Trade Union Engagement: An Analysis of Outcomes of Collective Bargaining in Uganda

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FRIEDRICH EBERT STIFTUNG

Trade Union Engagement: An Analysis of Outcomes of Collective Bargaining in Uganda

Wandera Martin

[email protected]

28th October 2013

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Contents 1.0 INTRODUCTION AND CONTEXT OF THE STUDY ................................................................................ 4

1.1 Context of the study ..................................................................................................................... 4

1.2 Methodology ................................................................................................................................. 5

1.3 Significance of the proposed study ............................................................................................... 6

2.0 THE LEGAL FRAMEWORK FOR COLLECTIVE BARGAINING IN UGANDA ............................................ 6

2.1 Constitution of the Republic of Uganda........................................................................................ 7

2.2 Labour Unions Act, 2006 ............................................................................................................... 7

2.2.1 Right to organise ................................................................................................................... 7

2.2.2 Rights and Immunities of a Registered Labour Union .......................................................... 8

2.2.3 Recognition of Labour Unions ............................................................................................... 8

2.3 Labour Disputes (Arbitration and Settlement) Act, 2006 ............................................................. 9

2.3.1 Resolution of Labour Disputes .............................................................................................. 9

2.3.2 The Industrial Court ............................................................................................................ 10

2.4 Public Service (Negotiating, Consultative and Disputes Settlement Machinery) Act ................. 11

2.4.1 Consultative Committees .................................................................................................... 11

2.4.2 Public Service Negotiating and Consultative Council .......................................................... 11

2.4.3 Public Service Tribunal ........................................................................................................ 12

3.0 RECENT EVOLUTION OF TRADE UNION MEMBERSHIP ................................................................... 12

3.1 Trade union Membership ........................................................................................................... 12

3.2 Examining the trade union diagnosis of problem of low membership....................................... 17

3.2.1 Why have some unions been able to expand membership? .............................................. 18

3.2.2 Addressing the free rider problem ...................................................................................... 21

4.0 PROVISIONS OF COLLECTIVE BARGAINING AGREEMENTS ............................................................. 23

4.1 Introduction ...................................................................................................................................... 23

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4.1.1 Understanding collective bargaining .................................................................................. 23

4.1.2 Levels of collective bargaining ............................................................................................ 24

4.1.3 Overview of preconditions for effective collective bargaining ........................................... 25

4.1.4 Common Collective bargaining process in Uganda ............................................................. 26

4.2 General Provisions ...................................................................................................................... 27

4.2.1 Contracting Parties Clause .................................................................................................. 27

4.2.2 Validity of the CBA .............................................................................................................. 28

4.2.3 Worker Participation ........................................................................................................... 28

4.2.4 Individual Contract .............................................................................................................. 29

4.2.5 Equality/Non-Discrimination............................................................................................... 30

4.2.6 Grievance and Dispute Handling Procedures ..................................................................... 31

4.3 Non-wage benefits ...................................................................................................................... 32

4.3.1 Paid annual leave ................................................................................................................ 32

4.3.2 Maternity Leave, Daycare Facilities and Paternity Leave ................................................... 33

4.3.3 Sick Leave ............................................................................................................................ 33

4.3.4 Medical Care ....................................................................................................................... 34

4. 4 Working Conditions..................................................................................................................... 35

4.4.1 Hours of Work ..................................................................................................................... 35

4.4.2 Overtime Work.................................................................................................................... 36

4.4.3 Occupational Safety and Health .......................................................................................... 37

4.4.4 First Aid ............................................................................................................................... 38

4.5 Wages .......................................................................................................................................... 38

5.0 Conclusion ....................................................................................................................................... 41

Bibliography ................................................................................................................................................ 43

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1.0 INTRODUCTION AND CONTEXT OF THE STUDY

The main objective of this study is to examine the outcomes of trade union engagement at the

work place in Uganda. It particularly focuses on how collective bargaining has contributed to

improving wages and working conditions generally.

The remaining part of this section addresses the context of the study and methodology. The

rest of the paper deals with the legal framework for collective bargaining, the recent evolution

in trade union membership, the challenges in the growth of union membership, collective

bargaining outcomes and the conclusion.

1.1 Context of the study

Although the 1995 Constitution of the Republic of Uganda guarantees the freedom of workers

to form and join trade unions of their choice, the Trade Unions Act of 1976, which was the

enabling law up to 2006, contained a number of provisions that impeded the enjoyment by

workers of the rights of freedom of association and collective bargaining. Of particular concern

to trade unions was a provision that made recognition of a union by an employer compellable

only after a union had recruited at least 51 percent of the employees of a particular workplace.

Other restrictions included a provision that only unions with a membership of at least 1000

could be registered. In addition the Labour Commissioner had powers to designate specific

unions for certain sectors. Accordingly, no other union could be formed in a sector where a

union had been designated except with the express permission of the Labour Commissioner.

The Labour Unions Act enacted in 2006, eliminated all the above constraints to forming unions,

collective bargaining and union recognition. State laws that permit collective bargaining like the

Labour Unions Act are a good foundation but not a guarantee for bargaining power and positive

outcomes. For good laws to have a positive effect, trade unions must be able to exploit the

spaces and opportunities created by good laws.

Therefore, after close to seven years of enacting a progressive labour law regime, it is crucial to

examine what the outcomes of trade union engagement at the work place have been. In other

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words, the study seeks answers to the question of how labour unions have used the new labour

laws to improve the promotion and protection of the rights of workers.

Collective bargaining is a key instrument for securing the rights of workers, improving working

conditions and extending social protection to workers. Collective bargaining outcomes can

therefore be used to assess a unions’ ability to affect wages, working conditions, employment

security and workplace governance as well as their organizing capacity among others. The study

therefore reviews collective bargaining outcomes as a practical and realistic way of assessing

how the trade unions have used the new labour laws to improve the promotion and protection

of the rights of workers at the workplace.

The study specifically paid attention to:

Trends in trade union membership and collective bargaining coverage since 2006,

Manifestations of gender based job and wage differentials,

The extent to which unions are protecting workers against unfair treatment,

The extent to which unions are promoting and protecting equal opportunities at the

workplace,

Promotion and protection of worker’ rights generally,

The extent of participation of the rank and file members in setting the collective

bargaining agenda.

1.2 Methodology

The scope of the study includes nineteen unions1. The study draws data from secondary and

primary sources. The main sources of documentary data are collective bargaining agreements,

union reports and correspondences. In total, thirty-eight collective bargaining agreements

unions were reviewed. The initial plan was to review at least two CBAs per union. However in

1Seventeen were affiliates of the National Organisation of Trade Unions (NOTU) and two were not affiliated to any

federation. See appendix one for details.

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the course of the study it was found that there are unions with only one CBA because they

represent only workers from one employer. In one case it was found that no CBA had been

completed at all. While in other cases, circumstances beyond the control of the researcher

made it difficult to review more than one CBA in a union. (See annex I for CBAs reviewed per

union). A predesigned checklist was used in the process of reviewing the CBAs (See Annex II).

Interviews were also conducted with national union leaders. An interview Guide was used to

generate data during interviews (See annex III for Interview Guide and Annex IV for union

contact list).

1.3 Significance of the proposed study

This examination is of value because of a number of factors. First, good laws without unions

capable of effectively engaging employers contribute little to the betterment of the welfare of

workers. It is therefore necessary to find out the extent to which the unions were using the

2006 labour laws to promote and protect the interests of their members. Hence this study

throws light on the extent to which unions are delivering “goods and services” to their

members. The findings of the study will therefore assist the trade unions and their partners in

understanding achievements and challenges of the former with regard to the promotion and

protection of workers’ rights in Uganda.

The subsequent sections deal with the legal framework for collective bargaining in Uganda and

the outcomes of collective bargaining.

2.0 THE LEGAL FRAMEWORK FOR COLLECTIVE BARGAINING IN UGANDA

This section of the report discusses the legal framework for collective bargaining in Uganda. The

analysis of the legal framework focuses on provisions relevant to collective bargaining in both

international and domestic legal instruments.

Uganda is a party to the International Labour Organization (ILO) Convention 87 on Freedom of

Association and the Right to Organise (1948) and Convention 98 on the Right to Organise and

Collective Bargaining (1949). The ratification of these treaties came with a duty to give effect to

their provisions. One of the primary means by which states give effect to workers’ rights

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guaranteed in international treaties is through the enactment of legislation and the

establishment of administrative institutions to monitor observance of legal obligations created

under the laws.

