The Private Sector and Labour Conditions in Kampala District (Uganda)

ABSTRACT This study was carried out in Kampala district. It covered employment in the formal private sector organizations in various sectors ranging from educational, health to constructional services. Th~ major objectives of this study was to examine the private sector development and its implication in determining the employment conditions under which the employees in the formal private sector organizations worked, the existing laws and regulations governing the working conditions in private sector organisations, the existing government interventions and also sought the effective policy I recommendations for better employment conditions in the formal private sector organisations The study employed both qualitative and quantitative approaches; the interview and a structured questionnaire were respectively used. i The respondents in this study were both the employers and employees in the private sector organisations. Central Government officials were also interviewed. The formal private sector organisations included International Hospital Kampala, Top Hill Academy, Maganjo Grain Millers and ZZimwes Construction Company. I This study was based on a theory that the private sector development had contributed greatly to increased employment opportunities particularly and economic development generally. Th~ough this study I was able to realize that the structural adjustment policies/ / programmes created and helped the growth of formal private sector organisations among other factors. It was also found out that although the private sector organisations have contributed remarkably in employment creation, the terms and conditions of work in these sectors still need a lot of improvement. 

TABLE OF CONTENTS 

DECLARATION ............................................................................................................................................... 1 

APPROVAL. ................................................................................................................................................... II 

DEDICATION ............................................................................................................................................... 111 

ACKNOWLEDGEMENT .............................................................................................................................. IV 

TABLE OF CONTENTS ................................................................................................................................ V 

LIST OF TABLES ...................................................................................................................................... VIII 

LIST OF ACRONYMS ................................................................................................................................. IX 

ABSTRACT ..................................................................................................................................................... X 

CHAPTER ONE ............................................................................................................................................... I 

GENERAL INTRODUCTION ........................................................................................................................ 1 

i.1 BACKGROUND TO THE STUDY .................................................................................................................... 1 

1.1 PROBLEM STATEMENT ............................................................................................................................... 3 

1.2 OBJECTIVES OF THIS STUDY .................................................................................................................. 3 

1.2.1 General Objective ...................................................................................................................... 3 

1.2.2 Specific Objectives ....................................................................................................................... 3 

1.3 RESEARCH QUESTIONS ............................................................................................................................. 4 

1.4 RATIONALE OF THE STUDY ........................................................................................................................ 4 

1.5 SIGNIFICANCE OF THIS STUDY .................................................................................................................. 5 

CHAPTER TWO .............................................................................................................................................. 7 

2.0 LITERATURE REVIEW ......................................................................................................................... 7 

2.1 THEORETICAL FRAME WORK OF THE STUDY .............................................................................................. 7 

2.1.1Back ground to the structural adjustment programme ............................................ 7 

2.1.2 The structural Adjustment Programmes ....................................................................... 8 

Introduction of SAPs. ............................................................................................................................. 8 

2.2 PRIVATE SECTOR IN UGANDA .................................................................................................................. 12 

2.2.1 Definition. ................................................................................................................................ 12 

1 2.2.2 The Private Sector Development ............................................................................................. 13 

2.2.3 The Necessity of Private Sector Development.. .................................................................... 14 

2.3 LABOUR CONDITIONS ....................................................................................................................... 16 

2.3.1 THE EMPLOYMENT PATTERN ............................................................................................................ 16 

2.3.2 THE UNEMPLOYMENT SITUATION IN UGANDA ....................................................................................... 17 

2.3.4 LAWS AND REGULATIONS GOVERNING EMPLOYMENT ............................................................................ 18 

2.3.5 Nature and Conditions of Work ............................................................................................... 19 

2.3.6 Termination of Agreement ....................................................................................................... 20 

2.3.7 Care for the Employees at Work ............................................................................................. 20 

CHA.PTER THREE ........................................................................................................................................ 24 

METHODOLOGY ........................................................................................................................................ 24 

INTRODUCTION ............................................................................................................................................. 24 

3.1 RESEARCH DESIGN ................................................................................................................................. 24 

3.2 TARGET POPULATION .............................................................................................................................. 24 

3.3 SCOPE OF THE STUDY ............................................................................................................................. 25 

3.3.1 Study Area ........................................................................................................................... 25 

i 

V 

i 

3.3.2 Study Population ............................................................................................................... 26 

