LABOUR RESEARCH AND POLICY INSTITUTE
INFORMATION &KNOWLEDGE FOR THE WORKING CLASS
OUR BARGAINS: ANALYSIS
OF OUTCOMES OF
COLLECTIVE BARGAINING IN
GHANA
Kwabena Nyarko Otoo
Clara Osei-Boateng
Prince Asafu-Adjaye
2009
TABLE OF CONTENTS
LIST OF TABLES ................................................................................................................................. 5
ABOUT THE AUTHORS..................................................................................................................... 7
ACKNOWLEDGMENT ....................................................................................................................... 8
LIST OF ABBREVIATIONS................................................................................................................ 9
SECTION 1: INTRODUCTION AND BACKGROUND ................................................................. 10
1.1 Introduction.............................................................................................................................. 10
1.2 Methodology and Structure of Report........................................................................ 13
Section 2 THE LEGAL FRAMEWORK OF COLLECTIVE BARGAINING IN GHANA ....... 14
2.1. Introduction ............................................................................................................................ 14
2.2
The Labour Act of 2003 .................................................................................................... 14
2.3 The Collective (Bargaining) Agreement ............................................................................... 14
2.3.1 Collective Bargaining Certificate ........................................................................................ 15
2.3.2 Standing/Joint Negotiating Committee ........................................................................... 16
2.3.3 The National Labour Commission..................................................................................... 17
SECTION 3: GENERAL PROVISIONS IN COLLECTIVE AGREEMENTS............................... 19
3.1 Introduction ............................................................................................................................. 19
3.2 Preamble/Parties to the Agreement Clause. ....................................................................... 19
3.3 Effective Date and Period of Validity. .................................................................................. 19
3.4 Wage Opener Clause............................................................................................................... 20
3.5 Recognition of Union.......................................................................................................... 20
3.6 Union Shop (Close Shop) ................................................................................................... 20
3.7 Check-Off .............................................................................................................................. 21
3.8 Individual Contract............................................................................................................ 22
3.9 Appointment and Promotion ................................................................................................ 23
3.10 Child labour Clause .......................................................................................................... 23
3.11 Equality/non-Discrimination............................................................................................... 24
2
3.12 Transfer Provisions ............................................................................................................... 25
3.13 Leaving the Service of the Company................................................................................... 25
3.14 Grievance and Dispute Handling Procedures ................................................................... 25
Section 4 NON-WAGE BENEFITS.......................................................................................... 26
4.2 General Leave Provisions....................................................................................................... 26
4.2.1 Annual leave.......................................................................................................................... 26
4.3 Social Security and National Insurance Trust (SSNIT) ..................................................... 26
4.3 Maternity Leave and Day Care Facilities ............................................................................. 27
4.4 Paternity Leave........................................................................................................................ 27
4.5 Sick leave .................................................................................................................................. 28
4.6 Study Leave .............................................................................................................................. 29
4.7 In-Service Training ............................................................................................................ 29
4.8 Legal Assistance ...................................................................................................................... 30
4.9 Medical Care ................................................................................................................................ 30
4.10 Scholarship for Employees’ Wards ................................................................................ 31
4.11 Free/Subsidized Accommodation ....................................................................................... 32
Section 5 WORKING CONDITIONS....................................................................................... 33
5.1. Introduction ........................................................................................................................ 33
5.2 Hours of Work ..................................................................................................................... 33
5.3 Overtime Work .................................................................................................................... 33
5.4 Malingering ......................................................................................................................... 33
5.5 Frustrated Work ................................................................................................................. 33
5.6 Absence from work ............................................................................................................. 34
5.7 Occupational Safety, Health and Environment (OSHE).................................................... 35
5.8 Protective Clothing.................................................................................................................. 36
5.9 Industrial Accidents/Injuries and Workmen Compensation ........................................... 36
5.10 HIV/AIDS Provisions ........................................................................................................... 37
3
SECTION 6: CONCLUSION............................................................................................................. 43
APPENDICES..................................................................................................................................... 47
4
LIST OF TABLES
Table 1: Validity Period of Agreements .......................................................................................... 19
Table 2: Check-off System Provisions............................................................................................. 21
Table 3 Union Dues Disbursement Schedule (Example 1) .......................................................... 22
Table 4 Union Dues Disbursement Schedule (Example 2).......................................................... 22
Table 5 Provision against Individual Contract .............................................................................. 23
Table 6 Child Labour Clause ............................................................................................................ 23
Table 7 Equality/Non-Discrimination Provisions. ....................................................................... 24
Table 8 Social Security and National Insurance Trust ................................................................. 27
Table 9 Paternity Leave Provisions ................................................................................................. 28
Table 10: Sick Leave Provisions....................................................................................................... 28
Table 11 Study Leave Provisions ...................................................................................................... 29
Table 12 In-service Training Provisions ......................................................................................... 30
Table 13 Legal Assistance Provisions.............................................................................................. 30
Table 14 Medical Care for Employees' Dependants...................................................................... 31
Table 15 Scholarship Scheme for Employees' Wards ................................................................... 31
Table 16 Accommodation for Workers ........................................................................................... 32
Table 17 Frustrated Work Provision ............................................................................................... 34
Table 18: Provisions on Absence from Duty .................................................................................. 34
Table 19 Occupational Health, Safety and Environment Provisions.......................................... 35
Table 20 Provision of Protective Clothing...................................................................................... 36
Table 21 Workmen's Compensation Provision.............................................................................. 37
Table 22 HIV/AIDS Provisions........................................................................................................ 38
Table 23 Table: MINIMUM WAGE AND EXCHANGE RATE IN GHANA (1984 -2009) ...... 40
Table 24: Average Monthly Earnings by Sex and Industry of the Adult population (15+) ..... 41
Table 25: Ranking of Industries based on Average Monthly Earnings...................................... 42
Table 26: Average Monthly Earnings with the Occupations ....................................................... 42
5
Table 27 Appendix 1: Sector Representation in the Sample ........................................................ 47
Table 28 Appendix 2: Union Representation in the Sample ....................................................... 47
Table 29 Appendix 3: Effective Date of Sampled Agreements .................................................... 47
6
ABOUT THE AUTHORS
All the contributors to this report are researchers at the Labour Research and Policy
Institute of the Ghana Trades Union Congress based at the Ghana Labour College in
Accra, Ghana.
Kwabena Nyarko Otoo is the Ag. Director of the Institute. He holds an MPhil in
Economics from the University of Ghana, Legon. Clara Osei-Boateng holds an MPhil
in Development Studies from University of Cambridge, United Kingdom. Prince
Asafu-Adjaye holds an MPhil in Sociology from the University of Ghana, Legon.
7
ACKNOWLEDGMENT
The labour Research and Policy Institute and the researchers of this report are
grateful to all who contributed in diverse ways in making this report possible. We are
particularly thankful to the General Secretaries of the General Agriculture Workers
Union (GAWU), Ghana Mine Workers’ Union (GMWU), Health Services Workers’
Union (HSWU), Union of Industry, Commerce and Finance Workers (UNICOF) and
the Teachers’ and Educational Workers’ Union (TEWU) for granting us access to the
agreements of their bargaining units.
The Ghana Trades Union Congress (TUC) and the Labour Research and Policy
Institute are also grateful to the Labour Research Services of South Africa (LRS) for
funding this project. Miss Serwa Brewo of the Labour Research and Policy Institute
also deserves thanks for her role in the collection of the agreements used in writing
this report.
8
LIST OF ABBREVIATIONS
AIDS
Acquired Immune Deficiency Syndrome
CBA
Collective (Bargaining) Agreements
CBC
Collective Bargaining Certificate
CSA
Civil Servants Association
ESB
End of Service Benefit
GAWU
General Agricultural Workers Union
GEA
Ghana Employers Association
GFL
Ghana Federation of Labour
GLSS5
Ghana Living Standard Survey firth round
GMWU
Ghana Mine Workers Union
GNAT
Ghana National Association of Teachers
GoG
Government of Ghana
GRNA
Ghana Registered Nurses Association
GSS
Ghana Statistical Service
GUSS
Ghana Universal Salary Structure
HIV
Human Immune Virus
HSWU
Health Services Workers Union
ILO
International Labour Organization
IRS
Internal Revenue Services
JUSAG
Judicial Services Staff Association of Ghana
LRS
Labour Research Service
NHIS
National Health Insurance Scheme
NLC
National Labour Commission
NTC
National Tripartite Committee
OSHE
Occupational Safety, Health and Environment
SSNIT
Social Security and National Insurance Trust
TEWU
Teachers’ and Educational Workers’ Union
TSC
Technical Sub-Committee
TUC
Ghana Trades Union Congress
UNICOF
Union of Industry, Commerce and Finance Workers
9
SECTION 1: INTRODUCTION AND BACKGROUND
1.1 Introduction
The right to collective bargaining is one of the most important components of the
Decent Work Agenda (DWA) being promoted by the International Labour
Organisation (ILO). The right to organise and collective bargaining (ILO Convention
98) is one of the core conventions of the ILO. Collective Bargaining refers to the
process of negotiating standards to govern employment and labour relations. The
negotiation is usually between workers (as a collective represented by their union)
and their employers. Collective bargaining occurs at the plant, enterprise or sector
level. The outcome of the collective bargaining process is a Collective Agreement
Collective bargaining is one of the three “pillars” of industrial relations and is
actually at the centre of industrial relations. The other pillars are conflict prevention
and conflict resolution. The principal objective of collective bargaining is to agree on
terms and conditions of employment relationship. The collective bargaining
agreement covers both substantive rules (compensation and benefits) and procedural
rules (processes and procedures for resolving conflicts).
Collective bargaining is recognised as a civilized way of resolving industrial conflicts
and disagreements (Turkson 2009). The collective bargaining process provides
workers and their unions an important forum for securing and promoting the
interests of workers at the workplace. Through collective bargaining, workers and
their unions are afforded a democratic participation in the decisions that affect their
lives and those of their families. It is also a useful way of preventing and resolving
industrial conflicts. Beyond conflict prevention and resolution, collective bargaining
affords unions the opportunity to negotiate better wages and working conditions for
their members (workers).
