Sources of workers´ power in the Cut-flower industry in Kenya Grith Fouchard Sylvest Andersen Student ID: 601500 MSc Labour, Social Movements and Development School of Oriental and African Studies (SOAS) Supervisor: Dr Matteo Rizzo Submitted the 15 th of September, 2014 Word count: 9989
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Sources of workers´ power in the Cut-flower industry in Kenya
Grith Fouchard Sylvest Andersen
Student ID: 601500
MSc Labour, Social Movements and Development
School of Oriental and African Studies (SOAS)
Supervisor: Dr Matteo Rizzo
Submitted the 15th of September, 2014
Word count: 9989
1
Declaration
“I undertake that all material presented for examination is my own work and has not
been written for me, in whole or in part, by any other persons(s). I also undertake that
any quotation or paraphrase from the published or unpublished work of another person
has been duly acknowledged in the work which I present for examination”.
Research questions ............................................................................................................................................. 8
Global value chain analysis ............................................................................................................................... 11
The Structural Power of workers ...................................................................................................................... 12
Strand A, The Auction strand ........................................................................................................................... 13
Strand B, The Retail strand ............................................................................................................................... 14
Governance topologies in strand B ................................................................................................................... 16
The supplier capacity ........................................................................................................................................ 18
Power concentration at larger producers in the chain ........................................................................................ 19
The Captive value chain .................................................................................................................................... 20
The ability to codify and the complexity of product specifications .................................................................... 20
The structural power of the cut-flower workers ................................................................................................ 24
Stricter quality demands raises skill level and number of permanent staff .......................................................... 24
Workplace bargaining power ............................................................................................................................. 25
The nature of the commodity ........................................................................................................................... 25
Just-in-time ordering systems ............................................................................................................................ 26
Codes and regulation as a platform to improve conditions ................................................................................ 26
The official stand of the union leadership is to refuse participation in the formulation
and monitoring of the codes unless certain criteria’s are fulfilled (Riisggard 2007:40). In
practice that means the union only officially engages with Max Havelaar standard and
COTU has refused to take their seats in the HEBI due to the participation of NGO´s
(Riisggard 2007). If branch or shop-floor level KPAWU officials wants to engage with
NGO´s in regards to the codes it needs to be cleared at the national level (Riisggard
2007: 40). The opinion of branch and shop-floor level deviates from the national level in
regards to working with the NGO (Mwanzia 2007) and using the codes as a tool
(Riisggard 2007). WWW confirms that the tensions are very much rooted in the
leadership of KPAWU (Medusa 2014: 53). Both WWW and KHRC confirm that the
union officials and NGOs do corporate at the branch and shop-floor level (Medusa
2014: 53, KHRC 2014: 45:05-45:22). This represents an opportunity for the creation and
strengthening of associational power at branch and farm level both in regards to the
creation of associational power inside the union structures and for alliances between the
union and the NGOs.
The union has used the codes by integrating some parts of the standards into the CBA
and has successfully used the codes to pressure for unionization and CBA (Riisggard
2007: 40, 44). The standards have also been used as evidence to win cases in the
industrial court (Riisggard 2007:40). Even if the standpoint of the national level is to
reject to engaging with a majority of the codes the way they utilize them in practice does
present an opportunity to create and strengthen the associational power at the shop-
floor level.
The role of the NGO´s in the sector differs according to their vision, mission, approach,
and financial capital. The Kenyan organizations identified are KHRC, Kenyan Women
31
Worker Organization (KEWWO), C4, Workers Rights Watch (WRW) and the Labour
Awareness and Research Center (LARC) (Riisggard 2007, Mwanzia 2007). All have been
a member of WRA and active in the previous mentioned campaigns. WRA have been a
key actor in setting up the HEBI in Kenya (Waweru, Appendix 5).
Common activities of these organizations include research into the conditions of the
flower workers. KEWWO broke out of COTU to be able to strengthen the
organization, education and advocacy of women workers (Dey & Westendorff 1996:15-
16, Owino 2013: vi). KEWWO has carried out advocacy activities and research on the
women issues and working condition for multiple projects and organizations among
them are: KHRC (KHRC 2014: 8:32-11:30), Women Working Worldwide (English
2007), ETI (2005) and War on Want (War on Want 2007).