3.4 SAMPLE SELECTION ................................................................................................................................ 27 

3.4.1 Sampling Procedure .................................................................................................................. 27 

3.5 SOURCES OF DATA .................................................................................................................................. 29 

3.6. DATA COLLECTION METHODS ............................................................................................................ 29 

3.6.1 Self Administered Questionnaires ......................................................................................... 29 

1 3.6.2 Key Informant Interview. ....................................................................................................... 30 

3.6.3 Focus Group Discussions .......................................................................................................... 30 

3.6.4 Observation ................................................................................................................................ 31 

3.7 DATA PROCESSING ANALYSIS AND PRESENTATION ................................................................................... 31 

3.8 LIMITATIONS OF THIS STUDY .................................................................................................................. 31 

CHAPTER FOUR .......................................................................................................................................... 33 

PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS .................................................. 33 

4.1 PREAMBLE (BACKGROUND INFORMATION) ............................................................................................... 33 

1 4.1.1 Marital Status of Employees ..................................................................................................... 33 

4.1.2 Age Distribution of the Employees .......................................................................................... 35 

4.1.3 The Number of Dependants Living With Employees ............................................................ 37 

4.1.4 Education Levels of the Employees. ........................................................................................ 39 

4.1.5 Nationality of the Employees ................................................................................................... 40 

4.1.6 Duration in Kampala District .................................................................................................... 41 

4.1.7 Previous Employment before the Current Conditions .......................................................... 42 

4.2 CONDmONS OF WORK AND TERMS OF SERVICE IN_THE PRIVATE SECTOR ................................................ 42 

4.2.1 Recruitment of Employees ....................................................................................................... 42 

4.2.2 Appointment Letters .............................................................................................................. 44 

4.2.3 Type of Office Occupied ........................................................................................................... 45 

4.2. 4 Nature of the Job ................................................................................................................... 46 

4.2.5 Salaries, Wages and the Mode of Their Payment ........................................................ 47 

4.2.6 Income Bracket ..................................................................................................................... 48 

4.2.7 Other Privileges Other Than Salary. .................................................................................... 49 

4.2.8 Basic Items of Expenditure .................................................................................................. 50 

4.2.9 Security and Protection of Workers .................................................................................... 51 

1 4.2.10 Fulfillment of Expectations ..................................................................................................... 52 

4.2.11 Employee Associations ............................................................................................................ 52 

4.2.12 Job Insecurity. .......................................................................................................................... 53 

4.2.13 Working Relationships between Employees and Employers ............................................. 53 

4.2.15 Over Working of the Employees. ........................................................................................... 54 

4.2.16 Keeping Records on Employees ............................................................................................ 55 

4.3 GOVERNMENT INTERVENTION .......................................................................................................... 55 

4.3.1 Government Regulations towards the Private Sector. ...................................................... 55 

4.3.2 Improving the Employment Conditions in the Private Sector ......................................... 56 

4-.4 GOVERNMENT INTERVENTIONS TO REGULATE OPERATIONS ...................................................................... 57 

4.5 PRIVATIZATION OF THE PRIVATE SECTOR EMPLOYEES IN THE PUBLIC SECTOR ........................................ 58 

4.6 GOVERNMENT CONDmONS WHICH THE PRIVATE SECTOR SHOULD FULFILL ........................................... 58 

4.7 NEED FOR A COMPREHENSIVE POLICY ..................................................................................................... 59 

CHAPTER FIVE ............................................................................................................................................ 60 

SUMMARY, CONCLUSIONS AND RECOMMENDATION ......................................................................... 60 

5.1 SUMMARY OF THE FINDINGS ................................................................................................................... 60 

S.1.1 Conditions of Work. ................................................................................................................... 61 

i 5.1.2 Interventions by Government ............................................................................................ 62 

5.1.3 Autonomy of the Private Sector .......................................................................................... 63 

5.2 CONCLUSIONS ........................................................................................................................................ 63 

VI 

5.3 RECOMMENDATIONS ..........................................................................•.•••..•......................................•...•.. 64 

BIBLIOGRAPHY .......................................................................................................................................... 67 

I APPENDICES ............................................................................................................................................... 70 

APPENDIX A ...............................................................................•.•...•....•.•.•........................................•.........• 70 

APPENDIX B ........•.......................................................................••.•........................••...................•.....•.......... 72