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UWAEBUKA HERBERT O.
PG/MBA/09/53993
ACHIEVING ORGANISATIONAL EFFECTIVENESS
THROUGH EFFECTIVE INDUSTRIAL RELATIONS
BUSINESS ADMINISTRATION
MANAGEMENT
ELOKE, JULIUS IKENNA
Digitally Signed by: Content manager’s Name
DN : CN = Webmaster’s name
O= University of Nigeria, Nsukka
OU = Innovation Centre
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TITLE PAGE
ACHIEVING ORGANISATIONAL EFFECTIVENESS THROUGH EFFECTIVE
INDUSTRIAL RELATIONS
BY
UWAEBUKA HERBERT O.
PG/MBA/09/53993
A DISSERTATION SUBMITTED TO THE
DEPARTMENT OF MANAGEMENT, FACULTY OF BUSINESS
ADMINISTRATION, UNIVERSITY OF NIGERIA, ENUGU CAMPUS IN
PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF
MASTER OF BUSINESS ADMINISTRATION (MBA) IN MANAGEMENT
SUPERVISOR: DR. C.A. EZIGBO
SEPTEMBER, 2011.
iii
APPROVAL PAGE
The project has been approved for the Department of Management for the award of MBA
in Management.
By
…………………….. ……….…………………..
DR. C.A. EZIGBO DR. C.A. EZIGBO
Supervisor Head of Department
….………………… ………………………..
DATE DATE
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CERTIFICATION
I, Uwaebuka Herbert Okechukwu a Postgraduate student in the Department of
Management certify that the work embodied in this Dissertation is original and has not
been submitted in part or full for any other diploma or degree of this or any other
University.
………………..……………
UWAEBUKA HERBERT
STUDENT
v
DEDICATION
To my mum, and two sisters (Ogo and Nonye).
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ACKNOWLEDGEMENT
All submission and gratitude goes to the Almighty God, who in his infinite love and
mercies, gave me the knowledge and material I needed in completing this research. To God
alone be all the Glory as He remains my strength and wisdom.
I will forever be grateful to my research supervisor who’s also the Head of Department, Dr.
C. A. Ezigbo, as she drilled me into producing my best. She made me recognize the fact
that there’s always a reward for hard work, both mentally and physically.
Words will not be able to describe my appreciation to my loving family, my mum, Mr. &
Mrs. Ariwodo, Nonye, Chinedu, Nonso, Chinwe and Ebere, I owe them my all. I thank my
mentor and lecturer Dr. J. I. Uduji, senior lecturer of the Department of Marketing, UNEC
and zonal pastor of the Redeem Christian Church of God, Agbani branch, Enugu, for he
has been like a father to me.
I also thank Mbah Angel Chizoba, who’s so special to me and to all my friends who have
in one way contributed to this research, Jigga, Cobi, Gideon, Okolocha and Iyke, I will
always be grateful.
To God Be the Glory.
Uwaebuka Herbert O.
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ABSTRACT
This study focuses on achieving organizational effectiveness through effective industrial
relations. The objectives of the study are: to identify the industrial relations process of the
Nigerian public sector; to determine how to improve on the industrial relation’s process of
the public sector; to identify the benefits derived from effective industrial relations; and to
identify the strategies that could be used to manage industrial relation’s conflicts. The
research methodology is descriptive; data were generated through primary and secondary
sources. The study approach is based on research questions which have influenced the data
generated and pattern of descriptive analysis presented. The researcher analyzed the data
collected based on the responses from the distributed questionnaire. The chi-square test and
T-test was used to test the hypotheses. The findings from this study revealed that industrial
relations process of the Nigerian public sector includes collective bargaining, negotiations,
mediation and arbitration; decentralizing collective bargaining and practicing true
federalism will improve industrial relations process of the public sector; industrial harmony
and organizational effectiveness are attributed to effective industrial relations; and
collaboration and compromise can be used to manage industrial relations conflicts.
Based on the findings, the study recommends that the federal legislators should
institutionalize a decentralized collective bargaining as a bid to solving the conflicts arising
from the national minimum wage; efforts should be made by federal legislators to compel
the government to regularly publish its accounts publicly; more industrial courts should be
established; the labour laws in Nigeria should be reviewed and updated.
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TABLE OF CONTENTS
Title Page i
Approval Page ii
Certification iii
Dedication iv
Acknowledgements v
Abstract vi
Table of Contents vii
List of Tables xi
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of the Problem 2
1.3 Objectives of the Study 3
1.4 Research Questions 3
1.5 Research Hypotheses 4
1.6 Scope of the Study 4
1.7 Limitation of the Study 5
1.8 Significance of the Study 5
References 6
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Overview of Industrial Relations 7
2.2 History of Industrial Relations 7
2.3 Definition and Scope of Industrial Relations 8
2.4 Theoretical Perspectives of Industrial Relations 10
2.5 Elements of a Sound Industrial Relations System 12
2.6 Trade Unions 15
2.7 Collective Bargaining 17
2.8 Decentralizing Public Sector Collective Bargaining in Nigeria 19
2.9 Tripartism and Social Dialogue 24
2.10 Role of Government in Industrial Relations 25
2.11 Importance of Sound Industrial Relations 26
2.12 Dispute Resolution 27
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2.13 Labour Reform and Industrial Conflicts in Nigeria 28
2.14 Understanding Industrial Conflict 39
2.15 Process for Resolving Industrial Disputes 32
2.16 Achieving Organizational Effectiveness through
Effective Industrial Relations 34
References 37
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Area of the Study 41
3.2 Sources of Data 41
3.3 Population of the Study 41
3.4 Sample Size Determination 42
3.5 Description of the Research Instrument 43
3.6 Method of Data Analysis 44
3.7 Validity of the Instrument 45
3.8 Reliability of the Instrument 45
References 46
CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA
4.1 Testing of Hypotheses 51
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of Findings 58
5.2 Conclusion 58
5.3 Recommendations 58
Bibliography 60
Appendix 65
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LIST OF TABLES
Figure 2.1: Thompson’s model of understanding conflict resolution 31
Table 3.3.1 Target Population for the Study 42
Table 4.1: Questionnaire distribution 47
Table 4.2: Sex distribution and the respondent 47
Table 4.3: Age distribution of the respondents 47
Table 4.4: Working experience of the respondent 48
Table 4.5: Response on the industrial relations process in
the Nigerian public sector 48
Table 4.6: Responses on how to improve on the industrial
relations 49
Table 4.7: Responses on the benefits derived from effective
industrial relations 50
Table 4.8: Response on strategies that could be used to
manage industrial relations conflicts 50
Table 4.1.1: A contingency table (reproduced table 4.2.4) for
hypothesis testing 51
Table 4.1.2: A contingency table (Reproduced table 4.2.5) for
hypothesis testing 53
Table 4.1.3: A contingency table (Reproduced table 4.2.6) for
hypothesis testing 55
Table 4.1.4: A contingency table (Reproduced table 4.2.7) for 56
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CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Industrial relations is a multidisciplinary field that studies the employment relationship.
Industrial relations is increasingly being called employment relations because of the
importance of non-industrial employment relationships. Many outsiders also equate
industrial relations to labour relations and believe that industrial relations only studies
unionized employment situations, but this is an oversimplification (Ackers, Peter, 2002).
Industrial relations has its roots in the industrial revolution which created the modern
employment relationship by spawning free labour markets and large-scale industrial
organizations with thousands of wage workers. As society wrestled with these massive
economic and social changes, labour problems arose. Low wages, long working hours,
monotonous and dangerous work, and abusive supervisory practices led to high employee
turnover, violent strikes and the threat of social instability. Intellectually, industrial
relations was formed at the end of the 19th
century as a middle ground between classical
economics and Marxism, with Sidney Webb and Beatrice Webb’s Industrial Democracy
(1897) being the key intellectual work. Industrial relations thus rejected the classical
economics (www.wikipedia.org).
According to Englama (2001), industrial relations refers to the combination of interactions
that take place between the employee and employer in an organization. He believed that the
fundamental problem in all organization, whether business, educational, local or national,
was in developing and maintaining a dynamic and harmonious relationship in the
workplace. To achieve this, group dynamics, policy making by consultation, diffusion of
authority, delegation, vertical and horizontal communication have to be ushered in.
In more recent time industrial relations have been influenced by other social sciences such
as organizational psychology and behaviour. Traditionally, economics and law were two
main influences on industrial relations, which led to a concentration on macro level
industrials relations, and therefore on unions, government and collective bargaining.
Paradoxically, industrial relations, though dealing with “relation” has until recently largely
ignored the social science sciences relevant to behaviour and human relations. While labour
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problems are the result of imperfections in the employment relationship, industrial relations
should be seen as the theories and methods which have been developed over time to
address and correct these problems, in both public and private sector of the economy.
The essence of good industrial relation lies in the bringing up of good labour relations
which gives a forum to understand each other (employer, employee) properly. Creates co-
operative thinking and working to achieve the goal of the organization. A good industrial
relation increases the morale of employees and encourages them to give their maximum
effort. Each thinks of their mutual interest which paves way for introduction of new
methods, developments and leading to adoption of modern technology, thereby increasing
the industry’s organizational effectiveness in the long run. Good industrial relations
increases production, improves quality of work and product and efficiency of workers are
increased.
Organizational effectiveness is the measures of how successful organizations achieve their
missions through their core strategies. Organizational effectiveness studies are concerned
with the unique capabilities that organizations develop to assure that success (McCann,
2004). Industrial relations and organizational effectiveness share a common feature, which
is that they are both internalized within the organization. The resulting correlation between
the two is that, a good industrial relations system would invariably breed and improve
organizational effectiveness, thereby making organizational effectiveness dependent on
good industrial relations. Thus, the study focuses on achieving organizational effectiveness
through sound industrial relations.
1.2 STATEMENT OF THE PROBLEM
One major reason for the incessant industrial actions in Nigeria today is due to lack of
good salary review policy that would be in line with changes in some macroeconomic
factors such as prices of goods and services, and inflation. Prices of goods and services
continue to increase everyday while the review of public sector employee’s salaries are
only considered years after negotiations and industrial actions. An application of effective
industrial relation practices would ensure an established way of reviewing workers salaries
in line with changes in the economy.
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Over the years, Nigeria has witnessed protests and industrial actions by the public
employees through their various labour unions over the non-implementation of agreed
policies. Such incidents could be avoided if the government sincerely applies effective
industrial relation practices.
Economic reforms and the quest for organizational effectiveness in the public
administration, calls for collective bargaining of a good compensation plan/policy which
includes better working conditions and motivational incentives in the public sector of
Nigeria. Efforts to achieve this had led to protracted industrial actions and low morale of
employees in the public sector today.
Another issue affecting the organizational effectiveness of the public sector is
governments’ continuous insensitivity and insincerity to policies directly or indirectly
affecting the public employees and its lackadaisical approach towards addressing these
issues. Thus, the study focuses on achieving organizational effectiveness through effective
industrial relations.
1.3 OBJECTIVES OF THE STUDY
The specific objectives of the study include the following:
(1) To identify the industrial relations process of the Nigerian public sector.
(2) To determine how to improve on the industrial relation’s process of the public
sector.
(3) To identity the benefits derived from effective industrial relations.
(4) To identify the strategies that could be used to manage industrial relations conflicts.
1.4 RESEARCH QUESTIONS
The following questions will be addressed in this study;
(1) What are the industrial relations process of the Nigerian public sector?
(2) How can the industrial relation’s process of the Nigerian public sector be improved
upon?
(3) What are the benefits obtainable from effective industrial relations?
(4) What are the strategies that could be used to manage industrial relation’s conflicts?
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1.5 RESEARCH HYPOTHESES
The following hypotheses are put forward for this study:
1. Ho: Industrial relations process in the Nigerian public sector does not include
collective bargaining, negotiations, mediation and arbitration.
Hi: Industrial relations process in the Nigerian public sector includes collective
bargaining, negotiations, mediation and arbitration.
2. Ho: Decentralizing collective bargaining and practicing true Federalism will not
improve industrial relations process in the public sector.
Hi: Decentralizing collective bargaining and practicing true Federalism will
improve industrial relations process in the public sector.
3. Ho: Industrial harmony and organizations effectiveness are not attributed to
effective industrial relations.
