Full Project - IMPACT OF LABOUR MANAGEMENT RELATION ON NIGERIAN INDUSTRY

Full Project – IMPACT OF LABOUR MANAGEMENT RELATION ON NIGERIAN INDUSTRY

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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

In a modern society, the importance of industry cannot be overemphasized because every economic endeavour takes place in an industrial environment (Kehinde & Olanrewaju, 2010). Before the advent of industrialization, man‟s economic life was at the subsistence level. Needs were met elementarily. But as the industrial revolution swept through Western Europe in the eighteenth century, there was a transformation from agricultural to the industrial mode of production (Marin, 2002).

From the inception of industrialization the capitalists who were the owners of the means of production had a defined and established purpose for setting up the industry which was to make surplus profit, and over time, this has never changed. However, this is not so with the workers who had no choice but to sell their cheap and surplus labour to earn a living (Easterling, 2003). As the worker became absorbed in the emerging industrial life, he began to identify other underlying social and psychological needs and the need for a sense of belonging in the workplace. Simply put, the worker went into employment relationship with a felt need to acquire income but with time, he realized that more needs have to be met in order to be productive and efficient in the workplace.

Since the needs of the worker were not provided for by the capitalist whose major intent was to make surplus profit, conflict evolved in the workplace. The workers realized that they were exploited in the following ways: poor remuneration, debilitating conditions, alienation, lack of job security and the move by management to suppress the workers in the workplace. This led to the formation of trade-unions by workers which enabled them to channel their grievances to the employers who at first did not heed their demands.

The consequences were strikes, riots, picketing, loss of man hours and reduced production. The employers being constrained by the formation of trade-unions engaged in Collective bargaining (hereinafter referred to as CB) with the workers union via the management. This led to labour-management relations in the industry. According to Pandey (2007), labour-management relations (hereinafter referred to as LMRs) are the outcome of the „employment relationship‟ in an industrial enterprise. Without the existence of two parties, the employer and labour, this relationship cannot exist. It is the industry which provides the setting for LMRs.

Nigeria has witnessed its fair share of industrialization despite severe limitations which have left it still underdeveloped till date. The Nigerian economy was subsistent in nature but had a major transformation with the advent of colonialism. According to Yesufu (1984), the practice of wage-earning is relatively new and was practically non-existent before the coming of the white man and the Institution of the British Administration (IBA). The growth of the wage-earning population has proceeded pari passu with the political, social and economic growth of the country. Workers moved from the rural to the urban areas in search of employment and greener pastures which led to the permanent surplus of wage labour (Yesufu, 1984).

As also evidenced in other industrializing or industrialized countries, Nigerian workers in a bid to forge an equitable relationship with employers engaged in trade unionism. These unions have had typical problems of ideology, division, multiplicity of union, non partisanship by workers and government “interventions”. At the same time, there have been achievements as outlined by Ananaba (1969); Fashoyin (2002); Tokunboh (1985); Ubeku (1983) and Yesufu (1984). From the first labour strike of 1897 by Artisans and Labourers in the PWD (Public Works Department) in Lagos (Nwoko, 2009; Ubeku, 1983) to the latest picketing of Union bank by the Nigerian Labour Congress on 14^th February 2011(Oronsaye, 2011) the Nigerian trade unions have sought to better the lot of workers.

Today, in a highly liberalized Nigerian economy with high unemployment rate, poor leadership and neglect of the working class by the government which poses an obstacle to labour-management relations, this research seeks to explore the factors affecting the relationship between labour and management in Nigerian industries using Unilever Nigeria Plc. as a case study.

1.2 STATEMENT OF THE PROBLEM

Labour – Management relations is an area of industrial relations that cannot be neglected. This is because whether the relationship is cooperative or conflictual, it has an overbearing effect on both labour and management, the production process and on the national economy. Anthony (1977) opined that work is a cooperative activity; this implies an existing relationship between management and labour. On that note, this study does not focus on this relationship but on how their (workers and management) interest is equitably negotiated and achieved within the workplace. It is therefore important to examine those factors that affect this relationship in Nigerian Industries.

The evolution and eventual development of labour-management relations in Nigeria has largely been traced to activities which occurred during the colonial period (Yusuf, n.d.). Also Akpala (1982) noted that the remote background of the development of LMRs in Nigeria shows the absence of a sense of direction and a lack of policy for labour.

