Abstract

Trade union play great role in safeguarding employees from any form of discrimination or harassment in organisations. Employees need to work in good environment. This interest was stirred by the deficiency of literature on the relationship between the activities of trade unions and their impact on employees’ productivity. The objective of the study was to assessed the impact of trade union activities on employee’s productivity in CDC Bota-Limbe, Cameroon. Specifically, the study seeks to assessed the extent to which trade unions activities (collective bargaining, high wages, good working conditions, benefits and other aspects of worker’s compensation and rights) influence employee’s productivity in CDC Bota – Limbe, to identify the challenges and prospect of trade unions activities on employee productivity in CDC Bota – Limbe. and to propose measures which trade unions can adopt to enhance higher productivity in CDC Bota – Limbe. In order to achieved the study objectives, the researcher employed a descriptive survey design to sample 60 correspondents using a simple random and convenience sampling technique. The findings of the study revealed that major activities included collective bargaining, grievances settlement, call for strike actions, social activities such as holding of seminars, talks and training and other forms of activities accounting for. The major challenges encountered by various trade union activities were that some management team are Uncooperative, victimization of trade union workers by the management team, some management leaders do not recognised the value of the trade unions, trader’s members also faced grievances, low wages problems, job security issues, poor working conditions and warfare facilities issues. Findings further revealed that Trade union should try to resolves conflict that arises among members, improve working conditions of its members, trade union should also de more centralize by giving some tasks and duties to its members and Promotion of members’ welfare through offering educational facilities. It was recommended that CDC should try to encourage the growth of trade unions since they are associated with increases in organizational productivity.

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

It is often perceived that employee productivity is one of the main matters that are of interest to organisations, policy makers, scholars and the government because of it acute importance to the socio-economic development to the society, since as the development index of a society is measure in relation to the productivity of individuals within that society (ILO, 2015). The performance of any economy is measured mostly by the level at which people are productive.

Trade unions are organizations formed by workers from related fields, that work for the common interest of its members. They help workers in issues like fairness of pay, good working environment, hours of work and benefits. They represent a group of workers and provide a link between the management and workers (ETPrime, 2020)

But some research has shown that unionized organisations are more productive than nonunionized organisations (Deery, et al., 2005) which arises out of the fact that trade unions employ an upward force on the salaries and wages of workers.

Most scholars perceive productivity is a measure of how efficient and effective the resources (inputs) are used to produce the outputs (goods and services). Productivity is also considered in monetary terms if the price received for an output rises with no increase in the cost of inputs, which is also seen as an increase in productivity (ILO, 2005).

Trade unions usually have clearly defined leadership structure through which they use in order to bargain with employers. Pencavel (2009) argues that elected leaders of trade unions negotiate with employers on behalf of ordinary members of the union for better working conditions, once the parties agree they sign contracts known as “collective bargaining agreements (CBA) and may include wages and salaries, hiring and firing procedures, promotion, demotion of workers, rules and regulations among others”.

Some scholars realized that employee productivity was never a problem before Trade Unions were formed. This is because employers were able to exploit employees who could not bargain for themselves. The Industrial Revolution in England and other countries and the advent of the factory system of production are greatly responsible for the emergence of Trade Unions to restrain the excesses imposed on the employees (ILO, 2018). Prior to the advent of the worker’s unions, productivity of the worker was at the highest level. Therefore, to stop employer’s exploitation, to regulate working salaries, working conditions, benefits and other aspects of worker’s compensation and rights, Unions or Associations were formed to bargain for the employees.

As also explained by Freeman and Medoff (1984), unions may increase productivity by establishing a voice network through which labor can provide valuable and otherwise inaccessible information about production and personnel policies (Kaufman, et al., 2019). Because the union protects its members from arbitrary dismissals, employees can express dissatisfaction with inefficient or unfair production policies without fear of management retaliation.

The origin of trade union which was first known as labor movement lay in the formative years of the American nation, when a free wage-labor market emerged in the artisan trades late in the colonial period. The earliest recorded strike occurred in 1768 when New York journeymen tailors protested a wage reduction. The formation of the Federal Society of Journeymen Cordwainers (shoemakers) in Philadelphia in 1794 marks the beginning of sustained trade union organization among American workers (History.com, 2009).

And the National Labour Relations Act of 1935 that was declare in the United states, made it illegal for any employer to deny union rights to an employee. In 1962 President John Kennedy issued an active order granting federal employees the right to unionize (Wrigley, 2003). The American Federation of Labour was formed in 1886, providing exceptional powers to a variety of workers.