Hi: Industrial harmony and organizational effectiveness are attributed to
effective industrial relations.
4. Ho: Collaboration and compromise cannot be used to manage industrial
relations conflicts.
Hi: Collaboration and compromise can be used to manage industrial relations
conflicts.
1.6 SCOPE OF THE STUDY
This study will examine the major issues affecting labour relations with regards to the
Nigerian public sector, with focus on the public sector in Enugu State. The research would
cover topics of interests such as definitions and theoretical perspectives of industrial
relations, elements and importance of a sound industrial relations system, trade unions and
their functions, principles of collective bargaining and decentralizing collective bargaining
in the public sector. The study would also look at the role of the government in industrial
relations dispute resolution and the labour reforms in Nigeria.
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1.7 LIMITATIONS OF THE STUDY
This study has the following constraints.
Time
The researcher does not have sufficient time to carry out this study. There was
constraint of time in going to places where data and information relevant to the
study could be obtained.
Finance
Such an empirical research demands much money for its successful completion.
Much money was required to cover transportation costs and materials used for the
study.
Attitude of the Respondents
Some of the respondents were unwilling to corporate with the researcher because
they felt they would not benefit from the study and equally have the mindset that
the secret of the organization will be exposed.
1.8 SIGNIFICANCE OF THE STUDY
The study is significant to the government as it formulates labour reforms and policies that
would be widely accepted and would be of international standards in the country. It would
also enable the government promote industrial harmony between the government and its
employees. The study will also be significant to the various trade unions in the country as it
would educate its members and leaders on the principles and practices of collective
bargaining in the public sector.
To a large extent, the study will be of immense benefit to all stakeholders in the public
sector, as it would suggest ways on how to address or avoid industrial conflicts.
xvi
REFERENCES
Ackers, P. (2002), “Reframing Employment Relations: The Case for Neo-Pluralism”,
Industrial Relations Journal.
Englama, A. (2001), “Unemployment Concepts and Issues”, Bullion, Central Bank of
Nigeria, Oct./December.
Industrial Relations – www.wikipedia.org.
Industrial Relations Management- www.citehr.com/industrial-relations-management
McCann, J. E. and Buckner, M. (2004), “Strategically Integrating Knowledge Management
Initiative” Journal of Knowledge Management; Vol. 8.
xvii
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 OVERVIEW OF INDUSTRIAL RELATIONS
Industrial relations have three faces: science building, problem solving and ethical. In the
science building face, industrial relations is part of the social sciences and it seeks to
understand the employment relationships and its institutions through high-quality, rigorous
research. In this vein, industrial relations scholarship intersects with scholarship in labour
economics, industrial sociology, labour and social history, human resources management,
political sciences, law and other areas.
In the problem solving face, industrial relations seeks to design policies and institutions to
help the employment relationship work better. In the ethical face, industrial relations
contains strong normative principles about workers and the employment relationship,
especially the rejection of treating labour as a commodity in favour of seeking workers as
human beings in democratic communities entitled to human rights.
Industrial relations scholarship assumes that labour markets are not perfectly competitive
and thus, in contrast to mainstream economic theory, employers typically have greater
bargaining power than employees. Industrial relations scholarship also assumes that there
are at least some inherent conflicts of interest between employers and employees (for
example, higher wages versus highest profits) and thus, in contrast to scholarship in human
resources management and organizational behaviour, conflicts is seen as a natural part of
the employment relationship.
2.2 HISTORY OF INDUSTRIAL RELATIONS
Industrial relations have its roots in the industrial revolution which created the modern
employment relationship by spawning free labour markets and large-scale industrial
organizations with thousands of wage workers (Kaufman, 2004). As society wrestled with
these massive economic and social changes, labour problems arose. Low wages, long
working hours, monotonous and dangerous work, and abusive supervisory practices led to
high employee turnover, violent strikes, and the threat of social instability. Intellectually,
industrial relations was formed at the end of the 19th
century as a middle ground between
classical economics and Marxism, with Sidney Webb and Beatrice Webb’s Industrial
xviii
Democracy (1897) being the key intellectual work. Industrial relations thus rejected the
classical economics.
Institutionally, industrial relations were founded by John R. Commons when he created the
first academic industrial relations programs at the University of Wisconsin in 1920. Early
financial support for the field came from John D. Rockefeller, Jr. who supported
progressive labour-management relations in the aftermath of the bloody strike at a
Rockefeller-owned coal mine in Colorado.
Industrial relations was formed with a strong problem solving orientation that rejected both
the classical economists’ laissez faire solutions to labour problems and the Marxist solution
of class revolution. It is this approach that underlies the New Deal legislation in the United
States, such as the National Labour Relations Act and the Fair Labour Standards Act.
2.3 DEFINITION AND SCOPE OF INDUSTRIAL RELATIONS
In the broad sense, industrial relations cover all such relationships that a business enterprise
maintains with various sections of the society such as workers, state, customer and public
who come into its contact.
In the narrow sense it refers to all types of relationships between employer and employees,
trade union and management, works and union and between workers and workers. It also
includes all sorts of relationship at both formal and informal levels in the organization.
According to Englama (2001), industrial relation refers to the combination of interactions
that take place between the employee and employer in an organization. Gospel and Palmer
(2002) defined industrial relations as the process of control over the employment
relationships, the organization of works and relations between employers and their
employees.
Industrial relation is a relation between employer and employees, employees and
employees, and employees and trade unions and the process by which people and their
organizations interact at the place of work to establish the terms and conditions of
employment- Industrial Dispute Act 1947. J. T. Dunlop defines industrial relations as “the
complex interrelations among managers, workers and agencies of the government”.
According to Dale Yoder “industrial relations is the process of management dealing with
xix
one or more unions with a view to negotiate and subsequently administer collective
bargaining agreement or labour contract”.
In industrial relations therefore, one seeks to study how people get on together at their
work, what difficulties arise between them, how their relations including wages and
working conditions, etc are regulated.
Industrial relations, thus, include both “industrial relations” and “collective relations” as
well as the role of the state in regulating these relations. Such a relationship is therefore
complex and multidimensional resting on economic, social psychological, ethnic,
occupational, political and legal levels. There are mainly two set of factors that determine
the state of industrial relations-whether good or poor in any country. The first set of factors,
described as “institutional factors” include type of labour legislation, policy of state relating
to labour and industry, extent and stage of development of trade unions and employers’
organization and the type of social institutions. The other set of factors, described as
“economic factors” include the nature of economic organization capitalists, socialist
technology, the sources of demand and supply in the labour market, the nature and
composition of labour force etc.
The scope of industrial relations includes all aspects of relationships such as bringing
cordial and healthy labour management relations, creating industrial peace and developing
industrial democracy.
The cordial and healthy labour management relations could be brought in-
• By safeguarding the interest of the workers;
• By fixing reasonable wages;
• By providing good working conditions;
• By providing other social security measures;
• By maintaining healthy trade unions;
• By collective bargaining
The industrial peace could be attained-
• By setting industrial disputes through mutual understanding and agreement
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• By evolving various legal measures and setting up various machineries such as
works committee, Boards of Conciliation, Labour Courts etc.
The industrial democracy could be achieved-
• By allowing workers to take part in management and
• By recognition of human rights.
2.4 THEORETICAL PERSPECTIVES OF INDUSTRIAL RELATIONS
Industrial relations scholars have described three major theoretical perspectives or frame
work, that contrast in their understanding and analysis of workplace relations. The three
views are generally known as unitarism, pluralist and radical. Each offers a particular
perception of workplace relations and will therefore interpret such events as workplace
conflict, the role of unions and job regulations very differently. The radical perspective is
sometimes referred to as the “conflict model”, although this is somewhat ambiguous as
pluralism also tends to see conflict as inherent in work places. Radical theories are strongly
identified with Marxist theories.
2.4.1 Unitary Perspective
In unitarism, the organization is perceived as an integrated and harmonious whole with the
ideal of “one happy family”, where management and other members of the staff all share a
common purpose, emphasizing mutual cooperation. Furthermore, unitarism has a
paternalistic approach where it demands loyalty of all employees, being predominantly
managerial in its emphasis and application.
Consequently, trade unions are deemed as unnecessary since the loyalty between
employees and organizations are considered mutually exclusive, where there can’t be two
sides of the industry. Conflict is perceived as disruptive and the pathological result of
agitators, interpersonal friction and communication breakdown.
2.4.2 Pluralist Perspective
In pluralism the organization is perceived as being made up of powerful and divergent sub-
groups, each with its own legitimate loyalties and with their own set of objectives and
leaders. In particular, the two predominant sub-groups in the pluralistic perspective are the
management and trade unions.
xxi
Consequently, the role of management would lean less towards enforcing and controlling
and more towards persuasion and coordination. Trade unions are deemed as legitimate
representatives of employees, conflict is dealt by collective bargaining and is viewed not
necessarily as a bad thing and, if managed, could in fact be channeled towards evolution
and positive change.
2.4.3 Radical Perspective
This view of industrial relations looks at the nature of the capitalist society, where there is
fundamental division of interest between capital and labour, and sees workplace relations
against this history. This perspective sees inequalities of power and economic wealth as
having their roots in the capitalist economic system. Conflict is therefore seen as inevitable
and trade unions are a natural response of workers to their exploitation by capital. Whilst
there may be periods of acquiescence, the Marxist view would be that institutions of joint
regulation would enhance rather than limit management’s position as they presume the
continuation of capitalism rather than challenge it.
Industrial conflicts are the result of several socio-economic, psychological and political
factors. Various lines of thoughts have been expressed and approaches used to explain this
complex phenomenon.
2.4.4 Psychological Approach
According to Psychologists, problems of industrial relations have their origin in the
perception of the management, unions and rank and file workers. These perceptions may be
the perceptions of persons, of situations or of issues involved in the conflict. The
perceptions of situations and issues differ because the same position may appear entirely
different to different parties.
The reasons of strained industrial relations between the employers and the employees can
be understood by studying differences in the perception of issues, situations and persons
between the management groups and labour groups.
2.4.5 Sociological Approach
Industry is a social world in miniature. The management goals, workers’ attitudes,
perception of change in industry, are all, in turn, decided by broad social factors like the
xxii
culture of the institutions, customs, structural changes, status-symbols, rationality
acceptance or resistance to change, tolerance, etc. Industry is, thus inseparable from the
society in which it functions. As industries develop, a new industrial-cum social pattern
emerges, which provide general new relationships, institutions and behavioural pattern and
new techniques of handling human resources. These do influence the development of
industrial relations.
2.4.6 Human Relations Approach
Human resources are made up of living human beings. They want freedom of speech, of
thought of expression, of movement etc. When employers treat them as inanimate objects,
encroach on their expectations, throat-cuts conflicts and tensions arise.
Though tension is more direct in work place, gradually it extends to the whole industry and
sometimes affects the entire economy of the country. Therefore, the management must
realize that efforts are made to set right the situation. Services of specialists in behavioural
sciences are used to deal with such related problems. It has now been increasingly
recognized that much can be gained by the manager and the worker, if they understand and
apply the technique of human relations approaches to industrial relations.
2.5 ELEMENTS OF A SOUND INDUSTRIAL RELATIONS SYSTEM
According to the International Labour Organization (ILO), it is generally agreed that
elements of a sound industrial relations system, both at the national and industry level,
comprises the following elements.
2.5.1 Freedom of Association
The fundamental premise of a sound industrial relations system is the recognition and
existence of the freedom of association accorded to both employers and workers. This
freedom should include recognition of organizations of workers and employers as
autonomous, independent bodies, subject neither to their domination by each other or by
the government. Observance of states of the basic principles of the International Labour
Organization convention relating to Freedom of Association and Protection of the Right to
organize No. 87 (1948) is often regarded as the yardstick by which a country’s recognition
of this freedom is measured.
xxiii
In essence, the convention postulates that workers and employers without distinction
whatsoever have the right to establish and join organizations of their own choosing with a
view to defending their respective interests, subject to national legislation which
determines the extent to which the guarantees in the convention will apply to the armed
forces and the police.
2.5.2 Tripartism and Labour Policy Formulation
Tripartism is the process through which the foundation for a sound industrial relations
system can be laid at the national level. Ideally, tripartism is the process whereby the
government, the most representative workers’ and employer’s organizations as independent
and equal partners, consult with each other on labour market and related issues which are
within their spheres of competence, and jointly formulate and implement national policies
on such issues.
