MISSION  STATEMENT

“To develop and sustain a peaceful and harmonious industrial relations environment through the use of effective dispute resolution practices, promotion of co-operation among the labour market players and mutual respect for their rights and responsibilities.”

VISION

With the advent of the Labour Act, 2003, Act 651, there has been a change in industrial relations practice.

The Vision of the Commission is to promote peaceful and harmonious industrial relations, premised on dialogue between the employer and the employee for economic growth.

TABLE OF CONTENTS

Page

Mission Statement                                                                                       ii

Vision Statement                                                                                         iii

Preface                                                                                                          iv – v

1.0       Introduction                                                                                       1

2.0       Main activities of the National Labour Commission in             2

            Relation to its main functions

2.1       Functions of the Commission                                                       2

2.2       Complaints and Petitions                                                               2

2.3       Settlement and Agreements reached at the Commission       3

2.3.1   Court suits – enforcement of Commission’s decisions                        3 – 6

2.4       Mediation                                                                                          6 – 7

2.5       Voluntary Arbitration                                                                       8

2.6       Compulsory arbitration                                                                   8

3.0       statistics of Industrial Actions (Strikes) Recorded in 2007       9

3.1       Strikes/Work Stoppages                                                                 9

3.2       Lockouts                                                                                            10

4.0       Educational Programme Undertaken By The Commission    10

5.0       Education through the Mass Media                                             11

6.0       International Training                                                                     11

7.0       Development of documentation and case management

            System                                                                                               11

8.0       Entrenched positions in disputes                                                 12

9.0       Key Challenges                                                                               13

10.0    Achievements                                                                                  13 – 14

11.0    Some Proposals for 2008                                                               14

12.0    Conclusion                                                                                       15

PREFACE

This report is the penultimate one before the term of the pioneer Commissioners expires on 6^th April, 2009. The said Act Section 143 (1) states:

     “The members of the Commission shall hold office for a period of four years and the

       eligible for  re- appointment after the expiration of their tenure of office”.

The Report seeks to cover the activities, challenges and solutions that came up in the year 2007. It is gratifying to note that no significant audit issues have so far been raised in respect of the operations.

In the past year, quarterly appraisals were conducted at which the Executive Secretary, Administrative Officer, Finance Officer, Research Officer, Public Affairs Officer and Legal Officer accounted before the Commission for their stewardship.

The support to meet the Commission’s needs fell short of expectation, Members met the Chief of Staff and Parliamentary Select Committee on Employment, Social Welfare and State Enterprises as well as the then Deputy Minister of Finance and Economic Planning to articulate our concerns. Promises if redeemed would have been very helpful.

The statistics of complaints received in 2007 and those resolved give cause for a serious evaluation of the Commission’s work. If 215 complaints out of 686 were completed, it means about 31% of these were resolved. The quantity can be appreciated if one considers the fact that only three research officers were at post and responses from respondents and service of documents took quite a time.

It is regretted that Government could not replace one of its nominees Dr. Eugenia Date-Bah who resigned in February 2007. But the appointment of a substantive Executive Secretary in October 2007 is appreciated as he is expected to bring more vim into our operations.

Industrial action in the form of strikes that came to the Commission’s notice and for which the Commission intervened amounted to eleven (11). The STRIKES lasted from 4 hours to 13 days. These were in the Government sector and significantly in the area of Health. We repeat our recommendation that management of Industrial Relations in this area will require a close look. Government may engage an Industrial Relations expert to manage its affairs with Health Workers with sufficient mandate to gain the confidence of such staff to minimize the incidence of industrial action. Sometimes it appeared as if the ghost of the words of U. S. President Roosevelt haunts the relationship of Government and its employees;

       “The process of collective bargaining as usually understood cannot be transplanted into the public service…  The very nature and purpose of government makes it impossible for administrative officials to represent fully or to bind the employer in mutual discussions. The employer is the whole people who speak by means of laws enacted by their representatives…” From the Public Papers and Addresses of Franklin Roosevelt 1937 Vol. ed Samuel Rosenman, The Macmillan Company, New York 1941 p. 235.”

For a whole week the Red Sea Housing Services Ltd. Also locked out its staff  following an industrial unrest. Some employers particularly foreign ones are not comfortable with unionization. Government agencies that process their location to Ghana must consider the human resource management very important and let such investors know that they will deal with unions as they establish here because our Constitution guarantees Fundamental Human Right of Freedom of Association which none can take away.