It was realized that trade unions affect organizational productivity either positively or negatively, they affect productivity positively if they lead to increased employee productivity by successfully negotiating for healthier working conditions and compensation packages (Deery, et al., 2005). These outcomes motivate organizational employees who are members of the trade unions to work more efficiently thereby increasing the organisation productivity and whereas it affects the organisation productivity negatively if worker’s terms are not granted in the trade union.

Since the publication of the History of trade unionism (1894) by Sidney and Beatrice Webb, trade union have been regarded as the “continuous association of wage earners for the purpose of maintaining or improving the conditions of their employment”.  Karl Marx describes trade union thus “the value of labour power constitutes the conscious and explicit foundation of the trade unions whose importance for the working class can scarcely be overestimated.  The trade unions   aim at nothing less than to prevent the reduction of wages below the level that is traditionally maintained in the various branches of industry.  That is to say, they wish to prevent the price of labour power from falling below its value. Trade union organizations consisting mostly of employees, the principal activities of which include the negotiation of rates of pay and condition of employment for its member.

A study on relationship between union density and wages, employment, productivity, and economic output in China was done by Budd et al (2014). Within a period of 14 years from 1994 to 2008, they established that union density plays a positive role in the total productivity and output. The study covered a number of provinces in China where they established that although the Chinese trade unions are not allowed to organize strikes, they nevertheless contribute positively to organizational productivity.

In other countries like in England, trade unions and collective bargaining were outlawed before the 14th century. Collective bargaining and trade unionism got driven with the onset of Industrial Revolution. However, government closed down acts of unionism at the time of the Napoleonic Wars. In 1799, the combination Act was passed which banned trade unions. Although trade unions were subject to severe repression until 1824, they were already widespread in cities such as London (ILO, 2015). Work place militancy manifested itself as Luddism and became prominent in struggles such as the 1820 uprising in Scotland, in which 60.000 workers went on a general strike. Though crouched, it led to the repealing of the 1824 Act.

It was observed by Bryson et al. (2005) who investigated the relationships between work organization, trade union representation, and workplace performance in Britain by focusing on trade unions and high-involvement management established that high participation management contributes positively to the productivity within organizations but this is only limited to the workplaces that are unionized. This is attributed to the benefits of collective wage bargaining handled by the trade unions than other forms of bargaining and agreements that lead to perceived mutual gains. However, the study did not offer comparative analysis with those organizations that do not have trade unions. It is therefore hard to conclusively say that trade unions increase productivity where no comparison was done.

In the later part of European colonization of Africa, trade unions were an important driving force of the anti-colonial liberation struggle. The mal-practices of the employees, the master was strongly mitigated by the trade unions. Employee rights were upheld. Wages were redressed and increased comfortability of the workers was reflected in her productivity level as propounded by (Schillinger, 2005).

Trade unions in Africa were formed mostly after the Second World War. Except for countries like Tunisia, South Africa and Sierra Leone. These unions were formed when the colonial masters like Britain and France laid down rules for the formation of this union. These unions were often made up of workers in the public sector, public transport sector, teachers, and railway and port workers. Trade unions were also formed in the export enclaves of mining industry and to an extent the plantation economy of the East. After sixty years of independence, much has not changed. African labour unions are still dominated by public workers.

Very few empirical studies have been done on trade unions and organizational productivity in Africa. Manda et al. (2005) conducted a study on the relationships between membership to trade unions and the amounts of earning in a Kenyan manufacturing firm. The study found that differing to earlier findings, trade unions in Kenya had a positive impact on wages. They established that trade unions are able to force wage increments for their members. They also established that most of Kenyan elite workers in the manufacturing sector tended to keep off trade unions.

Cameroon was no exception in the influence trade unions have on African countries. Unionism in Cameroon had two models with the southern part of Cameroon Model according to British rules and regulations regarding trade unions (Koning’s 1993) sound unionism in the British colonies. The unions were model to be independent from political affairs. The secretary of state Lord Passfield unused the drift of trade unions diverting from pure economic motive to political and thus imposed state supervision and instruction of the trade unions (Millen 1963) the responsibility of the unions was bestowed on the Labour department of the state. Like their French Cameroon counterparts, who sought autonomy from the metropolitan central Labour Organization. British Cameroon trade unions also strove for a large degree of autonomy from their Nigerian trade unions.

