Quick Wins of Unionization to Employers: An MeTL Group Case Study

Labor relations specialists report that of all the conflict resolution mechanisms found in industrial organizations, employer-union relations have received the most attention over time. 

For workers, the value of joining a trade union is obvious. In a research published by The Guardian in 2017 titled, Do the Maths: Strong Unions are good for Business union members tend to earn more than non-unionised employees for the same sort of work, with the biggest and most direct effects being felt on wages and fringe benefits. Estimates in the report indicated that unions have raised the wages and benefits of their members by 15 to 30 percent above those of comparable non-union workers, and there are up to 50% fewer accidents in unionised workplaces. 

On the other hand, because employers tend to look at unions from an expense point of view, risk increasing the employees’ perceived powers as well as allowing them to make demands that might otherwise be unwilling to be met, companies therefore often shy away from recognising a union. 

At MeTL, we have benefitted from unionized workplaces through our integrative Collective Bargaining Agreements (CBAs) and other formal and informal means of interaction. Specific wins of these partnerships have resulted in.

Reduced incidences of industrial actions such as strikes: The CBA establishes mechanisms for resolving disputes at both the factory and sectoral level by providing us with an authorized and representative partner with whom to negotiate to avert any industrial action.

Reduced staff turn-over: Unionised workers are also significantly less likely to quit, as they have a mechanism to sort out any teething problems. Recruiting and training new employees is expensive, and that money is saved by reducing staff turnover.

Data validity for our planning: The agreement provides a greater degree of predictability for us in areas such as wage, bonuses and working hours thereby allowing to plan better in advance in terms of business and any operational procedures.

Protection from CMA liabilities: The CBA reduces the number of civil cases against the company because most of the issues are brought out in the open and negotiated and there is adherence to laid out procedures, thus reducing our liability in terms of litigation.

Improved employer-employee relations: Through dialogue, negotiations and union-management committees, the interests of both workers and employers are more effectively met. These conditions foster a more positive working environment and create labour peace, which in turn boosts morale and productivity.

MeTL Group is a proud partner of TUICO, TPAWU, TASIWU and CHAMWATA! Like and Follow us on Facebook and Instagram on @MeTL People for insights into our HR activities and learn more about the people behind the brand.