Challenges of industrial arbitration in a liberalized labour sector: a case study of industrial court in Kenya

Abstract

The main aim of this study was to identify the challenges of industrial arbitration in a liberalized labour sector, a case study of industrial court. The specific objectives addressed by the study were: (a) To investigate the causes of industrial disputes with particular reference to disputes referred to industrial court. (b) To determine the impact of liberalization of the labour sector on industrial court arbitration. (c) To ascertain how the changing face of trade unions has affected industrial court arbitration. (d) To determine the impact of change in the management styles by employers on industrial court arbitration. A total of 25 respondents were selected through purposive non-probability and snowball sampling techniques. The key instrument for data collection was unstructured interviews that were administered to court officials, FKE, COTU and ministry of labour officials. Apart from the unstructured interviews, other data collection methods included direct •. observation, and review of available records/ documents. Data analysis was done qualitatively and descriptive statistics was used to present the data collected. The study found out that industrial court arbitration is tripartite in nature, thus the government, unions, and employers must play their part adequately for industrial peace to be achieved. However, with the liberalization of the labour sector, the study revealed that the industrial court is' faced with diminished powers, and that its' decisions are increasingly being questioned by employers. Further more the findings revealed that trade unions in the era of a liberalized of labour sector are faced with diminishing bargaining powers due to among others, loss of members, employers' refusal to recognize unions, and their adoption of new management systems. All these factors have impacted negatively in the contents of the collective bargaining agreements and representation of workers at the industrial court. From the findings it was concluded that liberalization has a negative impact on industrial court arbitration. That employers,' are increasingly turning their backs on court rulings by resorting to civil courts to quash lor repeal earlier industrial court rulings. That the court is faced with the challenge of determining disputes of an economic nature due without data on company productivity, inflation rate and consumer price indexes. This limitation predisposes the court to make rulings that some times could be contrary to its mandate. The court is also faced with the challenge of lack of adequate finances, personnel and office space among others. Deriving from the foregoing findings and conclusion, it is recommended that the Government should initiate appropriate legal reforms on labour laws so as to reflect the changed labour environment. That the industrial court should be made effective through training of court staff, expansion of the court, hiring of more staff both at the ministry of labour and the court and, last but not least through increased budget allocations. A further study was also felt necessary towards this subject in future to cover contents not covered here