2.5.3 The Role of the Law
Industrial relations systems are founded on a framework of labour laws which exerts an
influence on the nature of the industrial relations system. However, resources to the law
and its potential to influence the resulting industrial relations system may sometimes be
over-emphasized. It is useful therefore, to examine from three points of view, the role of
the law in influencing an industrial relations system-what its objectives should be and the
areas it should cover as well as what the law cannot achieve.
2.5.4 Collective Bargaining
Collective bargaining may take place at the national, industry or enterprise level. It could
be said that collective bargaining is a means of settling issues relating to terms and
conditions of employment and has little to do with labour management relations policy
formulation. Nevertheless, collective bargaining may reflect-sometimes explicitly and at
other times implicitly –labour management relations policy e.g. on wage guidelines,
termination of employment procedure. It can also be a means of developing policy
formulation at the industry level.
2.5.5 Labour Courts
The agents of change in industrial relations are usually trade unions, employers and their
organizations, governments through legislation and administrative action, and the system of
xxiv
courts which may be a combination of the normal courts and special courts or tribunals set
up to deal with matters pertaining to labour. Labour courts have been established in several
countries because the normal system of courts and the system of law they administer,
cannot adequately deal with labour relations issues, which require an equitable rather than a
purely legal approach. Therefore, labour courts are often empowered to decide industrial
relation issues on a mixture of equitable and legal principles.
2.5.6 Human Resources Management Polices and Practices
The elements of a sound industrial relations system are closely linked to a progressive
human resource management policy translated into practice. Harmonious industrial
relations are more likely to exist in an enterprise where human resource management
policies and practices are geared to proper recruitment and training, motivational systems,
two-way communication, career development, a people-oriented leadership and
management style, etc. Many of these human resources management activities have an
impact in the overall industrial relations climate in an enterprise.
2.5.7 Worker Participation and Employee Involvement
It is important at the outset to separate several issues relating to participation,
communication and consultation: the principle of communication; the methods or means to
give effect to this principle; and whether the principles and/or means should be enshrined
in legislation, or should be the subject of bipartite negotiation, or should be at the
employer’s initiative.
2.5.8 Communication
The starting point for any effective enterprise policy to install procedures and mechanisms
to promote sound labour relations is communication, because it is relevant to a whole range
of issues and matters such as productivity, small group activities, joint consultation,
performance appraisals, and motivation, as well as organizational performance.
The performance of an organization is affected by the manner in which the organization
communicates with its employees. This involves information exchange, and not merely
one-way communication. The performance of employees in an organization is conditioned
by the performance of others in the organization. Changes in an organization can be
xxv
brought about in an effective way where there is sufficient understanding between
management and employees.
2.5.9 Quality of Working Life Programmes
Quality of Work life (QWL) programmes aim at combating workers alienation, integrating
workers and encouraging workers involvement in the enterprises. They also aim at
increasing worker motivation and instilling a sense of responsibility as well as at changing
work organization so as reduce costs and increase flexibility. Quality of work-life
programmes and autonomous work groups, which emerged in the USA during the 1970s
and 1980s, initially concentrated on improving the workplace environment and motivating
workers, and subsequently on enhancing productivity and quality.
2.5.10 Training
The importance of human resources development in dispute prevention and settlement is
often overlooked. Many workplace problems and issues are the result of unsatisfactory
supervisory management and the lack of awareness on the part of employees about the
workings of the enterprises. Well managed enterprises see supervisors as critical to labour
relations because it is they who interact most often with employees, and are the first to
identify problems and it is their attitudes towards employees which condition the latter’s
view about the management. Supervisory development and training is therefore an
important aspect of developing sound labour relations at the enterprise level.
2.6 TRADE UNIONS
The term “trade union” has been defined in various ways because of wide differences in the
use of these terms in different countries. Of all the definition of a trade union, the classic
definition of the Webbs has been most popular. According to them a trade union is “a
continuous association of wage-earners for the purpose of maintaining or improving the
condition of their working lives”. Since this definition does not cover all the extensions of
trade union activities in modern time, a trade union with some modification may be
redefined as “a continuous association of wage-earners or salaries employees for
maintaining the conditions of their working lives and ensuring them a better and healthier
status in industry as well as in the society”.
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2.6.1 Background of Trade Union Movement
Union originated, mainly in Great Britain and the U.S.A. in the late 18th
and early 19th
centuries, as association of workers using the same skill. There is no connection between
trade unions and medieval craft guilds, for the latter were composed of master craftsmen
who owned capital and often employed several workers. Their early unions were formed
partly as social clubs but soon became increasingly concerned with improving wages and
working conditions, primarily by the device of collective bargaining.
Progressing from trade to trade within the same city or area, the clubs formed local
associations which, because they carried in their main activities on a purely local level,
were almost self-sufficient. With industrial development, however, local association sooner
or later followed the expansion of production beyond the local market and developed into
national unions of the same trade. These in turn formed national union federation.
2.6.2 Functions of Trade Unions
• Functions relating to members
• Functions relating to organization
• Functions relating to the union, and
• Functions relating to the society
Functions Relating to Trade Union Members
(1) To safeguard workers against all sorts of exploitation by the employers, by union
leaders and by political parties.
(2) To protect workers from the atrocities and unfair practices of the management
(3) To ensure healthy, safe and conducive working conditions, and adequate conditions
of work.
(4) To exert pressure for enhancement of rewards associated with the work only after
making a realistic assessment of its practical implications.
(5) To ensure a desirable standard of living by providing various types of social
services and by widening and consolidating the social security measures.
(6) To encourage worker’s participation in the management of industrial organization
and trade union, and to foster labour-management cooperation.
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Functions Relating to Industrial Organization
(1) To highlight industrial organization as a joint enterprise between workers and
management and to promote identity of interests.
(2) To increase production quantitatively and qualitatively by laying down the norms
principles and ensuring their adequate observance.
(3) To create opportunities for worker’s participation in management and to strengthen
labour- management cooperation.
(4) To help in the maintenance of discipline.
(5) To help in the removal of dissatisfaction and redress of grievances and complaints.
Functions Relating to Trade Unions Organization
(1) To formulate policies and plans consistent with those of the industrial organization
and society at large.
(2) To improve financial position by fixing higher subscription, by realizing the union
dues and by organizing special fund-raising campaigns.
(3) To preserve and strengthen trade union democracy.
(4) To train members to assume leadership position.
(5) To improve the network of communication between trade union and its members.
Functions Relating to Society
(1) To render all sorts of constructive cooperation in the formulation and
implementation of plans and policies relating to national development.
(2) To launch special campaigns against the social evils of corruption, nepotism,
tribalism, etc.
(3) To create public opinion favourable to government’s policies and plans, and to
mobilize people’s participation for their effective implementation.
(4) To create public opinion favourable to trade unions and thereby to raise their status.
2.7 COLLECTIVE BARGAINING
The term collective bargaining is made up of two words, “collective”–which means “group
action” through representation and “bargaining” which means “negotiating”, which
involves proposals and counter-proposals, offers and counter-offers. Thus it means the
collective negotiations between the employer and the employee, relating to their work
xxviii
situations. The success of these negotiations depends upon mutual understanding and
give and take principles between the employers and employees.
According to the International Labour Organization (ILO) collective bargaining is a
formal process that involves negotiation, consultation and the exchange of information
between employers and workers, the end goal being an agreement that is mutually
acceptable to all parties. The U.S Bureau of Labour Statistics defined collective
bargaining as a process of negotiations between employers and the representatives of a
unit of employees aimed at reaching agreements which regulate working conditions.
Collective agreements usually set out wages scale, working hours, training, health and
safety, overtime, grievance mechanisms and rights to participate in workplace or
company affairs.
2.7.1 Principles of Collective Bargaining
The success of collective bargaining is based on certain principles. These principles are
to be followed by the employers and unions. Prof. Arnold F. Campo has laid down
certain principles for union and management, for management and for union.
For Both Union and Management
(1) Collective bargaining process should give due consideration to hear the
problems on both sides. This will develop mutual understanding of a problem
which is more important for arriving at the solutions.
(2) Both the management and union should analyze the alternatives to arrive at the
best solution.
(3) There must be mutual respect on both the parties.
(4) Both the union and management must have good faith and confidence in
discussing and arriving at a solution.
(5) Collective bargaining required effective leadership on both sides, on the union
side and management side to moderate discussions and create confidence.
For Management
(1) Management should think of realistic principles and policies for labour
regulations.
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(2) The recognition of a trade union to represent the problems is more essential. If there
is more than one union, the management can recognize one which is having the
support of majority of workers.
(3) Management should follow a policy of goodwill, and cooperation in collective
bargaining rather than an indifferent attitude towards the union.
(4) Management need not wait for trade union to present their grievances for
settlement. Management can voluntarily take measures to settle the grievance.
(5) Management should give due consideration to social and economic conditions of
workers in collective bargaining.
For Unions
(1) Unions should avoid undemocratic practices.
(2) Unions have to recognize their duties to the management also before emphasizing
their demands.
(3) Unions have to consider the benefits to all workers rather than a section of workers.
(4) Strikes or lock-outs should be resorted to, only as a last measure. As far as possible
they have to be avoided by compromise and discussion.
2.8 DECENTRALIZING PUBLIC SECTOR COLLECTIVE BARGAINING IN
NIGERIA
Economic reforms and the quest for efficiency in public administration call for the
decentralization of collective bargaining and wages in the public sector in Nigeria. But the
effort to decentralize has translated into both a protracted industrial relations crisis and
intergovernmental conflict. This situation is traced to the failed effort at institutionalizing
collective bargaining and the consolidation of the unified wage structure in the public
sector by the resort to ad hoc wage commissions. The distorted fiscal federalism and
intergovernmental relations under the military in Nigeria complicated the situation, such
that resolving the federal question has become critical to returning stability to Nigeria’s
industrial relations system (Aiyede, 2002).
There has been a recurring battle between the various levels of Nigerian governments on
the one hand, and between these governments and organized labour on the other, over the
determination of public sector wages. Although this conflict became egregious with the
adoption and decentralized collective bargaining by the national government in 1991, it
xxx
reflects a critical industrial relations problem: the failure to institutionalized collective
bargaining in the public sector. More than this, it also reflects the contradictions of
federalism under the military. The effort to decentralize collective bargaining served to
unveil these contradictions of federal practices under military rule and put their implication
for public administration in bold relief. The machineries set up for collective bargaining in
the public sector, such as the National Civil Services Negotiating Councils and the State
Civil Service Negotiating Councils, were never allowed to work. Public sector wages have
been set through government fiat or quasi-political wages commissions or tribunals largely
set up by the government. The implementation of agreements on wages, reached through
the machinery of nationwide negotiations that has predominated in the public sector, has
often been chaotic, attended by controversy, agitations, and widespread strikes costing the
country enormous resources in terms of man-days lost. The crisis has been unleashed by
the bloated nature of the public service, which is responsible for the huge expenditure on
salaries by the government. Such expenditures became unsustainable during the economic
crisis that began in the 1980s (Aiyede, 2002).
2.8.1 Issues in the Decentralization of Collective Bargaining
The structure of collective bargaining refers to a system of negotiating the wages or
remuneration of labour. Ordinarily there are two patterns of interaction between the parties
in industrial relations. These are the tripartite and bipartite patterns. Tripartite interaction
involves three parties, namely government, employer and labour. Bipartite interaction
involves two parties in industrial relations. The major issues discussed and negotiated
usually center on wages and salaries, and working conditions. Tripartism usually occurs at
the national level and at the level of the various governments in a federal system. Bipartism
may be carried out at the national, industrial sector, parastatal, firm, or plant levels.
In the public sector, decentralization seeks to shift the coverage of collective agreements
from the national level to the level of the various employer governments, government
departments and parastatals. In the private sector, industry wide bargaining shifts to the
enterprise and/or plant level. Generally, certain economic and political changes drive the
decentralization of collective bargaining in organizations. These are changes in production,
changes in occupational structure and increases in international economic integration
driven by intense deregulation and competition. The rise to “diversified quality production”
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and “flexible specialization” dictate a reduction in union control of job contents as
organizations seek new ways of organizing work (Aiyede, 2002).