Indeed the Government of Uganda has enacted several laws that aim to actualize the right to

form and join a trade union, the right to collective bargaining and the right to strike, which are

provided for in ILO conventions referred to above. These include the Constitution of the

Republic of Uganda, the Labour Unions Act, 2006, the Labour Disputes (Arbitration and

Settlement) Act, 2006 and the Public Service (Negotiating, Consultative and Disputes

Settlement Machinery) Act, 2008.

2.1 Constitution of the Republic of Uganda

The Constitution of Uganda in articles 29 and 40 guarantees the right to work; the right to form

and join a trade union; the workers’ right to representation and collective bargaining; the right

to a clean and healthy environment and the freedom from discrimination based on sex, race,

and national origin. In addition there are several national laws that have been enacted to give

effect to the provisions of the constitution referred to above. These include the following that

are considered here below: the Labour Unions Act, the Labour Disputes (Arbitration and

Settlement) Act, and the Public Service (Negotiating, Consultative and Disputes Settlement

Machinery) Act.

2.2 Labour Unions Act, 2006

The Act spells out the regulatory framework for relations between labour unions and employers

or employers’ organizations. Among others, the Act provides for the functions of trade unions;

the right to organize; prohibition of employers to interfere with the right to organize; rights and

immunities of trade unions and the recognition of trade unions. The details of these provisions

are reviewed in the following subsections.

2.2.1 Right to organise

It is a basic ILO principle that collective bargaining should take place within a framework that

upholds the right to freedom of association. Freedom of association is characterized by a

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number of elements, including the recognition of the right of workers and employers to

associate freely, without interference and to establish organizations of their own choice.

Workers should also be protected against acts of anti-union discrimination by employers, such

as the dismissal of unionized workers. The Labour Unions Act guarantees the right of workers to

associate freely and to engage in collective bargaining. Under the Act, the right to associate

goes hand in hand with the rights of workers to participate in the internal running of their

unions and to withdraw their labour.

The act goes a step further by making it an offence to for any employer to interfere with the

right of freedom of association and any employer found guilty of this offence is liable to a fine

not exceeding 1,920,000 Ugandan shilling or imprisonment for a term not exceeding four years.

In case of a continuous offence, an employer is liable, on conviction, to a fine not exceeding

20,000 Ugandan shilling for every day or part of a day during which the offence continues.

2.2.2 Rights and Immunities of a Registered Labour Union

ILO supervisory bodies have noted that for trade unions to be independent, trade unions and

their leaders should enjoy such immunities as are necessary for the independent exercise of

their function. To this end, the Act grants various rights and immunities to trade unions. These

include the right to sue or be sued (S. 24 (1) (a)); immunity of labour unions, their officials and

members from civil proceedings in respect of any act done in contemplation of or furtherance

of a dispute to which the registered labour union is a party (S. 24 (1) (b)) as well as immunity

from prosecution for any tortuous act alleged to have been committed by or on behalf of a

registered labour union (S. 24 (1) (c)).

2.2.3 Recognition of Labour Unions

Once workers’ organisations have been freely established collective bargaining becomes the

principal means by which employers’ and workers’ organizations determine terms and

conditions of service. However, collective bargaining cannot occur unless the parties involved

have recognised one another for that purpose. However to safeguard against refusal by some

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employers to recognize and negotiate with trade unions, legislation may be adopted obliging

employers to recognize.

The Labour Unions Act compels every employer to recognize, any labour union to which any of

his her employees are members (S. 24 (1) (d)). Since recognition by an employer of a trade

union represented in the undertaking is the very basis for any collective bargaining on terms

and conditions of employment, the provision for mandatory recognition of a trade union to

which employees have freely subscribed is therefore very crucial for actualization of freedom of

association in Uganda.

Under the Labour Unions Act, an employer who fails to recognize a labour union commits an

offence and is liable on conviction, to a fine not exceeding 960,000 Ugandan shilling or to

imprisonment to a term not exceeding two years. In the case of a continuing offence, a fine

50,000 Ugandan Shilling for every day for which the offence continues is prescribed {S. 24(8))2.

2.3 Labour Disputes (Arbitration and Settlement) Act, 2006

This subsection reviews the Labour Disputes (Arbitration and Settlement) Act. Reviewing this

law is crucial because labour disputes are inherent in all labour relations systems. The effective

resolution of disputes is also linked to the promotion of the right to collective bargaining.

Failure to resolve such disputes amicably often leads to industrial action. The structure of

labour dispute settlement should therefore be designed to promote collective bargaining.

Accordingly, the Labour Disputes (Arbitration and Settlement) Act (LDASA) was therefore

enacted for the purpose of establishing a framework for the prevention and settlement of

disputes in Uganda3.

2.3.1 Resolution of Labour Disputes

The most enduring settlements to labour disputes are those that are mutually agreed upon

between parties themselves through negotiations or conciliation. Accordingly, good law should

2 Note incase the employer convicted is a body corporate, liability extends to all directors

3 This Act repealed the Trades Dispute (Settlement and Arbitration) Act of 1964.

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always encourage parties to make every effort to resolve a dispute before seeking the

intervention of a third party by conciliation or mediation. LDASA also encourages parties to

resolve disputes mutually and only report them to a labour officer where the parties cannot

find an amicable settlement on their own (S. 3 (2)).

Furthermore, LDASA requires that a labour officer to whom a dispute has been reported should

within 14 days of receipt of a report of dispute resolve it through negotiation between the

parties or conciliation (S. 4). It was good judgment on the part of the legislature to provide that

prior to arbitration; parties to a dispute should give negotiations and conciliation a chance.

2.3.2 The Industrial Court

The Act establishes an Industrial Court whose functions are to arbitrate labour disputes;

adjudicate upon questions of law and fact arising from references to the Industrial Court (S. 8

(1)). The Industrial Court when constituted is supposed to be composed of the Chief Judge, a

Judge, a representative of employers, a representative of employees and an independent

member not representing workers or employers (S. 10 (1)). The Chief Judge and Judge are

appointed by the President of Uganda on the recommendations of the Judicial Service

Commission and should be persons qualified to be appointed Judges of the High Court of

Uganda (S. 10 (2)). On the other hand, a representative of employers and a representative of

workers are appointed by the Minister of Justice from a panel of five persons nominated by the

federations of employers and the federations of workers respectively.

The involvement of workers’ and employers’ representatives in the proceedings of the

Industrial Court does not only provide an opportunity to enlist the practical knowledge and

experience of the employers and workers in the settlement of disputes but also enhances the

confidence of the parties to the dispute in the Industrial Court.

Although the Act further provides that employers or workers may nominate or propose one

person from the panels of five nominated by themselves under subsections 10 (5) and 10 (6)

respectively to represent them in a particular case, the minister in whom the Act vests the

power to appoint panelists to hear a particular case is not bound by the choice of either the

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workers or employers (S. 11). The determination by the minister of which workers' or

employers' representative will hear a particular case undermines the right of workers and

employers to freely choose their representatives. Furthermore, the involvement by the minister

in the selection of panelists to hear particulars cases is tantamount to interference by the

executive with the independence of special judicial organs like the Industrial Court. The power

to select representatives of workers and employers to hear particular cases should have been

vested in the head of the Industrial Court as it was with the Trades (Disputes Arbitration and

Settlement) Act, 1964.

2.4 Public Service (Negotiating, Consultative and Disputes Settlement Machinery) Act

The main objective of the Act is to establish a public service negotiating, consultative and

disputes settlement machinery. To that end, the Act also provides for the establishment of

Consultative Committees, Public Service Negotiating and Consultative Council and the Public

Service Tribunal. The composition and functions of each of these organs is discussed below.

2.4.1 Consultative Committees

The Act establishes a Consultative Committee consisting of a chairperson, five members

representing workers (S. 3.1) and five others representing a government department (S. 3.2).

The functions of the Consultative Committees include: hearing and offering conciliatory services

in labour disputes in any Ministry, Department and Agency (S. 3.3). The Consultative Committee

is required to meet at least once every three months.

2.4.2 Public Service Negotiating and Consultative Council

The Act provides for the creation the Public Service Negotiating and Consultative Council

(PSNCC). The PSNCC consists of a chairperson and at least two members drawn from each

public service unions. The Council is required to meet at least twice a year with the option to

convene an emergency meeting (Section 4 (11)).

The functions of the Council include conducting and facilitating consultations, dialogue and

negotiations between the government as the employer and public service labour unions on

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terms and conditions of service of members of a labour union (S. 4 (6) (a)). Negotiations of

matters that have implications of monetary expenditure are supposed to be concluded during

the budgeting process in each financial year.