One of the factors that affect labour – management relations in any country is that of labour policy. A brief review of trade unionism as outlined by (Ananaba, 1969; Fashoyin, 2002; Offiong, 1983; Tokunboh, 1985; Ubeku, 1983; and Yesufu, 1984) and a critical examination of Nigerian labour policies (from the Trade Unions Ordinance of 1938 to the Trade Union Amendment Act of 2005) reveals an undeclared but evident restriction and continuous neglect of the working class in the government‟s labour policies. It is either the policies are not enforced or they constitute part of the rigidities and distortions that impede the smooth functioning of the labour relations (Scherrer & Greven; Plant & Panford as cited in Adewunmi & Adenugba, 2010). This inhibits the activities of the workers and their unions, thus giving the employers leverage over them.

The type of bargaining arrangement is also another factor that affects labour – management relations. Labour – management relations begins immediately a worker signs an employment contract with the employer. Yesufu (1984) noted that in the industrial relations (hereinafter referred to as „IR‟) tradition of Nigeria, it is the state‟s policy that conditions of employment should normally be settled by the parties directly concerned – namely, the workers and the employers – without the interference of any third party. While individual bargaining could be practiced in an industry where labour management relations are informed by values that include notions of equity (coupled with trade union recognition in both enterprise and industry level), it might also be exploitative where there is absence of trade unions or where the resolutions or collective agreements reached upon are not duly enforced. Yesufu (1984) noted that for large sections of the labour force in Nigeria, CB does not exist or that there are difficulties in establishing the relevant machinery.

The underlying defects of individual bargaining are more critical in an environment confronted by high unemployment and retrenchment rate. This is because an unemployed person in Nigeria is unprepared or not in a position to bargain with a prospective employer due to fear of losing the job appointment. According to Yesufu (1984) in the exercise of individual bargaining, ignorant or illiterate workers could easily be lured into unfair employment contracts and sign themselves away into virtual slavery. Most workers meeting an employer for the first time are confronted with an already established work situation which they are generally powerless to change. This situation leads to a relationship that will constantly be unbalanced and affect future outcomes of negotiation and bargaining between the worker and management.

In most cases, workers are not aware of their rights hence they may not even know when they are exploited. According to the Citizens Advice Bureau (CAB) Report as cited in Pollert (2006), most workers who had been denied their statutory rights were largely unaware of them, and even when advised of them, were particularly reluctant to take enforcement action through the ET system, for fear of losing their job or otherwise being unfairly treated by their employer as a result. In Nigeria this apathy and fear is manifest in poor union density and workers unwillingness to strike due to massive unemployment and job insecurity.

Workers participation in the industry is another factor that affects LMRs. Anya (2007) noted that workers participation in Nigeria is remote and that employers are reluctant to recognize unions let alone accepting their participation in decision making. The structure of most industries in Nigeria is paternalistic and consequently provokes suspicion between labour and management, thus, the Nigerian situation seems to hold little potentials for workers participation in decision making.

Another factor that affects LMR is the conflict that persistently exists between the Human Resource Management (hereinafter referred to as „HRM‟) and trade unions. Though there is a dearth of research on the effects of this conflict in Nigerian Industries, de Silva (n.d.), found out that this conflict exists due to the unitarist outlook of HRM (which sees a commonality of interests between managements and employees) and the pluralist outlook of IR (which assumes the potential for conflict in the employment relationship flowing from different interests). When there is no understanding between the unions and the HRM, it leads to mistrust and insecurity thereby leading to incessant conflict in the workplace.

In addition to these factors, reports by ICFTU (2005) stated that violations of trade union rights are widespread in Nigeria, which include intimidation of union members, refusal by employers to recognize trade unions, and dismissal of workers‟ representatives for trade union activities. Collective agreements are generally not honoured by employers. Strikes are often responded to with police violence, arrests and even killing of trade unionists. The above stated factors represent poor and biased labour management relations which usually end up in trade dispute, incessant strikes, picketing in Nigeria. This, according to Awe & Ayeni (2010), affects Nigeria‟s productivity and economic growth.

According to O‟Grady (2005), the employment relationship has swung too far in favour of the employer. The relationship between labour and management in Nigeria has always been intrinsically unequal. Based on the foregoing, this research seeks to explore the factors affecting labour-management relations in Nigerian industries using Unilever Nigeria Plc. as a case study.

1.3 RESEARCH QUESTIONS

The following questions will guide this study.

