The Role Of Labor Union In Maintaining Good Employment Relations The Case Of Ethiopian Insurance Corporation

The main objective of this study was to examine the role of labor union in maintaining goodrnemployment relation. To study this subject matter, Ethiopian Insurance Corporation labor unionrnwhich has 899 members was selected. The study used descriptive research design and employedrnmixed research approach, to investigate the extent to which the labor union participates andrnallows its own members to take part in labor affairs to maintain good employment relation in therncorporation. Due to the time and budget constraint, dispersed geographical location andrnsimilarity of work categories, data was collected from all offices that are located in Addis Ababa,rnwhere there are 511 union members. From this population size 224 union members were selectedrnby using convenience sampling and 4 union leaders and 4 administrative managers werernpurposively selected by using purposive sampling, who were considered to be major informants.rnThe sampled union members were asked to complete a self-administered questionnaire with 39rnlikert scale questions categorized in four parts. To check the internal consistency and reliabilityrnof the questions, pilot testing was conducted and Cronobach’s Alpha of 0 .919 was acquired. Thernfinal response rate was 87% (N=190). The respondents’ responses were analyzed usingrndescriptive statistics through SPSS.rnThe results are presented in the form of figures, charts and tables using mean and percentages.rnThe findings revealed that the role of the labor union in ensuring the benefits of the union, inrnmaintaining peaceful employment relation and in collective bargaining is good, whereas thernoverall role of labor union in promoting industrial democracy among union members and in therncorporation is low. However, the labor union needs to work on creating ways to participate inrnstrategic issues of the corporation, succession plan and employee promotion. And, mostrnimportantly it needs to work on finding ways to reach out all union members, so that they canrnparticipate in labor affairs and get up-to-date information about changes in the corporation

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