Ghana ratified convention 98 in 1957 and has since provided the legislative and
institutional framework for collective bargaining. The labour Act (Act 651) adopted in
2003 has elaborate provisions on the right to organise and bargain collectively.
Sections 96 to 111 of the Labour Act provides the legislative framework for the
conduct of collective bargaining in Ghana.
Ghana has a long history of collective bargaining dating back to the immediate postindependence era. Collective Bargaining started in Ghana after the country achieved
political independence and became a member of the ILO in 1957 and ratified
Conventions 87 and 98 and many other conventions. The provisions of the ratified
conventions were incorporated into the industrial relations Act of 1958 which laid
the legal foundation for collective bargaining in Ghana. The 1958 Industrial Relations
Act was replaced by the 1965 Industrial Relations Act which recognised for the first
time the right of public service workers to bargain collectively. Collective bargaining
has since become the main tool for unions in their dealings with employers including
government and private employers. In some cases unions have used strikes to back
their demand for improved wages and/or conditions of service when the collective
bargaining process proves incapable of securing their demands.
However, the collective bargaining framework is fraught with several challenges. In
practice there are several impediments placed in the way of workers and their unions
10
as they seek to fully exercise their right to collective bargaining. The ILO Convention
98 and all the enabling legislations in Ghana require that the right to collective
bargaining can be exercised effectively by workers if they are organized into unions.
However, unionization which is a first stage in the effort by workers to exercising
their right to collective bargaining is still a huge challenge in Ghana. Despite a long
and strong tradition of trade unionism in Ghana, latest data indicate that just a third
of the workforce in Ghana is organized into unions and possibly have access to
collective bargaining. Without unions many workers do not have bargaining
certificates which entitles them to bargain collectively.
The low level of unionization in Ghana has been the result of neo-liberal policies that
have been pursued in the country over the past two and half decades. These policies
have led to massive job losses in both the public sector and the private formal sector.
These have led to drastic reduction in formal employment leading to huge backlog of
young women and men seeking employment. The labour market has therefore
become a buyers’ market and employers have seized the opportunity to break the
resolve of workers to organize themselves and demand their fair share of both the
national and enterprise cake.
The large and growing informal economy also present challenges for both
unionization and the effective exercise of collective bargaining in Ghana. The
informal economy in Ghana is estimated to employ about 86 percent of the entire
workforce. Indeed, about 66 percent of the workforce is estimated to be self
employed with no employees. While it is possible to organize these into some form of
unions or associations1, it has always been difficult to extend collective bargaining to
such workers since they do not have the typical employer-employee relationships.
The above notwithstanding, the collective bargaining process in itself has in some
cases proven to be inadequate in ensuring that the parties to an employment
relationship, especially workers, get just rewards for their labour. The capacity to
negotiate is therefore a key determinant of the outcomes of the bargaining process
and whether or not such outcomes would be mutually beneficial to the parties
involved.
The other major challenge facing trade unions in their effort to use collective
bargaining to secure better working and living conditions for workers and their
families has to do with the very weak institutional support framework for the conduct
of collective bargaining in Ghana. Unions have to apply for bargaining certificate
from the Chief Labour Officer whose outfit, the Labour Department, is among the
most resource constrained institutions in the country. Consequently, application for
bargaining certificate could take several months and years before they are issued.
The Labour department is also expected to monitor the implementation of working
conditions agreed in collective agreements. However, because the department is
under-resourced it is not able to perform this important function.
1
Ghana TUC adopted a policy on the informal economy which seeks to encourage its affiliates to organise
informal economy workers. Five informal economy associations have gained associate membership of the
Ghana TUC.
11
The National Labour Commission (NLC) which is expected to adjudicate industrial
dispute is also poorly resourced. The commission has only one office in Accra that
serves the entire country. The commission is overwhelmed by the sheer number of
labour dispute in Accra alone. As result, many cases of worker abuse resulting from
non-implementation of provisions of collective agreements in the other regions of the
country never gets reported or adjudicated. The National Labour Commission also
faces hostile traditional legal system that continues to rely on common law principles
in adjudicating industrial disputes.
Attitude of some employers also continue to pose significant challenges to the
effective exercise of collective bargaining. Some employers have consistently limited
the right to collective bargaining to only the junior staff. Secondly, employers refuse
in some instances to negotiate a new collective agreement after the expiration of an
earlier one. Some employers are also known to negotiate in bad faith; refusing to
disclose important information which is relevant to the subject matter of
negotiations as required by the labour laws of the country. Workers and their unions
therefore negotiate from a position of weakness because they are denied the
information needed for effective negotiations.
Where they negotiate collective bargaining agreements with unions, some employers
blatantly refuse to abide by the tenets of the agreements. In some other instances,
employers actively discourage workers from cooperating with their unions and rather
urge them to hire independent consultants to negotiate on their behalf.
At the level of trade unions, a number of challenges have also been observed over the
years. Unions in Ghana have tended to regard collective bargaining as a ritualistic,
one-off activity (not a process) that is distinct from the many other important
activities the unions undertake such as organizing. While the unions recognize
collective bargaining as an important activity which often commands the attention of
General Secretaries and other top notch in the unions, not much preparation goes
into accomplishing the task. It is therefore not uncommon to find union executives
looking for relevant information for collective bargaining at the eleventh hour.
In addition, the collective bargaining process has become limited to narrow range of
‘bread and butter’ issues. Principal among these issues are wages, benefits and
working conditions which are often limited to those listed in the labour laws. The
collective bargaining framework has very little (if any) to say on organizing,
education and training and the democratic participation of unions/workers in the
management of the organizations they work for.
It is against this background that the Labour Research and Policy Institute of the
Ghana Trades Union Congress (TUC) in collaboration with the Labour Research
Service of South Africa is implementing the “Collective Bargaining Support for
Building Trade Union Organisations” project. The project objective includes content
analysis of collective bargaining agreements. This therefore provides information on
the content of a typical CBA in Ghana.
12
1.2 Methodology and Structure of Report
This report basically draws on secondary data. Information contained in CBAs is
analyzed for this report. Sixty (60) CBAs sampled from five (5) unions organizing in
six (6) sectors were used for this report. Due to the differences in the number of
bargaining units among the unions as well as some challenges in getting the CBAs,
the samples from the unions/sectors are not equally proportional (see appendix 1 for
the proportions of sampled by sectors and unions).
As indicated above, the major challenge faced in the preparation of this report was
access to CBA. This challenge determined the size of the sample for this report.
However, given the exploratory nature of this report and the fact that some of the
unions selected to pilot the “Collective Bargaining Support for Building Trade Union
Organization” project do not have many bargaining units, the conclusion of this
report is valid although it may not adequately represent the outcomes of CBAs in
Ghana.
The report is structured into six (6) sections. The current section provides the
background to collective bargaining in Ghana. The legal framework for the conduct
collective bargaining in Ghana is presented in section two (2). Sections three (3) and
four (4) highlights the general provisions and non-wage benefits contained in
collective agreements. In section five (5) provisions on working conditions are
presented while section six (6) presents the wages and earnings in Ghana. The
conclusion of this report is contained in section seven (7)
13
Section 2 THE LEGAL FRAMEWORK OF COLLECTIVE BARGAINING IN
GHANA
2.1. Introduction
This section of the report discusses the legal framework for collective bargaining in
Ghana. The analysis focuses on the new Labour Act (Act 651) adopted in 2003 and in
particular the sections that relate to collective bargaining. This section also discusses
the National Tripartite Committee (NTC), the National Labour Commission (NLC),
Collective Bargaining Certificate (CBC) and the Standing/Joint Committees which
are vital in the collective bargaining process in Ghana.
2.2 The Labour Act of 2003
The Labour Act of 2003 (Act 651) sets out the regulatory framework for labour
relations in Ghana. The Act consolidates all previous legislations relating to the
labour market in Ghana. The law is commonly regarded as a negotiated law which
made conscious attempt to move away from the common law position which regards
the employment relationship as a master-servant relationship and frequently
criminalises labour relations. The new labour law seeks to protect the interest of not
only workers but equally importantly the interest of employers. The law establishes
the premise for minimum standards of working conditions (e.g. wages and
conditions).
The Act is divided into twenty parts with 179 sections. Part III of the law deals with
protection of employment and spells out the rights and duties of both employers and
workers. Part XI is devoted to Trade Union and Employers Associations. Section 79
of Part XI guarantees the rights of workers to form or join trade unions of their
choice for the protection of their economic and social interests. Section 80 permits
two or more workers in the same undertaking to form a trade union. The section also
allows two or more employers in the same industry or trade with fifteen or more
workers to form or join employers association of their choice. The section outlines
the procedures for the formation and registration of trade unions and employers
associations.
However, subsection two (2) of section 79 of the labour law precludes some
categories of workers from forming or joining trade. These include workers in
policy/decision-making and managerial positions or performing highly confidential
duties. In addition, the Securities Act also forbids the security agencies including the
military, police, fire service and the immigration service from forming or joining a
trade union.
Part XII of the law deals with the legislative framework for collective bargaining in
Ghana. Sections 96 to 111 provides the general legislative framework for collective
bargaining which is discussed below.
2.3 The Collective (Bargaining) Agreement
As stated above, part XII of the Labour Act is devoted to the general legislative
framework for collective bargaining in Ghana. Section 96 of the Act states:
“subject to the provisions of this Act, a collective agreement relating to the
terms and conditions of employment of workers, may be concluded between
14
one or more trade unions on one hand and representatives of one or more
employers or employer’s organisations’ on the other hand”.
Section 97 of the law enjoins parties to the negotiation of a collective bargaining to
negotiate in good faith and make every reasonable effort to reach an agreement.
Negotiating in good faith implies that parties to the negotiation are under legal
obligation to make available all information relevant to the subject matter of a given
negotiation. The law frowns on making false or fraudulent misrepresentation with
regards to the subject matter of negotiations.
Section 98 of the Act spells out the basic elements that should go into the provisions
of typical collective bargaining agreements: These elements are:
 The class or category of workers to which it relates
 The conditions of work, including the hours of work, rest period, meals break,
annual leave, occupational health and safety measures
 The remuneration and the method of calculating remuneration
 The period and conditions of probation
 The period of notice of termination of employment, transfer and discipline
procedures
 The procedures for the avoidance and settlement of disputes arising out of
interpretation, application, and administration of the agreement
 The principles of matching remuneration with productivity and
 Essential services within the establishment.