That leads to the Education Programmes the Commission conducted including that on Freedom of Association and Collective Bargaining. Essential Service Worker and through the Media.

We still recommends a peer review mechanism among stakeholders. Sometimes, management and unions adopt intransigent positions which unduly stifle the dispute settlement process. Many insist that the Commission should bite more and not be a “sleeping lion”. True and fruitful industrial relations thrive not only on legalism always. We will continue to advocate co-operation, compromises transparency and good faith dealings amongst the social partners whilst not ignoring the law.

Enforcement of the Commission’s decisions at the High Court has often met with delays. Stakeholders may advise members to honour decisions which are not challenged by them to promote confidence in the system to as not to make it necessary for the Commission to apply Section 172 of the Act for the enforcement of its directives and orders.

Stakeholders need to commit themselves to the desired harmonious industrial relations.

We wish that the Ghana Employers’ Association and Organized Labour would advocate compliance with the law so that its implementation can promote the desired atmosphere for enhanced productivity and growth and job creation which ultimately everyone desires. The visit by the Parliamentary Select Committee on Employment and the appointment of a new Employment Minister were all assuring.

The Commission is gratefully indebted to the Trade and Investment Programme for a Competitive Export Economy (TIPCEE) of USAID for its support to develop our case management system for easy access to records.

A more challenging year was envisaged in view of the National elections due in 2008. No doubt more demands on employers would be made. Transparency in the industrial relations and good faith were expected to help parties to agree eventually on any difference. Some improvement in the operations of  the Commission will be expected in the coming year with the engagement of more national service personnel.

1.0       INTRODUCTION

The Report covers the period 1^st January 2007 to December 2007; and it is in fulfillment of Section 151 of the Labour Act 2003 (Act 651) which provides as follows:

“(1)                The Commission shall, within eight months after the end of each financial year, submit to the Minister an annual report on the activities of the Commission during that year.

(2)                       The report shall include a copy of the audited accounts of the Commission in respect of the financial year and the report of the Auditor-General or the auditor appointed by the Auditor-General on the audited accounts.

(3)                       The Minister shall within two months of the receipt of the annual report from the Commission submit the report to Parliament with such comments as the Minister considers necessary.”

2.0         MAIN ACTIVITIES OF THE NATIONAL LABOUR COMMISSION IN RELATION TO ITS MAIN FUNCTIONS

2.1         Functions of the Commission

The functions of the Commission are among others to –

(a)          facilitate the settlement of industrial disputes;

(b)          settle industrial disputes;

(c)          investigate labour related complaints, in particular unfair labour practices and take such steps as it considers necessary to prevent labour disputes;

(d)          promote effective labour co-operation between labour and management.

In keeping with its functions, the Commission recorded a number of complaints and petitions, the details of which are highlighted below.

2.2         Complaints and Petitions

During the report period, the Commission received a total number of six hundred and eighty-six (686) complaints from individual workers and unionized groups.  The breakdown of the cases are captured in the table below –

STATISTICS OF COMPLAINTS – 2007

On the average, the Commission received a total number of sixty (60) cases monthly.

2.3         General Compliance Level

2.3.1     Settlements and Agreements Reached at the Commission

A number of labour disputes were settled by the Commission.  Such disputes were settled summarily at the table or through agreements reached at the table with facilitation by the Commission.

2.3.2     Court Suits – Enforcement of Commission’s Decisions

The enforcement process is served on defaulting parties to compel them to comply with the decisions/orders of the Commission when such orders/decisions are not complied with.

This is in fulfillment of Section 172 of Act 651 which states: “Where any person fails or refuses to comply with a direction or an order issued by the Commission under this Act the Commission shall make an application to the High Court for an order to compel that person to comply with the direction or order.”

During the year 2007, the Commission instituted legal action against 28 defaulting companies.  This includes four other appeal cases pending before the Court of Appeal which are yet to be determined.  There was only one case pending before the Supreme Court.

18 of the cases were determined, with 8 cases still outstanding at which some were pending before the Court of Appeal.

