NATIONAL ORGANISATION OF TRADE UNIONS (UGANDA) NOTU COUNTRY REPORT COURSE A1-00389: TRADE UNION TRAINING ON INTERNATIONAL ECONOMICS, REGIONAL INTERGRATION AND POLITICAL ECONOMY: AT THE INTERNATIONAL TRAINING CENTRE OF THE ILO (TURIN: 14/O3 TO 08/04/2005) PRESENTED BY BIDI SAIDA 1 NATIONAL ORGANISATION OF TRADE UNION – UGANDA (NOTU) COUNTRY REPORT TO COURSE A100389 ON TRADE UNION TRAINING ON INTERNATIONAL ECONOMICS, REGIONAL INTERGRATION AND POLITICAL ECONOMY (TURIN FROM 14/03/05 to 08/04/05 1. THE COUNTRY Uganda is one sovereign state and a republic. The country is run on a decentralised system of governance involving local control of the local services and a degree of regional autonomy. It is a land locked country situated between latitude 4.5 north and 1.5 south. It boarders with Sudan in the North, Kenya in the East, Rwanda and Democratic Republic of Congo in the West. Lake Victoria forms a large part of the Southern border. These boundaries have profound social, political and economic influence on those countries adjacent to Uganda with significant implications on Trade and political interactions. Uganda has a total area of 241,038 square kilometres on which 43.942 square kilometres is open water. (Lake, swamps and the longest river Nile). The water resources not only provide fishing industry but also electricity system. Given that Uganda is situated astride the equator, the climate is equatorial though modified by altitude. There are two distinct wet and dry seasons each year (March – May, September – November are wet seasons.) The climate is very pleasant and is also supportive to diversified farming. Uganda is not well endowed with minerals but agriculture is the main stay of the economy. According to 2002/03 population survey report, it is estimated that Uganda has a population of about 25 million with the average household size estimated at 5 persons per household. 2. SOCIO ECONOMIC AND POLITICAL ENVIRONMENT POLITICAL PROFILE Uganda got political independence from Britain on October 9 1962. It was one of the most prosperous countries in Africa with an average growth rate of 5.3 per capita and real GDP growth rate of 2.4 per annum (1960 – 1970). The breakdown of democratic government (1962 – 1970) and the nine years of fascist military rule (1971 – 1979) and rapid succession of ineffective regimes (1980 – 1985) resulted in a crisis leading to breakdown, deterioration and decay of all dimensions of Uganda society and general economic decline. The consequent collapse of the commercial and industrial sector formally controlled by Asians and the fall on production of agriculture, export sector producing macro economic vicious cycles and hyper inflation which bought ruin to all the sectors. 2 ECONOMIC PROFILE Economic and labour market development. In 1986, the NRM Movement government came into power and it responded to the economic crisis with an economic recovery programme. Uganda’s economic recovery programme under the framework of structural adjustment programmes (SAPS) as espoused by the Britain Woods Institutions) started in 1987 with the major aim of controlling inflation, improving revenue collection and control of public expenditure. Other measures included, the liberalisation of foreign exchange market, removal of import bans, elimination of export taxes, abolition of marketing monopolies and deregulation of producer and consumer prices. From 1991, the government made further strides by way of promoting the private sector and hence the formation of the investment code that saw the strengthening of public private sector partnerships and abolition of state monopolies in utilities such as electricity and telecommunications. As a result of such austerity measures some successes were recorded like the manufacturing sector steadily growing from 4.7% in 1986 to 9.0% in 1997, domestic revenue rising from 7.6% in 1986 to 14.7% of monetary GDP in 1998. The overall budget deficit excluding grants, was reduced from 15% of GDP in 1992 to 7.2% in 1998. Despite the above, however, critics of Uganda’s economic paradigm have stated its “dominated by modernisation and neo-liberal philosophies that stress the europefication of Ugandan society and full liberalisation of its economy”. According to them, “this form of development has not succeeded in breaking the cycle of poverty, has perpetuated new systems of economic exploitation, both of the country and its citizens”. (Flavio Casoy, 2002). Indeed the trade union movement in Uganda has expressed similar sentiments that this free market dogma has had little to do with creating sustainable systems of resource distribution but exists to allow foreign capitalists and the indigenous elite to profit from hard work and poverty of the majority. One vivid example is that of now (2005), there is no minimum wage and working conditions are poor and no serious observance of labour laws. As pressure mounted that SAPS had not delivered, government