Constraints on public finance, balance of payments deficits, exchange rate fluctuations and
inflationary pressures have occasioned the worldwide implementation of neo-liberal
economic reforms that aim to reduce government intervention in the economy. Government
interventions, it has been argued, “misallocate labour, waste resources through rent-
seeking, impair adjustments to economic shocks, and deter investment, thereby reducing
rates of growth” (Freeman, 1993:119). Economic deregulation pushes for a flexible labour
market and thus translates into decentralizing wage bargaining to the industrial worker-
employer level if possible. It also involves the removal or erosion of minimum wage
machinery, so that labour costs will fall and the “quasi-voluntarily unemployed queuing for
formal sector jobs will filter back into available informal sector jobs” (Standing, 1991:23).
Attitudes toward decentralized bargaining are largely determined by the advantages that are
likely to accrue to the parties involved within the given context. Katz (1993) notes that the
structure of collective bargaining is not only complex; it is very influential to bargaining
outcomes and affects the roles of unions and management. It also affects the roles of
corporate industrial relations staff and exerts significant effects on the internal politics of
unions. Bargaining structure influences and is influenced by the distribution of bargaining
power. Decentralized collective bargaining may be a useful tool through which employers
gain bargaining power advantage. Employers seem to benefit from the ability to play plant
or local unions off against one another. Yet employers, after gaining lower wage outcome
or wider skill differentials through whipsawing, may in the future prefer to return to
centralized bargaining because of the advantages it provides (e.g. stability, predictability
and economies of scale).
Although centralized bargaining enables unions to remove working conditions out of
competition and gain whipsaw advantage, decentralized bargaining provides the
opportunity for local union leaders, as well as workers at many sites, to participate in shop-
floor and strategic business decisions. Workers who have benefited from some of the more
flexible work schedules that have been negotiated prefer decentralized bargaining. Local
unions may agree to decentralize simply as part of a package of concessions in return for
keeping their own plant in business.
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2.8.2 Pressures for Decentralizing Collective Bargaining and Intergovernmental
Challenges
The weaknesses of the federal structures began to manifest when the country began to face
severe balance of payments difficulties in the early 1980s and several states could not pay
the wages of their workforce for more than six months, which lead to widespread strikes.
Calls were made for the first time after the Williams panel for the decentralization of the
wages determination process to reflect the ability to pay of the various levels of
government. But the elected state governments perceived the difficulty in paying workers’
salaries to be caused by a temporary economic crisis, the oil shock of the early 1980 and
avoided the decentralization option, which would have pitted them against labour unions.
Believing that the oil market would improve, the governments resorted to borrowing from
both local and international sources to pay salaries (Olukshi, 1993:1-2). But as efforts to
revamp the economy yield little gains and public debts continued to rise, the federal
governments resorted to down-sizing the public sector by dismissing those found engaged
in acts of indiscipline, especially under the General Buhari military government (Olukoshi,
1989:34). Then in 1985, General Babangida declared an eighteen-month state of economic
emergency, which include compulsory deductions of between two to twenty percent from
the salaries of workers in the public sector, including those of the armed forces.
Furthermore pressures from labour unions forced the government to lift the existing wage
freeze in 1991, introducing a new policy of “Deregulated Collective Bargaining”. The aim
of the policy, according to the government, was to promote satisfactory collective
bargaining in the public sector as well as relate obligations to fiscal strength of each level
of government. The central government seemed to be striving to divert the attention of the
states, which was mounting pressures for an increase share in the revenue allocation
formula, to finding independent solutions to the wage problem. The decentralized
collective bargaining necessarily involved the decentralization of wages and salary
negotiations. Henceforth, the central government was to be concerned with negotiating
wages with its own employees only and establishing national minimum wages. But the
upward adjustments of the wages of federal civil servants between 1992 and 1993
precipitated a series of strikes and protests by sub-national government employees
demanding corresponding increases (Aiyede, 2002).
xxxiii
The first play of this problem came barely a year into the fourth republic. President
Obasanjo had announced a new wage structure after a series of negotiation round with the
NLC during his address to workers on May Day 2000. He simultaneously announced
N5,500 naira as the new national minimum wage and went on the produce a wage table,
which was sent to state governments to facilitate negotiations with their employees. The
table ascertained that the states could pay a minimum of N6,500 naira against N7,500 naira
for federal employees. Neither the branches of the NLC nor the state government were
happy with this action of the national government. The insistence by state government
workers on wage parity with federal workers threw some of the opposing states into fresh
industrial relations crises.
Pressures for further decentralization, which had accompanied the agitations for political
liberalization in the 1990s by civil society groups, were then taken over by state
governments especially those of the south. The two prominent groups in these regards were
the Summit of Governors and Members of the National Assembly from the South-south
Geo-Political Zone, and the Conference of Southern Governors.
The logic of central planning and the imposition of the military command structure on a
supposedly federal system moved Nigerian from a decentralized collective bargaining
system to a situation where public sector pay was nationally determined and made uniform
across all levels of government by the 1970s. Pressures to decentralize came from the
economic recession that made the nation-wide wage system unsustainable. But
decentralization of collective bargaining took the form of re-federalization carrying with it
not only the stress and strains that attend the transition from state interventionism to a
market economy but also the fallouts of the distortions that has characterized
intergovernmental relations and fiscal federal practice under authoritarian military
governments. Resolving the federal question became crucial to stability in public sector
industrial relations. Since there are moves to reform federal practice in Nigeria, involving a
review of the 1999 Constitution bequeathed by the military, decentralized collective
bargaining will become the norm in future. Returning to meaningful federalism will not
only improve the practice of collective bargaining especially at the lower levels of
government, it would foreclose labour union demand for national machineries to review
wages in public services of all tiers of government (Aiyede, 2002).
xxxiv
2.9 TRIPARTISM AND SOCIAL DIALOGUE
In ILO’s terminology “social dialogue” has a more concrete and precise meaning. It is
synonymous with the term “tripartism”, which characterizes not only the unique three-party
structure of the organization, that is employers, workers and governments, but also the
interaction between these three groups which the International Labour Organization seeks
to promote as being fundamental for the enhancement of social and economic development.
It refers mainly to industrial dialogue where tripartite cooperation between government,
industry and labour, usually at the national level, is accepted as a strategy to achieve
balanced economic and social progress.
Social dialogue may also include direct dealings between the workers and the employers,
otherwise referred to as collective bargaining at the national, sectoral or enterprise level,
depending on the levels at which bargaining takes place in the labour market in the country.
In 1944 in Philadelphia, the International Labour Conference adopted a declaration which
defined the aims and purposes of social dialogue in industrial relations, which include the
following.
• That labour is not a commodity
• The freedom of expression and of association are essential to sustained progress
• That poverty anywhere is a threat to prosperity everywhere
• The effective recognition of the right of collective bargaining
• The cooperation of labour and management in the continuous improvement of
productive efficiency.
• The collaboration of workers and employers in the preparation and application of
social and economic measures.
There are certain conditions that facilitate effective social dialogue, these includes
• Freedom of association
• Democratic foundations
• Legitimacy through representative, transparent, accountable and cohesive workers’
and employers’ organizations
• Political will and commitment to engage in social dialogue by all parties
• Social acceptance of triapartite social dialogue
• Technical competence
• Capacity to deliver
xxxv
2.10 ROLE OF GOVERNMENT IN INDUSTRIAL RELATIONS
Governments play a critical role in the advancement and sustainability of industrial
relations in the country. Where the government has confidence in the tripartite consultation
process and encourages the pro-active participation of all stakeholders in policy-making
processes, successful social dialogue is more likely to be attained. Government is
responsible for promoting and enforcing the appropriate legal framework by ensuring
social partner’s independence and fundamental rights, such as freedom of association and
the right to bargain collectively as stipulated in the Freedom of Association and Protection
of the Right to Organize Convention, 1948 (No. 87) and the Right to organize and
Collective Bargaining Convention, 1949 (No. 98).
Lecuyer (2001) sums up the role of Governments as that of a promoter or protagonist. As a
promoter, in addition to the protection of the fundamental rights described above under
ILO’s international labour standards, governments are responsible for promoting
consultation with social partners by taking appropriate measures for regular and effective
consultations.
As a protagonist, the Government should engage in active social dialogue with its own
employees, i.e. public sector worker, by respecting the principles of Labour Relation
(Public Service) Convention, 1978 (No. 151). By doing so it not only promotes bipartite
social dialogue in the public sector but also helps establish a culture of social dialogue. In
response to increasing demand for transparency and efficient delivery of public services,
the internal organization of many government departments and services has been
restructured and their management style has been changed. There has been a trend towards
decentralization and more thorough measurement of the performance of public sector
workers. In education and health, in particular, elements of market competition have been
introduced. Social dialogue has a key role to role to play in managing such public sector
reforms.
Government involvement/roles in the Nigerian Industrial relations systems are based on
certain functions, methods and instruments of interventions, which includes, legislative and
regulatory; adjudicatory; leadership, investigatory and advisory and education and training.
According to Yesufu (1984) the role of the Nigeria government as regards legislative and
xxxvi
regulatory, is mainly in the area of enactment and enforcement of labour and industrial
relations legislations laws which ensures minimum basic and acceptable standards of
employment conditions of work, welfare and security and the institutional framework for
the conduct of industrial relations.
The Nigerian government through its adjudicatory role helps to provide machinery for
intervention and settlement of industrial disputes, through the use of compulsory
arbitrations. The leadership role of the Nigerian government was based on the fact that the
state was the custodian of the development of the economy and the largest employer of
labour. The investigatory and advisory role of the Nigerian government is directly being
undertaken by the Federal Ministry of Labour, Employment and Productivity.
2.11 IMPORTANCE OF SOUND INDUSTRIAL RELATIONS
A sound industrial relations system is not capable of precise definition. Every industrial
relations system has to take into account, and reflect, cultural factors. Systems cannot
change culture but only behaviour within a cultural environment. As such, one can only
describe some of the elements which have generally come to be recognized as contributing
to a sound industrial relations system. These elements would constitute a sort of “check-
list”. A relatively sound industrial relations system will exhibit some of these elements.
A sound industrial relations system is important as it ensure that relationships between
management and employees on the one hand and between them and the state on the others,
are more harmonious and cooperative than conflictual, and creates an environment
conducive to economic efficiency and the motivation, productivity and development of the
employee and generates employee loyalty and mutual trust.
Industrial relations is important as it seek to balance the economic efficiency of
organizations with equity, justice and the development of the individual, to fund ways of
avoiding, minimizing and resolving disputes and conflicts and to promote harmonious
relation between and among the actors directly involved, and society as a whole. Sound
industrial relations are also important as it often takes the form of collective bargaining
between employer’s organizations and unions. This process may result in determining
wages and other terms and conditions of employment for an industry or sector. It may also
xxxvii
result in arrangements on issues which are of mutual concern such as training, ways of
avoiding or settling disputes, etc.
Sound industrial relations build trust and confidence between representatives of workers
and employers, which is the point at which the system must ultimately be effective. The
efficient production of goods and services depends to an extent on the existence of a
harmonious industrial relations climate. Efficiency and quality depends on a motivated
workforce, for which a sound industrial relations climate is necessary.
2.12 DISPUTE RESOLUTION
Conflict resolution is an essential part of any well-functioning labour market and industrial
relations system. Where there are labour relations one inevitably finds labour disputes and
the need to resolve them efficiently, effectively and equitably for the benefit of all parties
involved and the economy at large. According to section 2(k) of the Industrial Disputes
Act, 1947, an industrial dispute means any dispute or difference between employers and
employees or between employers and workmen or between workmen and workmen, which
is connected with the employment or non-employment or the terms of employment or with
the conditions of labour of any person.
Essentially, therefore, the differences of opinions between employers and workmen in
regard to employment, non-employment, terms of employment or the conditions of labour
where the contesting parties are directly and substantially interested in maintaining their
respective contentious issues constitute the subject matter of the an industrial dispute.
Generally, speaking, employment disputes are divided into two sub-categories: individual
disputes and collective disputes. As the terms implies individual disputes are those
involving a single worker whereas collective disputes involve groups of workers usually
represented by a trade union.