2.4.3 Public Service Tribunal

The Act also establishes a Public Service Tribunal (S. 5 (1)) consisting of a Chairperson, Vice

Chairperson and not less than four and not more than six other members. The functions of the

Public Service Tribunal are: hearing and arbitrating labour disputes referred to it by the

minister; making awards and recommendations to government on labour disputes and securing

harmonious labour relations in the public service. The awards of the tribunals are binding on all

parties to a dispute. The Tribunal shall sit as and when a labour dispute is referred to it.4

3.0 RECENT EVOLUTION OF TRADE UNION MEMBERSHIP

This section reviews how trade union membership has evolved since the coming into force of

the new labour laws in 2006.

3.1 Trade union Membership

Although good labour laws and policies are important for the improvement of working

conditions, the sustainable improvement in working conditions can only be achieved through

self-representation by workers through strong trade unions. One of the central pillars of a

strong trade union is sound membership. The study therefore sought to gain an understanding

of how trade union membership has evolved since the enactment of the Labour Union Act in

2006.

Understanding how trade union membership has evolved since the coming into force of the

“new labour laws” is important for two reasons. First, the Labour Unions Act repealed the

provision that made recognition by an employer compellable only after a trade union had

recruited at least 51 percent of the workers of an employer. The repeal of this provision was

expected to facilitate not only trade union recognition but also membership growth. Secondly,

4This means that public service disputes cannot be referred to the Industrial Court. This is a disadvantage because

the Industrial Court is at the level of the High Court of Uganda.

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unfriendly labour laws were always advanced by trade unions as the main reason for low

membership and trade union effectiveness generally. Furthermore, repeal of the said provision

was also expected to make it easier for trade unions to organize and recruit. In other words,

this section is concerned with the question of whether unions have been able to expand and

strengthen their membership as a result of the said legal reforms. The study however finds that

restrictive labour laws might have not been the main or only reason for low trade union

membership. Although the Labour Unions Act consolidated the right of workers to join a trade

and also relaxed the requirement for union recognition, there has not been significant growth

in membership and expansion in union recognition. For example, about thirty percent of the

unions covered by the study have not increased their membership since 2006. Ten percent of

them have in fact lost membership. Even for those that increased membership, the growth has

not been very significant. Forty percent of the unions increased their membership by between

100-500 members, while only twenty percent grew their membership by over 1000 members.

The question that has to be asked is why membership growth has been sluggish among most

unions despite the enactment of laws that guarantee the right of workers to form and join a

union of their choice. The union leaders interviewed, attributed the sluggish growth in

membership to:

Employer hostility to union members.

It was noted that despite the clarity of the Labour Unions Act on the freedom of workers

to join and participate in the running of their unions, several employers had adopted

measures that are hostile to and undermine union strength. Some of these measures

include subcontracting jobs, harassing shop stewards, denying trade union leaders

access to the workplaces and conniving with some elements within the police force to

frame bogus criminal trespass charges against trade union leaders.

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Refusal by employers to engage in negotiations or to implement collective bargaining

outcomes.

It was also reported that refusal to negotiate or to implement CBA provisions by

employers had rendered some trade unions of no value in the eyes of workers. This has

led to a withdrawal from union membership or reluctance to join. The current labour

dispute between the teachers and government is a very good case in point. In this

particular case, the government and the teachers’ union entered an agreement in which

the former agreed to increase the salary of the teachers by fifty percent over a period of

three financial years as follows: 15 percent during the financial year 2012/13 - (this was

granted); 20 percent during financial year 2013/14 and 15 percent in financial year

2014/15-.

Unfortunately the government did not provide for the second increment in the budget

of 2013/14. The teachers went on strike in September 2013 for two weeks but this

action did not compel government to honour its commitment. In the end, the strike was

called off without attaining any concessions. Failure of the strike to achieve the desired

increment is said to have weakened the commitment and confidence of some workers

in the union. Although the teachers’ strike did not succeed in compelling government to

honour its commitment to increase the teachers’ salaries this financial year, the

teachers might take some solace in the fact that their union was at least able to

negotiate and reach an agreement with government to enhance their salaries. The other

public service unions have never even engaged in any form of negotiations since the

signing of a recognition agreement with the government in 2010. Public service union

leaders interviewed heaped the entire blame on the government’s lack of commitment

to negotiate. This is indeed true; but trade union leaders must realize that the

government is in no hurry to operationalise public service negotiations. The unions and

workers need the negotiations more than government and should therefore be more

organized, assertive, consistent and unrelenting in the demand for negotiations.

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For example, according to the Public Service Negotiating Machinery Act, negotiations of

matters that have implications of monetary expenditure are supposed to be concluded

during the budgeting process in each financial year. The public service unions are aware

that the budgeting process starts between August and September of every year.

Unfortunately, by November 2013, the public service unions had not yet made any

proposals for negotiations. This means that the unions will not have any opportunity to

influence wages in the next financial year.

It is often said that it is better to fail than fail to try. For trade unions therefore, it is

better to initiate negotiations and hit a deadlock than fail to initiate negotiations at all.

The public service unions should therefore come together and devise a clear strategy of

engaging government in negotiations as is provided for in the Public Service negotiating

Machinery Act, 2008.

Weak enforcement of labour laws

It was further noted that matters have been made worse by the fact that disputes or

failure by employers to implement a collective agreement cannot be resolved because

of weak labour administration structures. For example out of the currently 112 districts,

only 34 have labour officers. In addition, the Industrial Court which under the law is the

final arbiter in labour disputes resolution has been deliberately rendered irrelevant by

the government.

It is regrettable to note that since the passing of the Labour Disputes (Arbitration and

Settlement) Act, 2006, no Chief Judge has been appointed as Head of the Industrial

Court. The last reason given by government for not appointing a Chief Judge was that

the title Chief Judge had a similar acronym to that of the Chief Justice. This reason is as

bizarre as it unfortunate and with no basis within the law. The Labour Disputes

(Arbitration and Settlement) Act, 2006 does not provide anywhere that the acronym for

the Chief Judge shall be CJ.

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There are other cases where similarity in titles of statutory offices has not impeded the

operation of institutions created by statute. For example, the office of the President of

the Law Society which is a creature of the Uganda Law Society Act has never been

rendered in-operational because it shares the same title with the President of the

Republic of Uganda.

In addition, it is a settled matter in Uganda’s Jurisprudence that a statute remains in

force until it is amended or repealed. The law as it stands now provides that there

should be an operational Industrial Court. Therefore the continued refusal by the

President of Uganda and the Minister of Labour to constitute the Industrial Court is a

total contravention of the law. The question that follows is why has a mere acronym

become an impediment to the operationalisation of an institution very crucial for

Industrial peace like the Industrial Court? The answer is simple: weakened trade

bargaining power is good for government. Yet an active Industrial Court would give

trade unions more power and voice. Therefore, the labour movement should not expect

the government to operationalise an institution that will narrow its space and control of

industrial relations without organized pressure from the workers.

It must also be quickly noted that the government has succeeded in “killing” the

Industrial Court because the trade unions have not fought hard and relentlessly for its

operationalisation. Trade union action in the quest for operationalising the Industrial

Court has been limited to casual intermittent public and uncoordinated public

statements. Governments only respond to unrelenting and organized pressure.

For arguments sake, let it be assumed that the acronym is the main obstacle to the

operation of the Industrial Court. The question that then follows is that since the

problem is known, what has stopped the Workers' Representatives in Parliament from

tabling a private members bill so as to assign a noncontroversial title to the head of the

Industrial Court? The answer is simple. Four of the Workers’ Representatives in

Parliament were elected on the ticket of the ruling National Resistance Movement. The

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one independent member is also for all intents and purposes a de facto member of the

NRM. As a consequence, the workers’ MPs are subject to a strong ruling party whipping

system which debars them from deviating from the party’s position, which does not

support strong trade unions.

Matters are worse for one of the Workers’ Representative in Parliament who is also a

Minister of Government. According to Article 117 of the Constitution of Uganda, all

ministers are collectively responsible for any decision made by Cabinet. This means that

the Workers' Representative who is a minister cannot oppose a government position

even if such a position were not in the best interest of workers or trade unions.

Indeed recently, this Workers’ Representative, State Minister for Sports, Hon Charles

Bakabulindi, found himself in a very bizarre situation. On the floor of parliament was a

motion to stay the passing of the budget until funds are allocated for enhancement of

teachers’ wages. Charles Bakabulindi was tasked by Cabinet to oppose a position that

was a publicly known position of the Teachers Union, which he did.