The Cameroon Development Corporation is an Agro-Industrial Complex that grows, processes and markets tropical export crops. Its major products include banana, semi-finished rubber, palm oil and palm kernel. Currently, its plantations cover a total of approximately 42, 000 hectares of land, with 33, 000 mature and of production stage (Eyole, 2018). The corporation also constitutes a workforce of over 22,036 employees, including temporary workers. This makes it the second highest employer after the state of Cameroon.

Trade unionism in the CDC has a long history directly after the corporation was established in 1946/47, a trade union was structured on its estates and duly registered (Konings, 2011). This union, the Cameroon Development Corporation Workers’ Union (CDCWU), was soon to become one of the major and most influential in West Central Africa. The Cameroon Development Corporation (CDC) Workers Union was created to advocate for the rights of the workers. The firm ambition of this union saw strikes, organize seminars and other activities geared towards the wellbeing of the workers. Though this modest aims were a mask to hide the political motives of the leaders.

There was an observation that the CDCWU in Cameroon generally are not so keen to support any program aimed at boosting productivity but rather interested on the welfare of their members. These triggered on the reasoning that increased productivity at the enterprise level is more often than led to downsizing of the workforce (ILO, 2015).

Trade unions have had some effects on both government and private organizations the reason for their formation and development is to fight for the rights and welfare of workers in these two types of organizations. They have always pressurized governments to make worker-friendly laws concerning minimum wages and other trade laws (Griswold, 2010) in most cases they have been at loggerheads with governments. In the history of Cameroon and most countries around the world, trade unions have had their demands met through industrial actions; strikes have been the most favorable tool for the trade unions. These strikes have often led to work stoppages and discontinuity in the production process this in turn has led to loss of revenues whenever it occurs.

However, such strikes have also had adverse effects on the individual union members whereby some end up losing their jobs. Firm managers sometimes take disciplinary measures against members of the trade unions by sacking them when the return-to-work formula does not safeguard the employees job security, workers end up losing their jobs. Loss of jobs then affects the wellbeing of the workers since they cannot earn a living (Griswold, 2010). Whereas it is not clear why some workers choose not to belong to trade unions, many people fear paying union fees because it is seen as an extra tax on their salaries and wages.

1.2 Statement of the Problem

The impact of trade unionism on productivity has long been one of the major bones of argument among analysts of unionism. Trade unions have been initiated to play an important role in organizational productivity through their impacts on individual employees. They advance collective employee interests and help in solving grievances that employees may have against their employers (Pencavel, 2009).

Sources said Cameroon Development Corporation’s poor performance is due to Anglophone separatists’ violent protests.  This has been ongoing for more than two years in the South-West region of Cameroon, where CDC owns its plantations. The situation led the company to suspend operations because employees were no longer performing their duties. The management of the company made it known that at least five thousand workers of CDC could lose their jobs if standard output is not being met. This was on June 8 during a meeting with Staff Representatives and Trade Unionists where the state of the corporation was presented and proposals made to caution the adverse effects of the current crisis which is affecting their productivity (Eyole, 2018).

The trade unionism in CDC Bota Limbe has played significant roles on the interest of the employers and employees in that organisation even thou there have been a drastically drop on the productivity of CDC within the past year, which is been perceive that, the CDCWU have been associated with restricting work practice in the organisation and the industrial action have had adverse impact on employee’s productivity. And this is due to the complexities and problems encountered in trade union activities as earlier mentioned.

It has been realized that trades unions can help to negotiate and implement new working practices which help to increase productivity but this seems not to be the case in CDC Bota because the trade unionism in CDC Bota seems to have created a situation of a confrontation between the employees and management, which have led to strikes and a drop in employees input which turn out to affect the productivity of the organisation.

So, in order to solve this problem or complexity associated with trade union activities with regard to employee productivity in CDC Bota Limbe, this research seeks to answer the following questions: Do trade union activities affect employees’ productivity and what are the challenges for future prospects to be implemented in the case of CDC Bota- Limbe.

1.3 Objective of the study

1.3.1 Main Objective

The main objective of the study is to examine the impact of trade union activities on employee’s productivity in the Cameroon Development Corporation (CDC) Bota-Limbe.

1.3.2 Specific Objectives

The specific objectives of this study are:

1. To assess the extent to which trade unions activities (collective bargaining, high wages, good working conditions, benefits and other aspects of worker’s compensation and rights) influence employee’s productivity in CDC Bota – Limbe.
2. To identify the challenges and prospect of trade unions activities on employee productivity in CDC Bota – Limbe.
3. To propose measures which trade unions can adopt to enhance higher productivity in CDC Bota – Limbe