ASSESSMENT OF TRADE UNION IN THE ORGANIZATIONAL PERFORMANCE OF ETHIOPIAN AIRLINES ENTERPRISE

Abstract

A Trade union is an association of employees which works toward effective bargaining with employers to improve or maintain sufficient wage terms and conditions of working environment. However, it is still debatable among scholars and practitioners that the role of labor union goes beyond securing wages and working conditions for their members. The major issue in this regard is the existence of potential increases in productivity resulting from union-induced changes in the workplace. The potential role of trade unions in increasing productivity involves protecting employers/ management interest by exerting efforts to motivate workers toward enhancing productivity/ improving efficiency and performance, improving industrial peace and harmony at workplace, improving discipline of workers, and improving behavior of office bearers with management. This study is an attempt to assess these pursuits in the Ethiopian Airlines where there is a trade union with large number of members. The study mainly used primary data in order to assess the role and significance of the Ethiopian airlines basic trade union in organizational productivity, while protecting, promoting the rights and privileges of its members. The findings of the study revealed that the role of the trade union in protecting the rights and interests of members is positive but less than what is expected. Dissatisfaction of employees adversely affects motivation, performance and productivity. The findings show that the Ethiopian Airlines Basic Trade Union has a positive effect on raising productivity of the airlines but its significance and adequacy is under question. The study concludes that there is little effect of the trade union in raising productivity of the enterprise especially in the aspects of reducing employees’ turnover, safe working environment, work discipline and industrial peace, human resource capacity building, communication between the management and employees. Hence, it is recommended that the trade union in Ethiopian Airlines Enterprise exercise its roles in raising productivity in ways such as increasing awareness of its members about its goals and works, securing the welfare and benefits of its members, addressing safety issues not only in flight operation sections but also in support services and departments, ensuring capacity development of the human resource.