Effect of Trade Union Practices on Employees Welfare at Export Processing Zones Industries in Athi River, Kenya

Abstract

The Constitution of Kenya specifically recognizes the freedom of association to form and belong to trade unions. However, despite the adoption of the Labour Relations Act, union practice is still hampered by excessive restrictions. The EPZ companies are labor intensive requiring a large amount of labor to produce its goods or service and thus, the welfare of the employees play a key role in their functions. This study sought to determine the effect of trade union practices on employees’ welfare at export processing zones industries in Athi River, Kenya. The specific objectives sought to determine the effect of collective bargaining agreements, industrial action, dispute resolution and trade union representation on employees’ welfare at export processing zones industries in Athi River, Kenya. The study employed a descriptive research design. Primary data was collected by means of a structured questionnaire. The target population of the study was employees in EPZ companies in Athi River, Kenya with large employees enrolled in active trade unions. The unit of observation was the employees in the trade unions. The findings indicated that collective bargaining agreements had a positive and significant coefficient with employees’ welfare at the EPZ industries. Industrial action had a positive but non-significant effect with employees’ welfare at Export Processing Zones industries. Dispute resolution had a positive and significant coefficient with employees’ welfare at the EPZ industries. Trade union representation had a positive and significant coefficient with employees’ welfare at the EPZ industries. The study recommended that trade union should avoid the path of confrontation but continue dialogue through the collective bargaining process and demands should be realistic in nature with what is obtainable in the related industry. An existence of a formal two way communication between management and trade unions will ensure that right message is properly understood and on time too.

Keywords: Collective Bargaining Agreements, Industrial Action, Dispute Resolution, Trade Union Representation, Employees Welfare & Export Processing Zones