changed its strategy by adopting the poverty eradication action plan (PEAP) that was launched in 1997 after the poverty Status Report (PRS). Under the PEAP framework government was to focus greatly on sustained economic growth as being central in poverty eradication which was to be accompanied by structural transformation to include, among others, modernisation of agriculture as well as growth of industry (Uganda Poverty Status Report, 2003, pg 4) PEAP which is sometimes referred to as Poverty Reduction Strategy Paper hinges on five pillars namely: (1) (2) (3) (4) Economic management Enhancing production, competitiveness and income Security, conflict resolution and disaster management Governance and 3 (5) Human development According to government, the implementation of PEAP has created a number of positive results. The countries real GDP grew at the rate of 6.3% in 2001/2002 which was though slightly lower than the rate of 7% per annum considered necessary by the PEAP for Uganda to meet its poverty eradication goals by 2017. However, the government professes optimism in that this 7% would achieve the above objective if it successfully implemented its current strategies such as the Medium Term Competitive Strategy for the Private Sector (MTCS) and the Plan for Modernisation of Agriculture (PMA). The annual GDP per capita is still below 5% the target set by PEAP, the greatest challenge being the population growth rate of 3.4% which is on the higher side. This obviously has a negative impact on education, health, housing and general welfare. According to the Uganda national household survey report 2003, government used education attainment as one of the essential approaches for combating poverty. Figures available from Uganda Bureau of Statistics (UBOS,2003) indicated that 17% of the population aged 10 years and above have never had any formal education. Of these 19% in rural areas and 7% in urban areas and more so females constitute 24% compared to males with 10% while 44% in total they do not complete primary education. But not withstanding the enrolment in primary school under the universal primary education framework rose drastically from 2.3million in 1996 to 7.5million in 2002/2003. The GDP growth by sector has remained relatively constant from 1998/99 to 2001/2002 with services and agriculture each accounting for just over 40% GDP and industrial output for just under 20%. GDP GROWTH AND EMPLOYMENT The November 2003 Uganda national household survey showed that 54% of currently employed were self employed workers followed by unpaid family workers 32%. Overall men dominated as own account workers (self employed). Figures further show that government employees (permanent, temporary and casual) account for only 3.1% (employment status of currently employed persons aged 10 years and above, by residence and sex – Uganda Bureau of Statistics). With respect to employment while it is considered that a strong GDP growth results into job creation, this has not been the case with Uganda’s economy. There are significant gender and regional imbalances in the current (2004) employment pattern. For the poor, who are mostly unskilled and hence, lack access and credit facilities, employment may be the only means of eking out a living. At over 12million which is Uganda’s economically active population, unpaid family workers constitutes slightly over 9million. Less than 3 million people are both employed in both formal and informal sectors. With Uganda’s estimated 25million people, the total of 3million being employed is far too small yet, formal and informal employment form major avenues that channel incomes to the poor primary because labour is quite often the only resource which the poor rely on. Therefore, the picture as regards employment creation and equality has not been well. Even the PEAP framework does not explicitly address this issue. 4 3. GLOBALISATION AND TRADE UNIONS Globalisation is considered a greatest challenge to trade unions. It has encouraged employers and some governments to adopt a more hostile reaction to the trade unions. The impact of globalisation on workers/Trade unoins include: Downsizing resulting into redundancies Longer working hours or extra shifts introduced without any pay increase Are expected to produce more output with fewer workers Threats by management on relocation of production if labour costs cannot be reduced Workers are not allowed to form or join a trade union Growth of precarious forms of work and less job security Attacks on the social security system Erosion of collective bargaining and trade union influence Feminisation of labour, in EPZs, homework and contact labour (i.e AGOA girls) Continued growth of informal sector Rapid technological change Prolonged periods of slow economic and employment growth. In the absence of enabling labour laws, the trade union in Uganda has failed to counteract the influence of liberalisation of international trade and investment on their bargaining power. Due to poverty and low levels of education, most unions can not afford the use of modern technologies i.e computers. Those who can afford the computers will only use the word processor for internal communications, no internet, e- mail and the rest. Hence, get second hand information and are cut off from the rest of the world. 