International Journal of Social Sciences Vol.11, No. 1, January – March, 2017
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Socio-Economic Factors Affecting Workers’ Participation in
Trade Union Activities in Multinational Organizations: A Case of
NPDC and PPMC.
by
Emily O. Akintoye and Angela I. Ogbu
Department of Sociology and Anthropology
Benson Idahosa University, Benin City
gmail: [email protected] ; [email protected]
Tel: 08035436975 ; 08066600649
Abstract The study was carried out to investigate the socio – economic variables influencing workers
social participation in management process of multinational organizations and its implication
for effective marketing of pipeline product in NPDC and PPMC, Edo State, Nigeria. The organizations were NPDC and PPMC. The survey design approach was adopted in the study.
Both primary and secondary sources of data were used and structured questionnaires were
used to obtain data from the respondents. The total number of respondents used for the study was 470. The objectives of the study were investigated using percentage and mean statistics,
while the Chi - square statistics was used to test the hypotheses of the study. Results revealed
that male (70%) dominated the organizations and they are of average age of about 42 years
with average working experience of 16 years and earning an average monthly income of
N151.70. Most (63%) of the respondents attended higher Institution, married (61%) with most (60%) of them belonging to the Christian religion. It was also revealed from the study that
there was significant relationship between organization patterns of management and trade
union involvement in decision making. There was also a relationship between union leadership and involvement of unions in decision making in organization. Participation of
workers in union activities was plagued by many factors. Based on findings, it was recommended from the study that the democratic style of leadership should be adopted by
leaders and trade union. Again, people with unquestionable character should be elected into
executive positions.
Keywords: Participation, trade union, multinational organization, industrial, government,
socio-economic.
1. Introduction Trade Unions evolved from the inclination of workers to pursue improvement on
working conditions through collective bargaining during the industrial revolution in
Europe. Adam (2004) declared that sustained joint suffering breeds a brotherhood of
understanding, joint action and mutual assistance. Employees, therefore, needs only to
align his interest with the general aspirations of his trade union in order to garner
sufficient weight to compel management attention to his needs and aspirations in the
organization. Hence, the employees’ willingness to participate in trade unions becomes
important and beneficial.
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Participation is a rich concept that varies with its application and definition.
Srinivasan (2003) defined participation as a process of empowerment and active
involvement of beneficiaries in decision making that affect them. Again, Sidorenko
(2006) participation has no special definition as its meaning seems to be self-evident. He
however, defined participation as a process of taking part in different spheres of social
life: political, economic, social, cultural and others. To this end in view, participation
emphasizes the rights of individuals and the choices that they make in order to participate
in one activity or the other. Sherry (2006) identified two types of participation: Passive
and active participation. The passive participation is that in which people are simply told
what is going to happen or has happened already, while active participation involves a
situation where people take responsibility for and actively contribute to project planning,
design and implementation. Daman (2003) observed that genuine participation in a group
is an opportunity for members to better their own lives in particular and the community in
general, motivates people to work together because it inculcates in them a sense of
community and recognize the benefits of their involvement. In addition, genuine
participation may bring about remuneration in cash or kind to members, and also ensures
the rendering of free social, religious or traditional obligations to members of the same
group. Thus, participating in a trade union is essential in any organization whose
adherence lies within the terms and conditions of employment. Trade unions fighting for
the interest of their members must oversee the rate of pay in order to ensure that wages
are adequate or in line with the cost of living. Unions have achieved notable organizing
and bargaining victories in several industries where such gains have historically proven
difficult, yet many have argued that labour unions must adopt systematic methods for
evaluating their current and future strategic plans (Hensman, 2011). According to Banch
and Kessler (2012), the road that workers trod to attain the recognition and right even to
participate in decision making was a long, stormy and often bitter one. The issues at the
state bordered on how to humanize the conditions of work to limit the physical dangers
and the exploitation to which the worker was prone and the right of the worker himself to
participate in the decision-making process, as of right: the inalienable or fundamental
right of a human being to determine, direct in influence the course of events, or the events
themselves. Banch and Kessler encroaches on contentious grounds in representing
workers participation as a matter of fundamental human right. This perspective negates
the impetus and guiding principles of workers’ participation which are: proper
understanding and integration of interests and proper harmonization of goals and
objectives of the industrial partners.