KHRC and Worker Rights Watch both apply a rights based approach (KHRC 2004-
2008, WRW webpage 2014a). KHRC was founded in 1991 (KHRC 2014-2018: 13) and
is the leading actor of the NGO´s operating in the sector (Riisgaard 2007: 42) KHRC
cooperate with a range of local CSO and has a wide network (KHRC 2014: 47:14-47:39).
KHRC have published a long list of reports exposing the human rights violations of
workers some specifically targeting the KFI. WRW partner with KHRC (KHRC 2014:
31:12) and have carried out research on wages in the flower sector (WRW webpage
2014b). WRW have engaged with the voluntary standards, but are critical towards
auditing without the participatory auditing offered by the HEBI (Waweru 2014:
Appendix 5). WRW is a member of the HEBI board and observes audits, and has
cooperated KEWWO by sharing those findings (Waweru 2014: Appendix 5). KHRC
and LARC have offered legal assistance to flower workers in Labour disputes (KHRC
2014: 29:54-31:45, Mwnazia 2007: 25). KHRC argues for a strengthening of monitoring
of codes through workers participation and more participatory auditing of codes in the
sector (KHRC 2012: 65).
32
Women Working Worldwide (WWW) and War on Want are UK based organizations
involved in advocacy and research activities. Both organizations have partnered with
KEWWO to carry out research on the working conditions on Kenyan flower farms and
mapping of value chain architecture (War on Want 2007, English 2007). War on Want
got involved as part of their ongoing campaign for corporate accountability (War on
Want 2007: 1). WWW have carried out projects to research working conditions in Kenya
and do action research and capacity building of cut-flower workers in East Africa
(English 2007). WWW membership of the ETI has been instrumental to push retailers
to take responsibility for the working condition along the value chain (Medusa 2014: 51-
52). WWW and partners research also stretch into the realm of academia witch journal
articles such as Hale & Opondo (2005) and Brahic et al. (2011). WWW are highly critical
towards the potential of codes and note that the social content of the codes are not very
specific and hard to use as a tool to bring actors to the negotiation table (Medusa 2014:
51-52). However the research findings have been instrumental tool to get stakeholder to
negotiate around the issue of codes (Medusa 2014: 51-52).
The institutional framework for NGO´s operation is covered in the NGO coordination
act of 1990. This law has no statutory provision of NGO to represent labour (Mwanzia
2007). KHRC argues that several of the labour institutions operate through a tripartite
plus arrangement, granting Civil society a key role in ensuring the realization of
compliance with the labour laws (KHRC 2012: 23). NGO´s have also used the slogan
“labour rights as human rights” to widen their mandate to advocate for social and
economic rights on behalf of the Kenyan workers (Mwanzia 2007: 20). The legal
framework does outline a clear division of tasks between the mandate of the NGO´s and
the mandate of trade unions when it comes to representing workers.
What is common for the NGOs in the sector is their ability to make alliances including
transnational alliances that assist them with advocacy, funding and represent workers
needs in international fora like ETI. These alliances strengthen the associational power
33
of the workers by connection workers and consumers in UK. They also help to expose
and communicate the problems of Kenyan workers to different stakeholders and to
push retailers to the negotiation table by presenting research findings in multi-
stakeholder initiatives like ETI and HEBI. The NGO´s do critically engage with the
codes participating in company codes audits and multi-stakeholder codes through the
HEBI (Riisgaard 2007). Similar opportunities exist in the form of multi-stakeholder
initiatives around trade policy where NGO´s are involved (Opondo 2013).
However the audits are not the main activities of the NGO´s. Most of their activities
focus on a strengthening of workers at the farms level using a bottom up approach,
focusing empowerment through training, education and service provision. Action
methods have been applied to investigate the needs of women and acknowledging their
voices. These activities extend the creation of associational power to the farm level by
promoting union or workers council participation or membership of private established
welfare organizations.
What is common for all the NGO´s is their acknowledgement and support of the role of
the trade unions in the sector (War on Want 2007, KHRC 2012, KHRC 2014: 32:08-
32:24, Medusa 2014). Statements from both KHRC and LARC suggest that their
activities aim at educating workers to decide for themselves, but that unions should
focus on organization at the farm level and push improvements through CBA and then
let the NGO focus on advocating for workers´ rights (Mwanzia 2007). Some farms have
reported union membership increase from 3400 in 2001 (Riisggard 2009a: 333) to 15000
in 2004 due to the trainings carried out by the NGOs (Mwanzia 2007). This indicates an
opportunity for cooperation and divisions of tasks in representing workers for
improvement of their conditions, which rests on the legal mandate and utilizes the
individual strengths of both types of actors.