4. Structure and organisation of trade unions in Uganda. Workers are organised in 21 different unions and are all affiliated to the national centre, the National Organisation of Trade Unions (NOTU)( list attached).Generally, trade unions in Uganda are basically organised at the level of industry. Fifty three percent (53%) of trade unions were organised on industrial basis while thirty seven percent (37%) fall under general workers unions. Trade union structures In most democratic countries, trade unions today are seen as highly structured organisations, aware of their strength and clear as to their position in relation to other partners. Below offers the general structure of the unions: 4. 1 Quinquennial Delegates Conference All unions consider this, the apex of their organisational structures. This is held after every five years and the major objective of which is to elect office bearers and to transact normal trade union business. The composition and the number of 5 members at the QDC varies from union to union, But all in all this is considered a very important meeting bringing together a big number of the union members. 4. 2 Annual Delegates Conference This is held once a year to evaluate the performance of the trade union and to plan for activities of the following year. The composition of the ADC still varies from union to union as stipulated in their constitutions requirements. 4. 3 National Executive Committee Also referred to as the secretariat of a trade union. This commonly comprises of the General Secretary, the Deputy General Secretary, National Chairmen, Vice National Chairman, National Treasurer, Deputy National Treasurer and Trustee Members. Some unions have included heads of departments and women leaders as part of their NEC. This is responsible for the day-to-day administration of a trade union. The General Secretary is the chief spokesperson of the union. 4. 4 Rank and File Members The involvement of rank and file members is considered very important in trade union activities but the level to which they are involved is dependant on the union constitution and administrative and financial strength. All unions have branch executives and shop stewards at every shop. At this level shop stewards play a vital role in linking up the union members/workers and management and union offices. And all unions have full-time employees at least five per union. Plantation which is the largest has forty-two full-time employees. 5. NOTU Structure/Governing Organs The following are the governing organs of NOTU in order of precedence. A Quinquennial Delegates Conference which takes place after five years. The major purpose is to elect office bearers for NOTU leadership. B Annual Delegates Conference C The Central Governing Council which is a policy- making body. D Finance, Administration and General purposes committee E NOTU Secretariat which runs the daily activities of the labour movement. Its six officials are elected at the QDC. F The last category includes departments –Education and Training, Economics and Research, Gender, youth and women Affairs, Organising and Industrial Relations and International and Political Affairs. (NOTU constitution Articles 12-14 ) 6 Union shop/branches Regional branches Some unions have been able to organise regional branches. This is usually done by union with membership covering a wide geographical area. 6. Membership The total paid-up membership for NOTU stands slightly at over 150000. This is likely to rise after ascertaining the number from teachers who now affiliated to NOTU. (men-93305 and women 52806). The potential membership stands at 1924823. (NOTU/ILO Trade union membership, 2002). The participation of women in trade union matters is still far below the average (30%). In the survey carried out by NOTU/ICFTU (1999), it was noted that men dominated union leadership. Female represented were 5.9% and some level there was a 0% representation. Union Leadership by Sex Male % Female % LEADERSHIP POSITIONS 1. 2. 3. 4. 5. 6. General Secretaries 16 94.1 1 Deputy General Secretary 16 94.1 1 National Chairmen 17 100 0 Deputy Chairmen 16 94.1 1 National Treasurer 16 94.1 1 Assistant Treasurer 15 88.2 2 Reference (NOTU Department for Economics and Research). 