2.3.1 Collective Bargaining Certificate
The formation or registration of a union does not automatically confer on the union
the right to bargain for the class of workers it represents. In Ghana, Collective
Bargaining Certificate (CBC) is issued by the Chief Labour Officer who is also the
head of the Labour Department to unions. Registered trade unions are required to
apply to the Chief Labour Officer to be issued collective bargaining certificates for
particular class of workers. Unions issued with the certificate have the rights to enter
into negotiations with employers on behalf of the class of workers named in the
bargaining certificate.
The Labour Department issues one certificate to one union for the same class of
workers at a particular time. In situations where there are two or more unions for the
same class of workers, the law says that the bargaining certificate is issued to the
most representative union. The other unions are encouraged to cooperate with the
union that holds the bargaining certificate for the negotiation of collective bargaining
agreement. Any agreement reached between the employer and the union that holds
the bargaining certificates covers the class of workers named in the certificates
whether or not they are members of the union that did the negotiations.
The law also makes room for collective bargaining certificates to change hands from
one union to another. In the event that the most representative union that holds the
bargaining certificates loses its majority, the bargaining certificates is withdrawn and
re-issued to the most representative union. The withdrawal of the bargaining
certificate from one union to another does not affect collective bargaining agreement
15
concluded before the withdrawal of the certificate. A bargaining may also be varied to
include more workers in the class of workers named in the certificate. Parties to
collective agreement are obliged to inform their members of the details of the
agreement as soon as it is concluded.
In principle, unions which do not have bargaining certificates do not have the right to
enter into collective bargaining with their employers. In practice, however, the
collective bargaining team often includes other unions who represent a section of the
class of workers for whom the negotiations are being done.
As stated earlier, the labour laws of the country do not allow some categories of
workers from forming or joining a trade union. The implication is that these sections
of the workforce are also denied the right to collective bargaining. Apart from those
who by law cannot form or join trade unions and thus cannot bargain collectively, a
large swathe of the workforce trapped in informal employment2 are also excluded
from collective bargaining. About 66 percent of the workforce is self-employed with
no employer-employee relationship.
2.3.2 Standing/Joint Negotiating Committee
For the purposes of negotiating and concluding collective bargaining agreements, the
law requires the establishment of Standing Negotiating Committee (SNC) or Joint
Negotiating Committee (JNC). The negotiating committee is made up of
representatives of the trade union named in the bargaining certificates and the
employer of the workers of the class to which the certificate relates.
Section 102 of the labour Act (2003) states:
“negotiations on all matters connected with the employment and nonemployment or with the terms of employment or with conditions of
employment of any of the workers of the class specified in a certificate issued
under section 99, shall be conducted through the standing negotiating or
joint negotiating committee as the case may be”.
Either party represented in the committee may give notice to the other party for
negotiations on any matter regarding the employment or non-employment of
worker(s). An agreement reached between the parties shall be in writing and duly
signed by authorised members of the committee representing each party. Copies of
the agreement are deposited with the National Labour Commission and the Chief
Labour Officer. An agreement concluded through negotiations becomes binding on
the employer and all workers of the class specified in the bargaining certificate.
Where the terms of employment contract conflicts with the provisions of collective
bargaining agreement, the latter shall prevail except when the terms of the
employment contracts are more favourable.
A notice for negotiations has to be complied with within fourteen (14) days of the
service of the notice. The National Labour Commission (NLC) shall direct the party
2
The informal economy is estimated to employ about 86 percent of the total workforce.
16
on whom the notice is served to enter into negotiations immediately if it failed to
negotiate or takes steps to negotiate within 14 days after the notice is served.
The purpose of collective bargaining is to protect the interests of the parties in the
employment relationship – employers and workers. In the process of negotiations,
the interests of the parties play out. Through compromise and trade-offs, collective
agreements are concluded. In circumstances where the parties fail to reach
agreement, the law specifies elaborate process of mediation and arbitration under
the auspices of the national labour commission.
2.3.3 The National Labour Commission
The National Labour Commission (NLC) is an important institution in the
institutional infrastructure of the collective bargaining framework in Ghana. The
commission was established by the Labour Act (2003) for the primary purpose of
settling industrial disputes.
The Commission is composed of two representatives each; from Government,
employers’ organization and organized labour. The Employers’ Association and
organized labour nominates the Chairperson of the Commission. But the chairperson
and other members of the commission are appointed by the President of Ghana in
consultation with the council of state.
The NLC has the power to receive complaints from worker(s), trade union(s) and
employer(s) or employers’ association. Parties to industrial disputes are obliged
under the law to comply with the directives of the commission.
The main functions of the Commission are:
 Facilitate and settle industrial disputes ;
 Investigate labour relation complaints;
 Maintain a database of qualified persons to serve as mediators and arbitrators;
and
 Promote effective co-operation between labour and management.
In the exercise of its adjudicating and dispute settlement function, the Commission is
not be subject to the control or direction of any person or authority. In addition, the
commission has the powers of a high court in respect of the enforcement its decisions
and attendance of witnesses.
The national labour commission settles industrial disputes through negotiations,
mediation and arbitration. As stated earlier, parties to industrial disputes are obliged
to negotiate in good faith and make every effort to reach settlement in accordance
with the dispute settlement mechanisms agreed in the collective agreement. When
the parties to the negotiations have exhausted the dispute resolution mechanism as
agreed in the CBA, and failed to settle the dispute, the commission shall direct the
parties to settle the dispute by mediation.
17
If at the end of the mediation process, the dispute remains unresolved, the
commission would resort to compulsory arbitration. The decision(s) of the arbitrator
or majority of the arbitrators is final and binding on all the parties to the dispute.
The NLC also has a mandate under the compulsory arbitration provisions to resolve
issues that parties have failed to reach agreement through the compulsory arbitration
method. This is to prevent long term strike actions as had been the case before the
passage of the Labour Law.
In 2007 for example, the NLC used compulsory arbitration to resolve wage
negotiations between Anglogold Ashanti and the Ghana Mine Workers’ Union
(GMWU). The negotiation which began on 27th April 2007 broke down in July 2007.
The management of Anglogold Ashanti had offered 9.5 percent wage/salary increase
against the union’s initial demand of 18.5 percent which was later revised to 16.5
percent. GMWU threatened industrial action (strike) should management refuse its
demand. The NLC intervened through arbitration and announced 11 percent increase
for the union in August, 2007. The NLC indicated that it had taken into account
challenges the corporate entity faced and inflation level which also impact on
workers’ incomes to determine the rate of increase of pay increase (Anglogold
Ashanti Report to Society, 2007).
18
SECTION 3: GENERAL PROVISIONS IN COLLECTIVE AGREEMENTS
3.1 Introduction
This section is devoted to analysis of general provisions of collective bargaining
agreement in Ghana. The section discusses introductory clauses, union membership
and some general conditions of service contained in a typical CBA in Ghana.
3.2 Preamble/Parties to the Agreement Clause.
A typical CBA in Ghana begins with a preamble which names the parties to the
agreement and the scope of the agreement. The parties to the agreement are the
employer and the union who are signatories to the agreement. The preamble also
mentions class of workers who are covered by the provisions of the agreement. A
standard collective bargaining agreement would have a preamble like this:
“This Agreement made this ….. day of ….. 2009 between ……(name of
company) on the one part and the …….(name of union) (hereinafter
referred to as the UNION) a duly registered trade union on the other part, as
the negotiating body, provides for the terms and conditions of employment
and non-employment and the conditions of labour which shall apply to the
class of officers covered by this Collective Bargaining Certificate”.
3.3 Effective Date and Period of Validity.
A typical CBA in Ghana has a provision which specify the effective date for the
commencement of the agreement and the lifespan of the agreement. For the effective
dates of commencement of the agreements we sampled for this report, see appendix
3. The average lifespan or validity period for the CBAs sampled for this report is 2.25
years. However, majority, more than two-thirds (68.3%) of the CBAs used in this
report have validity period of two (2) years.
Table 1: Validity Period of Agreements
Sector
Period of Validity
0.5 years
1.5 years
2 years
3 years
Frequency Percent Frequency Percent Frequency Percent Frequency Percent
Agriculture
0
0.0
0
0.0
8
57.1
6
42.9
Mining
1
7.7
1
7.7
0
0.0
11
84.6
Health
0
0.0
0
0.0
6
100
0
0.0
Finance
0
0.0
0
0.0
11
100
0
0.0
Transportation
0
0.0
0
0.0
5
100
0
0.0
Education
0
0.0
0
0.0
11
100
0
0.0
Total
1
1.7
1
1.7
41
68.3
17
28.3
Source: Fieldwork 2009
As shown in the table, all the sampled CBAs from the health, finance, transportation
and education sectors have a lifespan of two (2) years. In the agricultural sector,
more than half (57%) of the CBAs have validity period of 2 years. About 43 percent of
the CBAs in that sector has validity period of three (3) years. Among the sectors it is
only in the mining sector that collective agreements are negotiated for a period of
19
less than two years. Indeed, one collective agreement in the mining sector had
validity period of less than one year.
The short lifespan of most collective agreements in Ghana can be explained by the
uncertainties that characterise developing economies and societies such as Ghana’s.
This is reflected in the large fluctuations in inflation and exchange rates often
observed in Ghana. Given the exposure of the mining sector to the vagaries of the
international economy, it is not surprising that collective agreements in that sector
tend to have lower than average validity periods.
3.4 Wage Opener Clause
As indicated above, collective agreements in Ghana have average lifespan of 2 years.
However, all agreements have what we call “wage opener” provisions. The “wage
opener” provision allows for annual negotiation or re-negotiation of wages/salaries
and other monetary aspects of the agreement including allowances. That is to say
that, on average, all provisions in a typical CBA in Ghana lasts for more than a year
but wage/salary levels are negotiable every year. The wage opener provision is very
useful for workers since in an economy like Ghana’s, the purchasing power of
incomes is severely affected by upward movements in price levels (inflation rates). To
restore the value of previous years’ incomes annual adjustments (through
negotiations) of wages/salaries is very necessary.
