Bafoussam, in the western mountains.

About 24 percent of the population adheres to traditional religions, about 21

percent of the population are Muslims, and most of the remainder are Christians.

Muslims predominate in the north and Christians in the south. Cameroon contains

about 200 ethnic groups who speak as many different languages. In general,

Bantu-speaking peoples inhabit the south, and Sudanic-speaking peoples dominate

in the north. Among the more important ethnic groups are the Bamileke, a Bantu-

speaking people, and the Fulani, a Muslim people. French and English are both

official languages. French dominates, however; English is confined mainly to the

west.

C Education

In 2002–2003, virtually all primary school-aged children were enrolled in school,

but only 31 percent of appropriately aged children attended secondary school.

About 81 percent of adult Cameroonians are literate. Mission schools play an

important role in education and are partly subsidized by the government. Institutes

of higher education include the University of Yaoundé (founded in 1962), the

University of Dschang (1993), and the University of Douala (1977). In 2002–2003

a total of 81,318 students were enrolled in institutions of higher education.

D .

ECONOMY

44

Economy of Cameroon

Gross domestic product (GDP

in U.S.$)$18 billion (2006)

GDP per capita (U.S.$) $1,008.20 (2006)

Monetary unit1 Communaut* Financière Africaine (CFA) franc,

consisting of 100 centimes

Number of workers 6,988,721 (2006)

Unemployment rate 7.5 percent (2001)

Cameroon’s traditionally agricultural economy began changing in the late 20th

century with the discovery and exploitation of offshore petroleum reserves.

Agricultural activities are still the main occupation of 61 percent of Cameroon’s

population and still contribute the largest share of the country’s gross domestic

product (GDP). In the early 21st century, however, petroleum surpassed

agricultural products in export earnings. In 1999 the national budget showed

revenues of $1.2 billion and expenditures of $1.4 billion.

GOVERNMEN

T

Cameroon is governed under a constitution promulgated in 1972 and

subsequently revised. Citizens of age 21 or higher are eligible to vote.

A.Executive and Legislature

45

The president of the republic is chief of state and commander of the armed forces

and is elected by universal suffrage. A 1995 amendment to the constitution

extended the president’s term from five years to seven and introduced a two-term

limit (effective starting with the 1997 election). However, in 2008 the legislature

abolished the two-term limit. The federal ministers, including the prime minister,

are appointed by the president and are not permitted to be members of the

legislature. The president also appoints the governors of the country’s ten

provinces. Legislative power in Cameroon is vested in the single-chamber

National Assembly, which consists of 180 members elected to five-year terms.

B.Judiciary

The judicial system of Cameroon is based largely on the French system, with a

mixture of elements from the British system. The highest judicial body is the

Supreme Court. Other courts are the appeals courts, regional courts, and

magistrates’ courts.

C.Political Parties

The leading political party in Cameroon is the Cameroon People’s Democratic

Movement (French initials RDPC), founded in 1966 as the National Cameroonian

Union and renamed in 1985. The main opposition parties are the Social

Democratic Front, the Cameroon Democratic Union, the Union of the Peoples of

Cameroon, and the National Union for Democracy and Progress.

Transportation difficulties and local resistance slowed German development of the

area, but they managed to cultivate large cacao, palm, and rubber plantations.

They also built roads and began the construction of a railroad and the port of

Douala on the Atlantic coast.

46

Anglo-French forces invaded the German colony in 1916. In 1919 one-fifth of the

territory, which was contiguous with eastern Nigeria, was assigned to Britain, and

the remaining four-fifths were assigned to France as mandates under the League of

Nations.

The British Cameroons consisted of the Northern and Southern Cameroons, which

were separated by a 72-km (45-mi) strip along the Benue River. The northern

territory, peopled by tribes of Sudanese origin, was always administered as a part

of Northern Nigeria. The Southern Cameroons, peopled by a variety of tribes, was

administered as part of the Nigerian federation but had a locally elected

legislature. The French Cameroons was administered as a separate territory.

Neither area, however, experienced much social or economic progress.

6.1 HISTORY OF CAMEROON

The coast of present-day Cameroon was explored late in the 15th century by the

Portuguese, who named the estuary to the south of Cameroon Mountain Rio das

47

Camerões (“river of prawns”). Merchants established trading stations along the coast in

the 17th century, buying slaves, ivory, and rubber. British traders and missionaries were

especially active in the area after 1845. The Germans and British began to explore inland

after 1860, and in 1884 the former established a protectorate over the Douala area; the

British, taken by surprise, offered no resistance to their claim.

.

Transportation difficulties and local resistance slowed German development of the

area, but they managed to cultivate large cacao, palm, and rubber plantations.

They also built roads and began the construction of a railroad and the port of

Douala on the Atlantic coast.

Anglo-French forces invaded the German colony in 1916. In 1919 one-fifth of the

territory, which was contiguous with eastern Nigeria, was assigned to Britain, and

the remaining four-fifths were assigned to France as mandates under the League of

Nations.