34
Obstacles for the creation of associational power of the flower workers
The above have shown a good foundation for associational power of KFI workers
reflected in the history of broad national labour campaign coalitions, training and
capacity building at farm level, the many labour actors in the field and transnational
alliances.
Despite these opportunities there are also several areas of tension between the trade
union and the NGOs (Pinto2008) which impede the creation of associational power.
The first is the difference in approaches to the make use of the codes resulting in
tensions and delegitimizing the role of the NGO´s in this process (Riisgaard 2007).
Another element that hinders the creation of associational power is a decline in CSO
activity within the labour movement (KHRC 2012). This is attributed to the downscaling
of the operation of Labour Awareness Resource Centre (LARC) (KHRC 2012: 40) and
the closure of KEWWO in 2010 (Owino 2013: vi, 78-79, Opondo, Appendix 3). Neither
KHRC or WRW are aware of the reasons to why KEWWO was closed down (KHRC
2014: 15:06-15:59, Waweru 2014 Appendix 5).
WWW has not had projects or supported the horticulture sector in Kenya since 2007
and have only just recently begun work in Kenya partnering with Workers Rights Watch
(Medusa 2014, 46, 52-53). However financial and human resources of WWW is limited
with only one full time staff and one part time (Medusa 2014: 47). The money
fundraised by WWW has to cover project costs and at the same time administration and
running costs of WWW (Medusa 2014: 49). These developments puts serious constrains
on the activities and capacity of WWW.
War on Want operates in Kenya, but their current focus is on the informal economy and
food sovereignty (War on Want webpage 2014a,b), resulting in a decline in the
international dimension of the advocacy activities in the cut-flower sector.
35
These developments confirm the critique directed at NGOs from COTU (Atwoli 2008)
and the problems identified by KHRC in working with CSO. NGOs are donor
dependent and their efforts are short-term (in the sense of specific project
activities)(Riisgaard 2007, KHRC 2014: 2:49-4:44). These factors present an obstacle to
the creation of sustainable associational power of the workers. Considering this critique
it has to be noted that much of the activities of the NGOs have a long term perspective
in terms of empowerment and education on workers and civil rights. These activities do
promote associational power at the farm level. The sustainability of these efforts can
again be questioned if one consider the weak marketplace bargaining power (due the
“slack” labour market in Kenya) and the lack of employment security which forces
workers to relocate (KHRC 2014: 4:04-4:44).
Besides the contestation on the issues of codes and the decline of NGO activity in the
sector, the NGO have questioning the trade unions´ ability to adequately represent and
understand workers´ needs. The associational power rets on an assumption that the
organizations are democratic in nature and this is a criterion that many NGOs do not
live up resulting in problems of accountability of their broad constituencies.
This shortcoming does not only apply to NGO´s, but several factors point to trade
unions being undemocratic (Riisgaard 2007:37, KHRC 2012). These include
undemocratic election practices (KHRC 2012), no term limited in the union
constitution, not reporting labour disputes to the Ministry of Labour and intimidations
of branch union officials for working with NGOs (Mwanzia 2007). This is partly
ascribed to the cooptation of COTU to government interests since 1984 (Mwanzia 2007)
and the only recent move (in 1992) towards independence from the ruling party
(Riisgaard 2007: 36-37).
36
Undemocratic procedures in trade union constitutions have resulted in a lack of
democratic representation and accountability of the trade unions, which has contributed
to the interference of NGOs in Kenyan labour relations (Mwanzia (2007, KHRC 2014:
28:53-29:54). KHRC express in a personal conversation that historically the trade
unions: “”have been more in touch with government than it is in with workers” (KHRC 2014:
25:08-25:25). Lack of democratic representation of workers is weakening the
associational power of the workers.
The creation of KEWWO from a break out of COTU and KEWWOs extensive
involvement in labour agitation and research is another area of tension, which questions
the strengths of the unions in representing women interests. Women make up 70% of
the flower workforce, but this is not reflected in the KPAWU leadership (Mwanzia
2007). Historically women’s´ representation in trade unions have been highly
problematic (Brahic et al. 2011) and the KHCR have partnered with KEWWO
previously to research why: “trade unions did not seem to be a very comfortable place for womens´
membership “ (KHRC 2014: 11:02-10:08). WWW relationship with KPAWU is not easy,
due to frictions from earlier research exposing the poor conditions and indirectly
critiquing the work of KPAWU (Medusa 2014: 52). These factors weaken the
associational power of the flower workers.