3.5 Recognition of Union
Analysis of the collective agreements shows that all but one agreement have
provisions that specifically recognise the union as the legitimate representative of the
class of workers covered by the agreement. This provision is commonly referred to as
the “union recognition clause”. The provision typically states:
“the employer [company] recognizes the union as the appropriate
representative of a class of officers whom the Chief Labour Officer has
issued Certificate under Labour Act 2003 (Act 651) as a collective
bargaining representative of its members and the only negotiating body for
all matters connected with employment and/ or non- employment and/ or
conditions of work of the employees covered by this agreement”.
The recognition clause reaffirms legitimacy to the rights of the union to act for and
on behalf of workers.
3.6 Union Shop (Close Shop)
As indicated in the previous sections, the labour laws of Ghana make membership of
trade unions a voluntary decision by individual workers. The supreme law of the
land, the National Constitution also guarantees freedom of association. However, our
analysis of the contents of collective agreements shows that significant number of
workplaces operate on the principle of union shop or the close shop arrangement.
Almost half (48%) of agreements reviewed for this report contain provisions that
compel workers covered by the agreement to maintain their membership of the
unions. By this arrangement, newly recruited workers are made automatic members
of the union. A typical union/close shop provision states that:
“all employees covered by this Agreement shall be members of the union on
the effective date of this Agreement and shall as a condition of
employment maintain their membership in the union……”
20
The union/close shop arrangement provision is an ingenious mechanism devised by
the unions to deal with the proliferation of unions at the enterprise level3. But it is
also something management has bought into since it affords them the opportunity to
deal with one union instead of multiple unions which can increase their transaction
costs.
3.7 Check-Off
Trade unions in Ghana as elsewhere are financed by their members through the
payment of union or membership dues4. Payment of dues is done either through
payroll deductions also known as the check-off system or direct payments by
members. Section 111 of the Labour Act guarantees for the trade unions the check-off
system. Unions may therefore issue a notice requesting an employer to deduct from
the wages of his or her workers covered by a bargaining certificate an amount
specified by the union.
Our analyses of the collective agreements from the five unions included in this report
show that in majority of cases (80% of all agreements) unions have worked to
transpose the legal provisions into their collective agreements. There are therefore
explicit provisions for the check-off system in those collective agreements.
Table 2: Check-off System Provisions
Union dues Payment
Frequency
Percent
Check off
48
80.0
No
12
20.0
Total
60
100.0
Source: Fieldwork 2009
The law is silent on the percentage of wages that can be deducted as union dues.
Unions are therefore at liberty to determine the proportion of workers’ wages to be
deducted as dues. In practice the determination is done in consultation with the class
of workers covered by the agreement. Our analysis showed that the percentage
deduction range from one to three percent. There are also situations where for the
same union the percentage deductions vary from collective agreement to the other.
The law also allows unions to request the employer to remit a proportion of the union
dues to a branch of the trade union such as the federation to which, the said union is
affiliated and the union branch (local union) at the enterprise level. Within the family
of the Ghana Trades Union Congress (TUC), the norm in terms disbursements of
union dues is that the National Union keeps 50 percent of the dues and remit 30
percent and 20 percent to the Ghana TUC and the local union respectively. However,
the analyses have revealed some variations in the disbursements of union dues.
Tables 2 and 3 show two different arrangements for the disbursements of union
dues. As shown in Table 3, some of the unions are also remitting 5 percent of the
dues to their regional offices. This implies a 5 percent reduction in the amount
3
Prior to the introduction of the new Labour Law (Act 651) in 2003, the industrial relation framework allowed
only one union at the workplace at a time.
4
Other funding sources for the unions include returns on their investments and foreign grants and donations.
21
remitted to the local union. Table 4 also show that, three quarters (75%) of the
unions’ dues are retained by the national unions, with 15 percent and 10 percent
going to the Ghana TUC and the local union respectively. Further investigations have
revealed that, unions that are deducting more than one percent of members’
wages/salaries as unions tend to remit a lesser proportion to both the Ghana TUC
and their local unions shown in table 4.
In addition, some of the collective agreements do not specify the proportion of wages
to be deducted as union dues and also how the amount so deducted is to be
disbursed. Such collective agreements simply states that “any sums deducted shall be
paid over as directed by the Union”.
Table 3 Union Dues Disbursement Schedule (Example 1)
Trades union congress
30%
The National Secretariat of the
50%
Union
The Local (Branch) Union
15%
Union Regional office
5%
Total
100
Source: Sampled CBA
Table 4 Union Dues Disbursement Schedule (Example 2)
Trades Union Congress
15%
The National secretariat of the Union
75%
The Local (Branch) union
10%
Total
100%
Source: Sampled CBA
3.8 Individual Contract
Section 127 of the Labour Act has provisions against unfair labour practices on the
part of both employers and workers/unions. One of such unfair labour practices is
incitement or inducements of workers against their unions. This section is important
for the unity and cohesion of unions given that the law allows for the existence of
multiple unions at the same workplace. The emergence of enterprise “unions” by
which groups of workers and/or individual workers are engaging so-called industrial
relations consultants to negotiate separate agreements/contracts sometimes with the
active support of some employers have compelled some of the unions to negotiate for
explicit provisions banning such practices.
More than half of the collective agreements we analysed have provisions that seek to
prevent employers/managements from inducing workers covered by such
agreements to sign individual contracts. All the CBAs from the agricultural sector
have provisions against the signing of individual contracts. On the other hand, none
the collective agreements from the education sector has any such provisions.
22
Table 5 Provision against Individual Contract
Individual Contract
Sector
Yes
No
Frequency Percent Frequency Percent
Agriculture
14
100
0
0.0
Mining
9
69.2
4
30.8
Health
3
50.0
3
50.0
Finance
4
36.4
7
63.6
Transportation
4
80.0
1
20.0
Education
0
0
11
100
Total
34
56.7
26
43.3
Source: Fieldwork 2009
3.9 Appointment and Promotion
All the collective agreements analysed for this report have provisions that deal with
appointment of new workers and the terms of probations. In addition, all the
agreements include explicit criteria for promotion of staff. There are also provisions
which require managements to give priority to existing staff in filling vacancies.
3.10 Child labour Clause
Ghana has not ratified the ILO Convention 138 on minimum age for employment.
However, the Labour Act sets the minimum age for employment at 15 years. The
Children’s Act of 1998 (Act560) also criminalises the employment of children.
However, child labour is a huge problem in Ghana. The latest round of the Ghana
Living Standards Survey Conducted in 2005/2006 by the Ghana Statistical Service
revealed that 13 percent of children aged between 7 and 14 years are economically
active.
The Ghana Trades Union Congress (TUC) and its affiliate national unions have been
at the forefront of national campaign to eliminate child labour in Ghana. As part of
the campaign, unions have begun negotiating for provisions that precludes
employers from recruiting children. About a quarter (25%) of the sampled collective
agreements have provisions that prohibit the employment of children. All the
collective agreements that have provisions against employment of children are in the
agriculture (57%) and mining (54) sectors.
Sector
Agriculture
Mining
Health
Finance
Table 6 Child Labour Clause
Non-employment of Children
Yes
No
Frequency Percent Frequency Percent
8
57.1
6
42.9
7
53.8
6
46.2
0
0.0
6
100
0
0.0
11
100
23
Transportation
0
0.0
5
100
Education
0
0.0
11
100
Total
15
25.0
45
75.0
Source: Fieldwork 2009
As shown by the table above, among the sectors, the agric sector emerged as the
sector with the highest proportion of the sampled CBAs that have provision against
child labour. The agriculture sector has the highest proportion of working children
among the industrial sectors. In recent times, concerns have been raised about the
use of children on cocoa plantations. The unions organising in the sector with the
support of foreign partners including the ILO have mounted sustained campaigns
against the use of children on cocoa farms. Part of that effort is reflected in the large
of number of collective agreements from the agriculture sector with provisions
against child labour.
3.11 Equality/non-Discrimination
The labour laws of Ghana including the National Constitution prohibit
discrimination in employment on the basis of sex, creed, and political, religious and
ethnic affiliations. Section 68 of Act 651 states that “every worker shall receive equal
pay for equal work without distinction of any kind”. In addition, Ghana has ratified
ILO Convention 100: Equal Remuneration Convention (1951); and Convention 111:
Discrimination in Employment and Occupation (1958).
However, discrimination in both access to employment and pay are sad realities in
Ghana’s labour market. Like many other laws relating to the labour market, these
laws and conventions are not enforced. The unions are therefore making efforts to
transpose the provisions of these laws and conventions into their collective
agreements. The analysis of the collective agreements included in this report show
that 30 percent of them have provisions stressing equal pay for work of equal worth
or against discrimination generally.
The agriculture sector (85.7%) has the highest proportion of collective agreements
with provisions against discrimination. Collective agreements from the education,
health and mining sectors have no such provisions.
Table 7 Equality/Non-Discrimination Provisions.
Equal pay for equal work
Sector
Yes
No
Frequency Percent Frequency Percent
Agriculture
12
85.7
2
14.3
Mining
0
0.0
13
100
Health
0
0.0
6
100
Finance
4
36.4
7
63.6
Transportation
2
40.0
3
60.0
Education
0
0.0
11
100
Total
18
30.0
42
70.0
Source: Fieldwork 2009
24
3.12 Transfer Provisions
Inter and intra departmental transfers of workers are essential components of work
organization. In some instances, transfers are necessitated by promotions or the
need for specialized skills in a given department. Transfer can also be a disciplinary
measure. Whatever the rationale, it is important that transfers are properly
regulated.
All the collective agreements analysed for the report have provisions that seek to
regulate transfers. The transfer provisions include regulations on payment of transfer
allowance, the period within which workers are expected to serve in deprived
communities as well as inducements for workers who serve in such communities.
There are separate provisions regarding temporary and permanent transfers and the
costs associated with such transfers.