The British Cameroons consisted of the Northern and Southern Cameroons, which

were separated by a 72-km (45-mi) strip along the Benue River. The northern

territory, peopled by tribes of Sudanese origin, was always administered as a part

of Northern Nigeria. The Southern Cameroons, peopled by a variety of tribes, was

administered as part of the Nigerian federation but had a locally elected

legislature. The French Cameroons was administered as a separate territory.

Neither area, however, experienced much social or economic progress.

Independence

After World War II ended in 1945, the mandates were made trust territories of the

United Nations (UN). In the following years political ferment grew enormously in

the French territory, where more than 100 parties were formed between 1948 and

1960. The campaign for independence, intermittently violent, gained steady

momentum during the 1950s, until the French granted self-government in

December 1958; full independence was achieved on January 1, 1960. Ahmadou

48

Ahidjo, prime minister since 1958, became the first president. The new republic

was admitted to the UN in September 1960.

The following year the UN sponsored a plebiscite in the British Cameroons. As a

result, the Southern Cameroons joined the Republic of Cameroon to form the

Federal Republic of Cameroon in October 1961, while the Northern Cameroons

joined Nigeria.

When Cameroon became independent, President Ahidjo’s government was faced

with a rebellion incited by the Cameroonian People’s Union, a pro-Communist

party. By 1963, however, the revolt had been suppressed, and Ahidjo soon

established the authority of his regime. In 1966 the six major parties merged into

the National Cameroonian Union, which was declared the only legal party in the

country. In 1972 Ahidjo sponsored a national referendum that changed Cameroon

from a federal to a unitary state, called the United Republic of Cameroon.

6.2 TRADE UNION COMPOSITION

Trade unions are allowed in Cameroon. The 1996 Constitution of Cameroon

guarantee the Freedom of Association and the right to strike and both rights are set

out in the 1992 Labour Code. It is illegal to form a Union that includes both Public

and Private Sector Workers.

For Unions to be registered, Labour Code provides they must get a Registration

Certificate from Union Registrar. If they don’t get the Certificate before workers

can form Trade Union and carry out Trade Union activities, the Labour Code has

made provision for prison sentence and fines for workers.

The Labour Code is not applicable to members of the Public Service, Judges,

Military, National Intelligence, Prison Administration and a auxiliary

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Administrative Personnel. Public Servant may form Trade Union, but must have

prior approval of the Ministry for Territorial Administration and may not affiliate

internationally without obtaining prior authorization. The ILO has urged the

government to amend its Legislation to ensure that Public Service Workers can

form Union without government authorisation.

In 2007, the government indicated that it had introduced a bill to amend the

Labour Code before the National Assembly, under which the process of

registering trade union would be simplified.

It also indicated that the new procedure would imply an end to prison

Sentences and fines for failing to comply with registration provisions.

The law prohibits anti-union discrimination and allows fines to be any restitution

in the form of re-instatement or compensation to the wrongfully dismissed

workers.

Firms operations in export processing zones (EPZs) are exempt from certain

aspect of the labour code, but must comply with internationally recognized labour

standards. An official notice from the national office for industrial free zones

contains a list of incentives. It also states that employers enjoy flexibility in hiring

and firing workers.

6.3 COLLECTIVE BARGAINING

The law provides for collective bargaining between workers and management as

well as between trade union federation and employers association but the legal

mechanism for applying collective agreements is ineffectual.

No formal collective bargaining negotiation between workers and management has

taken place since 1996. One of the major union confederations acknowledges that

social dialogue does not exist, but that the outcome of the negotiation are rarely

honoured. Some agreement with the government have been shelved or ignored by

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the government after being negotiated. Hence, we can say collective bargaining is

almost non-existence.

6.4 ROLE OF THE STATE.

The government interferes in trade union activities in several ways.

The government has a reputation for favouring those workers’ organisations. It

sees as easier to control and has used union registration requirement as a means to

withhold recognition from trade union that it considers to be too independent.

An example is that the public service confederation has since its creation in year

2000 been one of the six trade union centres in Cameroon that have still not been

recognised.

Similarly when industrial dispute arise, the government chooses the union with

which it will negotiate.

The government sometimes demands that workers setting up a union produce job

description signed by the employer before a union can be registered. This

impossible for workers in the informal economy and independent or self-employed

workers to form a union.

Only the most representative trade union centers, based on union election result,

may take part in the national social dialogue. Smaller independent unions are

excluded.

6.5 INDUSTRIAL CONFLICT AND STRIKE

The government of Cameroon also have ratified core ILO Convention.

In Cameroon, when an industrial conflict occurs either of rights or interest, the

unions are provided by law to collectively bargain with employers. If the

bargaining ends in deadlock, then compulsory arbitration must be sought for to

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resolve the conflict. Ignoring the procedure can be sanctioned by immediate

dismissal and fines.