The details of the cases were as follows:

1.    NLC vrs Crocodile Matchet *

2.    NLC vrs Irani Brothers *

3.    NLC vrs Action Aid

4.    NLC vrs  M & J Business Group (Kingsley)

5.    NLC vrs Naworo Mining Co *

6.    NLC vrs Skarm Engineering Co. Ltd *

7.    NLC vrs Avenida Hotel  *

8.    NLC vrs. Major & Co. (Broni) *

9.    NLC vrs Securicor *

10.  NLC vrs  Intercom Security 

11.  NLC vrs GT *

12.  NLC vrs Asare Original Pay All *

13.  NLC vrs  Punjabi *

14.  Asare vrs Cadbury *

15.  Amoah & Other vrs Cadbury *

16.  NLC vrs. M&J (Kingsley Obeng)

17.  Fidelis Akoto & 92 Others

Vrs.

1. Divestiture Implementation Committee

2. National Labour Commission

18.  NLC vrs Blue Skies Products (Gh) Ltd 

19.  Liebherr –France SAS (Gh) vrs. NLC 

20.  NLC vrs. Safco Engineering Co. Ltd  *

21.  NLC vrs. Scanbech  *

22.  NLC vrs. Eastern Alloys (Ghana) *

23.  NLC vrs. React Academy 

24.  NLC vrs. St. Anthony Group of Schools *

25.  NLC vrs. CEPS 

26.  NLC vrs. Southern Fried Chicken  *

27.  NLC vrs, Johnny Adamitey (Manet Hotels) 

28.  NLC vrs. NAGRAT *

29.  NLC vrs. Electricity Co. (Ghana) 

Cases with asterisks were those determined by the High Court

            There were 11 cases  pending before the Court of Appeal.

1.    Johnny Adamitey vrs. Manet Hotels

2.    NLC  vrs. National Association of Graduate Teachers (NAGRAT)

3.    NLC vrs. Southern Fried Chicken

4.    MDPI vrs. NLC

5.    NLC vrs. Rect Academy

6.    Edmund Amoah vrs. Cadbury

7.    Asare Kofi & other vrs. Cadbury

8.    Electricity Company of Ghana vrs.   Emmanuel Sogah & Samuel Gadri

9.    Liebherr–France SAS (Gh) vrs. NLC 

10.  Crocodile Matchet vrs. NLC 

11.  SSNIT vrs. NLC 

There was one case involving the Commission and CEPS before the Supreme Court.  CEPS invoked the original jurisdiction of the Supreme Court citing Article 24(4) of the Constitution, as being in constitute with the Labour Act, 2003 (Act 651).  Case was yet to be heard.

3.0         SETTLEMENT OF CASES THROUGH MEDIATION VOLUNTARY ARBITRATION AND COMPULSORY ARBITRATION

In line the NLC’s Regulations, 2006, L.I. 1822, a number of disputes were settled through the dispute settlement procedures – mediation and voluntary arbitration.

The disputes settled which were mainly collective disputes were related to collective bargaining.  It involved over fourteen thousand (14,000) workers.  The breakdown is captured below.

3.1         Mediation

A total number of Eleven (11) cases were referred to the Commission for Mediation.  The breakdown was as follows:

3.2             Voluntary Arbitration

A total number of Nine (9) disputes were referred to Voluntary Arbitration.  Most of these cases were cases unsettled at Mediation or some outstanding issues at the end of Mediation. 

            3.3       Compulsory Arbitration

One dispute was settled through Compulsory Arbitration by the Commission.  GMWU of GTUC vrs. Management of Anglogold Ashanti Ltd.  The dispute was over deadlock in wage negotiations and threat of strike action.

4.0         STATISTICS OF INDUSTRIAL ACTIONS (STRIKES) RECORDED IN 2007

4.1       Strikes/Work Stoppages

A total number of eleven (11) strikes/work stoppages were recorded in 2007.

The breakdown is indicated in the table below –

STATISTICS OF STRIKES RECORDED IN 2007

4.2         Lockouts

 Two (2) lockouts were recorded as follows:

5.0         EDUCATIONAL PROGRAMMES UNDERTAKEN BY THE COMMISSION

As part of its continuing education on the Labour Act, the Commission undertook  some educational programmes on Act 651. These were -

n  Freedom of Association & Collective Bargaining - 11th July, 2007 at the National Insurance Commission (NIC), Accra.

n  Tripartite Consensus on Freedom of Association and Collective Bargaining – 28th August, 2007 at NIC , Accra.