3.13 Leaving the Service of the Company
To ensure smooth permanent exit of workers in ways that do not affect the
operations of their organisations, procedures for exit/resignations are often
negotiated into collective agreements. These procedures are intended to regulate
permanent exit of workers and to ensure that such exits do not jeopardise the work of
the organisation. Analysis of the collective agreements shows that all of them have
provisions which seek to regulate the process by which workers can leave their
organisations. A typical provision in all the agreements that deals with leaving the
service of the organization/company include provisions for termination of
employment, summary dismissal, resignation and retirement. The other provisions
are retirement on medical grounds, repatriation and redundancy or severance. The
conditions under which these various procedures are applied are clearly stated
together with compensations thereof.
3.14 Grievance and Dispute Handling Procedures
As stated in section 1 of this report, collective bargaining is one of three pillars of
industrial relations. The other two are conflict prevention and conflict resolution.
The collective bargaining process itself is an important framework for devising
mechanisms for the prevention of industrial conflicts and resolution of such conflicts
should they arise. Through collective bargaining unions/workers and employers
establish clear procedures for the prevention and resolution of conflicts. Indeed,
achieving industrial harmony is an ultimate objective of collective bargaining.
The analyses of the collective agreements included in this report show that all the
agreements have provisions that establish clear procedures for handling grievances
and disputes. In all the agreements, the grievance procedures clearly establish the
channels through an aggrieve worker(s) can seek redress. Further, the analyses show
that all the collective agreements specify codes of discipline that are intended to
guide the behaviour of workers who are covered by the agreement.
For the avoidance of doubts and misunderstandings regarding conditions of
employment or non-employment, all the sampled collective agreements have
annexes that define terms and concepts that apply to the agreement. Thus the
contextual meanings of concepts as used in the agreements are clearly defined or
interpreted.
25
Section 4 NON-WAGE BENEFITS
4.1 Introduction
This section highlights the non-wage benefits contained in a typical collective
agreement in Ghana. Among other non-wage benefits, this section discusses general
leave provisions, social security and in-service training. Other non-wage benefits
which are discussed in this section are legal assistance for employees, free medical
care and scholarship for employees’ wards.
4.2 General Leave Provisions
4.2.1 Annual leave
The Labour Law (Act 651) makes provision for annual leave. Article 20 of the law
stipulates that “in any undertaking every worker is entitled to not less than fifteen
[15] working days of leave with full pay in any calendar year of continuous
service”. All the agreements reviewed for this report have provisions for annual leave.
The leave provisions usually spell out the duration of the leave as well as other
benefits associated with it. Generally, the duration of annual leave ranges between
twenty-five (25) to twenty-eight (28) working days depending on the length of
service of the worker. Workers with longer years of service have longer period of
annual leave.
4.2.2 Casual Leave
In addition to the annual leave, some of the agreements also have provisions for
‘causal leave’. Casual leave offers workers the opportunity to attend to urgent
personnel matters and is not counted as part of the annual leave. They are usually
granted after a worker has taken his/her annual leave. Our analysis shows that
maximum period for casual leave is ten (10) working days. More than nine in ten
(92%) of collective agreements included in this report have provisions for casual
leave. All the agreements from the agricultural, health, finance, transport and
education sectors have provisions for causal leave. In the mining sector almost twothirds of the agreements have make provisions for casual leave.
4.2.3 Bereavement/Compassionate Leave
There are also provisions for compassionate or bereavement leave which usually does
not exceed ten (10) working days. It is usually granted to workers who lose in
immediate family member. About one-fourth of the agreements have provision for
compassionate leave
4.3 Social Security and National Insurance Trust (SSNIT)
Ghana has not ratified ILO Convention 102 concerning Minimum Standards of Social
Security. Nevertheless, Ghana’s laws make adequate provisions for social security. As
a statutory requirement, all companies and organisations in Ghana are to pay 13.5
percent of each employee’s monthly basic pay into the Social Security Fund on behalf
of the employee. The employer is also required to deduct 5.5 percent of the
employee’s basic pay and pay it into the same fund every month.
26
However, in spite of this legal requirement many workers in Ghana particularly those
in the informal sector are denied the benefit of social security. Out of the total
workforce of 9 million, only about 1 million representing 11 percent are covered by
social security.
However, most workers (if not all) covered by unions and hence collective
agreements have access to social security. Indeed, in most of the collective
agreements included in this report, social security provisions are conspicuously
absent; it is somehow taken for granted that employers are obliged under the
National Pensions Act to provide social security benefits to their employees. Majority
(71.1%) of the sampled agreements have no provision for social security. In the view
of many trade union negotiators, social security is a non-negotiable issue, it is a legal
requirement employers are expected to comply with.
Table 8 Social Security and National Insurance Trust
Social Security and National Insurance Trust
Sector
Yes
No
Frequency
Percent
Frequency
Percent
Agriculture
1
7.1
13
92.9
Mining
4
30.8
9
69.2
Health
4
66.7
2
33.3
Finance
0
.0
11
100
Transportation
0
.0
5
100
Education
8
72.7
3
27.3
Total
17
28.3
43
71.7
Source: Fieldwork 2009
4.3 Maternity Leave and Day Care Facilities
Maternity leave is a statutory provision in Ghana. Article 57 (a) of the Labour Act
stipulate that “a woman worker, on production of a medical certificate issued by a
medical practitioner or a midwife indicating the expected date of her confinement is
entitled to a period of maternity leave of at least twelve [12] weeks in addition to
any period of annual leave she is entitled after her period of confinement”.
In conformity with this provision all the sampled CAs contain provision on maternity
leave. In addition, all the agreements have provisions for nursing of babies by
nursing mothers on resumption of duty after the period of confinement. However,
just about one-tenth of the agreements have provisions which require management
to provide for day care centres for nursing mothers and their babies. Agreements that
provide for day care centres are in the agriculture and transport sectors. All the
agreements from the mining, health, finance and education sectors have no
provisions for day care centres.
4.4 Paternity Leave
Paternity leave is not a statutory provision in Ghana. Consequently, just a few of the
collective agreements sampled for this report make provision for paternity leave. A
27
typical provision for paternity leave reads as follows: “male employees of [name of
institution/organization] shall enjoy five (5) working days paternity leave to
support a legally registered wife who has given birth. This shall be applicable to a
maximum of four (4) children and shall be upon demand by the employee”. Some of
the sampled CBAs give male employees two (2) weeks of paternity leave. As shown in
table 8 below, less than one-tenth of the agreements included in this report have
provisions for paternity leave. The health services sector has the highest proportion
(33.3%) of collective agreements with paternity leave provisions followed by the
education (9.1%) and the mining sector (7.7%).
Table 9 Paternity Leave Provisions
Paternity Leave
Sector
Yes
No
Frequency Percent Frequency Percent
Agriculture
0
0.0
14
100
Mining
1
7.7
12
92.3
Health
2
33.3
4
66.7
Finance
0
0.0
11
100
Transportation
0
0.0
5
100
Education
1
9.1
10
90.9
Total
4
6.7
56
93.3
Source: Fieldwork 2009
4.5 Sick leave
Sick leave is a statutory provision under the labour law. Article 24 of the labour law
(Act 651) stipulates that a period of absence from work owing to sickness which is
certified by a medical practitioner is allowed. Sick leave is not supposed to be
counted as part of annual leave. In line with this provision, all the agreements
included in this report have provisions for non-occupational sick leave. However, the
duration of the sick leave and the entitlement associated with it varies with the length
of service of the worker. The table below gives a typical non-occupational sick leave
conditions.
Table 10: Sick Leave Provisions
Length of service
Period of
Sick Leave Benefits
Absence
1st 4 months
Full basic monthly salary
nd
6 months – 5 years 2 5 months
½ basic monthly salary
1st 5 months
Full basic monthly salary
nd
6 years – 10 years
2 5 months
½ basic monthly salary
1st 8 months
Full basic monthly salary
nd
Above 10 years
2 8 months
½ basic monthly salary
Source: CBA from the mining sector.
After the expiration of the sick leave period, workers may be permitted to take
unpaid sick leave if sickness persists. If after the expiration of the unpaid sick leave
28
the employee is certified not to be medically fit to resume duty, he or she may retire
on medical grounds.
4.6 Study Leave
Analyses of collective agreements sampled for this report show that majority (82%)
have provisions for study leave for employees covered by such agreements. Standard
study leave provisions indicate the entitlements of workers during the study leave
period, qualifying conditions for study leave and conditions for return to the service
of the employer after successful completion of studies.
Table 11 Study Leave Provisions
Study Leave
Sector
Yes
No
Frequency Percent
Frequency Percent
Agriculture
9
64.3
5
35.7
Mining
12
92.3
1
7.7
Health
5
83.3
1
16.7
Finance
10
90.9
1
9.1
Transportation
2
40.0
3
60.0
Education
11
100
0
0.0
Total
49
81.7
11
18.3
Source: Fieldwork 2009
As shown in the table (above), all the agreements from the education sector have
provisions for study leave. Significant proportions of agreements from the mining
(92.3%) and finance (90.9%) sectors also contain provisions for study leave. The
transport sector has the least proportion (40%) of agreements with provisions for
study leave.
4.7 In-Service Training
In-service training has become very important given the pace of change in the skills
requirements of industry. Raising the productive capacity of the workforce require
that workers are constantly trained on the job. However, training particularly on-thejob training is rare in the Ghanaian labour market5. In the past few years, trade
unions have shown increasing interests in the training needs of their members and
therefore negotiate provisions for training in collective agreements.
Most (87%) of the agreements included in this report have provisions that require
employers to offer in-service training to their workers. Further analyses showed that
all the collective agreements from the agriculture, mining, health and transportation
5
The latest round of the Ghana Living Standards Survey (GLSS5) conducted in 2005/2006 revealed that just
about 3 percent of the Ghanaian workforce has access to workplace training. Over two-thirds of these are
working in places where trade unions exist.
29
sectors have provisions for in-service training. However, majority (64%) of collective
agreements from the education sector have no provision for in-service training.