The Industrial Court is so important to trade unions that the status quo is not affordable.

Therefore, what next for trade unions? The unions must step up their act, become more

organized and unrelenting in their demand for operationalisation of the Industrial Court.

This should include demanding that the workers’ MPs table a motion for amending the

title of the head of the Industrial Court. Furthermore, if the workers’ MPs are to be

more effective, the trade unions must ensure that no Workers’ Representative is elected

to Parliament on a party ticket.

3.2 Examining the trade union diagnosis of problem of low membership

This subsection attempts to critically examine the trade union responses to the problem of low

membership discussed above. The reasons given by the unions for low membership raise

important answers as much as they raise questions. It is true that employer hostility to trade

unions, refusal to implement collective bargaining agreements and poor enforcement of labour

laws have been a big impediment to the growth of trade unionism in Uganda. However, from

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the above findings we note that despite all the unions operating in a similar and largely hostile

environment, 20 percent of the unions were able to grow their membership by over 1000

members. In fact, two unions of the 20 percent grew their membership by over 10,000

members (That is the Uganda Hotels, Food, Tourism and Allied Workers’ Union and Uganda

Horticulture Union). Therefore, the question that has to be answered is how some few unions

have been able to grow their membership exponentially in an environment where all the others

are struggling.

However before addressing the question of how these unions have been able to grow their

membership exponentially in a hostile environment, it is necessary to try and understand in the

first place why some employers are hostile to trade unions. Finding answers to this question is

not a useless endeavour because understanding the reasoning behind employer actions is very

important in devising solutions to overcome employer hostility.

A review of existing literature on industrial relations attributes the hostility of employers to

trade unions to a number of factors. First, many employers generally see unions as agents of

uncalled for interference in the exercise of their power to run their firms and to quickly take

decisions. Secondly, it has been observed that employers who grow up largely in a “union free”

world tend to be skeptical or hostile to trade unions (Bailey Janis et al 2009). It has also been

suggested that human resource management models especially of the unitarist orientation

have enhanced employer skepticism about trade unions. This is because the unitarist.Human

Resource Management models assume that the employer and employee are all motivated by

common desire to realize the goals of the company (Michael Amstrong, 2012; Akorsu et al

2009; Machin Stephen, 2005). Unitarist Human Resource Management theories therefore do

not accept the concept of pluralism in industrial relations. Accordingly, they assume that the

employer understands the welfare and other needs of the workers and hence there is no need

for a third party in the form of a trade union to advocate for the interests of workers. Last but

not least, it has been argued that hostility to trade unions by employers has been exacerbated

by the ideas of labour market flexibility that have been intensely propounded by advocates of

neo-liberalism over the last three decades.

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The above analysis of employer hostility seems to explain the ideological orientation of a typical

Ugandan human resource manager. A typical human resource manager in Uganda has not only

been schooled within the intellectual framework of unitarist Human Resource Management at

university but has grown up in Uganda where union density has always been low. Most of

today’s human resource managers grew up in the era of neoliberal structural reforms and

finished university without ever experiencing the impact of a trade union in any serious way.

Furthermore, since the late 1980s, Uganda has also religiously espoused neoliberal policies

among which have been labour market flexiblization. These underlying conditions may help to

explain the nature of employer hostility to trade unions.

3.2.1 Why have some unions been able to expand membership?

We now return to the question of how a few unions have been able to grow their membership

exponentially in an environment where all the others are struggling. To answer this question,

we need to ask ourselves what those unions that have organized successfully have done

differently. Looked at broadly, this question is a question of trade union effectiveness. Trade

union effectiveness can be characterized by organizational effectiveness and collective

bargaining effectiveness.

Organizational effectiveness embraces the factors, which give a union the capacity to organize

and represent its members. These include: effective communication and sharing of information

with members, efficient response to members’ problems and complaints, and capacity to win

the respect of employers.

A review of the success of the three unions that have been able to expand their membership by

over 1000 members shows that they have all been able to build some form of organizational

capacity or effectiveness5. All three have strong leadership that is focused on organizing. In

addition, their position as representatives of workers has been duly acknowledged by their

employers. This acceptance has been a consequence of a trade union approach that has

5 Uganda Hotel, Food Tourism and Allied Workers’ Union; The Uganda Horticultural Union and Amalgamated

Transport and General Workers’ Union

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judiciously mixed assertion of legal rights of workers, traditional trade union militancy,

persuasion as well as linking unionization of workers with the interests of the employer like

improved company performance and employee productivity.

For example, in the run up to Common Wealth Heads of State and Government’s Meeting

(CHOGM) that was held in Uganda in 2007, the Hotel, Food, Tourism and Allied Workers’ Union

participated in lobbying government to waive taxes on various hotel items. This action gave a

different picture of what many hotel owners had known of unions. However after the hotel

owners had received the tax waivers, they became slow on concluding a recognition agreement

and collective bargaining agreement with the union.

In response, the Hotel, Food, Tourism and Allied Workers’ Union with support of the IUF6 drew

the attention of the Commonwealth secretariat to the fact that it was planning to host CHOGM

activities in hotels where there were gross violations of workers’ rights. The Commonwealth

Secretariat, in turn, drew the attention of the Government of Uganda to the union’s concerns.

The short of the long story is that concerned about the image of the country President

Museveni “facilitated” the expeditious conclusion of a recognition and collective bargaining

agreement between the Uganda Hotels, Hospitality and Allied Workers’ Union and the Uganda

Hotel Owners Association. As result of this agreement the union brought into its fold over

10,000 members. This action demonstrated how a union can exploit moments of vulnerability

on the part of employers and government to advance a collective interest of workers.

Since the conclusion of the recognition agreement with the Hotel Owners’ Association, the

UHFTAWU has adopted other innovative organizing measures which have changed the attitude

of many employers. For example, the union hired a full-time Occupational Safety and Health

(OSH) Officer whose job description includes conducting OSH trainings free of charge at

different workplaces. This has helped not only to improve safety at the workplaces but has in

6 IUF: The International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers'

Associations (IUF) is an international federation of trade unions representing workers employed in agriculture and plantations, the preparation and manufacture of food and beverages, hotels, restaurants and catering services, and all stages of tobacco processing.

21

some cases helped employers to save on expenses for OSH training. In so doing, the union has

made itself relevant and more acceptable to employers.

In addition, these unions used the increased union funds which accompanied the membership

growth to build their internal capacity to service the membership better and thereby

continuously expand it. For example, the Transport Union has created a budget line for monthly

training of members especially shop floor leaders. While the Uganda Hotel, Food, Tourism and

Allied Workers’ Union has used their improved revenues to strengthen their internal

administrative structures. The union has reestablished regional field offices in Mbale for

Eastern Uganda and Gulu for Northern Uganda. These field offices have not only been useful in

sustaining the recruitment effort, but have also helped in “taking” the union closer to the

upcountry membership. In addition to setting up upcountry field offices, the UHFTAWU has also

established a full-time Grievance Handling Officer at their headquarters in Kampala. The

presence of a full-time grievance handling officer has greatly helped the union in following up

on grievances and improving membership satisfaction.

It was also noted that all the unions that expanded their membership significantly, have at one

time signed an industry-wide collective bargaining agreement.7 The industry-wide agreements

have helped in tremendously expanding union membership and coverage.

In conclusion, it can be observed that employer hostility, the refusal to implement collective

bargaining agreements and the weak enforcement of labour laws are major obstacles to trade

union growth in Uganda. However, these are not the only factors. It must be noted that the

journey of trade unions since time immemorial has been one of gaining space and recognition

only and only through continuous and persistent struggle. There is no place in the world where

an employer has easily ceded space to unions. All trade union space has been won through

hard struggle. Indeed, the lessons that can be drawn from the success of the three unions

above is the importance and centrality of organizing if trade unions want to be successful. It

7 The Uganda Horticultural Union with the Uganda Flowers Exporters’ Association; Uganda Hotel, Food,

Tourism and Allied Workers’ Union and Amalgamated Transport and General Workers’ Union with the Uganda Private Security Association.

22

must also be noted that trade unions will not bring about change from the top, from their union

headquarters or in the city. Change will come from people power at the shop floor and workers’

communities. That is where the effort should be.

With regard to operationalizing of the Industrial Court, the unions should stop lamenting and

instead take the initiative of leading the effort operationalize the court. The unions should step

up their act in lobbying for the operationalisation of the Industrial Court. This should include a

private members motion to change the title of the head of the Industrial Court to one that is

not controversial. The labour movement should demand that their representatives in

parliament act quickly on this matter.