Collective disputes can further be divided into two sub-categories: rights disputes and
interests’ disputes. A rights dispute arises where there is disagreement over the
implementation or interpretation of statutory rights, or the rights set out in an existing
collective agreement. By contrast, a disagreement over the determination of rights and
obligations, or the modification of those already in existence. Interest disputes typically
xxxviii
arise in the context of collective bargaining where a collective agreement does not exist or
is being renegotiated International Labour Office, (2007).
In terms of collective disputes, the kind of dispute often has important legal and strategic
consequences for determining the method for resolving it. In the case of a rights dispute
where there is a valid collective agreement in force, this same agreement might include
provisions setting out the mechanism the parties must follow in the event of a dispute. And
depending on the country, there may be legal provisions requiring certain collective
disputes to proceed in a specified manner to arrive at a solution.
With respect to resolving these different types of disputes (leaving aside litigation and other
kinds of judicial action), there are essentially three options, Conciliation, Mediation and
Arbitration. All three of these alternatives involve the intervention of a third party and it is
rather the degree of intervention that differentiates one from the other.
2.13 LABOUR REFORM AND INDUSTRIAL CONFLICTS IN NIGERIA
Labour reform refers to amendments of aspects of the labour law. The Nigerian labour law
includes different Acts including the Labour/Employment Act, workmen’s compensation
Act, factories Act, Trade Disputes Act and the Trade Union Act. A typical model of labour
reform is the 2005 Trade Union Act, which includes new orders. For instance, in the 2005
Trade Union Act, the Nigerian government ordered that in collective bargaining all
registered trade unions must constitute an electoral college to elect members who will
represent them in negotiations. Labour reform has been criticized in this regard. The
modalities for constituting an electoral college were not specified (Okene, 2007). This gap
may generate more industrial conflicts and open up opportunities for the state or employers
to manipulate criteria for the selection of representatives for negotiations.
Also, contrary to the automatically compulsory membership clause in the earlier Acts, the
2005 Act provides for voluntary trade union membership though not without restriction on
number of persons (50) required for constituting a union. Putting restriction on trade union
membership contravenes Convention 87 of the International Labour Organization (ILO),
but it can be attributed to government desire to regulate activities in the Nigerian industries.
xxxix
Thus, the question of dichotomy between international solidarity and national interest can
be raised in the emerging industrial relations in Nigeria. Basically, during negotiations for
each of the machineries for industrial conflicts management in Nigeria different issues such
as state power, problem of representation, social relations of production and labour
resistance are critical. The Nigerian government has renewed the state interest in
criminalizing strikes, which attract N10,000 naira fine or six months imprisonment for each
striker. Unfortunately, the Nigerian government regulation against strikes negates the
global recognition of strike as an essential tool in trade unionism.
The contradictions between the International Labour Organization standards and the
operations of state machineries in Nigeria provides an opportunity for the discourse on
industrial conflict management within different levels of governance-international,
regional, and national that constitute dilemma for labour (Stevis and Boswell, 2008). The
organized labour, which bears the large chunk of the consequences of industrial conflicts,
has been trapped in this context.
The state and labour have been battling in the management of industrial conflicts in Nigeria
since the colonial era. The enormity of industrial conflicts and state attempt to quell them
resulted in the 1976 Trade Dispute Act, which was amended in 1977 and 1990. The Act
provides internal and external dispute settlement machineries including voluntary and
compulsory procedures.
Conflict management systems have been described as providing for workplace justice
(McCabe and Rabil, 2001). Good conflict management procedures, provides the
opportunity to systematically redress an injustice without litigation, strikes or other forms
of industrial actions (Mesch and Dalton, 1992). Conflict management procedure, perceived
to be fair will be used and regarded as effective and result in greater perception of fair
treatment and enhanced job satisfaction (Peterson and Lewin, 2000; McCabe, 1997).
Mismanagement of industrial conflicts in Nigeria is a key outcome of the weakness of the
state machineries. The state usually conceptualizes industrial conflict negatively while
labour employs it as negotiation instruments in a bid to obtain benefits. A major means of
achieving industrial peace is mediation. However, the neutrality of a mediator can translate
xl
into perpetuation of power in equality between disputant parties especially if the mediator
plays the role of advocacy in mediation (Cook and Hale, 1994).
The procedures of conflict management in Nigeria are characterized by preventable delay
before and after mediation, conciliation and arbitration. These procedures can be merged to
industrial conflicts. This kind of merger has yielded result in China (the most populous
country and a leading industrialized country in the world). Fundamentally, all the aspects
that contradict the international standards in the Nigerian Labour law should be reversed
and replaced with comprehensive social security, policies that can facilitate rapid
management of industrial conflicts thereby ensuring industrial harmony which breeds
organizational effectiveness.
2.14 UNDERSTANDING INDUSTRIAL CONFLICT
Karl Marx once observed that conflict rather than peaceful is the engine of progress.
Although, industrial conflict may portend negative signal for economic and political
development, it nevertheless could be a necessary catalyst for growth and development,
especially in the area of improvement in the standard of living of the working class people
(Adebisi, 2004).
We all are of two minds about conflict. We say that conflict is natural, inevitable,
necessary, and normal, and that the problem is not the existence of conflict but how we
handle it. But we are also loath to admit that we are in the midst of conflict. How we view
conflict will largely determine our attitude and approach to dealing with it. Conflict may be
viewed as a feeling, a disagreement, a real or perceived incompatibility of interests,
inconsistent worldviews, or a set of behaviors. If we are to be effective in handling conflict,
we must start with an understanding of its nature. We need tools that help us separate out
the many complex interactions that make up a conflict, that help us understand the roots of
conflict, and that give us a reasonable handle on the forces that motivate the behavior of all
participants, including ourselves.
Conflict may be viewed as occurring along cognitive (perception), emotional (feeling), and
behavioral (action) dimensions. This three-dimensional perspective can help us understand
the complexities of conflict and why a conflict sometimes seems to proceed in
contradictory directions (Bernard Mayer, 2001).
xli
Conflict Resolution Model
Thompson suggested five styles such as competiting, avoiding, accommodating,
collaborating and compromising to resolve conflicts.
If two parties experience conflicts, each one could be more concerned above their own self
or could be more concerned for the other.
When the concern for ‘self’ is very low they could be very unassertive. If the concern for
him is very high, they could be very assertive.
If their concern for the other is low, they would tend to be non-cooperative. If the concern
for the other is high, they could be co-operative.
In a conflicting situation:
• If an individual’s concern for self and others is low, he will avoid the conflict;
• If he has high concern for himself and low concern for others he will compete;
• If he has high concern for himself and for others, he will collaborate;
• If he has high concern for other but low concern for himself, he will accommodate;
• If he has medium level of concern for both himself and the other, he will go for
compromise.
Figure 2.1: Thompson’s model of understanding conflict resolution
Source: Industrial Relation- Directorate of Distance Education, MBA. Alagappa University, India.
ACCOMMODATE COLLABORATE
COMPROMISE
AVOID COMPETE
Conce
rn f
or
oth
ers
High
Low
Low
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All the five styles have its own advantage and disadvantages and a suitable style depends
upon both the nature of the individual and the situational factors (Industrial Relation-
Directorate of Distance Education, MBA).
Industrial Dispute means any dispute or difference between employer and employees, or
between employer and workmen or between workmen and workmen, which is connected
with the employment or non employment or the terms of employment or with the
conditions of Labour, or any person. The Scope the definition of Industrial Dispute is very
wide. The words employment and non-employment in the definition are of widest
amplitude and have been but in juxtaposition to make the definition comprehensive. Any
dispute concerned with employment or non-employment’ constitute the subject matter of
one class or industrial disputes.
There are two types of Industrial Disputes-interest disputes and rights disputes. Interest
disputes relate to determination of new wage level and other condition of employment
while rights disputes on the other hand relate to interpretation and application of existing
standards and usually involve and individual worker or group of workers. Under category
of rights disputes, claim is made that the workmen have not been treated in accordance
with the rules, individual contracts of employment, laws and regulations and as per
collective agreements. Such disputes are also described as grievance disputes. Such
grievances may be regarding retrenchment ,dismissal, payment of wages, working time,
overtime, demotion, promotion, transfer, seniority, job classification, work rules and
fulfillment of obligation relating to safety and health laid down in an agreement.
2.15 PROCESS FOR RESOLVING INDUSTRIAL DISPUTES
Collective Bargaining, Negotiation, Conciliation and Mediation, Arbitration and
Adjudication are well known methods for settlement of industrial disputes, and would be
discussed briefly.
Collective Bargaining: Collective Bargaining is a technique by which dispute as to
conditions of employment, are resolved amicably, by agreement, rather than by coercion.
The dispute is settled peacefully and voluntarily, although reluctantly, between labour and
management. In the context of present day egalitarian society, with its fast changing social
norms, a concept like ‘collective bargaining’ is not a capable of a precise definition. The
xliii
content and Scope collective bargaining also varies from country to country. Broadly
Speaking Collective bargaining is a process of bargaining between employers and workers,
by which they settle their disputes relating to employment or non-employment , terms of
employment or conditions of the labour of the workman, among themselves, on the
strength of the sanctions available to each side (Malhotra, 2004). Occasionally, such
bargaining results in an amicable settlement arrived at voluntarily and peacefully, between
the parties. But quite often, the workers and employers have to apply sanctions by resorting
to weapons of strike and lockouts, to pressurize one another, which makes both the sides
aware of the strength of one another and that finally forces each of them to arrive at a
settlement in mutual interest.
Negotiation: Negotiation is one of the principal means of settling labour disputes.
However, due to lack of trust between the employers and workmen or their trade unions or
inter-rivalry of the trade unions and the employers being in a commanding position, many a
time negotiations fail.
Conciliation and Mediation: Through conciliation and mediation a third party provides
assistance with a view to help the parties to reach an agreement. The conciliator brings the
rival parties together discuss with them their differences and assist them in finding out
solution to their problems. Mediator on the other hand is more actively involved while
assisting the parties to find an amicable settlement. Sometimes he submits his own
proposals for settlement of their disputes. Conciliation may be voluntary or compulsory. It
is voluntary if the parties are free to make use of the same, while it is compulsory when the
parties have to participate irrespective of whether they desire to do so or not.
Delays in conciliation are attributed partly to the excessive work-load on officers and partly
to the procedural defects. Since conciliation officer has no powers of coercion over labour
and management, he can only persuade them to climb down and meet each other. The
settlements that are claimed to result from conciliation are increasingly the result of
political intervention. Success of conciliation depends upon the appearances and their
sincere participation in conciliation proceedings of the parties before the conciliation
officers. Non-appearance and non- participation of the parties in conciliation proceedings
poses a serious hindrance in this direction.
xliv
Arbitration: The resort to arbitration procedure may be compulsory or arbitrary.
Compulsory arbitration is the submission of disputes to arbitration without consent or
agreement of the parties involved in the dispute and the award given by the arbitrator being
binding on the parties to the dispute. On the other hand in case of voluntary arbitration, the
dispute can be referred for arbitration only if the parties agree to the same. This system,
however, has not been widely practiced so far. One of the main reasons for not gaining
popularly of this procedure is lack of arbitrators who are able to command respect and
confidence of the parties to the dispute. Inter Union rivalry also sometimes makes it
difficult in arriving at an agreement on settlement of an arbitrator who is acceptable to all
the trade unions in the industry.
Adjudication: If despite efforts of the conciliation officer, no settlement is arrived at
between employer and the workman, the industrial dispute is referred to the courts, which
could be the regular court or industrial court. Industrial courts have been empowered to
decide disputes relating to matters specified in the country’s labour laws. These matters are
concerned with the rights of workers, such as propriety of legality of an order passed by an
employer under the standing orders, application and interpretation of standing orders,
discharge or dismissal of workman including reinstatement of grant of relief to workman
wrongfully discharged or dismissed, withdrawal of any customary concession or privilege
and illegality or otherwise of a strike or lockout.
