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Notes Module 5 Olw 311

This module discusses collective bargaining and agreements under Ethiopian labor law. It defines collective bargaining as the process through which unions and employers negotiate terms of employment, with the goal of reaching a collective agreement. The module outlines the legal framework for collective bargaining, including a union's right to recognition and bargain in good faith. It notes that collective agreements become binding once signed, unless otherwise stated. The module also examines strikes and lockouts as lawful economic weapons in collective bargaining disputes, if certain preconditions are met. The overall aim is to explore the legal aspects of collective bargaining and agreements in Ethiopia.

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Charles Maloda
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97 views3 pages

Notes Module 5 Olw 311

This module discusses collective bargaining and agreements under Ethiopian labor law. It defines collective bargaining as the process through which unions and employers negotiate terms of employment, with the goal of reaching a collective agreement. The module outlines the legal framework for collective bargaining, including a union's right to recognition and bargain in good faith. It notes that collective agreements become binding once signed, unless otherwise stated. The module also examines strikes and lockouts as lawful economic weapons in collective bargaining disputes, if certain preconditions are met. The overall aim is to explore the legal aspects of collective bargaining and agreements in Ethiopia.

Uploaded by

Charles Maloda
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Module 5

Collective Bargaining and Agreement

Module Contents
1. Introduction
2. Objectives
3. Main Body:
3.1. Collective bargaining and collective agreement
3.2. The legal framework
3.3.The legal status
3.4.Strike and Lock-out
4. Summary

1. Introduction
Collective bargaining is the process through which a registered trade union and an employer or a
registered employer’s association negotiate on the terms of employment such as wages, hours of
work, benefits, disputes handling etc. The ultimate goal of collective bargaining is to attain
collective agreement.

2. Objectives
The purpose of this module is to explore the legal framework regarding collective bargaining and
collective agreement; its legal status; and the related matters such as strike and lock-out.

3. Main Body
3.1. Collective bargaining and Collective agreement
As pointed in the module 4, collective bargaining and agreement is among the forms of workers
participation. It regulates employer-employee relationship through negotiation. The aim is to sort
the employment related differences in a peaceful way. It may also be seen as the process of
making rules which governs employment through a coactive agreement.

Collective bargaining is an integral part of trade union rights. It first requires existence of a
recognized trade union to represent the employees in the negotiation. Yet, the right to freedom of
association guarantees the trade union right to negotiate freely with the employer as well as the
right to strike.

3.2. The Legal Framework


Part VI of ELRA dedicates to the collective bargaining. In a nutshell, the part provide rules
concerning recognition of a trade union for purposes of collective bargaining, a bargaining
agent; substantive and procedural rules of play in collective bargaining; and the legal status of
the collective agreement.
Basically the important issues of collective bargaining and agreement under the ELRA are:

1. The right to engage in collective bargaining;


2. Union recognition as a legitimate bargaining agent s. 67(1) (2);
3. Duty to bargain in good faith;
4. Obligation to disclose all relevant information for effective bargaining (s. 70)
5. Agency Shop Agreement s. 72(9).

An ‘agency shop’ is defined as a union security arrangement in terms of which employees in a


bargaining unit, who are not members of the recognized trade union, are required to pay an
agency fee to the trade union (s.72 ELRA). That, an employee cannot be compelled to join a
trade union but the fact he/she benefits from the agreement made by the trade union, he/she has
to pay a fee for that purpose.

The said agency fee should not be more than the amount of the union subscription and it has to
comply with all requirements as provided under Rule 58(2) for it to be binding.

3.3. Legal status


It is clear from the outset that the outcome of collective bargaining is collective agreements. S.
71 ELRA provide the binding nature of collective agreement. That a collective agreement
becomes binding as soon as the last signature has been made, unless the agreement state
otherwise. Also the provision allows any party to terminate an agreement with reasonable notice
unless the collective agreement provide otherwise.

3.4. Strike and Lock-out


The ELRA Part VII provides for the employee right to lawful strike and employers rights to
lawful lockout in respect of the dispute of interest. The role of strike and lockouts, in collective
bargaining as core rights of employers and employees, is to resolve matters of mutual interest
between themselves without outside interference. This shows that a strike and a lockout are the
weapons in collective bargaining process

The right to strike has limits. The Act restricts some employees from striking such as employees
of essential services, magistrates, prosecutors etc. However, persons in essential services can
strike or lockout in compliance with the requirements of s. 76(2).

Procedure for engaging in a lawful strike/lockout:

- The dispute is a dispute of interests;

- The dispute has been referred in prescribed form to the CMA;


- A dispute remain unresolved at the end of the statutory period of mediation;

- To strike, the strike is called by a trade union, a ballot has been conducted under the
union’s constitution and a majority of those who voted were in favour of the strike; and

- After the applicable period (for mediation) the employer/employer’s association or the
trade union has given 48 hours notice to the employees/trade union or employer of their intention
to lockout or strike.

S. 83 insist that lawful strike or lockout is protected by law. It is further provided under s. 84 that
the labour court may issue an injunction to restrain a strike or lockout not in compliance with
law.

4. Summary
In this module, we have covered the general legal framework regarding collective bargaining and
agreement. It unveiled definition of the terms, its importance, negotiation requirements as well as
legal implication underlying collective agreements. It further explores the legal protection and
procedures regarding lawful strike and lockout.

From the discussion, you will be able to apply the terms accordingly.

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