3.2.2 Addressing the free rider problem

One of the challenges trade unions usually face is that of free riders. Free riders are economic

actors who avoid paying for public goods because these goods are “non-excludable”. That is to

say the benefits remain available to anyone regardless of whether they have contributed to the

cost of providing them. In the case of trade unions, the free rider phenomenon takes the form

of non-membership in unionized workplaces.

Indeed this study found that, although collective bargaining agreements generally cover all

workers of a particular category in a workplace, union membership is almost never 100 percent.

It was found that there are workers who are not union members but who a get a “free ride” by

benefiting from the unions’ bargaining power without paying for it. Most trade unionists

interviewed considered free riding unfair. How then should this problem be addressed?

Historically, there are two ways through which unions have dealt with this problem. Trade

unions faced can adopt a “market solution” approach; that is by convincing workers that certain

important benefits of union membership are available to union members only and are worth

paying for. Alternatively, a regulatory solution can be adopted by making it obligatory through

collective bargaining or statute for every worker who benefits from union services to contribute

to the cost of providing them, just as all citizens are obliged to pay taxes.

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Unlike the regulatory solution, the “market solution” approach when adopted rarely raises any

ethical or human rights concerns. The adversarial critiques of the regulatory solution argue that

freedom to join a trade union as guaranteed under ILO Convention 87 also presupposes the

freedom not to join. In other words joining a trade union should be a voluntary matter.

Accordingly, they continue that compelling workers to contribute to a union they have not

freely joined would be tantamount to forced membership of a trade union.

Although the argument that trade union membership should be voluntary is valid, equally valid

is the view that all those who enjoy “union goodies” should pay for them. Trade union leaders

interviewed contended that trade union participation in collective bargaining costs a lot in

terms of time and resources and it is only proper that all workers incur the costs of collective

bargaining.

The government seems to have found merit in the trade unions’ argument for a regulatory

solution. In 2011, the government issued the Labour Unions Act (Check-Off) Regulations. The

said regulations provide that a worker, who is not a member of a labour union but benefits

from the negotiations of the labour union, shall pay a one percent levy of his or her wages or

salary to the labour union.

The ILO Committee of Experts has also noted that the Right to Organize and Collective

Bargaining Convention can in no way be interpreted as authorizing or prohibiting union security

arrangements, such questions being matters for regulation in accordance with national practice

(ILO 1959). According to the ILO therefore, levies on non-union members and any other union

security arrangements do not infringe on the right of freedom of association as long as they are

imposed by national legislation. The Labour Unions Act (Check-Off) Regulations, 2011 are

therefore compatible with ILO standards. However, it has to be acknowledged that there is an

inherent danger in the ability to receive income from employees who not are members of the

union, as this might undermine trade union commitment to organize and recruit new members.

It is very well known that the strength of any union is largely dependent on a membership that

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understands the mission of the union and not a “quasi membership” that merely contributes a

mandatory levy to the union without sharing and being willing to act on its values.

4.0 PROVISIONS OF COLLECTIVE BARGAINING AGREEMENTS

4.1 Introduction

This section examines the provisions contained in the collective bargaining agreements that

were reviewed. These include introductory clauses, union membership and some general

conditions of service contained in a typical CBA in Uganda. The ultimate objective of the section

is to examine the contribution trade unions are making to the protection of workers’ rights

through collective bargaining. In order to put the outcomes of collective bargaining in context,

it was found necessary to briefly explain the rationale of collective bargaining.

4.1.1 Understanding collective bargaining

It is difficult to reflect on all the essential features of collective bargaining in a single definition.

However, the ILO Right to Organize and Collective Bargaining Convention (No. 98), 1949

describes collective bargaining as "voluntary negotiation between employers or employers'

organizations and workers' organizations, with a view to regulate terms and conditions of

employment by collective agreements."

Collective bargaining is therefore a very important avenue of enhancing the terms and

conditions of employment of workers through unions and accordingly furthers their social

economic interests. In addition, it is a major vehicle in regulating relations between workers

and employers. Successful conclusion of collective bargaining results into a collective bargaining

agreement, which records the terms and conditions of service as agreed upon for a specific

period of time. In the context of a broader concept of social dialogue, collective bargaining

contributes to strengthening democracy in society.

In summary, collective bargaining is significant to workers because:

It gives workers a chance to contribute to decisions on terms and conditions of service.

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It helps workers to share with the employer rule-making power in areas, which

ordinarily are a preserve of management, like transfer, promotion, redundancy and

discipline among others. Accordingly, it helps workers to protect their rights by granting

them the opportunity to counter any potential abuse of power by the employer and in

so doing prevent the employer from acting arbitrarily.

It encourages “enlightened” employers to include terms and conditions of service that

enhance good employer-employee relations.

It allows settlement of disputes through dialogue and consensus rather than through

conflict and confrontation.

It usually has the effect of improving industrial relations.

4.1.2 Levels of collective bargaining

In Uganda, collective bargaining takes place at three different levels. These are:

Between one employer and a trade union. This is the most common form of collective

bargaining.

Between one employer and a number of trade unions. In Uganda, this is the case at the

Serena Hotel where the employer negotiates with two unions8.

Between a group of employers and a trade union9

4.1.3 Overview of preconditions for effective collective bargaining

Trade unions are most successful in delivering what workers want when they can pursue a

broad bargaining agenda, work effectively with employers to improve the workplace and

defend people against unfair treatment when this is necessary. In other words, unions must be

8Serena Hotel Negotiates with the Uganda Hospitality, Leisure and Allied Workers Union and the Uganda Hotel,

Food, Tourism and Allied Workers’ Union. The former is affiliated to NOTU and the latter to none 9For example Uganda Horticultural and Allied Workers’ Union and the Uganda Flowers Exporters’ Association.

26

credible partners, willing to work constructively with employers while having enough power in

the workplace to make a real difference to employer decisions.

The question then is under what circumstances does a union become able to deliver what

workers want? Circumstances in which effective collective bargaining culminates in an

agreement that is mutually beneficial to the parties concerned will occur most often where

there is a framework for labour market governance that upholds the fundamental rights of

workers and employers and promotes decent work.

Such a framework should fulfill two criteria. First, there should be a legal and labour

administration regime that guarantees the right to form or join a trade union, recognition of

trade unions as collective bargaining agents and generally a culture of observance of

agreements. Secondly, there should be effective trade unions that are capable of promoting

and protecting workers’ rights. Trade union effectiveness is dependent on a number of factors

which include: strong membership, independence, internal democracy, employee solidarity,

sufficient financial means capable of running a strike fund, culture of observance of

agreements, an effective dispute resolution mechanism and efficient labour administration

authorities as well as a favourable economic situation. Whether the conditions for effective

collective bargaining exist in Uganda, is a matter that is important but will be dealt with in

subsequent sections.

4.1.4 Common Collective bargaining process in Uganda

Collective bargaining is not a one day event but a process of a series of activities or phases,

which start well before the employer and employee come face to face on the negotiating table.

The quality of any collective bargaining outcome is just as good as any stage of the entire

process. The standard process of collective bargaining in Uganda seems largely similar across all

the unions. The different phases or stages in a typical collective bargaining cycle or process

include preparation, drafting proposals, submitting proposals to the employer, employer’

response to trade union proposals, submission by union of counter proposals if any,

constitution of the bargaining team, actual negotiations and signing of agreement.

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Preparation Phase

This is a very critical stage in the process of collective bargaining. This phase involves:

Analysis by the union leadership of the common concerns of the workers in regard to

their terms and conditions of service.

Analyzing existing collective bargaining agreements in order to identify possible areas of

amendment in order to address the key concerns of the workers.

Meeting with workers in order to identify priorities and reasonable demands.

Carrying out research to support the agreed upon union demands. This includes

company performance analysis as well as an analysis of the domestic and international

economic situation.

Developing arguments to support union demands.

From the foregoing, it is clear that adequate research capacity within the union is very

important. Although all the interviewed trade union leaders appreciated the role of research in

collective bargaining, it was found that none of the unions had built the requisite research

capacity. Even where the unions had officers designated as research officers none had

adequate capacity and facilitation to conduct the kind of research needed for effective

collective bargaining. Collaboration with policy and research organizations as a means of

bridging their research capacity gaps was also very limited, irregular and not structured.

Without research it will be very difficult for trade unions in Uganda to improve their capacity to

engage at the workplace and on broad socioeconomic issues that affect workers.

