BY JULIUS OTIENO
Trade unions could soon lose millions of shillings if a Bill is enacted barring them from collecting agency fees from non-members.
Agency fees are paid by unionisable employees who are not members of the trade union but are benefiting from terms of employment negotiated by the union with the employer in a collective bargaining agreement.
Most are county employees.
The Labour Relations (Amendment) Bill, 2024 seeks to scrap the fee, denying the unions income.
Trade unions depend on monthly contributions by their members as well as agency fees to run their operations.
“The principal objective of the Bill is to prohibit the deduction of agency fees from the wages of a unionisable [eligible to join union] employee, who is not a member of a trade union but is covered by the trade union’s collective agreement,” the Bill states.
Agency fees are provided under Section 49 of the Labour Relations Act, 2007.
The terms of the collective bargaining agreement usually apply to unionise employees, that is, any staff entitled to join the union, whether they are members or not.
Thus, any employee who is a beneficiary of a CBA and is not a member of the trade union that negotiated the CBA is required by law to pay the fee. Agency fees are deducted monthly at the same rate as that for a union member.
The proposed law is sponsored by nominated Senator George Mbugua who is vice chairman of the Senate’s Labour and Social Welfare Committee.
Already, the Bill has triggered an uproar as union officials are declaring their outright opposition to it.
The Kenya National Union of Nurses secretary general Seth Panyako said the Bill is aimed at crippling the trade unions, contrary to labour laws.
“We definitely oppose that Bill. They are trying to kill trade unions by starving them. We will not allow that to happen,” Panyako said. He said such a Bill should not originate in the Senate as labour is not a devolved function. “Trade unions are employers. We have staff. All these officials are employed by the unions. If you deny them the funds, then where do you want them to go?” Panyako told the Star in a telephone interview.
Mbugua argued the Bill conforms to Article 36 (2) of the Constitution, which states a person shall not be compelled to join an association of any kind.
Additionally, Article 41 (2)(c) of the Constitution states every worker has the right to participate in the activities and programmes of a trade union.
The Bill seeks to ensure unionisable workers enjoy fair labour practices, Mbugua argues.
“The Bill also seeks to ensure trade unions and employers observe the national values and principles of governance, including good governance, integrity, transparency and accountability,” it reads.
Citing the Fourth Schedule to the Constitution, Mbugua said county governments are mandated to implement national labour standards and employment policies.
Since most employees are from the counties, the Bill would have an impact on the net wages of unionisable employees who are not union members.
“This is, therefore, a Bill that concerns counties in terms of Article 110(1)(a) of the Constitution,” the Bill states.