Table 12 In-service Training Provisions
In-service Training
Yes
No
Sector
Frequency Percent Frequency
Percent
Agriculture
14
100
0
0.0
Mining
13
100
0
0.0
Health
6
100
0
0.0
Finance
10
90.9
1
9.1
Transportation
5
100
0
0.0
Education
4
36.4
7
63.6
Total
52
86.7
8
13.3
Source: Fieldwork 2009
4.8 Legal Assistance
About 52 percent of the collective agreements analysed for this report have
provisions which require employers to provide legal assistance for their workers who
face legal suits arising out of the performance of their legitimate duties. Table 12
(below) shows that 85 percent of all collective agreements from the mining sector
have provisions that require employers to extend legal assistance to workers who face
prosecution in the course of performing their legitimate duties. The corresponding
proportion for the agriculture, health, finance and Transport sectors are 71.4 percent,
50 percent, 45.5 percent and 40 percent respectively. The collective agreements in
the education sector have no provision for legal assistance.
Table 13 Legal Assistance Provisions
Legal Assistance
Sector
Yes
No
Frequency Percent Frequency Percent
Agriculture
10
Mining
11
Health
3
Finance
5
Transportation
2
Education
0
Total
31
Source: Fieldwork 2009
71.4
84.6
50.0
45.5
40.0
0.0
51.7
4
2
3
6
3
11
29
28.6
15.4
50.0
54.5
60.0
100
48.3
4.9 Medical Care
One of the most important non-wage benefits that unions have secured for their
members/workers through collective bargaining is free or subsidised medical care.
All the collective agreements analysed for this report have provisions that require
employers to pay full or subsidised the medical bills of workers covered by the
30
agreements. Further analysis show that in more than nine out of ten (93%) collective
agreements medical care is extended to dependants (children and spouse) of
workers. Most of the agreements provide for free/subsidised medical care to four (4)
children (who are 18 years or below) and the spouse of the worker.
In some of the agreements, employers have the right to withhold medical care
benefits from employees for health conditions that arise out of unhealthy lifestyles.
Unhealthy lifestyles are defined to include abortions, drug use, alcoholism and
others. Most of the sampled CBAs also exempt the cost of gynaecological treatment
from the medical benefits provided by employers.
Table 14 Medical Care for Employees' Dependants
Medical care for Employees’ Dependents
Sector
Yes
Frequency
No
Percent
Frequency
Percent
Agriculture
10
71.4
4
28.6
Mining
13
100
0
0.0
Health
6
100
0
0.0
Finance
11
100
0
0.0
5
100
0
0.0
11
100
0
0.0
56
93
4
6.7
Transportation
Education
Total
Source: Fieldwork 2009
4.10 Scholarship for Employees’ Wards
Among the sampled agreements, less than half (41.7%) have provisions for
scholarship for employees’ wards. This scholarship either absorbs all or part of the
cost of education of employees’ ward at the different levels of education. In addition,
there is a limit to the number of scholarships for wards that an employee is entitled
to with majority of the sampled CBAs specifying up to four (4) children.
Table 15 Scholarship Scheme for Employees' Wards
Scholarship for Employees’ Children
Sector
Yes
No
Frequency
Percent
Frequency
Percent
Agriculture
8
57.1
6
42.9
Mining
12
92.3
1
7.7
Health
1
16.7
5
83.3
Finance
4
36.4
7
63.6
Transportation
0
0.0
5
100
Education
0
0.0
11
100
Total
25
41.7
35
58.3
Source: Fieldwork 2009
From the table above, while in the mining sector about 92 percent of the sampled
agreements have provisions for scholarship for employees’ wards, none of the
sampled agreements from the transportation and education sectors had such
provisions. The ward scholarship scheme provision among the sampled agreements
31
from the education sector is ironical. In addition, less than half of the sampled
agreements from the finance and health sectors have provision for scholarships for
employees’ wards.
4.11 Free/Subsidized Accommodation
Accommodation, especially in urban areas is one of the most difficult challenges
faced by many workers in Ghana. However, only 40 percent of the sampled
agreements have provisions that require employers to provide accommodation for
workers who are covered by such agreements.
Table 16 Accommodation for Workers
Accommodation for Workers
Sector
Yes
No
Frequency Percent Frequency Percent
Agriculture
6
42.9
8
57.1
Mining
4
30.8
9
69.2
Health
2
33.3
4
66.7
Finance
1
9.1
10
90.9
Transportation
0
0.0
5
100
Education
11
100
0
0.0
Total
24
40.0
36
60.0
Source: Fieldwork 2009
The table above shows that while all the sampled agreements from the education
sector have provisions for accommodation, none from the transport sector has such
provisions. In addition, less than half of the sampled agreements from all the other
sectors have provisions for accommodation.
32
Section 5 WORKING CONDITIONS
5.1. Introduction
This section of this report discusses provision of working conditions contained in
CBAs in Ghana. It provides highlights standard hours of work, overtime and other
regulations on working hours, occupational safety, health and environment as well
as other provisions that spell out working conditions.
5.2 Hours of Work
Ghana has not ratified ILO Convention 47 on hours of work. Convention 47 provides
for maximum working hours of forty (40) in a week or eight (8) hours in a day.
However, the Labour law (Act 651) provides that the hours of work of a worker shall
be a maximum of forty (40) hours per week or eight (8) hours per day. The hours of
work include at least thirty minutes of break. Any extra hours worked must be paid
for as overtime. All the collective agreements we analysed as part of the report have
provisions on working hours. In conformity with the provisions of the labour act, all
the collective agreements specify standard working hours of eight (8) per day or forty
(40) per week.
5.3 Overtime Work
Any work done outside normal working hours which is eight (8) hours in a day
constitute overtime which should be duly recognised and paid for. This includes work
done on statutory public holidays. In addition, section 35 of the labour law provides
that a worker shall not be compelled against his/her will to do overtime whether or
not it is paid for. Sub-section 3 of section 35, however, permits compulsory overtime
in situations where the nature of an undertaking requires overtime in order to be
viable or overtime is necessary to deal with an emergency. In such emergency
situations the overtime may not be paid for.
In the analysis done for this report, it became apparent that unlike the standard
working hours, only about 5 percent of collective agreements contain provisions that
regulate overtime work. About 95 percent do not have any provisions on overtime
work.
5.4 Malingering
Section 11 of Act 651 enjoins workers to “work conscientiously” in their lawfully
chosen occupations. The law frowns on malingering or faking sickness or incapacity
to work. However, provisions against malingering are found only in collective
agreements in the mining sector. All the collective agreements from the mining
sector have provisions against malingering.
5.5 Frustrated Work
Frustrated work arises when an employee reports for work but she or he is asked to
go home because of breakdown of equipment or non-availability of materials. About
38 percent of the collective agreements analysed for this report contain provisions on
frustrated work. The “frustrated work” provision provides that workers shall be
33
considered to have worked when such situations arise and would therefore be paid
for the day’s ‘work’.
As shown in table 17, with the exception of the education, health and finance sectors
where all the collective agreements have no provisions regarding frustrated work.
Collective agreements from the other sectors, namely agriculture, mining and
transport contain provisions on frustrated work. The mining sector (87%) has the
highest proportion of collective agreements with provisions on frustrated work
followed by the agriculture sector (79%).
Table 17 Frustrated Work Provision
Frustrated work
Sector
Yes
No
Frequency Percent Frequency Percent
Agriculture
11
78.6
3
21.4
Mining
11
84.6
2
15.4
Health
0
0.0
6
100
Finance
0
0.0
11
100
Transportation
1
20.0
4
80.0
Education
0
0.0
11
100
Total
23
38.3
37
61.7
Source: Fieldwork 2009
5.6 Absence from work
As part of the provisions regulating the hours of work, majority (71.7%) of the
sampled collective agreements have provisions which seeks to deal with absenteeism
among employees. A typical absenteeism provision requires that employees who are
unable to report for work give prior information to their employers. Failure to give
prior notice would be met by series of punitive measures outlined in the collective
agreements.
Table 18: Provisions on Absence from Duty
Absence from duty
Sector
Yes
Frequency
Agriculture
12
Mining
13
Health
4
Finance
5
Transportation
2
Education
7
Total
43
Source: Fieldwork 2009
No
Percent
85.7
100.0
66.7
45.5
40.0
63.6
71.7
34
Frequency
2
0
2
6
3
4
17
Percent
14.3
.0
33.3
54.5
60.0
36.4
28.3
The table 18 (above) shows that among the sectors, all the collective agreements from
the mining sector have provisions on absenteeism. In the agriculture sector about 86
percent of agreements contain provisions on absenteeism. The transportation sector
(40%), recorded the least number of agreements with provisions on absenteeism.
5.7 Occupational Safety, Health and Environment (OSHE)
One of the most important elements of the working environment is safety on the job.
But this important aspect of the working life is not given the same attention as the
pecuniary aspects. Ghana has not ratified ILO Convention 155 which deals with
Safety and Health at the workplace6.
Article 24(1) of the National Constitution (1992) provides that every person has the
right to work under satisfactory, safe and healthy conditions. In addition, under the
Directive Principles of State Policy, Article 36(10) of the 1992 Constitution, the state
is obliged to safeguard the health, safety and welfare of all persons in employment.
Again, section 118 of the labour law (Act 651, 2003) enjoins employers to ensure that
their workers work under satisfactory, safe and healthy conditions7.
Despite the provisions in the National Constitution and the national labour laws with
regards to health and safety, it is not uncommon to find workers working in unsafe
and hazardous environments that imperil their lives. To safeguard the health and
safety of workers, trade unions are now negotiating health and safety standards into
their collective agreements. More than 90 percent of the agreements reviewed as part
of this report contain provisions on occupational safety, health and environment.
Among other things, provisions on health and safety spell out the general safety
conditions, first aid and drug and alcohol use by workers while on duty.
Table 19 Occupational Health, Safety and Environment Provisions
Occupational Health, Safety and Environment
Sector
Yes
No
Frequency
Percent Frequency
Percent
Agriculture
13
92.9
1
7.1
Mining
13
100
0
0.0
Health
6
100
0
0.0
Finance
7
63.6
4
36.4
Transportation
5
100
0
0.0
Education
11
100
0
0.0
Total
55
91.7
5
8.3
Source: Fieldwork 2009
6
However, it has ratified Recommendation 120 on hygiene (Commerce and Offices). Ghana has also ratified ILO
Convention 115 concerning the Protection of Workers against Ionising Radiation.