Submission of proposals

After the preparation, trade unions usually submit their written proposal to the employers with

an invitation to commence negotiations. The periods within which trade unions submit

proposals for collective bargaining vary from union to union but are generally between one to

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three months. In turn, employers are supposed to respond to the demands of the union. The

period within which the employer is supposed to respond to the union demands ranged

between fourteen and thirty days. Where in the rarest of cases the employer accepts the initial

union demands, a meeting is convened to sign the agreement.

Negotiations

In the event that after the employer’s response issues for negotiations still exist, a date for

negotiations within an agreed timeframe is often fixed. All recognition agreements reviewed

clearly defined the composition of negotiating teams from both the employer and workers’

sides. Even where it was not stated in the recognition agreement, the employers always chair

the meetings. While the role of taking minutes and drafting final positions was found to be

shared between both parties.

4.2 General Provisions

This section reviews some of the general provisions of collective bargaining agreements.

4.2.1 Contracting Parties Clause

All CBAs reviewed stipulated in the introductory clause or preamble, the parties to the CBA, the

rights and privileges of each party, the scope of the agreement as well as the category of

workers who are covered by the provisions of the CBA. This creates certainty and predictability

in industrial relations.

4.2.2 Validity of the CBA

All CBAs reviewed specified the effective commencement and expiry date of a CBA.

Furthermore, over 70 percent of the CBAs reviewed, had a validity period of between two and

three years with wage opener clauses that provided for annual review of wages. Given that

changes in the socioeconomic situation constantly occur, a validity period of two to three years

is long enough to give the parties a break from negotiations but short enough to allow workers

to respond in good time to the changing socioeconomic situations. It was also noted that

although CBAs generally had a validity clause of two to three years, all collective bargaining

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agreements reviewed had a provision that kept the provisions of a CBA valid until another one

is negotiated and concluded. This kind of provision ensures that the rights and privileges of

workers in a CBA remain intact until a new one comes into force.

4.2.3 Worker Participation

Elected trade union leaders are a critical pillar in the effective operation of a trade union.

However, the existence of such elected trade union leaders should not under any circumstance,

close out rank and file members from participating in the operations of a trade union. A good

trade union should therefore remain a fertile institution for the furtherance of participatory

democracy, the right to speak freely and the right to exercise choice. Accordingly, rank and file

participation should include the right of the rank and file members to participate in determining

and overseeing the implementation of terms and conditions of employment. Therefore the

process of collective bargaining should at all times include the participation of rank and file

workers.

In view of the above, CBAs were reviewed in search of the role of the rank and file members

during collective bargaining. The study found that all agreements reviewed provided for the

rank and file workers to participate in the negotiations process through their directly elected

branch leaders. Branch union leaders were found to be part of the negotiating team. Most

important in this respect is that the leadership of the unions consults workers on issues that are

submitted to employers for negotiations.

4.2.4 Individual Contract

There is perhaps nothing as important as employment in any society. Employment is important

not only because of the goods and services it creates for society but also because of the

income, livelihood and sense of self-esteem that workers derive from it. Security of

employment and protection from arbitrary dismissal are therefore matters of great importance

in industrial relations. Given that workers are usually the weaker party in an employment

relationship, security of terms and conditions of service is best guaranteed when the offer and

30

acceptance of employment is written. Indeed Uganda’s Employment Act recognizes the

importance of the issuance of written employment contracts.

All CBAs analyzed provide for issuance of written employment contracts by the employer. By

providing for issuance of written contracts to workers in CBAs, trade unions have been able to

enhance the formalization of employment. It is important to remember that in the settlement

of any employment related dispute, the first burden any worker has to discharge is to prove

that she or he has an employment relationship with the employer who is a party to the dispute.

Indeed many workers without written contracts have always found it difficult to seek redress in

cases of unfair dismissal or nonpayment of benefits. Therefore, by ensuring that CBAs provide

for written contracts, trade unions have been able at least on paper to enhance protection of

workers from employers who deliberately and for ill purposes hire workers without written

contracts.

The trade union leaders interviewed noted that all workers engaged on a full-time basis in

workplaces they have organized and secured recognition had written contracts. It was however

noted that there are instances where part-time employees were not issued with employment

contracts. Non-issuance of written employment contracts among part-time employees

increased their vulnerability, job insecurity and made it difficult for them to make claims against

their employers in cases of perceived unfair termination or non-payment of wages and other

benefits. The ILO Part-Time Work Convention, 1994 (No. 175) requires employers to extend to

part-time workers the same protection as that accorded to comparable full-time workers.

Furthermore both the Constitution of Uganda (Article 21) and ILO Convention 111 on

Discrimination in Employment and Occupation (Article 1) also call for equal treatment at work.

The issuance of employment letters to permanent employees alone does not only constitute a

departure from international best practice but is also an act of outright discrimination, which

should not be allowed to happen in a supposedly free and democratic society.

Unfortunately, because of their irregular work schedules, part-time workers tend to be non-

union members and as a result, trade unions rarely treat their plight with the seriousness it

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deserves. Yet the trade union principle of solidarity and social justice requires that trade unions

should fight for the protection of all workers regardless of whether they are members of the

union or not. Therefore, the trade unions have a burden of ensuring that the right to a written

contract is not selectively applied by employers. Trade unions have historically been defenders

of equity and social justice and must therefore fight to ensure that employers extend to part-

time workers the same protection as that which is accorded to comparable full-time workers.

4.2.5 Equality/Non-Discrimination

Uganda is a signatory to the ILO Equal Remuneration Convention, 1951 (No. 100) and the

Discrimination (Employment and Occupation) Convention, 1958 (No. 111). Furthermore, article

21 and of the Constitution of Uganda and section 6 of the Employment Act, 2006 guarantee

equality of all persons in the social, economic and political life regardless of sex, race, colour,

ethnic origin, tribe, birth, creed or religion. It was therefore pleasing to note that all CBAs

reviewed contain a provision on non-discrimination in recruitment and pay. However, despite

elaborate anti-discrimination provisions in the CBAs, interviews with trade union leaders

revealed the perseverance of discrimination at work. The common forms of discrimination cited

include denying promotions to trade union members, restricting women to low cadre jobs,

tribalism.

However, apart from acknowledging the prevalence of this form of human rights violation and

talking about it whenever an occasion for a public statement arises, there is no concerted and

well coordinated effort by the unions to fight this vice. Human rights protection starts with

awareness and education. However, interviews revealed that trade unions are not carrying out

any organized awareness campaigns through the mass media or open door publicity efforts. Yet

without awareness, many workers will continue to suffer discrimination quietly and away from

the notice of trade unions and other human rights agencies.

Indeed a review of reports of human rights agencies like the Uganda Human Rights Commission

(UHRC) and Equal Opportunities Commission (EOC) reveal that trade unions have neither

concertedly drawn attention to these violations nor sought redress against workplace

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discrimination from state agencies like the UHRC. A UHRC Annual Report 2012 shows that only

the Uganda National Teachers’ Union had petitioned the Commission on matters of non-

payment of teachers’ wages. Discrimination at work among other factors, takes away the self-

esteem that employment is supposed to bring to workers. The trade unions should therefore

adopt a multipronged approach in dealing with discrimination at work. Lamenting about it

alone will not help workers. This should include intensive awareness campaigns, exposure of

employers where discrimination takes place and seeking redress or intervention of state

agencies like the Uganda Human Rights Commission.

4.2.6 Grievance and Dispute Handling Procedures

Collective bargaining is a central feature of sound industrial relations. Through collective

bargaining, clear and precise mechanisms for preventing and resolving labour disputes can be

established. A good collective bargaining agreement should therefore provide for a clear

grievance handling procedure. A review of collective agreements showed that all the CBA have

provisions that established clear procedures for handling grievances and disputes. In all the

agreements, the grievance procedures clearly establish the channels through which an

aggrieved worker can seek redress.

Furthermore, the analysis shows that all the collective agreements specify codes of discipline

that are intended to regulate the conduct of workers who are covered by the agreement. The

agreements also clearly show the offences, corresponding penalties and provide for union

representation in disciplinary hearings. Union representation greatly enhances fair hearings and

ultimately job security.

However, it should be noted that having an elaborate disciplinary procedure in a CBA is

important but is not sufficient to guarantee the fair and just treatment of workers. Interviews

with trade union leaders show that there are instances when employers take unilateral and

arbitrary actions in total disregard of the disciplinary code. The trade unions should therefore

build capacity to counter the power of employers and accordingly ensure that employers abide

by disciplinary codes. This may include hiring fulltime in-house legal staff to prosecute

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employers who violate workers’ rights. However, only the Uganda National Teachers Union has

a fulltime legal officer. The other unions are not able to hire fulltime legal staff because of

budgetary constraints. This consequently undermines their capacity to offer sufficient legal

protection to their members and to protect the rights of workers generally.