The purpose of the above workshops was to build a common understanding by the tripartite social partners on the process of unionization.  This was because, the area of unionization was identified as one which posed a lot of challenges for both employers and employees.

n  The Essential Service Worker and the Dispute Settlement Procedures and the Legislative Instruments under Act 651, 14th -17th November, 2007.

6.0         EDUCATION THROUGH THE MASS MEDIA

A few educational programmes were held through the media.  Some radio stations afforded the Commission some airtime to dilate on some key aspects on the Law.

The Commission with financial support from Friedrich Ebert Foundation and facilitated by the National Media Commission held a media interaction with some members of the media on………………………..at Dynasty Restaurant, Osu, Accra.

`

7.0       INTERNATIONAL TRAINING

Five (5) Members of the Commission undertook a study tour to Italy to participate in a Training Course on International Labour Standards organized by the International Training Centre of the International Labour Organization (ITC/ILO.)

The course was jointly sponsored by the Commission and the ITC/ILO.

The Administrative Officer also participated in a Labour Law Making course sponsored by the ITC/ILO in Turin, Italy.

8.0       DEVELOPMENT OF DOCUMENTATION AND CASE MANAGEMENT SYSTEM

The Commission with financial and technical support from the Trade and Investment Programme for a Competitive Export Economy (TIPCEE) of USAID commenced the development of a database on Documentation and Case Management System.

9.0       CHALLENGING DISPUTES

There were some challenging disputes; which were mainly due to entrenched positions and/or lack of appreciation of Act 651. Some were –

1)         In the matter of Unionization at Bank of Ghana.

2)         In the matter of industrial action and lockout by the Management of Red Sea Housing  Services Ltd.

3)         In the matter of Unionization (determination of levels) UNICOF vrs. Procredit Savings & Loans Ltd.

4)         There were also a few cases on the issuance of Collective Bargaining Certificates (CBCs) without due diligence or the issuance of two CBCs to two different unions at the same enterprise by the Labour Department.  Some examples are the case of Union of Private Security Personnel (UPSP) and the Union of Private Security Employees (Ghana).

5)               The issuance of Collective Bargaining Certificate to National Union of Professional Drivers (NUPROD) now National Union of Teamsters (NUTEG) to unionize workers other than professional drivers as was stated in the union’s constitution.

6)               Some cases were also recorded where CBCs were issued without Management’s knowledge; that is, without negotiations between management and union on the levels.

10.0    KEY CHALLENGES

n  The main challenge in 2007 was the lack of funds to run a lot of the programmes lined up for the year; or to respond to particular educational or training needs when the need arose.

n  The issue of inadequate staff did not also make it possible for the Commission to respond adequately to the demands of the work.

n  The lack of offices in the regions or any of the regions posed some challenges. This was because the complaints from regions other than Accra, no matter how urgent, could not be treated expeditiously because of the length of time between receipt, hearing and settlement.

n  There was also the lack of appreciation of the Dispute Settlement Procedures; as some players in the labour market would rather resort or prefer to resort to industrial action during times of deadlock, than to refer the dispute to the Commission for settlement.

n  The attitude of some employers towards ruling/decisions of the Commission.  Such employers would not appeal against the ruling/decision of the Commission when given if unsatisfied.  They wait till the time of compliance elapse; then when the Commission went to court to seek enforcement, they raise all sorts of objection, like not been given hearing or adequate hearing during the settlement process.  This sort of attitude tended to frustrate the work of the Commission and the petitioners who brought the case against the employer.

11.0    ACHIEVEMENTS

n  There were some modest achievements in 2007.  The modesty was due to the fact that, the Commission was financially constrained; and this prevented it from carrying out a lot of activities, it would have wished to in order to bring Act 651 closer to its users.  This notwithstanding, the Commission targeted some key players in the labour market and offered them training in special areas.

n  A number of staff also underwent capacity building training courses to enable them improve upon their work performance.

n  There were a few recruitments to strengthen the staff capacity.

n  The Commission also acquired additional office space to accommodate more staff.

12.0    SOME PROPOSED PROGRAMMES FOR 2008

1)         Improved staff training and capacity building.

2)         Finalization of Conditions of Service for Members of the Commission and Staff.

3)         Finalization of the Document/Case Management System.

