The influence of industry type on social dialogue in an enterprise: the case of the employers consultative association of Malawi (ECAM)

Abstract

Based on the newly agreed indicators of social dialogue, this study engages in both a descriptive and statistical analysis of the relationship between industry type and social dialogue. The study replicates the ILO definition of social dialogue to determine the dependant variables as follows: union density, collective bargaining coverage rate, strikes rate and lockout rate. The purpose of the study is to ascertain whether industry type (service or goods producing) influences the level of social dialogue in the workplace through the following social dialogue variables: union density, collective bargaining coverage rate, and strikes rate and lockout rate. The unit of focus of the study is the corporate members of the Employers Consultative Association of Malawi (ECAM) which is the only recognized employers’ body in Malawi under the Labour Relations Act. Most of the international and domestic literature points to the fact that there is some relationship between the type of industry and the level of social dialogue at enterprise level. However, most of the literature has not looked at a holistic picture of social dialogue. Most writers have only isolated, individually, union density, collective bargaining or strikes rate. Very few authors have researched on lockouts rates. In general, there is lack of labour market data in Malawi. As such many institutions, especially labour social partners such as the Ministry of Labour, employers’ organisations and trade unions are taking policy decisions based on insufficient statistical information. One such area is the level of social dialogue per industry and the causal factors thereof. None of such information exists for members of ECAM to enable the body effectively contribute towards improving work conditions within its membership. This report helps to fill such a gap. From the analysis of the findings of this study, both the descriptive and inferential statistics seem to agree with literature that there is a statistical relationship between industry type and union density as well as collective bargaining coverage rate. The study has however concluded that there is no statistical relationship between Industry Type and the strikes and lockout rates.