7
See the Labour Law (Act 651, 2003) for details
35
The table 19 (above) shows that all the collective agreements from the mining, health,
transport and education sectors have provisions on Occupational Safety Health and
Environment (OSHE). The finance sector has the least number of agreements that
have provisions on OSHE. This may be explained by the perceived relatively low
physical risk involved in finance sector work and hence emphasis is not placed on
OSHE issues during the bargaining process. What is, however, taken for granted is
the sedentary nature of work in the finance sector which can also, have negative
repercussions on workers health.
5.8 Protective Clothing
Sub-section 2 of section 118 of the labour law enjoins employers to “supply and
maintain at no cost to the worker adequate safety appliances, suitable fire-fighting
equipment, personal protective equipment, and instruct the workers in the use of the
appliances or equipment”
About 85 percent of the collective agreements have provisions which require
employers to supply protective clothing to workers who are covered by the
agreement. A standard provision reads as follows: “when required by the nature of
the job, employees will be provided with appropriate clothing. These items shall
remain the property of the Company and each employee is required to use these
items in accordance with company procedures”
In terms of sectors, all the collective agreements from the mining, health and
transport sectors have provisions for the supply of protective clothing by employers
to employees. The finance sector (63.6%) has the least number of agreements that
have provisions for the supply of protective clothing.
Table 20 Provision of Protective Clothing
Protective Clothing
Sector
Yes
No
Frequency Percent Frequency Percent
Agriculture
10
71.4
4
28.6
Mining
13
100
0
0.0
Health
6
100
0
0.0
Finance
7
63.6
4
36.4
Transportation
5
100
0
0.0
Education
10
90.9
1
9.1
Total
51
85.0
9
15.0
Source: Fieldwork 2009
5.9 Industrial Accidents/Injuries and Workmen Compensation
Industrial accidents and injuries are inevitable at the workplace. In order to deal with
industrial accidents/injuries, the Workmen’s Compensation Law (PNDC Law 187)
was passed in 1987. The Workmen’s Compensation Law (1987) places the onus for
36
caring for workers who sustain industrial accidents and injuries on the employer8.
The law specifies the methods for calculation of benefits/compensation and the
mode of payments.
Trade unions have taken further steps to ensure that their members are fully
compensated in the event of industrial accidents by negotiating provisions of the law
into collective agreements. Analysis of the collective agreements shows that about 92
percent of them have provisions on industrial accidents and injuries. The provisions
specify clear procedures for dealing with industrial accidents/injuries. In addition,
they also explicitly state that “compensation [for industrial injuries] is paid in
accordance with the Workmen’s Compensation Law 1987 (PNDCL 187)”
Table 21 shows that among the sectors, all the sampled agreements from the
agriculture, mining, health and education sectors have provisions on industrial
accidents and related compensation. Again, the finance sector (36.6%) has the least
proportion of collective agreement that have provisions on industrial accidents and
injuries.
Table 21 Workmen's Compensation Provision
Workmen’s Compensation
Sector
Yes
No
Frequency Percent Frequency Percent
Agriculture
14
100
0
0.0
Mining
13
100
0
0.0
Health
6
100
0
0.0
Finance
7
63.6
4
36.4
Transportation
4
80.0
1
20.0
Education
11
100
0
0.0
Total
55
91.7
5
8.3
Source: Fieldwork 2009
5.10 HIV/AIDS Provisions
The HIV/AIDS pandemic has been identified as a serious workplace issue. However,
analysis of the sampled CBAs suggests that only about 7 percent of them have
provisions on HIV/AIDS. With the exception of the mining and health sectors, none
of the CBAs from the other sectors have provisions on HIV/AIDS. The health sector
has the highest proportion (33.3%) of collective agreements with provision on
HIV/AIDS followed by the mining sector (15.4%).
The Labour Law (Act 651) only absolve the employer from responsibility of caring for accidents
victims when a worker fails to comply with health and safety rules and where the injury is caused
solely by non-compliance on the part of the worker.
8
37
Table 22 HIV/AIDS Provisions
HIV/AIDS provision
Sector
Yes
No
Frequency Percent Frequency Percent
Agriculture
0
0.0
14
100
Mining
2
15.4
11
84.6
Health
2
33.3
4
66.7
Finance
0
0.0
11
100
Transportation
0
0.0
5
100
Education
0
0.0
11
100
Total
4
6.7
56
93.3
Source: Fieldwork 2009
38
Section 6 WAGES IN GHANA9
6.0 Introduction
Ghana has unenviable reputation of having one of the lowest wage levels in Africa.
For a greater part of the last 30 years, the national daily minimum wage has been
pegged at below US$2.00. In this section of the report we analysed the average
earnings in Ghana. The analysis is based on the latest average earnings data reported
by the Ghana Statistical Service (GSS) in the latest round of the Ghana Living
Standards Survey (GLSS V) and also on the daily minimum wage data.
6.2 Minimum wage in Ghana
The national daily minimum wage has become an important guidepost in the
determination of wages/salaries in both the public and private sectors of the
Ghanaian economy. For example, between 2000 and 2005, the basic salary on the
Ghana Universal Salary Structure (GUSS) was maintained as close as possible to the
national minimum wage. The basic salary on the GUSS was just one percentage point
higher than the minimum wage between 2000 and 2005.
The national minimum wage has been pegged at very low level for most part of the
past three decades. From 1984 up to 2006, a period of twenty-two years, the national
minimum wage was consistently maintained at less than US$2 per day (see table 23).
In the last ten years, the national minimum wage has witnesses a steady increase.
Between 2001 and 2008, the monthly minimum wage in terms of US dollars almost
tripled from US$21 to US$57. By 2007, the national daily minimum wage had
reached US$2.00. The daily minimum wage exceeded US$2.00 in 2008 before
declining to US$1.88 in 2009.
Despite, the low level of the minimum wage, large swathe of the workforce
particularly those who work in the informal economy earn below the minimum wage.
According to the Ghana Statistical Service (GSS, 2006), about 46 percent of food
crop farmers earn below the national minimum wage. For the informal economy as
whole about one-fifth (17%) earn below earn below the minimum wage. What is most
striking is that almost one-tenth of public sector workers are also estimated to be
earning below the legislated minimum wage.
9
It was not possible to obtain wage from the unions; all the collective agreements analysed for the report had no
wage data. This section of the report is therefore based on the general wage situation in Ghana.
39
Table 23 Table: MINIMUM WAGE AND EXCHANGE RATE IN GHANA (1984 -2009)
Year
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Nominal Daily
Minimum Wage
(Cedis)
35
70
90
112
146
170
218
460
460
460
790
1,200
1,700
2,000
2,000
2,900
4200
5500
7150
9200
11,200
13,500
16,000
19,000
GH¢2.25p
GH¢2.65
Nominal
Exchange
Rate10
35.34
54.05
89.29
147.06
202.34
270.01
326.28
367.73
437.09
648.98
956.73
1,200.40
1,637.24
2,050.28
2,314.15
3,500.69
6820
7000
8000
8500
8,971
9074.06
9175.86
9357
GH¢1.06
GH¢1.40
Monthly National
Minimum Wage11
(Cedis)
945
1,890
2,430
3,024
3,949
4,590
5,886
12,420
21,330
32,400
45,900
54,000
54,000
78,300
113,400
148,500
113400
148500
193050
248,400
302,400
364,500
432,000
513,000
GH¢60.75
GH¢71.69
Monthly National
Minimum Wage
(US$)
27
35
27
21
20
17
18
34
28
19
22
27
28
26
23
22
17
21
25
29
34
40
47
54
57
51
Source: Exchange rates were obtained from the Bank of Ghana & Minimum wage data were obtained from the
Ghana Trades Union Congress (TUC). Ghana redenominated its currency in July 2007. Minimum wage figures
between 1984 and 2007are reported in the old cedis and the figures for 2008 and 2009 are reported in the new
Ghana cedis. The new Ghana cedis exchanged for the old cedis at ¢10,000 to GH¢1.00
6.3 Earnings in Ghana
Earnings data reported in the latest round of the Ghana Living Standards Survey
(GLSS V) for those aged 15 years and older who received cash payment show that
10
11
Exchange rate are interbank exchange rates.
Monthly minimum wage figures are calculated as daily minimum wage × 27
40
average monthly wage of GH¢118.80. This translate into average daily earnings of
GH¢4.40. Consistent with data earnings reported in previous edition of the living
standards survey, the GLSS V data show that males (GH¢131.76) earn approximately
22 percent higher than females (GH¢108.00).
Among the industrial sectors, earnings are highest in the financial services sector
(GH¢332.64) and lowest for employees of private households (¢82.02). Earnings in
the financial sector is about three times more than the national average (¢118.80)
and four times the average earnings in the agriculture sector (¢88.56).
Table 24: Average Monthly Earnings by Sex and Industry of the Adult
population (15+)
Earnings (GH¢)
Main Industry
Male
Female
Agriculture
105.84
68.62
Fishing
254.88
207.36
Mining
198.72
95.04
Manufacturing
127.44
142.56
Electricity
179.28
103.68
Construction
136.08
64.8
Trade
142.56
120.96
Hotel and restaurants
174.96
131.76
Transport and communication
103.68
131.76
Financial services
360.72
211.68
Real estates
272.16
159.84
Public administration
151.20
222.48
Education
205.20
159.84
Health and social work
216.00
190.08
Other community services
140.40
108.00
Activities of private households
108.00
51.84
Extra territorial organizations
287.28
0.00
All
131.76
108.00
Source: Computed from GLSS5 (2005/06) data
All
88.56
250.56
172.80
136.08
166.32
133.92
127.44
138.24
105.84
332.64
254.88
168.48
187.92
203.04
123.12
82.08
287.28
118.80
The financial services sector is the highest earnings sector followed by employees of
extra-territorial organisations, real estates and fishing. Average earnings in the
fisheries sector (GH¢250.56) was higher than earnings in the mining sector
(GH¢172.80). As shown in the table below, the earnings gap between the financial
services sector – the highest earnings sector – and the private households – the
lowest earnings sector – was about 75.3 percent.