4)         Development of more educational/training brochures on Act 651.  This is with financial and technical support by TIPCEE/USAID.

5)         Educational Programmes on the promotion of effective labour co-operation between labour and management.

6)         Improvement on the educational programmes and the development of training programmes to address special needs of the labour market.

7)         Refresher Training and Educational Training on Mediation and Arbitration for Mediators and Arbitrators.

8)         Sensitization Workshop for Members of the Judiciary on Act 651.

13.0    CONCLUSION

The planned activities including a sensitization workshop for High Court judges in 2008 will further create awareness about the Commission and a better understanding of the law for good industrial relations practices in Ghana. The intended use of more national service personnel should also enhance the output at the Commission.  A sincere understanding and cooperation from the public, organized  labour and government should now enable all to appreciate the current level of the Commission’s performance. An objective appraisal of the Commission’s work in contrast with the pre 2005 labour landscape should convince everyone of the current improved industrial landscape.

The worker’s goal to realize his economic and social benefits at the workplace, the employer’s expectations of good returns on their investment and the Government’s policy of economic growth would be assured.

Let the employers and employees and their unions embrace the current concept of liberalized Industrial Relations for the mutual benefits of all including the state and the consumers of their services.

…………………………………….

JOSEPH A. ARYITEY

CHAIRPERSON

TABLE OF CONTENTS

PAGE

MISSION  STATEMENT                                                                                         2

VISION                                                                                                                       2

PREFACE                                                                                                                 3 – 4

1.0.  INTRODUCTION                                                                                             5

2.0.   MAIN ACTIVITIES OF THE NATIONAL LABOUR

        COMMISSION INRELATION TO ITS MAIN FINCTIONS              6

2.1.  FUNCTIONS OF THE COMMISSION                                                          6

2.2.  COMPLAINTS AND PETITIONS                                                                  6

2.3.  SUMMARY SETTLEMENT                                                                            6

2.4.  REFERRAL TO MEDIATION & VOLUNTARY ARBITRATION               7

2.5.  SETTLEMENT THROUGH MEDIATION AND VOLUNTARY

        ARBITRATION                                                                                                 8

2.6.  COURT SUITS & ENFORCEMENT OF COMMISSION’S

        DECISIONS/ORDERS                                                                                   8

3.0.  INDUSTRIAL ACTIONS & WORK STOPPAGES                                      9

3.1.  RESULT OF STRIKE ACTIONS/WORK STOPPAGES                            9

4.0.  PROGRAMMES UNDERTAKEN IN 2008                                                  10

5.0.  GENERAL OVERVIEW OF THE INDUSTRIAL RELATIONS

        CLIMATE                                                                                                           10

6.0.  ACHIEVEMENTS                                                                                            11

7.0.  CHALLENGES                                                                                                            11

8.0.  OUTLOOK FOR 2009                                                                         14

9.0.  CONCLUSION                                                                                                 15 - 16

MISSION  STATEMENT

 “To develop and sustain a peaceful and harmonious industrial relations environment through the use of effective dispute resolution practices within the context of the law, promotion of co-operation among the labour market players and mutual respect for their rights and responsibilities.”

VISION

With the enactment of the Labour Act, 2003, Act 651, there is the need for a change in industrial relations practice.

The Vision of the Commission is to ensure a change in the industrial relations practice by promoting peaceful and harmonious industrial relations, premised on dialogue between the employer and the employee for economic growth and for educating them as well as the public on the law.

PREFACE

The year began with some level of anxiety.  It was a year for Presidential and Parliamentary elections.  Workers’ demands would rise and employers including Government would have a lot of pressures for better conditions at the workplace.  Some would lead to serious conflict and the relevance of the Commission would be tested.

This Report comes within the 2^nd quarter of the year 2009.  Six hundred and thirty-two (632) complaints were received out of which 215 were summarily settled.  The Mediation and Arbitration stages were also used.  But the cost involved would make them less accessible.  Hopefully, that might elicit cooperation from disputants to yield where necessary and not prolong the settlement process.  The enforcement of the Commission’s orders stage is now clearer with the establishment of the dedicated Industrial/Labour Court.

We recorded only five (5) strikes in the year and can only express our appreciation to all for this understanding.  The facilitation tool for settlements indeed proved effective and time saving.  The brochures on key aspects of Act 651 will continue to aid all who have disputes in industrial relations as well as students.