What is the character of labour management relations in Unilever Nigeria Plc?
How empowered is the average worker to bargain with the employer in Unilever Nigeria Plc?
What is the workers response to workplace exploitation in Unilever Nigeria Plc?
What is the state of workers participation in Unilever Nigeria Plc?
What is the nature of the relationship between the Human Resource Management and Trade Unions in Unilever Nigeria Plc?
In what ways can labour management relations be stabilized in Unilever Nigeria Plc?

1.4 OBJECTIVES OF STUDY

The Primary objective of this research is to explore the factors affecting labour management relations in the Nigerian industry using Unilever Nigeria Plc. as a case study.

Specific objectives are:

To identify the character of LMRs in Unilever Nigeria Plc.
To determine whether the average worker is empowered to bargain with the employer in Unilever Nigeria Plc.
To ascertain workers response to workplace exploitation in Unilever Nigeria Plc.
To determine the state of workers participation in Unilever Nigeria Plc.
To examine the nature of the relationship between the Human Resource Management and Trade Unions in the Unilever Nigeria Plc.
To examine possible ways in which LMRs can be stabilized in Unilever Nigeria Plc.

1.5 SIGNIFICANCE OF THE STUDY

Labour management relations is vital to the economic development of any country hence its significance. This study has both practical and theoretical significance. Practically, this study will bring to the front burner the factors affecting labour-management relations in Nigeria. It will serve as a relevant guide to both the managers of industries and the government, especially the Ministry of Labour, in the formulation of labour policies in Nigeria. The findings of this study will stimulate stable and harmonious labour management relations in the country. A harmonious labour-management relation will not only be beneficial to the employers of labour and employees but to the society as a whole.

Theoretically, this study will contribute to the existing knowledge in Industrial Sociology and Industrial relations in terms of contents and methodology. The research will serve as a source of secondary data to researchers on the subject and also stimulate further research on Nigerian labour management relations in the 21^st century.

1.6 OPERATIONALIZATION OF KEY CONCEPTS

Collective Bargaining – CB is the process of negotiation between employers and workers on the terms and conditions of employment. It involves the setting of terms and conditions of employment and the procedure for resolving workplace conflicts (NLC, 2011).

Collective Agreement – This is the agreement reached by both parties (the worker and the employer) or sometimes with the government during collective bargaining and is binding on the parties.

Human Resource Management – This is an integral part of the entire management of an industry that interacts with its workers, e.g. by providing training and development opportunities, appraisal to find out about individual needs, training and development needs analysis, etc. ({HYPERLINK “http://www.thetimes100.co.uk”}). This is an organization‟s team responsible for recruiting, managing, and directing employees.

Industry – This can be defined as an organized and coordinated economic activity concerned with the production, manufacture, or construction of a particular product or range of products.

Industrial Relations – This is concerned with the relationships which arise at and out of the workplace between labour and management and their representatives. These relationships and processes are influenced by the government and its agencies through policies, laws, institutions and programmes, and by the broader political, social, economic, technological and cultural characteristics of each country (Macdonald, 1997).

Job Insecurity – This is a worker‟s perception or feeling of a potential threat to continuity in his or her current job

Labour – This refers to workers who come together to offer and pool their skill and expertise towards the production of goods and services in the industry in exchange for income or wage.

Labour Policy -This is the body of administrative rulings, and precedents which address the legal rights of, and restrictions on and their organizations.

Management – Management as a group refers to all those persons who perform the task of managing an enterprise. Management assumes complete responsibility for organizing, planning, important decision making, directing and motivating people in the workplace.

Picketing – This occurs when aggrieved workers react and demonstrate in front of their workplace, thereby stalling production or the rendering of services to the public. It is used by trade unions to stop work in an organization that engages in anti-labour activities.

Poor Union Density – This refers to the low number of workers enrolled as members of a trade union.

Trade Union – It is defined as a continuous association of wage-earners for the purpose of maintaining or improving the conditions of their working lives (Webb, 1920).

Workplace Exploitation – The act or process of denying workers their basic right or taking undue advantage of the vulnerable ones.

Workers Participation – This is a process by which subordinate employees, either individually or collectively, become involved in one or more aspects of organizational decision making within the enterprises in which they work

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Full Project – IMPACT OF LABOUR MANAGEMENT RELATION ON NIGERIAN INDUSTRY

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Full Project – IMPACT OF LABOUR MANAGEMENT RELATION ON NIGERIAN INDUSTRY

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