4.3 Non-wage benefits

This section of the report reviews the non-wage benefits contained in a typical collective

bargaining agreement in Uganda. The non-wage benefits considered in this section include

annual leave provisions, maternity leave, sick leave, compassionate and retirement benefits.

4.3.1 Paid annual leave

Paid annual leave is the annual period during which workers take time away from their work

while continuing to receive an income and to be entitled to social protection. For workers, paid

leave is not only a means to regenerate their own human resources but it also promotes their

well-being in general, which includes the opportunity for extended rest and recreation.

Employees need what in industrial relations is called work-life balance and paid annual leave,

which helps in maintaining this balance. For employers, paid annual leave preserves workers’

human capital because it provides a period of rest and recovery that enables them to remain

healthy. It can therefore contribute towards reducing absenteeism as well as enhancing

workers’ motivation and productivity. Apart from the leave being necessary on accounts of its

benefits cited above, annual paid leave is also provided for in ILO Convention 132 on Holidays

with Pay and the Employment Act.10

All the agreements reviewed have provisions for annual leave. Furthermore, about sixty

percent of the CBAs provided for thirty days of annual leave instead of the statutory twenty one

days per annum. In addition, over fifty percent of these CBAs provide for additional benefits

associated with leave. These included a cash allowance to facilitate the transportation of an

employee and his or her family to their home district. Such enhanced leave provisions show

10

Section 54 of the Employment Act provides for annual leave of 21 days per year.

34

some power on the part of unions to improve employee benefits over and above those

provided in the law.

4.3.2 Maternity Leave, Daycare Facilities and Paternity Leave

The Constitution of Uganda recognizes the important role women play in the development of

the nation. Article 33 (3) of the Constitution provides that “the state shall protect women and

their rights, taking into account their unique status and maternal functions in society”.

Furthermore, section 56 of the Employment Act grants all female employees the right to

maternity leave of sixty working days with full pay. In conformity with the aforementioned

provisions, all reviewed CBAs contain a provision on maternity leave. Although the law does not

provide for the provision of daycare facilities, about 10 percent of the agreements sampled

provide for daycare facilities for breastfeeding female employees. This was found to be a very

good collective bargaining outcome. With regard to male employees, the right to paternity

leave of four days has been encoded in all CBAs that were reviewed.

4.3.3 Sick Leave

Paid sick leave plays a crucial role especially in times of crises or high unemployment where

many workers fear dismissal and discrimination when reporting sick to work. In the absence of

paid sick days ill workers have to decide between staying at home to care for their health and

reporting to work sick. Without social health protection mechanisms that include paid sick

leave, each of the options presents a serious challenge to the ill worker.

Sick leave has also been found helpful in controlling or avoiding the spread of diseases at the

workplace. Indeed lack of sick leave can be very catastrophic in health terms. For when the

economic crisis and the H1N1 pandemic occurred simultaneously, an alarming number of

employees without the possibility of taking paid sick days attended work while being sick. This

allowed swine flu to spread into the workplace causing infections of some 7 million co-workers

in the USA alone (ILO 2010).

The Employment Act grants workers who have been in employment for more than one month

and normally work for at least 16 hours a week up to two months of absence from work with

35

full pay due to sickness. The Act further provides that the employers shall have the right to

terminate an employee if after two months of sick leave the employee is unable to return to

work. All of the CBAs reviewed, contained provisions on sick pay as provided in the law.

However, in over half of the CBAs reviewed, the unions had been able to negotiate extended

periods of sick leave with pay of between three months and four months. Other unions have

also negotiated periods of sick leave without pay of between six months and twelve months.

Interviews with trade union leaders also revealed that, through informal agreements between

the employer and the union, workers may remain on the employer’s staff establishment for

periods beyond what is provided for in the CBAs. It was also noted that informal arrangements

like this might gradually become an established practice and consequently easily find their way

into a CBA. The provisions of extended sick leave with or without pay were found to be very

useful in respect of employees living with HIV/AIDS.

4.3.4 Medical Care

Employee access to medical care not only ensures higher standards of health but also increases

employee productivity. However, Uganda’s public healthcare facilities, which should be

available for free or at a minimal cost, perpetually suffer from shortage of personnel and drugs.

Accordingly, they cannot be relied upon to provide medical care that guarantees the country’s

labour force good standards of health.

The study therefore seeks to find out what the trade union response has been with regard to

access to medical care. All the collective agreements analyzed for this report contain provisions

that require employers to provide free or subsidized medical treatment. This is achieved

through workplace clinics, designated health facilities outside the workplace or by the employer

refunding partial or full medical expenses incurred by the worker. The laws of Uganda do not

require employers to provide medical treatment to workers. Therefore one of the most

significant non-wage benefits that the labour unions have attained for their members through

collective bargaining is free or subsidized medical care.

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4. 4 Working Conditions

This section reviews the provisions of CBAs on working conditions. Some of the aspects of

working conditions considered include hours of work, overtime as well as occupational safety.

4.4.1 Hours of Work

The regulation of working time is one of the oldest concerns of labour legislation. By the mid

19th century, it had already been recognized that working excessive hours posed a danger to

workers' health and to their families. Indeed the very first ILO Convention adopted in 1919

limited hours of work and provided for adequate rest periods for workers.11 Since then, ILO

standards on working time provide for the framework for regulated hours of work. These

instruments are meant to ensure high productivity while safeguarding workers' physical and

mental health.

The hours of work in Uganda are regulated by law. Section 53 of the Employment Act provides

that the maximum hours of work shall be forty eight hours. However, through negotiations

between an employer and employees the hours of work may be extended beyond forty eight

hours as long as the working hours over a three week period do not on average exceed ten

hours per day and fifty six hours per week.

Although the regulation of working hours marked the first international labour standard, abuse

still continues, especially among poor and vulnerable workers. The study therefore investigated

what the unions are doing to ensure that employers abide by the domestic and international of

working time. All the collective agreements analyzed conformed to this provision of the law.

Some unions successfully negotiated for a shorter working week of forty-four hours

4.4.2 Overtime Work

Overtime refers to all hours worked in excess of normal hours of work. Overtime in most cases

includes all time worked by workers in excess of the maximum number of hours fixed for each

day or week. Since the early twentieth century, overtime regulations have aimed at addressing

11

Convention 001 Hours of Work (Industry) 1919 (No. 1).

37

the problem of lack of jobs and exploitation of those who have jobs through extended hours of

work. Overtime pay regulations therefore serve to discourage companies from overworking

their employees in order to avoid paying overtime wages, and as a result encourage additional

hiring to make up for the fewer hours being worked by their existing employees.

Overtime regulations commonly set two thresholds. First, the maximum normal working time,

marking the point above which working time is considered as overtime and the second is the

maximum total working time, including overtime. The limitations of working time and overtime

can often be temporarily extended in the framework of flexible working time arrangements.

In Uganda, overtime is regulated by the Employment Act, which in section 53 (8) specifies that

any hours of work beyond 8 hours per day constitutes overtime and should be duly paid for at a

minimum rate of one and half times of the normal hourly rate if the overtime is on the normal

working days and at two times the hourly rate if the overtime is on a public holiday. All

agreements reviewed provided for overtime in accordance with the employment act.

However, interviews with trade union leaders reveal that there are instances where employers

do not pay overtime compensation. It was mentioned that a number of employers consider

demand for overtime as lack of job commitment. As a result, workers may fear to demand for

overtime payment. In other cases, it was noted that workers are simply unaware of their right

to overtime pay and several employers exploit this ignorance to deny workers their overtime

pay. Trade union leaders should therefore invest time and resources in enhancing the

awareness of workers of their rights.

4.4.3 Occupational Safety and Health

Most workers spend at least eight hours a day in the workplace, whether it is on a plantation, in

an office or a factory. The workplace environment should therefore be safe and healthy. Yet

this is not the case for many workers. Every day workers all over the world are faced with a

multitude of health hazards. It is estimated that over 270 million work-related accidents occur

every year, two million of which are fatal. In economic terms the cost of losses resulting from

work place diseases and accidents is estimated at about four percent of global Gross National

38

Product. The prevention and protection of workers from adverse health effects resulting from

their working conditions is therefore very important.