Finance as the major constraint has still to be addressed.  It affects office rent, education and opening of Regional Offices.  The law is now clear that in case of more than one union in the workplace, the union with the highest number should hold the bargaining certificate.  Strangely, this is not readily appreciated.  Well-meaning individuals and unions often challenge the position.  A judicial pronouncement may resolve the matter.  As long as protagonists for a bargaining certificate shy away from seeking such pronouncement, so long will doubts linger in peoples’ mind.

Continuing lamentation on declining budgetary allocation may not attract anyone’s sympathy.  The Commission may begin an introspection with a view to donor support.  It must only ensure that the budget officials do not use any success thereby to further reduce our budget.

There is a future for the Commission and stakeholders as well as the public which longs for peace at the labour front should lend their support in harnessing opinion to sustain the institution.

1.0       INTRODUCTION

The Report covers the period 1^st January 2008 to 31^st December 2008 and it is in fulfilment of Section 151 of the Labour Act 2003 (Act 651) which provides as follows:

“(1)                The Commission shall, within eight months after the end of each financial year, submit to the Minister an annual report on the activities of the Commission during that year.

(2)                       The report shall include a copy of the audited accounts of the Commission in respect of the financial year and the report of the Auditor-General or the auditor appointed by the Auditor-General on the audited accounts.

(3)                       The Minister shall within two months of the receipt of the annual report from the Commission submit the report to Parliament with such comments as the Minister considers necessary.”

2.0         MAIN ACTIVITIES OF THE NATIONAL LABOUR COMMISSION IN RELATION TO ITS MAIN FUNCTIONS

2.1         Functions of the Commission

The functions of the Commission are among others to –

(a)          facilitate the settlement of industrial disputes;

(b)          settle industrial disputes;

(c)          investigate labour related complaints, in particular unfair labour practices and take such steps as it considers necessary to prevent labour disputes;

(d)          promote effective labour co-operation between labour and management.

2.2         Complaints and Petitions

In keeping with its functions, the Commission received six hundred & thirty-two (632) complaints and petitions during the year under review; the details of which are highlighted below.

STATISTICS OF COMPLAINTS – 2008

2.3         Summary Settlement

Out of the total number of three hundred and seventeen (317) cases settled at the end of 2008, two hundred and fifteen (215) cases were summarily settled.  The settlements were through agreements reached at the table.  Others were as a result of decisions/orders issued after hearing by the Members of the Commission.

2.4         Referral to Mediation and Voluntary Arbitration

In line with the dispute settlement procedures under L.I. 1822, eight cases were referred to mediation and voluntary arbitration.  Two cases were referred to mediation while 6 cases were referred to voluntary arbitration.  The details are as below:

2.5         Settlement through Mediation and Voluntary Arbitration

One of the cases referred to Mediation also went to Voluntary Arbitration; however, the workers appealed against the decision of the Arbitrator in court.  One other award at Voluntary Arbitration was also appealed against by the respondent in court.

2.6         Court Suits & Enforcement of Commission’s Decisions/Orders

Ten (10) suits were sent to the High Court (Labour/Industrial Court) for enforcement of the Commission’s orders. There were six (6) appeals against the decisions of the Commission.

These were in accordance with Sections 134 and 172 of Act 651 which state respectively as follows:

“134. A person aggrieved by an order, direction or decision made or given by the Commission under section 133 may, within fourteen days of the making or giving of the order, direction or decision, appeal to the Court of Appeal.”

“172. Where any person fails or refuses to comply with a direction or an order issued by the Commission under this Act the Commission shall make an application to the High Court for an order to compel that person to comply with the direction or order.”

3.0         INDUSTRIAL ACTIONS & WORK STOPPAGES RECORDED

Five strikes/work stoppages involving 5 different institutions were recorded in 2008.  The details are as follows:

3.1         Result of Strike Actions/Work Stoppages

The actions were halted after the Commission intervened and facilitated settlement.  The issue of Bank of Ghana was sent to court.

3.2         The number was a decline from the 2007 position.  It would seem a better understanding of the law was in practice.  It could also be that better industrial relations in work places were being observed.  Either way, the role of the Commission would justify its existence and mission by such results.

