Abstract

This study investigates the impact of collective bargaining on organizational performance of community Credit Company Bank in Buea. The study was guided by three research questions; How is long working hours is been combated by collective bargainers to improve organizational performance? What is the effect of poor working condition and tools on the organizations performance? How does the collective bargainer assist employees in labour related cases and court hearing?

A survey research design was employ for the study and Data was obtained through the use of a closed ended questionnaire. From this it was observed that collective bargaining have a positive impact on organizational performance and the statistical test was significant at 5% one tail test for collective bargaining. The test of significance for long working hours, working conditions, and intervention in employee’s problems was significant at 5% one tail test implying that the three objectives significantly influence organizational performance.

Also, the adjusted R-square was (95%) implying about 99% change in organizational performance was accounted for by changes in the variables specified in the model (long working hours, working conditions, intervention in employee’s problems) and about 3.73% by variables not specified in the model captured by the error term.

The overall significance test was significant at 5% level of significance implying that our results were more than 95% reliable. The study recommended that collective bargainers should frequently provide education and training to the employees about their working rights and their rights from being a member of a union. This was to prepare them enough for good grounds for demanding where their rights have been denied by their employers.

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

The term collective bargaining was first used in 1891 by Beatrice Webb a founder of the field of industry in Britain. According to her, collective bargaining can be referred to as the sort of collective negotiations and agreements that had existed since the rise of trade unions during the 18 century. Collective bargaining was further elaborated by the National Labor Relations Act in 1935 which made it illegal for employers to deny union rights to employees.

In Cameroon, collective bargaining is almost non-existent at the sectoral and national levels. The government encourages employers not to enter into collective bargaining at the enterprise level and refuses to recognize unions that are too independent for the purpose of collective bargaining. However, some governments have held firmly to the importance of collective bargaining agreements and encourage social partners to conclude collective labor agreements with a view to avoiding labor disputes.

Collective bargaining allows both workers and managers to discuss specific terms depending on national law which determine the rules that govern their relationship, determine wages, thereby dealing with other matters of mutual interest such as hiring practices, layoffs, promotions job functions, working conditions and hours (Herman, 2003). It is the process whereby workers organizes collectively and bargain with employers regarding the place of work. In aggregate, it is the coming together of workers to negotiate their employment (Namit, 2007).

Collective bargaining allows both employers and employees, or their representatives to participate in the decision-making process on a variety of topics such as benefits, leave, work hours, and overtime as well as grievance procedures, discipline, and dismissals in Cameroon. The agreement reached through collective bargaining are legally binding and apply to all workers in the world whether or not they actively participated in the bargaining process (Liontos, 2007).

The collective agreements reached by these negotiations usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or companies affairs. The trade union may negotiate with a single employer (who is typically representing a company’s shareholders) or may negotiate with a group of businesses depending on the countries to reach an industry-wide agreement. A collective agreement functions as a labor contract between the employer and one or more unions.

Trade unions arise from the Free Trade Unions of Cameroon. Trade unions are permitted in Cameroon under the 1992 labor code which was later created in 1996 by the government under the umbrella of the Union of Free Trade Unions of Cameroon. It was only after the creation of the USLC (Union des syndicats libre du Cameroon) by the government with about 50,000members, that the confederation of Cameroonian Trade Unions was weakened.

During this period trade unions’ ability to function was been influenced by the bargaining powers of employers and employers. On this ground, recent studies have been carried out regarding collective bargaining and trade unionism.

Trade Unions are an integral part of any organization. Whatever the organisation may be, whether big or small, private or public, trade unions do exist to safeguard the interest of the employees working therein.  A trade union also improves the living and the working conditions of the employees (Paragshir, 2013). A trade union, like any other organisation, emerges and grows in a definite environment. On one side the environment may either nurture or impede its growth and development trends.

The labour movement in Cameroon has a very rich and telling history. Pre- and post-independence Cameroon was characterized by a plurality of free and autonomous trade unions, particularly in the plantations (CDCWU) in West Cameroon and the union led by Ngom and Ruben Um Nyobe in East Cameroon, which was to become a political party known as the Union des Populations du Cameroun (UPC).