2.16 ACHIEVING ORGANISATIONAL EFFECTIVENESS THROUGH
EFFECTIVE INDUSTRIAL RELATIONS
Management and organizational theory scholars like Schein (1970), Duncan (1973), Webb
(1974), Child (1969) and Goodman and Whittingham (1969) have remarked that the
literature on organizational effectiveness is large and growing. As a result, there seems to
be little consensus on how to conceptualize, measure and explain effectiveness. In spite of
this intractability, the field of organization theory in particular and management in general
offers some insight into the conceptualization, measurement and explanation of
organizational effectiveness. Cunningham (1977) maintained that “the concept of
organizational effectiveness is an elusive one and there is no single adequate way of
defining it”. However, Imosilli (1978) remarked that most practicing managers agree that
organizational effectiveness incorporates both economic and non-economic behaviour and
dimensions.
xlv
Conversely, Veldsman (1980) defined organizational effectiveness as a qualification and
value attached to an organization resulting from the comparison of the actual state of the
entity against its ideal state. He maintained that an organization is effective if the actual
state is congruent with the ideal and ineffective if the actual state is incongruent with the
latter state. To him:
“The value ascribed to an organization depends on the evaluator’s
conception of the state of that organization. For example, whether an
organization is described as effective or ineffective depends on the
evaluator’s ideal state. This ideal state, in turn, prescribes the aspects of
the actual state of the organization, which the evaluator will use to
make his comparison”.
Viewing organizational effectiveness in Veldsman’s perception gives the evaluator
freedom to decide on what should constitute the ideal state. Thus, a lot of individual
judgment is required. But for the judgment to be realistic, it must be based on defined
criteria. Among other criteria, the individual must consider the type of enterprise under
study and the various environmental stakeholders of the organization. Nonetheless, giving
each evaluator the chance to decide on the criteria by which to measure and compare
organizational effectiveness will provide various criteria and thereby widen and worsen the
management theory jungle. In contrast, the varied conceptualization of organizational
effectiveness that may arise from different individuals may be a means of expanding the
body of knowledge on the concept of organizational effectiveness. In another dimension,
Cameron et al. (1978) posits that:
“Organizational effectiveness may be typified as being mutable
(composed of different life stages), comprehensive (including a
multiplicity of dimensions), divergent (relating to different
constituencies), trans-positive (altering relevant criteria when different
levels of analysis are used) and complex (having non-parsimonious
relationship among dimensions)”
Similarly, Maheshwari (1980) maintained that organizational effectiveness is a multi-
dimensional concept, which has no agreement as to which dimensions are significant and
xlvi
should be used as the basis of analysis. He however, remarked that several variables must
be used for measuring organizational effectiveness. Further, he warned that selection of
appropriate variables should depend on the nature of the organization being studied.
Categorically, he remarked that organizational effectiveness measures for business
organizations are expected to be different from those for social services or research
organizations even though similarities can be observed.
In addition, he advised that the specific environment, traditions, internal processes,
resources, technology and goals should be considered in selecting organizational
effectiveness dimensions. Here again, Caplow (1976) and Duncan (1973) maintained that
research on effectiveness should include appropriate universal indicators of effective
organizations. To them, the universal indicators of effective organizations are typified
largely by adaptivity, flexibility, sense of identity, absence of strain and capacity of reality
testing.
However organizational effectiveness is been defined is a subject on its own, what matters
here is how to achieve organizational effectiveness in the public sector. Effective industrial
relations provides a good strategy in achieving organizational effectiveness in the public
sector since the term ‘industrial relations’ is used in a general sense to describe the formal
relationships between employers and trade unions or other collective groupings of
employees, together with the institutional arrangements that arise from these relationships.
Organizational effectiveness depends on the relationship between people in the
organization and how these people are effectively managed. Industrial relations and
organizational effectiveness are both related, since their successes both depends on how
well you manage the relationships within and outside the organization. So to ensure
organizational effectiveness in the public sector, we also have to guarantee effective
industrial relations first in the public sector.
xlvii
REFERENCES
Adebisi, Moses Adeola (2004), Industrial conflict and trade unionism in Nigeria.
Department of Sociology, University of Ilorin, Ilorin, Nigeria. Journal of the
Department of Business Administration, University of Ilorin, Ilorin, Nigeria. Vol 4
No. 4, 2004, p.11-17.
Akeem, A. Akinwale (2011), Labour Reform and Industrial Conflicts Mismanagement in
Nigeria. Paper Presented at the 6th
IIRA African Regional Congress of Industrial
Relations. Jan. 2011, Lagos, Nigeria.
Bernard S. Mayer (2000), The Dynamics of Conflict Resolution. San Francisco: Jossey-Bass
Cameron KS, Sulton RI, Whetten DA (1988). Readings in Organizational Decline,
Ballinger, Cambridge, MA.
Caplow T (1976). How to run Any Organization, Hindsdale III, Dryden Press.
Child J (1969). The Business Enterprise in Modern Industrial Society, London, Collier-
Macmillian.
Cooks, L. M. and Hale, C. L. (1994), The Construction of Ethics in Mediation. Mediation
Quarterly 12(1), 55-84.
Cunninghan JB (1977). “Approaches to the Evaluation of Organizational Effectiveness”
Acad. Manage. Rev., pp 463 – 474.
Duncan WJ (1973). Decision Making and Social Issues, Hindsdale III, Dryden Press.
Emmanuel R. Aiyede. (2002), Decentralizing Public Sector Collective Bargaining and the
Contradictions of Federal Practice in Nigeria. African Study Monographs, 23(1):
11-29, March 2002. Development Policy Center, Ibadan, Nigeria.
xlviii
Englama, A. (2001), “Unemployment Concepts and Issues”, Bullion, Central Bank of
Nigeria, October/December.
Frank Elkouri and Edna Elkouri (2003), How Arbitration works. Washington D.C, Bureau
of National Affairs.
Freeman, R. (1993), Labour Market Institutions and Policies: Help or Hindrance to
Economic Development? In (R. Freeman, ed.), Proceedings of the World Bank
Annual Conference on Development Economics 1992, pp. 117-144. The World
Bank, Washington DC.
Goodman JFB, Whittingham TG (1969). Shop Stewards in British Industry, London,
McGraw Hill.
Howard, F. Gospel and Gill Palmer, (1993), British Industrial Relations, London, Routledge
publishing house.
http://www.legalserviceindia.com/articles/ind dis.htm
Industrial Relation- Directorate of Distance Education, MBA. Paper 4.33, Alagappa
University, India.
International Labour Office Geneva, (2007), Seminar on Collective Dispute Resolution
through Conciliation, Mediation and Arbitration: European and International
Labour Organization Perspectives, Nicosia, Cyprus.
Katz, H. C. (1993), The Decentralization of Collective Bargaining: A Literature Review and
Comparative Analysis. Industrial and Labour Relations Review, 47(1): 3-22.
Kaufman, (2004), The Global Evolution of Industrial Relations, International Labour
Organization Office, Geneva.
Malhotra O. P. (2004), The Law of Industrial Dispute,Volume1. http://legalserviceindia.com
xlix
McCabe, D. M. (1997), Alternative Dispute Resolution and Employee voice in Non-union
Employment: An Ethical Analysis of Organizational Due Process Procedures and
Mechanisms- The Case of the United States; Journal of Business Ethnics, 16(3),
349-356.
McCabe, D. M. and Rabil, J. M. (2001), Administering the Employment Relationship: The
Ethics of Conflict Resolution in Relation to Justice in the Workplace; Journal of
Business Ethics, 36(1), 33-48.
Mesch, D. J. and Dalton, D. R. (1992), Unexpected Consequences of Improving Workplace
Justice: A Six Year Time Series Assessment. Academy of Management Journal,
35(5), 1099-1114.
Okene, O. V. C. (2007), Current Issues and Developments in Workers Freedom of
Association in Nigeria. Journal of Commonwealth Law and Legal Education, 5(1),
49-68.
Olokoshi, A. (1993), Introduction: From Crisis to Adjustment in Nigeria. In (A. Olukoshi,
ed.), The Politics of Structural Adjustment in Nigeria, pp. 1-15, Ibadan, Heinemann.
Olukoshi, A. (1989), The Origins, Dimensions and Consequences of the Nigeria Economic
Crisis, 1982-1985. In (A. Olukoshi, ed.), Crisis and Adjustment in the Nigerian
Economy, pp. 24-47. New York, St. Martins press.
Peterson, R. R. and Lewin, D. (2000), Research on Unionized Grievance Procedures:
Management Issues and Recommendations. Human Resource Management, 39(4),
395-406.
S. R. De. Silva (1991), Elements of a Sound Industrial Relations System. International
Labour Organization, Bangkok, ACT/EMP Publications.
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Standing, G. (1991), Structural Adjustment and Labour Market Policies: Towards Social
Adjustment? In (G. Standing & V. Tokman, eds.), Towards Social Adjustment:
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Office, Geneva.
Stevis, D. and Bosewell, T. (2008), Globalization and Labour: Democratizing Global
Governance, Lanham, MA: Rowman and Littlefield
Tajuden A. A. and O. K. Kehinde (2007), Government Public Policies and the Dynamics of
Employment Relations in Developing Countries: The Experience of Nigeria,
Pakistan Journal of Social Sciences 4(6), 762-769.
Webb, Sydney and Webb, Beatrice (1919), Industrial Democracy, London, Longman S.
Gree and Co.
Yesufu, T. N. (1982), The Dynamics of Industrial Relations: Nigeria Experience. Ibadan:
University Press.
li
CHAPTER THREE
RESEARCH METHODOLOGY
This chapter deals with the description of procedure that was adopted in carrying out the
study. It contains area of the study, sources of data, population of the study, sample size
determination, description of the research instrument, method of data analysis, validity of
the instrument and reliability of the instrument.
3.1 AREA OF THE STUDY
This study was carried out in some government-owned institutions and agencies in Enugu
State. These include the University of Nigeria, Enugu Campus; Enugu State University of
Science and Technology (ESUT) and the Enugu State Ministry of Health.
3.2 SOURCES OF DATA
Data were collected from two major sources: primary and secondary sources.
3.2.1 Primary Source
Primary source of data are the original information which have not been used in any
previous study. Primary data was obtained through observation, questionnaire and
interview.
3.2.2 Secondary Source
The secondary source of data collection was obtained from textbooks, journals,
newspapers, publications and the internet.
3.3 POPULATION OF THE STUDY
The target population of the study consists of senior and junior staff of the Enugu State
Ministry of Health; the academic and non-academic staff of the University of Nigeria,
Enugu Campus and Enugu State University of Science and Technology (ESUT). According
to the information obtained from the selected institutions and ministry, we have:
lii
Table 3.3.1 Population for the Study
Institutions Academic Non-academic Total
University of Nigeria Enugu
Campus
215 1139 1354
Enugu State University of Science
and Technology
1788 1759 3547
Sub-total 2003 2898 4901
Government Ministry
Ministry of Health, Enugu No. of Staff 395
Total 5296
Source: Field Survey 2011
3.4 SAMPLE SIZE DETERMINATION
For the purpose of this study, the actual population is 5296. The researcher opted for
Yamene’s statistical technique to determine the sample size, at 5% error tolerance and 95%
degree of freedom.
Where;
n = sample
N = actual population (5296)
e = level of significance (limit of tolerable error
0.05 or 5%)
1 = constant
Substituting, we have
n = 372
Thus, 372 represent the sample size for the population. The sample size for each stratum or
category of staff to be sample is estimated using Bowley’s proportional allocation
statistical techniques.
liii
= The number of unit allocated to each category of Staff
= The number of staff in each category
n = the total sample size
n = the actual or total population
University of Nigeria Enugu Campus:
Academic staff
Non-Academic staff
Enugu State University of Science and Technology (ESUT):
Academic Staff
Non-academic staff
Enugu State Ministry of Health:
Staff Strength
n = 15.1 + 80.0 + 125.6 + 123.6 + 27.7 = 372.
Institutions Academic Non-academic Total
University of Nigeria Enugu Campus 15.1 80.0 95.1
Enugu State University of Science and
Technology
125.6 123.6 249.2
Sub-total 140.7 203.6 344.3
Government Ministry
Ministry of Health, Enugu No. of Staff 27.7
Total 372
3.5 DESCRIPTION OF THE RESEARCH INSTRUMENT
The following instruments were used for collection of data:
liv
(a) Questionnaire
(b) Interview
Questionnaire
A questionnaire is a formalized schedule for collecting data from respondents. The
questionnaire was designed using the Likert scale format. 372 copies of the questionnaire
were produced which consist of 20 questions, reflecting issues that will help in attaining the
research objectives. The questionnaire was designed in likert scale format and the questions
were aligned to the objectives.