4.0         PROGRAMMES UNDERTAKEN IN 2008

To enhance a better appreciation of labour issues and the Labour Act, the Commission undertook some educational programmes on Act 651 in 2008. The following programmes were undertaken:

a)         Education on the New Role of the Trade Union and Labour Negotiator in Collective Bargaining Negotiations under Act 651 for Trade Unions at Chances Hotel, Ho – 2^nd-5^th April 2008.

b)         Sensitization Workshop for the Judiciary on the Role of the Judiciary in the work of the NLC at Chances Hotel, Ho – 8^th & 9^th May 2008.

c)         Training on Labour Mediation and Arbitration for Mediators and Arbitrators at Cresta Atlantic Resort, Aplaku Hills – 3^rd-5^th June 2008.

d)         Interactive Meeting with the Social Partners on the Challenges of the NLC at GNAT Hall, Accra – 9^th September 2008.

e)         Forum on Freedom of Association and Internal Democracy within Unions at National Insurance Commission (NIC), Accra, 4^th November 2008.

A further effect of the usefulness of the Commission in 2009 will be revealed through such programmes.

5.0         GENERAL OVERVIEW OF THE INDUSTRIAL RELATIONS CLIMATE

The industrial relations environment in 2008 was generally calm.  The situation was comparably exceptional, in an election year. Part of this was attributable to the educational and training drive embarked upon by the Commission targeting specific audiences in the labour market.

6.0         ACHIEVEMENTS

The following were achieved among others:

a)            Maintenance of peaceful industrial relations climate.

b)            Timely intervention in some industrial agitations, which would otherwise have degenerated into industrial disputes.

c)            Improvement in the facilitation role of the Commission.  A lot of issues were resolved through facilitation.

d)            The wide distribution of brochures and pamphlets on key aspects of Act 651 promoted a better understanding of industrial issues.

e)         Collection of about One Hundred and Twenty Thousand Ghana Cedis (Gh¢120,000.00) for petitioners whose cases were handled by the Commission.  In many cases, the beneficiaries incurred virtually no cost except in situations where counsel represented them.

7.0         CHALLENGES

§  Finance - Lack of adequate finance continues to pose challenges to the effective performance of the Commission’s work.  Amounts allocated to the Commission’s Administration and Service Votes are woefully inadequate. Some comparable figures – year 2005 – GH¢587,500.00; year 2006 –  GH¢566,281.17; year 2007 – GH¢782,000.00, year 2008 –  GH¢674,582.00. Four years into its operation, no provision is made for the payment of allowances of Members of the Commission and the payment of rent for office accommodation.  Since 2005, the Commission has been viring for the payment of such costs from its Investment Vote.  The Commission was unable to carry out most of its planned programmes under Service because of the inadequacy of the Vote.  In the course of the year, the already inadequate provision for the Service Vote was reduced by MOFEP.  The viring of funds from the Investment Vote has made it practically difficult to implement programmes under the Investment Vote, as almost every year, the funds are vyed for expenses under Administration

§  Items affected are Administration, Service and Commissioners’ Allowances.  It is not considered proper to continue to vire for such expenditure which by Act 651 has to be agreed between the Ministers of Finance and Employment.  The Commissioners’ work is quasi judicial.  It is not healthy to make them work without paying them. The stream of complaints by workers, employers including government agencies makes it desirable to address such a constraint.

§  Viring from Investment Vote.  Again this makes planned investment suffer.  A pioneer Commission to ensure harmony in the labour landscape that suffers this way stifles growth; hence not a single regional office has been set up after four (4) years’ operation.  Complaints from Wa for instance still must be heard in Accra.

§  The yearly reduction in the Administration Vote further diminished the impact the Commission was expected to have on industrial disputes settlement.

§  Decisions of the Commission which need enforcement.  The Judiciary has dedicated an Industrial/Labour Court for early and effective enforcement of the decisions from the Commission, among others. Organized Labour had this agitated for so long.

