Industrial Relations And Industrial Action: Exploring Socio Economic Factors And Their Effect On Industrial Action In Selected Parastatals In Kenya.

ABSTRACT

Industrial relations if not well practiced could lead to negative impact on the organisation depicted in the occurrence of strikes organised by employees. The purpose of the study was to find out to what extent social and economic factors affect industrial action in parastatals in Kenya. The objectives of the study were to analyse the effect of education as a social factor on industrial action, to analyse the influence of inflation on industrial action, to assess the effect of taxation on industrial action, to examine the relationship between interest rates and industrial action. For appropriateness in giving accurate account of the characteristics of a particular phenomenon, descriptive design was used to target 10 public service companies. The researcher used stratified random design to acquire the number of employees needed in each organisation and data collection instruments used were questionnaires and interviews. Quantitative data was analysed descriptively using frequency counts, percentages and presented using frequency tables, bar graphs and pie charts. Qualitative data was reported in a narrative form and where possible percentage of cases reported. Regression analysis was used to show the relationship between the independent variable and dependent variables. A pilot study of the questionnaire was done in Kenyatta University to test data validity. The findings in this study indicated a clear understanding by respondents on the effect of inflation, taxation, education and interest rates on industrial action. The major findings indicated that the recent wave of strike in parastatals was as a result of the increase in inflation. Based on the findings of this study to examine the effects of inflation, taxation, education, and interest rates on industrial action, it is clear that the employer and employees in parastatals hold different perceptions regarding the effects of government policies regarding inflation, taxation, and interest rates on salary of employees. In order to address these differences, this study recommends that government policies on inflation, taxation and interest rates should not negatively affect the net salary of employees or create a further burden on the economic growth and survival of an employee and this can be done through creating payslip adjustments on inflation, taxation and interest rates.