41
Table 25: Ranking of Industries based on Average Monthly Earnings
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Industry
Financial services
Extra territorial organizations
Real estates
Fishing
Health and social work
Education
Mining
Public administration
Electricity
Hotel and restaurants
Manufacturing
Construction
Trade
Other community services
Transport and communication
Agriculture
Activities of private households
All
Source: Computed from GLSS (2008)
Earnings (GH¢)
332.64
287.28
254.88
250.56
203.04
187.92
172.80
168.48
166.32
138.24
136.08
133.92
127.44
123.12
105.84
88.56
82.08
118.80
Among the occupations, legislators/managers reported the highest average monthly
earnings of GH¢406 followed by the group of workers classified as professionals
(GH¢289.44). Earnings were lowest for workers in the agriculture including
fisheries. The legislatures/managers reportedly earn over four times more than those
in the agriculture/fisheries sector. In all occupations except clerks, craft and related
trades, plant and machinery operators, and elementary occupations, males earn
more than females. The gender-wage-gap is reduced to 18.33 percent when earnings
are based on occupations rather than sectors.
Table 26: Average Monthly Earnings with the Occupations
Main occupation
Legislators/managers
Professionals
Technicians & associate professionals
Clerks
Service/sales workers
Agric/fishery workers
Craft and related trades workers
Plant and machine operators
Elementary occupations
All
Source: Computed from GSS (2008)
Male
427.68
328.32
190.08
125.28
131.76
108.00
127.44
129.60
99.36
129.60
42
Earnings
Female
241.92
213.84
144.72
162.00
110.16
62.64
151.20
213.84
112.32
105.84
All
406.08
289.44
177.12
142.56
114.48
90.72
140.40
129.60
108.00
118.80
SECTION 6: CONCLUSION
This report is an analysis of the content of collective agreements from five of the
largest unions affiliated to the Ghana Trades Union Congress (TUC). The report
analyzes the content of collective agreements from five (5) unions which organize in
six (sectors) namely; agriculture, mining, health, finance, transport and education.
The report provides detailed information on the institutional and legal framework for
the conduct of collective bargaining. The report also uses minimum wage data and
the earnings data from the Ghana Living Standards Survey to analyse the wage and
earnings levels in Ghana.
The analysis showed that collective bargaining has a long history in Ghana. The
labour market landscape has the necessary institutional and legal infrastructure that
allows for the exercise of trade union rights and the right to negotiate collectively.
The institutions have evolved overtime. Through consensus and dialogue, the social
partners have crafted and guided the evolution of the rules and the institutions for
collective bargaining. The report also shows that the collective bargaining
institutions such as the Labour Department and the National Labour Commission
are poorly resourced and are not able to play their roles effectively.
At the level of the unions, we have observed that unions have used collective
bargaining to improve the wages and living conditions of workers and their families.
Unions have managed to secure wide ranging benefits beyond those mandated by law
for their members. But we have also seen that unions have tended to focus the
bargaining process almost exclusively on the ‘bread and butter’ issues of wages and
benefits. The collective bargaining process has become ritualistic, one-off activity
almost divorced from other core activities of unions. It has become a high-profile
activity on the calendar of unions frequently commanding the attention and presence
of political elites within the unions, general secretaries. In the process, the
professional and technical aspects of the process have been shelved. At the same
time, the political elites who have taken charge of collective bargaining are also
bulked down in several equally important union projects. The collective bargaining is
therefore not accorded the priority it deserves. It now appears that unions no longer
see the collective bargaining process as an important avenue for advancing the
agenda of the union in areas such as organising and retention of membership.
Our analysis also shows that unions have secured a number of important non-wage
benefits for their members. But in most cases, clauses in collective agreements have
tended to be a rehash of what the labour laws already provides. It is important that
negotiators recognise that the law provides the minimum standards of employment.
Real success in collective bargaining for unions should be securing agreements in
excess of what the law provides either on issues found in the law or on completely
new issues. In this respect, the analysis in this report has shown that the unions
included in the report have secured agreements issues such as paternity leave which
are not provided by law.
Analysis of the sampled agreements suggests that a typical collective agreement in
Ghana has provisions on the general basis of the agreement. Such clauses spell out
the preamble, the parties to the agreement, the responsibilities of such parties, the
purpose and scope of the agreement as well as interpretation of terms and concepts
43
used in the agreement. In addition, effective date and the life span of the agreement
are stipulated. In the case of the sampled agreements for this report, majority of
them have a lifespan of 2 years. An important clause that is linked to the life span of
the agreement is the wage opener clause which allows for the negotiation of
wages/salaries and other monetary aspects of the agreement annually. The general
clauses also include grievance and dispute handling procedures and provisions that
recognise that union and its activities as well as the check-off system.
The agreements analysed also have provisions on working conditions. These
provisions cover issues such as hour of work, overtime work, occupational a health
and safety with few of the agreements having provisions on HIV/AIDS.
Also, of the agreements have elaborate provisions on non-wage benefits. These
benefits include, annual leave, paid sick leave, paid maternity and paternity leave,
social security, free or subsidised housing, medical care, training and paid study
leave among others.
Incidentally, overwhelming majority of the agreements analyse for this report did not
have salary scales attached. The wage analysis contained in the report is that based
on the national minimum wage data and the earnings data obtained from the Ghana
Living Standards Survey database. The wage analysis shows that the average
earnings in Ghana is quite low. The minimum wage is has been below US$2 for most
part of the last 30 years. Even so, some workers in both the public and private sectors
(including the private formal and informal sectors) continue to earn below the
minimum wage.
Working hours clauses are also ubiquitous among the sampled agreements for this
report. Such clauses stipulate the normal working hours which is mostly forty (40)
hours a week and well as provisions for over time. However, a distinct feature of the
sampled agreements from the mining sector is the provisions for paid meals time,
malingering and frustrated work.
Transfers and other clauses that deal with leaving the service of the
institution/company are also constant features of the sampled agreements. However,
majority of the sampled agreements, 56.7 percent do not have provisions for end of
service benefits. Similarly, about 72 percent of the sampled agreements are silent of
SSNIT. On the other hand, about 63 percent of the sampled agreements have
provisions for provident fund.
About eight (8) statutory and negotiated leave provisions were identified among the
sampled agreements. While all the agreements have provision for annual leave, 91.7
percent and 40 percent of the agreements make provisions for causal leave and
bereavement/compassionate leave respectively. Maternity leave is an entrenched
provision in the sampled agreements. However, paternity leave is uncommon as only
6.7 percent of the sampled agreements have provisions for paternity leave. The
proportions of agreements with provisions for sick leave and study leave are 100
percent and 81.7 percent respectively.
44
Majority of the agreements, 86.7 percent have provision on in-service training.
Provisions are also made for funding of employees’ education and that of a stipulated
number of children (mostly up to four). While about 92 percent of the agreements
make provisions for funding employees’ education, only 41.7 percent of the sampled
agreements have provisions for scholarship for employees’ wards.
On accommodation and transportation, the proportions of the sampled agreements
that have such provision are 40 percent and 60 percent respectively. In addition, all
the sampled agreements have provisions for free medical care for employees while 93
percent of them provides for free medical care for the dependents of employees.
Provision for occupational safety, heath and environment issues is 91 percent among
the sampled agreements. About 82 percent of the sampled agreements have
provisions for workman’s compensation. However, only 6.7 percent of the sampled
agreements have provisions on HIV/AIDS.
About thirty-six (36) kinds of allowances were identified among the CBAs sampled
for this report. The provisions of the allowances vary with the sectors. Among the
sampled agreements for this report, there are about six (6) kinds of advances/credit
facilities. About 78 percent of the sampled agreements for this report have provisions
for salary advance. The proportions of sampled agreements with provisions for
vehicle loan and housing loan are 55 percent and 21.7 percent respectively.
All the sampled agreements have provisions for annual increment. By this, an annual
service increment is automatically granted to employees who have completed one (1)
year of continuous service. However, only 53.3 percent of the agreements have
provisions for the payment of annual bonus. As part of the incentive packages, long
service awards are granted to employees who serve a certain number of years.
Majority of the sampled agreements, 88.3 percent have provisions for long service
award.
45
REFERENCES
Anglogold Ashanti Report to Society (2007): Case Study: Towards Collective
Bargaining- the view of group and comparison between South Africa and
Ghana.
______(2008): Case Study: Collective Bargaining in Ghana-An update
Britwum, A.O. (2007) ‘The Ghana Trades Union Congress: Sixty years of Promoting
Workers’ Rights’ Accra, Ghana Trades Union Congress.
Coleman, C.A (06/08/06): Threats and Industrial Relations in Ghana. Available @
http://www.ghanaweb.com/GhanaHomePage/features/artikel.php?ID=1
05504 (Accessed on 02/06/09)
Ghana Labour Act 651, 2003
Turkson , J.K (2009), Collective Bargaining: A tool for industrial harmony in
Ghanaian industrial setting. Journal of Business Excellence. 2, 3-4: 374 – 387.
46
APPENDICES
Table 27 Appendix 1: Sector Representation in the Sample
Sector
Frequency Percent Cumulative Percent
Agriculture
14
23.3
23.3
Mining
13
21.7
45.0
Health
6
10.0
55.0
Finance
11
18.3
73.3
Transportation
5
8.3
81.7
Education
11
18.3
100
Total
60
100.0
Source: Fieldwork 2009
Table 28 Appendix 2: Union Representation in the Sample
Union
Frequency
Percent
Cumulative Percent
GAWU
14
23.3
23.3
GMWU
13
21.7
45.0
HSWU
6
10.0
55.0
UNICOF
16
26.7
81.7
TEWU
11
18.3
100
Total
60
100.0
Source: Fieldwork 2009
Table 29 Appendix 3: Effective Date of Sampled Agreements
Effective
Date
Frequency Percent Cumulative Percent
2002
5
8.3
8.3
2003
6
10.0
18.3
2004
3
5.0
23.3
2005
5
8.3
31.7
2006
10
16.7
48.3
2007
11
18.3
66.7
2008
8
13.3
80.0
2009
12
20.0
100
Total
60
100
Source: Fieldwork 2009
47