Paper short abstract:

Many African trade unions face structural constraints. This is restricting the ability of officials to build capacities effectively. One response has been an increase in income-generating investments by unions. This presentation examines key issues relating to these investments.

Paper long abstract:

Many African labour organisations face substantive structural constraints. These restrictions stem to a considerable extent from paucity of finance, caused by falling membership and few alternative means of raising funds. The lack of financial capacity is restricting the ability of officials to build technical and institutional capabilities. Consequently, trade union facilities are generally poor in Africa. Few African trade unions do detailed analyses of labour issues. Thus, trade unionists are short of independently researched evidence-based knowledge of issues. Through their weak capacity, many trade unions also do not have legitimacy with members, the state and representatives of capital. One response has been the utilisation of income-generating investments by unions. Some argue this is a justifiable response, given the few options available to unions in terms of fundraising. Critics contend that trade unions should not on principle be engaging in speculative financial ventures with money received mostly from dues paid by members. The possibilities of poorly chosen investments and corruption on behalf of union budget-holders are highlighted. A case study of financial investment in a hotel complex by the Sierra Leone Teachers Union is examined to test the validity of the arguments surrounding this issue.