The immediate post-independence state of Cameroon, faced with the eagerness of these groups to occupy trade union activities, thereby exceeding their original claims and objectives, adopted an attitude of repression through the emasculation of individual and group rights.

This drive was prompted by the project of national unity and integration, which, according to post-colonial African leaders, was possible only under a one-party or authoritarian regime. This explains the genesis of the central labour movement known as the National Union of Cameroon Workers (NUCW), styled after the single party, the Cameroon National Union (CNU) and, later, the Cameroon Trade Union Congress (CTUC) under the Cameroon People’s Democratic Movement (CPDM).

Today, thanks to the re-emergence of multipartism, the plurality of trade unions has returned (Founou-Tchuigoua and Kasanda 2002). It is argued that the centralization of the union movement and its eventual marriage with the one-party state didn’t augur well for its adherents in the quest for decent working conditions.

1.2 Statement of the Problem

The need for a conducive work environment, cordial relationship between the three actors in industrial relations (labour, management and the government) and how best to promote and maintain employee job satisfaction and productivity  has  engaged  the  attention  of  the  management  of  both  public  and  pirate  organisations.  This  is because;  it  is  a  fact  that  these  variables  are  very  crucial  to  the  survival  of  every  organisation.  A close look these variables suggest that labor   management relations is a crucial factor that may determine or influence the other variables.

One  basic  feature  of  the  components  of  an  organisation  is  varying  interests.  Every stakeholder in an organisation has his/her interest which normally may differ from other stakeholder’s interests. The  extent  to  which  these  interests  are  harmonized and  satisfied  determines  the  extent  to  which  the organisational climate/environment is conducive for team work and maximum production.

These interests are often realized through collective bargaining an  instrument in labour/management relations which  allows  both  management  and  workers  to  discuss  issues  and  take  joint  decisions  that  will  ensure  the survival of the organisation.

The Cameroon organisational system is the third tier of organisations and is hierarchically found below the state government. This is a level of government establishment to bring organisations to the grassroots of mobilisations for rural development. There is a strong conviction which the Cameroon National Trade Unions play in enhancing the performance of organisations through effective collective bargaining. Some unions mobilise their members towards high productivity which mostly takes place in the private sector in Cameroon. it hardly does in its public counterpart. Unions in public sectors generally ignore the productivity side of the equation in favor of workers welfare and remuneration.

Enormous research  has  been  undertaken  in  regard  to issues  on  trade  union,  collective  bargaining  and organisational  performance  but  little  attention  has  been  dedicated  to  assessing  and  examining the effects collective  bargaining on organizational  performance. So therefore, this study aims at adopting a descriptive approach to examine collective bargaining on organisational performance.

Bargaining impasse can occur when there is no movement in negotiation between employers and workers because of lack of compromise by either party. A general precondition to an effective collective bargaining is the parties negotiate “In good Faith”, meaning that they should come to the negotiating table willing to give and take ultimately reach an agreement often, through each side feels compile to “push” the other side in other to get what they want (O’Sullivan, 2007). It is against back ground that this study seeks to assess collective bargaining on organizational performance

1.3 Research Question

The following research questions were raise in other to give this study a particular direction. They include;

1.3.1 The main research question

 

To what extent does collective bargaining affects organizational performance?

1.3.2 Specific research questions

1. To what extent does workers incentive affects organizational performance?
2. What is the relationship between labour union and collective bargaining?

1.4 Research Objectives

1.4.1   Main Objective

Examine the effect of collective bargaining on organizational performance in Cameroon.

1.4.2 Specific Objectives

The study is guided by the following specific objectives;

1. To investigate how workers incentive significantly affects organizational performance.
2. To investigate the effects of labour union on collective bargaining.

1.5 Hypotheses

Ho1: Collective bargaining does no significantly affect organizational performance in Cameroon.

H11: Collective bargaining significantly affects organizational performance in Cameroon.

H02: There is no significant effect of labour union on collective bargaining.

H12: There is a significant effect of labour union on collective bargaining.