Nigerian industrial relations system, like that of any other country has three
actors, namely: the workers, the employers and the government. It is the interaction of
these three actors that make up the industrial relations system of the country. It is in view
of this, that Ackers (2008) defines industrial relations as tripartism in action. The
interaction and dynamism within the system are represented by the trade unions, the
employers are represented by the management of the organization and the various
employers’ association bodies and the government plays a dual role as employer of labour
and regulator of labour. Employees in a bit to get maximum benefits from the
organization may want to be involved in the making of decisions that affect their interest.
The management on the other hand may want to restrict workers’ participation in the
making of decisions in the organization since decision making falls into its prerogative,
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and since such interference may adversely affect its desire to make profit and ensure the
survival of the organization. Thus, this study looks into the socio-economic factors
affecting employees’ participation in trade union activities using the Nigerian Petroleum
Development Corporation (NPDC) and; Pipeline and Product Marketing
Company(PPMC) as study areas.
2. Statement of the Research Problem
Some of the variables influencing social participation in groups such as trade
unions as as identified by Sinkanye (2005) are divided into four major categories, namely:
attendance at meetings, financial and or material support, office holding and committee
membership. Daman (2003) stressed the following factors as correlates of participation of
people in community based organizations: remuneration in cash or kind, cohesion among
members of the group, support from institutions and value for programme. Financial
and/or material support was also identified to influence participation in groups. This was
stressed to be further influenced by the socio-economic status of the members, size of the
group, perceived benefit of the group to members and intensity of group identification.
Weathers (2009) posited that worker participation in management occurs when those
at the bottom of an enterprise hierarchy take part in the authority and managerial
functions of the enterprise. The term management is both functional as well as
descriptive. At the functional level it defined the machinery responsible for the
mobilization, coordination, structuring as well as rationalization of the factors of
production. Whereas at the descriptive level, it delineates the category of personnel
responsible for the execution of the functions of management.
The management process in any multinational organization (of which the NPDC
is one), involves three actors, namely, the workers, employers and the government. For
some time now, there seem to be too much of strikes, break-down of law and order in our
multinational organizations in particular and our country in general. In a bid to revamp the
ugly trend and ensure harmony in our organization, the study attempts to study the socio-
economic variables influencing workers participation in decision making process as it is
believed,this study hopes to answer the following questions:
1. What are the socio-economic variables influencing workers’ social participation
in management process of multinational organizations?
2. What are the socio-economic characteristics of workers in the organizations?
3. What are the patterns of relationship between workers and managements in the
organizations?
4. How these patterns do affects decision making in the organization?
3. Objectives of the Study
The main objective of the study is to examine the socio-economic variables
influencing workers social participation in management process of multinational
organizations and its implications for the effective marketing of pipeline product in
NPDC and PPMC, Edo state, NIGERIA.
Specifically, the following objectives were looked into:
i. To determine the socio-economic characteristics of workers in the organizations
in Edo state.
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ii. To ascertain the extent of trade unions participation in the organization’s decision
making process.
iii. To examine how the pattern of relationship between workers and management
affects decision making in the organization
iv. To identify the factors that affect workers participation in trade union’s activities
in the organization
4. Research Hypotheses
Ho1 : There is no significant difference between the patterns of management
and trade union involvement in decision making.
Ho2 : There is no significant difference between union leadership and their
involvement in decision process in the organization
5. Review of Related Literature
Although the idea of workers participation in decision-making in organization
dates back to the 19thcentury, it sounds very new in certain environment (Aspinall, 2007).
As far as Nigeria is concerned, most especially in the public sector, people in
organizations work together in order to accomplish its objectives and these objectives are
both the individual and the organizational objectives. It must be noted that each individual
working in an organization have individual goals to achieve. Thus, while management
wants to formulate decisions that will enhance the performance of job for the purpose of
actualizing the organizational objectives, the workers through their union want to ensure
that in making decisions in organizations, their interest are well protected.