Interview
Some of the staff of the two institutions and government ministry was interviewed orally.
The responses from the interview were used to complement the questionnaire.
3.6 METHOD OF DATA ANALYSIS
The data generated for the study were presented in frequency tables analyzed in
percentages. One-Sample T-test was used in testing hypothesis two and three, while chi-
square ( ) statistical test method was used to test hypothesis one and four.
The formula for chi-square ( ) is:
Where;
= chi-square
O = observed frequency
E = expected frequency
Level of significance used = 5% i.e. 0.05
The degree of freedom is given by (k-1)
i.e. d.f = (k-1)
Where;
K = number of rows of columns
Where;
∑row i = the sum of frequencies in the ith row
∑column j = the sum of frequencies in the jth column
lv
Grand Total = the sum of all frequencies in the table
Decision Rule
To reject Ho (Null Hypothesis) if calculated , greater than or equal to critical value of ,
otherwise accept it. If Ho is rejected, Hi will be accepted.
3.7 VALIDITY OF THE INSTRUMENT
To make sure that the research instrument applied in this study is valid, the researcher
ensures that the instrument measures the concepts it supposes to measure.
A proper structuring of the questionnaire and conduct of a pre-test on every question
contained in the questionnaire was carried out to ensure that they are valid. Also design of
the questionnaire was made easy for respondents to tick their preferred choice from the
opinions provided as it has been established that the longer the length of the
questionnaire, the lower the response rate.
3.8 RELIABILITY OF THE INSTRUMENT
Reliability is the state or quality of being depended upon. A test re-test method was carried
out to achieve reliability. Some copies of the questionnaire were distributed on a second
occasion and it was observed that the degree of correlations and consistency was quite
high, signifying high degree of association. This shows that the questionnaire is reliable.
lvi
REFERENCES
Kerlinger, F. N. (1973), Foundation of Behavioural Research, [2nd
Ed]. Franscisco: Holt
Reinnan and Winston, Inc.
Ozor, J. U., Odo, P. O., Ani, J. O. and Ugwu T. U. (1999), Introduction to Project Writing.
Enugu Sunny Enterprises Publishers.
lvii
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
This chapter focuses on the presentation and analysis of the data collected through the
distributed questionnaire. From the analysis of questionnaire, it is necessary to recall that
out of 372 copies of the questionnaire distributed, 263 representing 70.7% were returned,
while 109 representing 29.3% were not returned.
Table 4.1: Questionnaire distribution
Questionnaire Number of respondents Percentage (%)
Returned 263 70.7
Not returned 109 29.3
Total 372 100
Source: Researcher’s field survey, 2011
Table 4.2: Sex distribution of the respondents
Sex range UNEC ESUT Ministry of
Health, Enugu
Total responses Percentage
responses (%)
Male 62 88 6 156 59.3
Female 21 60 26 107 40.7
Total 83 148 32 263 100
Source: Researcher’s field survey, 2011
From table 4.2 above, it can be observed that 156 respondents representing 59.3% were
males, while 107 respondents representing 40.7% were females. This implies that there are
more males than females.
4.3: Age distribution of the respondents
Age range UNEC ESUT Ministry of
Health, Enugu
Total responses Percentage
responses (%)
20-30years - - 5 5 1.9
31-40 years 16 58 15 89 33.8
41-50years 55 71 10 136 51.7
lviii
51 years and above 12 19 2 33 12.6
Total 83 148 32 263 100
Source: Researcher’s field survey, 2011
From table 4.3 above, it can be observed that 5 of the respondents representing 1.9% of the
total respondents were within the ages of 20-30years, 89 respondents representing 33.8% of
the total respondents indicated 31-40years, 136 respondents representing 51.7% indicated
41-50years, while 33 respondents representing 12.6% indicated 51years and above. This
implies that majority of the respondents are within the ages of 41-50years.
Table 4.4: Working experience of the respondent
Working Experience UNEC ESUT Ministry of
Health,
Enugu
Total responses Percentage
responses (%)
1-5years 10 24 4 38 14.4
6-10years 26 48 14 88 33.5
11-15years 38 65 12 115 43.7
16yrs and above 9 11 2 22 8.4
Total 83 148 32 263 100
Source: Researcher’s field survey, 2011
From table 4.4 above, it can be observed that 38 respondents representing 14.4% of the
total respondents had a working experience of 1-5years, 88 respondents representing 33.5%
indicated 6-10years experience, 115 respondents representing 43.7% indicated 11-15years,
while 22 respondents representing 8.4% of the total respondents indicated 16 years and
above experience. This implies that majority of the respondents had work experiences
within 11-15years.
Table 4.5: Response on the industrial relations process of the Nigerian public sector
S/N Description Agree Disagree Total
A SA D SD
7 Information and consultation are important determinants in the
industrial relations process.
157
58
33
15
263
8 Collective bargaining constitutes a large part of the industrial
relations process.
173
53
28
9
263
9 Tripartite concertation and social dialogue are prerequisite to the
industrial relations process in the Nigerian Public Sector.
148
63
41
11
263
lix
10 Industrial relation’s process in the Nigerian public sector includes
collective bargaining, negotiations, mediation and arbitration.
184
41
29
9
263
11 Equal participation of all stakeholders in the industrial relations
process is necessary in the Nigerian public sector.
201
33
21
8
263
TOTAL 1111(84.5%) 204(15.5%) 1315
Source: Researcher’s field survey, 2011
From the table 4.5 above, it can be observed that 1,111 respondents representing 84.5%
answered in the “Agreement” category, while 204 respondents representing 15.5%
answered within the category of “Disagreement”.
Table 4.6: Responses on how to improve on the industrial relations
S/N Description Agree Disagree Total
A SA D SD
12 Nigeria’s labour law needs an urgent reform. 133 78 47 5 263
13 Labour laws and labour reforms should be in line with best
international standards in Nigeria.
145
44
54
20
263
14 Decentralizing collective bargaining and practicing true
federalism would help improve industrial relations process in
the public sector.
169
78
11
5
263
15 Accountability and transparency by the government to its
employees would help improve industrial relations process.
182
49
25
7
263
16 Regular organization of international seminars and
conferences on industrial relations issues in Nigeria would
help improve the industrial relations process in the public
sector.
153
68
39
3
263
TOTAL 1099(83.6%) 216(16.4%) 1315
Source: Researcher’s field survey, 2011
From the table 4.6 above, it can be observed that 1099 respondents representing 83.6%
answered in the “Agreement” category, while 216 respondents representing 16.4%
answered within the category of “Disagreement”.
lx
Table 4.7: Responses on the benefits derived from effective industrial relations
S/N Description Agree Disagree Total
A SA D SD
17 Benefits of effective industrial relations practices include industrial
harmony and organizational effectiveness.
181 47 29 6 263
18 Highly motivated employees are benefits of effective industrial
relations practices.
164 59 38 2 263
19 Reduction in the cost of governance through eliminating the
duplication of government work are attributes of effective industrial
relations practices.
178
33
41
11
263
20 Good compensations and salary review policy are benefits of
effective industrial relations.
153
59
46
5
263
21 Effective industrial relations in the public sector would reduce the
exodus of profession talents from the sector.
161
28
58
16
263
TOTAL 1063(80.8%) 252(19.2%) 1315
Source: Researcher’s Field Survey, 2011
From the table 4.7 above, it can be observed that 1063 respondents representing 80.8%
answered in the “Agreement” category while 252 respondents representing 19.2%
answered within the category of “Disagreement”.
Table 4.8: Response on strategies that could be used to manage industrial relations
conflicts
S/N Description Agree Disagree Total
A SA D SD
22 Collaboration and compromise can be used to manage industrial
relations conflicts.
189
31
41
2
263
23 Reforming labour laws based on international labour organization (ILO)
standards would help manage industrial relations conflicts.
172
53
29
9
263
24 Establishment of various industrial courts would help manage industrial
relations conflicts.
149
61
48
5
263
25 Adoption of patriotism by all stakeholders for the country during
lxi
collective bargaining would help manage industrial relations conflicts. 164 37 43 19 263
26 Education of all stakeholders on the dynamics of effective industrial
relations practices would help manage industrial relations conflicts.
186
28
35
14
263
TOTAL 1070(81.4%) 245(18.6%) 1315
Source: Researcher’s Field Survey, 2011
From the table 4.8 above, it can be observed that 1070 respondents representing 81.4%
answered in the “Agreement” category, while 245 respondents representing 18.6%
answered within the category of “Disagreement”.
4.1 TESTING OF HYPOTHESES
As earlier stated the test statistics of Friedman’s Chi-Square test and one sample t-test will
be used to test the four hypotheses earlier stated in chapter one.
Hypothesis I
Ho: Industrial relations process in the Nigerian public sector does not include collective
bargaining, negotiations, mediation and arbitration.
Hi: Industrial relations process in the Nigerian public sector includes collective
bargaining, negotiations, mediation and arbitration.
To test the hypothesis, questions 7,8,9,10,11 in the questionnaire were designed and
administered to validate or disapprove the above hypothesis. Reactions by respondents
were analyzed as follows:
Table 4.1.1: A contingency table (reproduced table 4.5) for hypothesis testing
S/N Description Agree Disagree Total
7 Information and consultation are important determinants in the
industrial relations process.
215(222)
48(41)
263
8 Collective bargaining constitutes a large part of the industrial relations
process.
226(222)
37(41)
263
9 Tripartite concertation and social dialogue are prerequisite to the
industrial relations process in the Nigerian Public Sector.
211(222)
52(41)
263
10 Industrial relation’s process in the Nigerian public sector includes
collective bargaining, negotiations, mediation and arbitration.
225(222)
38(41)
263
lxii
11 Equal participation of all stakeholders in the industrial relations
process is necessary in the Nigerian public sector.
234(222)
29(41)
263
TOTAL 1111 204 1315
Calculation of Chi-Square ( ) Table
Cell
1 215 222 -7 49 0.22
2 48 41 7 49 1.20
3 226 222 4 16 0.07
4 37 41 -4 16 0.39
5 211 222 -11 121 0.55
6 52 41 11 121 2.95
7 225 222 3 9 0.04
8 38 41 -3 9 0.22
9 234 222 12 144 0.65
10 29 41 -12 144 3.51
TOTAL 1315 1315
Level of Significance= 0.05 or 5%
Degree of freedom= (R-1) (C-1)
= (5-1) (2-1)
= (4) (1)
= 4
Using the table for critical value with 4 degree of freedom at 0.05 level of significance,
from Chi-Square table
Decision Rule:
The null hypothesis (Ho) will be rejected if the computed is greater than the critical
value. i.e if > .
If the critical value is greater than the computed , the null hypothesis (Ho) will be
accepted and the alternative hypothesis (Hi) will be rejected.
lxiii
Interpretation
Since = 9.8 is greater than the critical value of 9.4877, the null hypothesis (Ho) is hereby
rejected and the alternative hypothesis (Hi) is accepted, which states that:
“Industrial relations process in the Nigerian public sector includes collective bargaining,
negotiations, mediation and arbitration”.
Hypothesis 2
Ho: Decentralizing collective bargaining and practicing true federalism will not improve
industrial relations process in the public sector.
Hi: Decentralizing collective bargaining and practicing true federalism will improve
industrial relations process in the public sector.
To test the hypothesis using one sample t-test, question 14 in table 4.6 were designed and
administered to validate or disapprove the above hypothesis. Reactions by respondents
were analyzed as follows:
Table 4.1.2: A contingency table (Reproduced table 4.6) for hypothesis testing
S/N Description Agree Disagree Total
A SA D SD
12 Nigeria’s labour law needs an urgent reform. 133 78 47 5 263
13 Labour laws and labour reforms should be in line with best
international standards in Nigeria.
145
44
54
20
263
14 Decentralizing collective bargaining and practicing true
federalism would help improve industrial relations process in
the public sector.
169
78
11
5
263
15 Accountability and transparency by the government to its
employees would help improve industrial relations process.
182
49
25
7
263
16 Regular organization of international seminars and
conferences on industrial relations issues in Nigeria would
help improve the industrial relations process in the public
sector.
