THE ROLE OF LABOUR UNION IN SAFEGUARDING EMPLOYEE’S INTEREST: CASE STUDY ON ETHIOPIAN CONSTRUCTION WORKS CORPORATION

Abstract

Labour unions have a great role in protecting the employee’s interest; hence, assessing their role in the wellbeing of the employee in the industry is sensitive issues. Therefore, carrying out a research in this area will have a paramount importance. Even though, unions are expected to have a great role in safeguarding the member’s interest, they encounter many challenges in the protecting employees’ right. The research was undertaken to assess the role of labour union in Ethiopia Construction Works Corporation and to recommend possible remedial measures. Accordingly, literature review was conducted to identify the roles of labour unions from previous findings, through which numerous variables were identified in global and local labour unions. The relevant primary data gathered through questionnaire and secondary data obtained from archival records have been analyzed. For the data collection, random sampling technique has been adopted. The frequency and percentage of each respondent’s response were analyzed. The findings of the study show that the labour union in the Ethiopian Construction Works Corporation has no prominent role in safeguarding the employee’s interest and protecting their rights. The most common Challenge variables identified by this research were insufficient skilled and educated union leaders, higher interference from the employer and no bargaining power of the union. Even though, Collective agreement between the Corporation and the union is the main pillar to manage the relationship, it has not been properly implemented; thus, has no real impact in the protecting the welfare of the employees. The major cause of dispute between the employer and the employees are Salary & allowance issues, management administration problem, Non-involvement of Employee in decision-making. Mediation is the most intensively used dispute resolution method between the Corporation and the employees’ whenever dispute arise. However, sometimes Litigation is used.