§  The drastic 60% reduction in budgetary allocation in 2009 will negatively affect the Commission, but it will have to strategize purposefully by marketing itself appropriately to draw needed support. The Commission needs to re-brand its portfolio to willing buyers.  It is recommended that a meeting is called soonest within the 2^nd quarter with the National Tripartite Committee on raising funds to deliver its mandate.  Representatives of stakeholders and the Chairperson should visit each stakeholder and seek support and to discuss why the Commission was set up.  If the vote cannot address such expenditures like filing of papers in court, the victorious party usually an indigent individual contesting a vanquished employer gets frustrated as he only adorns a pyrrhic victory.  The Commission needs to bite but with adequate resources.  It cannot charge complainants as agreed by the social partners.  That is what the International Labour Organization of which Ghana is a member recommended.  The aim is to make justice via the NLC accessible; particularly to the vulnerable whose appointment is unfairly terminated, who is not being paid the compensation the Commission has ruled should be given him.

§  Rented Accommodation at a rate of US$48,000.00 a year seems a penny wise approach to housing a NATIONAL LABOUR COMMISSION by way of offices.  If the Accra offices could be accommodated in some state premises as promised every year from 2005-2008, a saving can be made for regional offices.  The effect is that more jobs could be created; regional industrial disputes from Takoradi to Akwatia to Kumasi to Bolgatanga among others would receive greater attention for a peaceful industrial climate that can translate into productivity and wealthy nation.

§  Lack of Permanent Office Accommodation and Regional Offices – The Commission has no permanent office accommodation and is currently housed in rented premises.  Apart from the high cost of rent, the limited space does not allow for expansion.  The Commission’s work demands a lot of meetings to resolve industrial disputes. However, lack of adequate office space derails such meetings.  The Commission after four years of its establishment, i.e. at the end of its first term has not been able to open even a single office outside Accra, particularly the regions as required by law.  But this has featured in the Commission’s budget since its inception in 2005.  The lack of offices in especially, Western, Northern, Ashanti and Tema pose major challenges to the work of the Commission.  This is because majority of the cases are received from these regions as a result of their industrial activities.  The Commission is not able to expeditiously dispose of cases from these places because of distance.

§  Freedom of Association under the Constitution and Act 651 has been embraced, but union pluralism has created some problems in the issue of Collective Bargaining Certificate to the appropriate union in a workplace.  Our continued dialogue with unions and the need for democratic practices in their constitutions will be pursued for solution to unnecessary union rivalry and employer interference.

8.0         OUTLOOK FOR 2009

Unfortunately, the year 2009 looks bleak.  The budgetary allocation of the Commission has been reduced by almost 60%.  The ceilings given by MOFEP during the last quarter of 2008 based upon which the budget was prepared has been reduced.  The implication is that, the Commission will not be able to meet even 10% of its set targets for the year.  The major issues being the payment of rent, payment of Commissioners’ allowance, purchase of prepaid electricity, postage, official running of vehicles and enforcement of decisions/orders of the Commission in court.  Education on Act 651 could also be a challenge resulting in industrial agitations. As one of its core functions, the Commission planned in 2009 to promote effective labour co-operation between labour and management, as a means of minimizing industrial agitations, especially in the regions because of lack of regional offices.

It is important for MOFEP to seriously consider a supplementary budget for the Commission to enable it carry out its “normal” activities as in the previous years.

It is noteworthy that, some Regional Labour Department offices continue to handle industrial disputes, a situation which is very worrying.  With the coming into force of Act 651, the Labour Department does not have the mandate or the capacity to perform such functions, which it rendered under repealed laws.  The situation if not discontinued would make Government a judge in its own cause. That was one of the reasons for creating an independent Commission for greater confidence.

9.0         CONCLUSION

The tenure of office of the first Members of the Commission expires on 6^th April 2009.  Stakeholders have choices to re-appoint the same team, change the entire team or change some of them for four years.  Whichever choice they make, they must be mindful of the essence of time to avoid a vacuum.

For the future, one can only see a more severe industrial landscape if stakeholders, properly educated on the law and practice of good industrial relations effectively communicate their concerns in a bipartite manner.  Well-informed industrial relations managers would be a sine qua non.

May all interest groups promote a positive approach to that era of less conflict.

On behalf of the premier NLC may I thank all who made the Commission see the light of day unlike the Unfair Practices Tribunal provided for under statute which was never set up.  Greater challenges are ahead as Ghana’s image improves in the job market with the role of an independent body to settle industrial disputes.  The oil industry may bring its own human resource issues.  Early training for the core personnel at the NLC in such area is advocated.

THANK YOU!

……………………………………..

J.A. ARYITEY

CHAIRPERSON

Dated the 3^rd day of April 2009.