ASSESSMENT ON THE ROLE OF LABOR UNION IN COMMERCIAL BANK OF ETHIOPIA

Abstract

Smooth relationship between the management and the employees is very important for the accomplishment of organizational goals. Labor unions play a vital role in enhancing harmony and cooperation in the employment relations. This study assesses the role of labor union in Commercial Bank of Ethiopia. The main objective of this study was to assess the effect of trade union on employment relation and how it works in CBE by using descriptive research design. This study has applied both qualitative and quantitative research methods. In-depth interviews and questionnaire were used in the research. 315 questionnaires were distributed to sample surveys. The questionnaires included both open ended and close ended question. Out of these questionnaires 300 were returned, making the respondent rate 95%. An In-depth interview was made with Union Officers and HRM Officers to gather the qualitative data. The finding of the study indicates that employees agree on the necessity of the labor union, the existence of the union enables better communication between the management and employees. On the other hand finding also shows that there is violation of the collective agreement. Some representatives of the union are not doing what they were elected for. The other major finding was that the management and the union could not get on agreement on the amendment of the collective agreement. Based on this the researcher draws some recommendations the management have to be open to involve the union in every activity that involves the employees interest and rights