153
68
39
3
263
TOTAL 1099(83.6%) 216(16.4%) 1315
Respondent’s response to question 14
lxiv
Frequency Percent (%) Valid percent (%) Cumulative
percent (%)
Valid Agree 169 64.3 64.3 64.3
Strongly Agree 78 29.7 29.7 93.9
Disagree 11 4.2 4.2 98.1
Strongly Disagree 5 1.9 1.9 100.0
Total 263 100.0 100.0
One-sample test statistics
Test value = 263
95% confidence interval of the difference
N Mean Std. Deviation Std. error Mean Lower Upper
Responses to Q.14 263 1.44 0.667 0.041 -261.64 -261.48
One-sample test
Test value = 158
t df Sig. (2-tailed) Mean difference
Responses to Q.14 -6355.378 262 .000 -261.563
Reject Ho t(262) = -6355.378, P < .05 where P = Sig. (2-tailed).
This says that the t-test with 157 degrees of freedom was not significant, as the Sig.(2-
tailed) of 0.000 was less than 0.5. Therefore, we can reject the null hypothesis (Ho) and
accept the alternative hypothesis (Hi) which states that “decentralizing collective
bargaining and practicing true federalism will improve industrial relations process in the
public sector”.
Hypothesis 3
Ho: Industrial harmony and organizations effectiveness are not attributed to effective
industrial relations.
Hi: Industrial harmony and organizational effectiveness are attributed to effective
industrial relations.
To test the hypothesis using a one-sample t-test, question 17 in table 4.7 were designed and
administered to validate or disapprove the above hypothesis. Reactions by respondents
were analyzed as follows:
lxv
Table 4.1.3: contingency table (Reproduced table 4.7) for hypothesis testing
S/N Description Agree Disagree Total
A SA D SD
17 Benefits of effective industrial relations practices include industrial
harmony and organizational effectiveness.
181 47 29 6 263
18 Highly motivated employees are benefits of effective industrial
relations practices.
164 59 38 2 263
19 Reduction in the cost of governance through eliminating the
duplication of government work are attributes of effective industrial
relations practices.
178
33
41
11
263
20 Good compensations and salary review policy are benefits of
effective industrial relations.
153
59
46
5
263
21 Effective industrial relations in the public sector would reduce the
exodus of profession talents from the sector.
161
28
58
16
263
TOTAL 1063(80.8%) 252(19.2%) 1315
Respondent’s responses to question 17
Frequency Percent (%) Valid percent (%) Cumulative
percent (%)
Valid Agree 181 68.8 68.8 68.8
Strongly Agree 47 17.9 17.9 86.7
Disagree 29 11.0 11.0 97.7
Strongly Disagree 6 2.3 2.3 100.0
Total 263 100.0 100.0
One-sample test statistics
Test value = 263
95% confidence interval of the difference
N Mean Std. Deviation Std. error Mean Lower Upper
Responses to Q.17 263 1.47 0.780 0.048 -261.63 -261.44
lxvi
One-sample test
Test value = 263
t df Sig. (2-tailed) Mean difference
Responses to Q.14 -5436.347 262 .000 -261.532
Reject Ho: t(262) = -5436.347, P < .05 where P = Sig. (2-tailed).
This says that the t-test with 157 degrees of freedom was not significant; as the Sig.(2-
tailed) of 0.000 was less than 0.5. Therefore, we can reject the null hypothesis (Ho) and
accept the alternative hypothesis (Hi) which states that “industrial harmony and
organizational effectiveness are attributed to effective industrial relations”.
Hypothesis 4
Ho: Collaboration and compromise cannot be used to manage industrial relations
conflicts.
Hi: Collaboration and compromise can be used to manage industrial relations conflicts.
To test the hypothesis, question 22, 23, 24, 25, 26 in the questionnaire were designed and
administered to validate or disapprove the above hypothesis. Reactions by respondents
were analyzed as follows:
Table 4.1.4: A contingency table (reproduced table 4.8) for hypothesis testing
S/N Description Agree Disagree Total
22 Collaboration and compromise can be used to manage industrial
relations conflicts.
220(214) 43(49) 263
23 Reforming labour laws based on international labour organization (ILO)
standards would help manage industrial relations conflicts.
225(214)
38(49)
263
24 The establishment of various industrial courts would help manage
industrial relations conflicts.
210(214) 53(49) 263
25 Adoption of patriotism by all stakeholders for the country during
collective bargaining would help manage industrial relations conflicts.
201(214)
62(49)
263
26 Education of all stakeholders on the dynamics of effective industrial
relations practices would help manage industrial relations conflicts.
214(214)
49(49)
263
TOTAL 1,070 245 1,315
lxvii
Calculation of Chi-Square ( ) Table
Cell
1 220 214 6 36 0.17
2 43 49 -6 36 0.83
3 225 214 11 121 0.87
4 38 49 -11 121 2.67
5 210 214 -4 16 0.17
6 53 49 4 16 0.63
7 201 214 -13 169 0.79
8 62 49 13 169 3.45
9 214 214 0 0 0
10 49 49 0 0 0
TOTAL 1315 1315
Level of Significance= 0.05 or 5%
Degree of freedom = (R-1) (C-1)
= (5-1) (2-1)
= (4) (1)
= 4
Using the table for critical value with 4 degree of freedom at 0.05 level of significance,
from Chi-Square table
Decision Rule:
The null hypothesis (Ho) will be rejected if the computed is greater than the critical
value. i.e if > .
lxviii
If the critical value is greater than the computed , the null hypothesis (Ho) will be
accepted and the alternative hypothesis (Hi) will be rejected.
Interpretation
Since = 9.58 is greater than the critical value of 9.4877, the null hypothesis (Ho) is
hereby rejected and the alternative hypothesis (Hi) is accepted which states that:
“Collaboration and compromise can be used to manage industrial relations conflicts”.
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 SUMMARY OF FINDINGS
The major findings at the end of this investigation include:
1. The industrial relations process of the Nigerian public sector include; collective
bargaining, negotiations, mediation and arbitration. Test of hypothesis (1) confirms
this 9.8 > 9.4877.
2. Decentralizing collective bargaining and practicing true federalism will improve
industrial relations process in the public sector. Test of hypothesis (2) confirms this
t= -6355.378, P < 0.05.
3. Industrial harmony and organizational effectiveness are attributed to effective
industrial relations. Test of hypothesis (3) confirms this t= -5436.347, P < 0.05.
4. Collaboration and compromise can be used to manage industrial relations conflicts.
Test of hypothesis (4) confirms this 9.58 > 9.4877.
5.2 CONCLUSION
Based on the findings, the researcher concludes that effective industrial relations provide a
good strategy in achieving organizational effectiveness. Industrial relations in a general
sense, is used to describe the formal relationships between employers and trade unions or
other collective groupings of employees, together with the institutional arrangements that
arise from these relationships. Industrial relations and organizational effectiveness are both
related, since their successes both depends on how well you manage the relationships
within and outside the organization.
5.3 RECOMMENDATIONS
From the above findings, the researcher wishes to make the following recommendations.
lxix
1. The federal legislators should bring into consideration the issue of institutionalizing
a decentralized collective bargaining as a bid to solving the conflicts arising from
the National Minimum Wage.
2. Efforts should be made by federal legislators to compel the federal government and
all state governments to regularly publish its account publicly which would in turn
serve as a yardstick during wage negotiations.
3. Employees, management and labour unions should be regularly re-orientated to be
more collaborative and ready to compromise during collective bargaining and
negotiations.
4. More industrial courts should be established that would be headed by independent
judges whom are to be selected by the National Judicial Council (NJC).
5. The Labour Act, Chapter 198, Laws of the Federation of Nigeria 1990 which
oversees the regulations guiding the Nigerian Industrial relations, are due for
amendment and review, to be in line with the International Labour Organization
(ILO) standards.
lxx
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lxxv
APPENDIX
Department of Management,
Faculty of Business Administration,
University of Nigeria,
Enugu Campus.
Dear Respondent,
RESEARCH QUESTIONNAIRE
I am a post-graduate student of the above department and institution, undertaking a
research on the topic “Achieving Organizational Effectiveness through Effective Industrial
Relations”, using your institution for a case study.
I appeal for your cooperation towards answering the questions below, as it will grant me
the necessary information required for the study.
This research exercise is purely for academic purpose; hence I will appreciate your
unreserved response as the information will be treated in strict confidence.
Thanking you in anticipation for your cooperation.
Yours faithfully,
..…………………….
Uwaebuka Herbert O.
lxxvi
QUESTIONNAIRE
INSTRUCTION: Please tick [�] appropriate in the spaces provided.
SECTION A: BIO-DATA
(1) Gender: (a) Male [ ] (b) Female [ ]
(2) Age: (a) 20-30 years [ ] (b) 31-40 years [ ]
(c) 41-50 years [ ] (d) 51 years and above [ ]
(3) Academic Qualification: (a) FSLC [ ] (b) WASSCE/GCE [ ]
(c) NCE/OND [ ] (d) HND/B.sc [ ] (e) MBA/M.sc [ ] (f) PHD [ ]
(4) Name of Your Employer:
(a) University of Nigeria, Enugu Campus [ ]
(b) Enugu State University of Science and Technology (ESUT) [ ]
(c) Enugu State Ministry of Health [ ]
(5) Staff Category: (a) Academic [ ] (b) Non-Academic [ ]
(c) Senior staff [ ] (d) Junior staff [ ]
(6) Working Experience: (a) 1-5yrs [ ] (b) 6-10yrs [ ]
(c) 11-15yrs [ ] (d) 16yrs and above [ ]
SECTION B: RESEARCH INFORMATION
Please read each of the following statement or questions carefully then tick [�] the option
that best represents your reaction to the statements according to the following scale:
1. Strongly Agree (SA)
2. Agree (A)
lxxvii
3. Undecided (U)
4. Disagree (D)
5. Strongly Disagree (SD)
QUESTIONNAIRE
S/N DESCRIPTION SA A U D SD
To identify the Industrial relations process of the Nigerian public sector
7 Information and consultation are important determinants in the industrial
relations process.
8 Collective bargaining constitutes a large part of the industrial relations process.
9 Tripartite concertation and social dialogue are prerequisite to the industrial
relation process in the Nigerian public sector.
10 Industrial relation’s process in the Nigerian public sector includes collective
bargaining, negotiations, mediation and arbitration.
11 Equal participation of all stakeholders in the industrial relations process is
necessary in the Nigerian public sector.
To determine how to improve on the industrial relation’s process of the
public sector.
12 Nigeria’s labour law needs an urgent reform.
13 Labour laws and labour reforms should be in line with best international
standards in Nigeria.
14 Decentralizing collective bargaining and practicing true federalism would help
improve industrial relations process in the public sector.
15 Accountability and transparency by the government to its employees would
help improve industrial relations process.
16 Regular organization of international seminars and conferences on industrial
relations issues in Nigeria would help improve the industrial relations process
in the public sector.
To identify the benefits derived from effective industrial relations.
17 Benefits of effective industrial relations practices include industrial harmony
and organizational effectiveness.
18 Highly motivated employees are a benefit of effective industrial relations
lxxviii
practices.
19 Reduction in the cost of governance through eliminating the duplication of
government work are attributes of effective industrial relations practices.
20 Good compensation and salary review policy are benefits of effective industrial
relations.
21 Effective industrial relations in the public sector would reduce the exodus of
professional talents from the sector.
To identify the strategies that could be used to manage industrial relations
conflicts.
22 Collaboration and compromise can be used to manage industrial relations
conflicts.
23 Reforming labour laws based on International Labour Organization (ILO)
standards would help manage industrial relations conflicts.
24 Establishment of various industrial courts would help manage industrials
relations conflicts.
25 Adoption of true patriotism by all stakeholders for the country during
collective bargaining would help manage industrial relations conflicts.
26 Education of all stakeholders on the dynamics of effective industrial relations
practices would help manage industrial relations conflicts.
lxxix
ACHIEVING ORGANISATIONAL EFFECTIVENESS
THROUGH EFFECTIVE INDUSTRIAL
RELATIONS
BY
UWAEBUKA HERBERT O.
PG/MBA/09/53993
DEPARTMENT OF MANAGEMENT
FACULTY OF BUSINESS ADMINISTRATION
UNIVERSITY OF NIGERIA
ENUGU CAMPUS
lxxx
SEPTEMBER, 2011.