5.9 5.9 0 5.9 5.9 11.8 Most unions cannot afford to use/apply information technology. Those few who have access have been donated by their international bodies or donation from well wishers. Some own computers but cannot afford subscription fees for internet hence do not have e-mails. Others cannot afford the higher rates of maintenance. Some unions do not have trained personnel to work on computers. This has hampered union to get first hand information on issues of concern to them. Say global issues, communication among and between unions/members. Hence failing to react faster on certain issues. NOTU has given trade union training greater importance and has encouraged and supported all unions to train their members.NOTU and affiliates’ activities are largely funded by international partners, ICFTU, OATUU, FES, CLC, CTUC, LO-NORWAY, ACILS and ILO, and the different unions’ ITS’. With the support of ICFTU-AFRO and ILO, NOTU trained members from affiliates in research and encouraged them to form committees. Many have established research desks/departments. At the national centre we have a well trained director for economics and research. The first director who started the training was recommended to ICFTU-AFRO and has done a commendable job both regionally and internationally. ( Brother Lawrence Egulu). However, due to structural adjustments, liberalisation and retrenchments in the country, NOTU has lost some of her trained members in this area. Also due to unions’ internal politics some trained members have left work with their unions. 7 The major funding of unions is union dues deducted from their members. The financial base for the National base of the National Centre and its affiliates do not appear to have the capacity to facilitate the activities of the organisations. The loss of memberships through privatisation, liberalisation and retrenchment in public service has led to loss of income for all unions. And most employers do no comply with the statutory instalment No. 71 of the trade union (CHECK-OFF) Regulations, 1974 requiring employers to pay the trade union all the money. Deduction from the salary or wages of his employees by way of the check-off system. This has crippled the activities of the unions and the National Centre and led This has lead to a dependence syndrome as union activities to a great extend are funded by International partners. Lack of funds to hire, remunerate and retain highly qualified energetic and enthusiastic trade union professional who generate and deliver services to members without much involvement of member is a cross cutting problem. The union level of dues in the majority of unions is very low, compared to the cost of operations needed to offer a reasonable service. Hence, most unions draw their service strength from the members who volunteer time and knowledge to generate a collective benefit to everybody. 7. REGIONAL INTERGRATION. The National Organisation of Trade Unions (NOTU) is the sole federation to which all national unions affiliate. Together with their Kenyan and Tanzanian trade union counterparts, Uganda Trade Unionists formed the East African Trade Union Consultative Council (EATUC) in 1988. NOTU is itself affiliated to the international Confederation of Free Trade Union( ICFTU) and the Organisation of African Trade Union Unity ( OATUU) Accra. 8. THE WAY FORWARD NOTUs strategic plan of action 2003-2008 includes intensifying the grassroots education and training and awareness arising programmes with the intention of reaching a significant number of their members, to come to full view of the current situation about the labour movement. Specific issues to be raised will include trade union workers rights, gender/ women emancipation in trade union matters and issues of HIVAIDS, among others. 8 Attachment 1: Trade Unions By Name At present, there are twenty-one trade unions in Uganda all affiliated to the national centre, the National Organisation of Trade Unions (NOTU). 1. Amalgamated Transport And General Workers’ Union (ATGWU) 2. National Union Of Clerical, Commercial, Professional And Technical Employees (NUCCPTE) 3. National Union Of Co-operatives Movement Workers (NUCMAW) 4. National Union Of Educational Institutions (NUEI) 5. National Union Of Plantation And Agricultural Workers (NUPAWU) 6. Uganda Beverages, Tobacco, And Allied Workers’ Union (UBTAWU) 7. Uganda Building, Construction, Civil Engineering, Cement And Allied Workers’ Union (UBCCCAWU) 8. Uganda Communication Employees’ Union (UCEU) 9. Uganda Electricity Workers’ Union (UEWU) 10. Uganda Fisheries And Allied Workers’ Union (UFAWU) 11. Uganda Government And Allied Workers’ Union (UGAWU) 12. Uganda Hotels, Food And Allied Workers’ Union (IHFAWU) 13. Uganda Media Union (UMU) 14. Uganda Medical Workers’ Union (UMWU) 15. Uganda Mines, Metal And Allied Workers’ Union (UMMAWU) 16. Uganda Printers, Paper And Allied Workers’ Union (UPPAWU) 17. Uganda Public Employees’ Union (UPEU) 18. Uganda Railways Workers’ Union (URWU) 19. Uganda Textiles, Garments, Leather And Allied Workers’ Union (UTGLAWU) 20. Uganda Nurses And Midwives Union (UNMU) 21. Uganda National Teachers’ Union (UNATU) 9 Attachment 2: Trade Union Profile in Uganda 2004 by F. E. Stiftung 10 11 12 13 14 15 16 17 18 19 20 21 22 23