According to Owolabi and Abdul-Hameed (2011) opined that there is an
assumption held by many scholars and managers that if employees are adequately
informed about mattersconcerning them and are afforded the opportunity to make
decisions relevant totheir work, then there will be benefits for both the organization and
the individual (Shadur et al., 1999). Hence, the following are the benefits of employee
involvement indecision making: It increases employees’ involvementsatisfaction and
enhances productive efficiency (Chang and Lorenzi, 1983). It provides employees the
opportunity to use their private information, which can lead to better decisions for the
organization (Williamson, 2008). As a result of the incorporation of the ideas and
information from employees, organizational flexibility, product quality, and productivity
may improve (Preuss and Lautsch, 2002). It contributes to greater trust and a sense of
control on the part of the employees (Chang and Lorenzi, 1983). Through employee
involvement, resources required to monitor employee compliance (e,g., supervision and
work rules) can be minimized, hence reducing costs (Arthur, 1994; Spreitzer and
Mishra,1999). When employees are given the opportunity to contributing their ideas and
suggestions in decision making, increase employee involvement in decision making
maximizes viewpoints and a diversity of perspectives (Kemelgor, 2002).
Furthermore, Yusuf and Metiboba (2012) opined the need to provide a safe work
environment for employees has had a long history in human resource management.
Spector and Beer (1994) acknowledged that work systems cannot only affect
commitment, competence, cost effectiveness and congruence but also have long term
consequence for workers’ well-being, there are some evidences to indicate that work
systems designs may have effects on physical health, mental health and longetivity of life
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itself. Conducive work environment ensures the well-being of employees which
invariably will enable them exert themselves to their roles with all vigour that may
translate to higher productivity (Akinyele, 2007). Kohun (1992), defined work
environment as an entirely which comprises the totality of forces, actions and other
influential factors that are currently and, or potentially contending with the employee’s
activities and performance. Work environment is the sum of the interrelationship that
exists within the employees and the employees and the environment in which the
employees work. Brenner (2004) was of the opinion that “the ability to share knowledge
throughout organizations depends on how the work environment is designed to enable
organizations to utilize work environment as if it were an asset. This helps organizations
to improve effectiveness and allow employees to benefit from collective knowledge”. In
addition, he argued that work environment designed to suit employee’s satisfaction and
free flow of exchange of ideas is a better medium of motivating employees towards
higher productivity.
6. Material and Method
Area of study
The study was carried out in Edo State. The State is one of the nine states of the Niger
delta area of Nigeria. It is the remnant of the defunct Bendel State after the Delta State
was carved out in August 1991. The state presently has 18 local government areas with its
capital seat at Benin City. Its population size according to 2006 census is 3,218,332
people and that is still in use till today. They are spread over about 19,639.7 square
kilometers, the average population density is about 110 people per square kilometer but
the densities are higher in Benin city and other urban areas and local government
headquarters such as Auchi, Ekpoma, Uromi, etc. (NAEC, 2008).
Most of the communities in Edo State trace their origin to the ancient Bini
Kingdom, whose first traditional head, was the Oba of Benin. Edo State has various
linguistic and cultural affinities. Their main spoken language is Edo, with its various
dialects and lingua franca which is pigeon English, the official language is English
Language. Edo State is rich in culture and can boast of the world best wood carvers, and
bronze sculptors. The people are also popular in arts and crafts and these have contributed
to the tourism and creation industry in the State. Benin-City has developed to be the
administrative, commercial and industrial nerve centre of the Edo State, The State has
major industries at NIFOR, Ewu, Okomu, etc. major crops grown in the State include,
rubber, timber oil palm and cocoa (in Akoko Edo, Owan and Etsako areas) production
before Nigeria oil rich. Several mineral endowed in the State are quartzite, marble,
limestone, lignite, gold. Petroleum is found in Ovia and Orhionmwon areas of the State
(NAEC, 2008).
Research Design
The study employed the survey research design. This survey research design was
adopted because it stands the most efficient way to draw respondents of the study since
the population was large and findings obtained can be generalized for the larger
population.
Sampling Technique and Size
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The stratified sampling technique was employed because the organizations
(PPMC and NPDC) used for the research had different categories of workers and
stratification was necessary to ensure that each category was well represented in the
study. The population of the study comprised of workers of Pipeline Product Marketing
Company (PPMC) and Nigeria Products Distribution Company (NPDC), both
subsidiaries of Nigeria National Petroleum Corporation (NNPC). The total number of
workers in NPDC was six hundred and twenty (620), while that of PPMC was three
hundred and twenty (320) workers. This brings the total number of workers of both
subsidiaries to nine hundred and forty (940) workers (see Table 1).
