Other strategies which can be adopted by employer during negotiation:

 Avoid mutual agreement clauses that can prevent management right to control and
manage the firm regardless of union contracts.

 Keep company personnel informed of progress of bargaining to avoid rumours.

 Develop agreements which make union appear like they have won and union lost.

 Determine the point at which the company is willing for the union to go on strike.
(Management must adopt an attitude of not being afraid of a strike)

 Have in reserve conditions which employer can ask unions to accept in return for any
concessions it may be prepared to make e.g. extended period before the next
settlement or increased work output etc
The Collective Bargaining Agreement (Contract)

Successful negotiation lead to collective agreements which are sealed by the signing of a
contract which runs for 2-3 years. This consists:

 Security of the union and its members

 Grievances procedures and dispute handling e.g. provision of arbitration
 Promotions transfers and layoffs
 Wages, fringe benefits etc.
 Working conditions e.g. Leave, holidays etc
 Incentive pay, study leaves etc
 Safety and health insurance etc
 Management responsibilities
 A miscellaneous clause which keeps the rest of the agreement valid.

Unsuccessful collective bargaining/negotiations can lead to industrial action by the union.

Trade unions use strikes, pickets, boycotts or go slow to pressure management to yield to
their demand.

STRIKES
The trade disputes act defines a strike as:
The cessation of work by a body of persons employed in any trade or industry
acting in combination or a concerted refusal or a refusal under common
understanding of any persons who are or have been so employed to continue to
work. It includes any interruption or slowing down of work by any number of
persons in any trade or industry action in consent or under a common
understanding.

 A strike is the ultimate economic force that a union can use to force employers to
concede to their demands.
 A strike offsets the employers right to manage the firm. (makes the firm
unmanageable)
 Without the possibility of a strike there can be no true collective bargaining.

Activity
Recall the strikes that have occurred in Kenya over the last few years. Why do you think
some succeeded and some failed?

Types of strikes

Ecomomic strike:
The most common form of strike based on demand for better wages and working
conditions.
Recognition strike:
Used to force the employer to recognize and deal with the trade union.
Jurisdictional strikes:
Occurs when two unions argue over membership and the employer is caught in the
middle.
Wildcat strike:
 Quick, sudden strikes which are unauthorized and not approved by union
leadership.
 Carried out contrary to labour laws and agreements.
 Shows a sign of fragmentation in union.
 Instigated by a sub-group unsatisfied with regular grievance procedure.

Sit-down strike or go-slow:

 Illegal as the employees should vacate the premises by law.
 Employers use lock-outs when there is a go slow strike (any striking
employees should not be in premises otherwise it is regarded as invasion of
private property.
Sympathy strike:
Occurs where other unions join in strike in sympathy with another union and this is
illegal.

In the event of a strike, employers must have a contingency plan for the efficient
functioning of the organization.
 Make sure the plant is left in good physical condition.
 Explain the employers side of the issue to the employees.
 Give a statement to the press
 Inform suppliers and customers
 Notify the appropriate mediation services e.g. minister for labour
 Determine to what extent non-union personnel will be maintained on the working
staff
 Paying off striking workers for the work completed in the past.

NB: Strikes are usually unfriendly and employers should do all they can to win the strike
without violating the law.

Costs of a strike
Strikes can be extremely costly and damaging to the entire economy. It is for this reason
governments intervene with laws, procedures and regulations to contain them to ensure
minimal labour unrests and industrial peace

Costs are:
 Pre strike costs such as tension between employer and employee
 Costs of reduced production
 Legal costs
 Costs of executive time spent in negotiation
 Loss of orders from customers
  Loss of profits for non-production
 Executive time performing operative tasks
 Use of casual staff/overtime costs
 Hiring and training replacements
 Loss of customers
 Loss of income by strikers
 Loss of morale and motivation by strikers
Picketing
Picketing is the patrolling of plant entrances by striking employees to ensure that the
plant is not opened for business and remains closed.

Usually they can remain peaceful if the employer does not attempt to open the plant, but
can be violent if he attempts to open. Purpose of pickets is to ensure that the plant is
paralyzed to cause maximum loss to the employer as part of union power to force
demands.

Employers can sometimes obtain a court injunction to limit the pickets that can be placed
at the entrances