Uganda’s Occupational Safety and Health Act 2006 prescribe a number of duties, obligations

and responsibilities for both employers and employees for the purpose of promoting good

Occupational Health and Safety standards. All employers are required to take practical

measures for the protection of their workers and the community from the dangerous aspect of

their economic activity (Section 13.1.a). These measures include the provision of protective

gear (Section 19.1.a) and provision of proper information and training about the proper

handling of chemicals (Section 13.2.c).

All CBAs reviewed have provisions on promotion of good occupational health and safety

practices in accordance with the OSH Act. Nevertheless, a number of challenges still persist. The

trade unions interviewed emphasize that the provision of personal protective gear to workers

by employers remains inadequate. Even where it was provided by employers workers note that

it was not replaced regularly and that workers on many occasions continue to use old

protective gear, which exposes them to hazards. At the same time, however, it was

acknowledged that exposure to chemicals was not entirely a result of failure by the employers

to workers with protective or use of old protective gear but also the reluctance of some

employees to use it when not under close supervision. Taking into account the HIV/AIDS

pandemic in the country, all CBAs reviewed have provisions on HIV/AIDS Counseling as well as

treatment in some work places.

4.4.4 First Aid

It is not always a serious accident that proves to be a problem but rather the neglect or

inefficient treatment of an apparently trivial injury, which may lead to infection, serious illness

and even death. The risk of such complications is lessened by skilled use of first aid treatment.

A well organized first aid facility, therefore, minimizes effects of accidents and also helps

workers to return to work almost immediately after treatment, with minimal loss of working

time. This prevents loss of wages for the workers themselves as well as disruptions to

39

production. All CBAs reviewed provide for first aid facilities. It was, however, noted by trade

union leaders that employers do not provide sufficient first aid training and that first aid kits are

not regularly replenished by employers.

4.5 Wages

This section highlights the level of wages among unionized workers in Uganda. The assessment

of wages in this section is based on wages earned by a sample of 1482 workers. Information

about wages used for the analysis in this section was derived from union check-off lists.

For many individuals, labour is their only asset and employment their only avenue out of

poverty and socioeconomic exclusion. Indeed, the ILO notes that approximately half of the

global labour force works for a wage. Furthermore, living standards and the livelihood of

workers and families depend on the level of wages, when and how they are adjusted and paid.

Wages are therefore a major component of overall consumption and a key factor in the

economic performance of countries. Although there is general agreement that employment

and wages are central to the world of work, there is no equal unanimity about how wages

should be determined.

The neoclassical school of economics that has dominated the world economic order for the past

three decades contends that wages should be determined purely by market forces of supply

and demand. However, critiques of the neoliberal school ranging from Keynesians to Marxists,

argue that the mechanical model of wage determination propounded by the neoclassical school

does not stand the test of the real world, which is characterized by market failures and

influence of various socioeconomic and political forces. Accordingly, the critiques of neoliberal

labour economics contend that there is need for intervention in the labour market through two

main labour market institutions: minimum wages and collective bargaining.

It is believed that interventions through collective bargaining and minimum wage legislation

help to alleviate income poverty. Although there is a minimum wage fixing law in Uganda, a

minimum wage has not been fixed since 1984. This leaves collective bargaining as the only

mechanism through which any effective interventions can be made in the labour market.

40

The study was therefore interested in finding out how trade unions have enhanced the wages

of workers through collective bargaining. Initially, it was hoped that the study would among

others examine how wages of trade union members against those of non-union members have

evolved since 2006. However because of limited availability of data, the study is only able to

examine a sample of wages of 1482 workers. The analysis shows that 14.9 percent of the

workers whose wages were sampled earned 100,000 Ugandan shilling or less12, while 40

percent earned between 100, 000 and 250,000 Ugandan shilling. This means that about 55

percent of the workers do not earn more than 250,000 Ugandan shilling. A simple assessment

of wages in table 1 suggests that nearly 85 percent of workers earn over 1.25 US Dollars per day

which is the threshold for absolute poverty. For a casual observer, this might reflect a good

picture of the social economic conditions of workers in Uganda.

However, a critical look at the wages earned shows that the living conditions of workers are

difficult. For example the Consumer Index Report for the month ending 30 September 2013

shows that rent for a single room was on average about 73,000 Ugandan shilling, while rent for

a double roomed house was about 120,000 Ugandan shilling. This means for about 55 percent

of workers, rent alone accounts for 50 percent or more of their wages. Furthermore, the

average household size in Uganda is estimated to be five people per household.13 Therefore if

one shared out the monthly wage amongst five persons, one would find that all members of a

household whose “breadwinners” earn 550,000 Ugandan shilling or less live below the poverty

line. This in effect implies that nearly 82 percent of families of workers in Uganda live on less

than a dollar a day.

From the above analysis, it can be concluded that wages in Uganda are still very low and

therefore cannot help most workers and their families to get out of poverty. Trade unions

therefore have a big challenge of improving the welfare of their members through better pay.

Trade unions must also be reminded that there is a direct link between growth in industry and

better wages. Therefore trade unions must shift away from the narrow agenda of engaging only

12

The lowest wage earners were mainly in the agricultural and hospitality sector. 13

Uganda National Household Survey Report 2009/2010.

41

at the workplace to addressing broader social issues especially those that are key constraints to

the creation of better jobs through industrialization.

Table 1: Wages of unionized workers as of July 2013

Monthly Salary Percentage Frequency

< 100,000 14.9

≥ 100,000 < 250,000 40.7

≥ 250,000 < 400,000 18.2

≥ 400,000 < 550,000 7.8

≥ 550,000 < 700,000 6.4

≥ 700,000 < 850,000 5.1

≥ 850,000 < 1000,000 4.1

> 1,000,000 2.8

5.0 Conclusion

The study analyzed the outcomes of collective bargaining by reviewing the contents of 38

collective agreements from 19 trade unions in Uganda. Apart from reviewing collective

bargaining outcomes, this report provides a very useful analysis of the legal framework in which

collective bargaining is conducted in Uganda.

The study shows that on paper, Uganda’s legal framework guarantees freedom of association

and collective bargaining as espoused in international labour standards. However, the report

also shows that the progressive labour law regime is not complemented by a strong and

effective mechanism for enforcement. For example only 34 of the 112 districts of Uganda have

a labour officer; the only public official is charged by law with authority to facilitate negotiation,

conciliation and mediation in labour disputes. In addition the labour officers are poorly

42

facilitated. Furthermore, the Industrial Court which is supposed to be the final arbiter in labour

disputes has not been constituted since 2006. This has rendered the conclusive resolution of

labour disputes through mediation impossible. The absence of an Industrial Court was found to

greatly undermine union efforts to organize workers and also effectively promote and protect

the social economic interests of workers.

The report shows that despite the above challenges, trade unions have used collective

bargaining to ensure that the legal rights of workers are promoted, protected and ultimately

the working and living conditions of workers and their families are improved. However, the

analysis indicates that the focus of collective bargaining has largely been on the workplace

“bread and butter” issues, instead of addressing the wider sociopolitical and economic

concerns, which have an impact on labor in the country. Furthermore, most of the non-wage

benefits that the unions have secured in collective bargaining agreements have largely been a

replica of what is already provided for in the labour laws. Labour laws are supposed to provide

the minimum standards of employment and therefore successful collective bargaining by

unions should aim at securing benefits that are over and above what is provided for in the law.

This is in no way a statement that unions have simply transplanted provisions of the law in to

collective bargaining agreements. For example, the law does not require employers to provide

medical care to employees, however all CBAs reviewed for the purpose of this report contain a

provision that requires the employer to provide workers and their families with medical

services. This was found to be no mean achievement given the importance of medical care in

uplifting the health and productivity of workers. With regard to wages, the report shows that

wages are generally low with most workers and their families living in poverty.

The report further shows that the unions that have been successful in expanding their

membership and winning benefits for their members are those that have built their

organizational effectiveness and have a strong leadership that is focused on organizing. In

addition, their position as representatives of workers has been duly acknowledged by their

employers. This acceptance has been a consequence of a trade union approach that has

43

judiciously mixed assertion of legal rights of workers, traditional trade union militancy,

persuasion as well as linking unionization of workers with the interests of the employer, like

improved company performance and employee productivity.

Finally, although this study may have not covered all the registered unions in Uganda and did

not carry out an analysis of the evolution of wages, it still throws sufficient light on what trade

unions are doing to promote and protect the rights of workers in Uganda. The findings of the

study will therefore assist trade unions and other interested parties to understand

achievements and challenges of the trade unions in Uganda.

44

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