To improve the representation and accountability of KPAWU KHRC recommend an
independent union for flower workers (KHRC 2012: 64). The registration of the Kenya
Export Floriculture Horticulture and Allied Workers Union (KFHAWU) (not
exclusively for cut-flower workers) have been registered, but it poses a threat to
KPAWU because it will “eat on their constituency” (Medusa 2014: 53).
KFHAWU is active, but KPAWU have appeal the registration in the industrial court.
KPAWU appeal was: “granted the status quo by the industrial court, but the new union has moved
to court of appeal to challenge the decision” (Waweru 2014, Appendix 5).
37
This shows the vested interest of KPAWU and presents a severe hindrance for the
creation of associational power at the farms level and between the trade unions
internally.
The opportunity for associational power of the workers created by HEBI is in practice
no longer available since the initiative has collapsed resulting in limited participation
from CSOs (KHRC 2012: 34). Eunice Waweru from WRW writes regarding the status
of HEBI: “We are still board member but HEBI is not active any more, what we have now is another
loose coalition called workers’ rights and environmental network-WERN” (Waweru 2014:
Appendix 5).
Conclusion
The history of labour engagement in the agricultural sector in Kenya show strong ties
between the trade unions and NGO´s and a good foundation on which to build
associational power of the cut-flower workers. Many different NGOs have worked to
improve the conditions of workers through their concrete activities of education the
workers of their rights, engaging with the codes and raising the number of union
members in the sector. The alliances between Kenyan NGOs and the transnational
alliances created are promising for an increase in the associational power and
improvements in the working conditions through different channels involving
consumers and holding companies accountable.
Trade unions have been selective and highly critical in their use of the codes as a tool to
improve workers conditions, but they have used it successfully to push for CBA and
integrated code content in the CBA, which presents an opportunity of creation of
associational power at the shop-floor level. The potential for increased associational
power needs to be seen in relation to the lack of market place bargaining power in terms
of the “slack” labour market and the lack of employment security in Kenya. This poses a
38
serious challenge to the creation of associational power at the shop-floor level. However,
the evidence of constructive cooperation between NGO´s and KPAWU members at the
farm and branch level shows union membership increase and progress for the creation
of associational power in the sector.
A more general challenge is the donor dependency of the NGO´s and the short-term
interventions of their projects. The organizations landscape has changed over the last
fifteen years since the first labour campaigns and it has seen a decline in CSO activity
within the sector, especially in relation to the international NGO´s engagement.
The engagement of the latter seems to have shifted towards more concrete project
implementation and less research and advocacy. The collapse of the HEBI and the
dispute on the legal status of KFHAWU represents obvious obstacles for the realization
of the potential of associational power in the sector.
The undemocratic nature of the NGOs and the democratic deficit in the trade unions
represented in the break out of KEWWO, the undemocratic electoral practices and close
tie with government. These factors challenge the representation of workers interests, the
internal accountability and lastly the ability to secure real improvements for workers.
However, the creation of the KFHAWU and the creation of the new network WERN
represent new forms of labour agency and opportunities for new alliances and
improvements for workers.
The tense relationship between the NGOs and the trade unions and the critique outlined
represent serious challenge to the creation of fruitful cooperation including a clear
division of tasks between the different actors. At the same time this impacts negatively
on the opportunities for labour to utilize the increase in the structural power. If the
negative environment does not improve it will be difficult to utilize the marketplace
bargaining power and the workplace bargaining power identified. It needs associational
power to utilize the increased skill level, to take advantage of the perishable nature of the
39
commodity and the tightly controlled growing and transport processes. Associational
power is the foundation that will allow workers to utilize the tendency towards more
captive governance, relational and elements of modular governance structures in the
Kenya-UK strand of the chain.
The changes in the organizational landscape over time show a decline in the
associational power of workers and real tensions between the major labour actors in
Kenya, which poses a real risk that the increases in the structural power of the workers
will not be effectively utilized in the future to the benefit of the cut-flower workers.
40
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Workers´ Rights Watch webpage (2014a) About us. Available from: http://www.workersrightwatch.org/index.php/about-us/3-vision [Assessed: the 15th of September 2014] Workers´ Rights Watch webpage (2014b) Research. Available from: http://www.workersrightwatch.org/index.php/research [Assessed: the 15th of