Certain sectors have to provide a minimum service, including transport and postal

services which do not fall within the ILO definition of essential services. Civil

servants do not have the right to strike.

In January 2006,there was mass dismissal for striking 163 people working on the

road connection Yaoundé in Cameroon and Moundou in Chad, the workers had

gone on strike to protest against their working condition and demand on

accommodation allowance.

Also their union leader i.e. spokesperson was arrested in Yaoundé on

May 22nd 2006.

The violation mentioned above depicts the situation and status of the

Cameroonian Government on strike. In Cameroon, strike is prohibited and great

sanction including imprisonment, sacks and killings are imposed on strikes.

Although the 1996 constitution and labour code of

Cameroon guarantees the Freedom of Association and the right to

Strike as workers can only strike after mandatory arbitration. Ignoring the

procedure can be sanctioned by immediate dismissal and fines.

6.6 EFFECT OF GLOBALISATION

Although globalization has helped increase growth and wealth in recent years, it

has not done so for all continents and all countries. In the least developed countries

and on the African continent in particular, a worsening of existing imbalances has

impeded development and aggravated poverty. The marginalization of these

countries is reflected in their small share of world trade (barely 2 percent), output

(not much higher), and foreign investment (1 percent).

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For countries like Cameroon, the situation is exacerbated by unsustainable external

debt and by unfulfilled promises of official assistance at a time when the country

cannot continue its reforms and development efforts without financial support.

Although the countries of the Organization for Economic Cooperation and

Development (OECD) have committed the equivalent of 0.7 percent of their GDP

to official development assistance, at present, average disbursements to countries

like Cameroon are a trickle.

Given these facts, we should examine the different facets of globalization and

assess its benefits and risks in light of the recent economic and financial crises that

have shaken various parts of the world and diverse economies, from the very rich

to the very poor. This approach should improve Cameroon’s chances of

successfully integrating with the world economy.

Despite a sometimes-unfavorable international environment, marked by climatic

constraints that have affected northern regions of the country, Cameroon has, on

the whole, recorded satisfactory rates of growth in recent years. The country

recorded growth of 5 percent or more in 1998, and averaged over 3 percent in the

last ten years; and the country is working to improve per capita GNP significantly

while controlling inflation. However, this performance has been achieved at the

price of costly structural reforms that have often negatively affected the most

vulnerable segments of society.

Moreover, Cameroon is still far from reaching its goal of an annual sustained

growth rate above 7 percent a year, which is essential if it is to achieve the quality

of life of other developing countries. It is not impossible for Cameroon to

accomplish this goal, but it can do so only by integrating with the world economy

and by accelerating reforms, with two fundamental objectives in mind:

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i) creating the best possible conditions for private investment by

promoting greater openness in domestic and foreign trade; and

ii) making the economy more efficient by redefining the role of the state,

reforming the civil service so as to improve the business climate, and

introducing a transparent legal and regulatory framework that will

encourage private investment. Governments should focus on social

development, particularly health and education, to make up the large deficit

that the country has in this area.

The financial sector, an essential channel for implementing and ensuring the

success of these reforms, must be included in any reform program. The

consolidation, restructuring, and modernization of the banking sector and the

development of capital markets and financial institutions are both important.

However, past experience suggests that, to be successful, reforms must be adapted

to each country’s specific economic and social characteristics as well as to its

priorities and level of development.

7.0Comparison between Cameroon and Venezuela

Trade Union

Similarities:

Unions are both allowed in both countries. Workers in both countries are allowed

to join unions.

Difference:

1) In Venezuela, no law prohibits anti-union discrimination while in

Cameroon, they law does.

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2) The unions in Venezuela are very weak while unions in Cameroon are

strong.

3) The unions in Venezuela are not recognized as part of collective

bargaining while in Cameroon, these makes provision for unions to take

part in collective bargaining.

4) In Cameroon, both public servants and private employees must get

approval before formation of a trade union but in Venezuela, workers are

allowed to join unions freely.

Collective Bargaining

Similarities:

Collective bargaining has not been steady in both countries.

Differences:

1) In Venezuela, collective bargaining has been effective and dominant,

unlike Cameroon, no collective bargaining negotiations have taken place

since 1996.

2) Social dialogue has been a major tool in dispute settlement in Venezuela

while reverse is the race in Cameroon because the major union cooperation

does not acknowledge US existence.

3) In Venezuela, collective bargaining run from 1 to 3 years after which,

all terms conditions of employment and all compensating any variables is

re-negotiated or reviewed while in Cameroon, there is no time limit on

collective agreement.

4) In Cameroon, unions are provided by law to collectively bargain with

employers while some companies in Venezuela avoid collective bargaining

with its work forces.

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Industrial Conflict and Strike

Similarities

Workers are allowed to be involved in industrial action.

Differences

1) In Venezuela, civil servants are allowed to strike while in Cameroon, they

do not have the right to strike.

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