Table 1: Distribution of workers in the subsidiaries used for the study
Staff Categories NPDC workers PPMC workers
Management staff 32 20
Senior staff 53 32
Supervisors 71 30
Junior staff 464 238
Total 620 320
Source: Field survey, 2015
From the population, an equivalent number of 50% was drawn from both
organizations (PPMC and NPDC) to make up the sample used for the study. This brought
the sample size to four hundred and seventy (470). The distribution of the staff of both
companies according to their categories and the number sampled is shown in Table 2 and
3 respectively
Table 2: Distribution of NPDC workers according to their category
Staff Categories NPDC workers PPMC workers (app.50%)
Management staff 32 16
Senior staff 53 27
Supervisors 71 36
Junior staff 464 232
Total 620 311
Source: Field survey, 2015
Table 3: Distribution of PPMC staff according to their category
Staff Categories NPDC workers PPMC workers (app. 50%)
Management staff 20 10
Senior staff 32 16
Supervisors 30 15
Junior staff 238 119
Total 320 160
Source: Field survey, 2015
Method of Data Collection
The data for the study was collected from primary and secondary sources.
Primary data was collected from the respondents through the aid of structured
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questionnaires, while the secondary data was elicited from books and other literature
obtained from the Human Resources Departments of both companies. The questionnaire
were distributed and retrieved by the researcher..
7. Method of data Analysis
The data obtained were analyzed using both the descriptive and inferential
statistics. Descriptive statistics involves analyzing socio – economic characteristics in
frequency tables, percentages and means. Inferential statistics on the other hand, involves
the use of Chi – Square in analyzing the hypotheses of the study.
In using Chi – Square statistics, attention was paid to the rules for validating the results.
In addition, degrees of freedom were calculated based on columns and rows. Finally, level
of significance was chosen.
Formular for Chi – square is given below;
2 = ∑ [ (Fo - Fe)
2] / Fe
Where; Fo = Obtained or observed frequency in a cell.
Fe = Expected frequency
∑ = Summation which is taken over all cells in the contingency table
Decision Rule
If the calculated Chi – square (2cal) exceeds (>) the tabulated Chi – Square (
2
tab), the null hypothesis is rejected while the alternative hypothesis is accepted.
i.e. if 2 cal >
2 tab, reject null and accepted alternative hypothesis
on the other hand, if X2 cal <
2 tab, accept null and reject alternative hypothesis
8. Result and Discussion
Socio – Economic Characteristics of the Respondents
The socio – economic characteristics of the respondents is shown in Table 4.
Results revealed that most (71%) of the respondents were males while the others were
females. This large difference in the numbers could be attributed to the nature of the work
which males are most favourably disposed to. In where age is concerned, most (37%) of
the respondents belong to the age bracket of between 30 – 39 years. About 9% of them
were less than 40 years while about 53% of them were more than 39 years. The mean age
was 42 years. The results indicated that the respondents were in their active age group.
Educationally, good proportion (63.41%) attended higher Institution and beyond,
while few of them (27%) did not school beyond secondary school level. The educational
level makes it possible for the workers to attain managerial positions and handle
challenges when they arise. Large proportion (about 61%) of the respondents is married.
About 16%, 5% and 18% were respectively divorced, widow(er) and single. Having most
of them as married people is a reflection that they are responsible people and have people
to cater for.
In terms of religious affiliation, a larger proportion (60%) of the respondents is
Christians. Few (20%) are Muslims, about 11% are of the Traditional religion while about
9% belong to other religion. The dominance of Christians in the organizations could be
attributed to type (Christianity) practiced in the area of study.
Considering the respondents on the basis of working experience, results showed
that the mean years of working experience was about 16 years, most (about 34%) of the
respondents had less than 10 years working experience while others had more than 9
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years working experience. The result implied that the workers hadput in reasonable
numbers of years and so could be termed as experienced in the job. The survey on income
level reflected an average income of N151,700 and majority (about 38%) belonged to this
category (N150,000 – N200,000). About 16% of them earned above N200,000, while
about 46% earned below N150,000. The income level indicated that the respondents are
economically stable and can meet with most of their domestic responsibilities.
Table 4: Socio-economic characteristics of respondents
Characteristics
Categories Frequency Percentage Mean
Gender Male 332 70.64
Female 138 29.36
Total 470 100.00
Age 20 – 29 42 8.94
30 - 39 175 37.23
40 - 49 155 32.98
50 - 59 98 20.85
Total 470 100.00 41.58
Educ. Qual. Pri. sch. 15 3.19
Sec. sch 112 23.83
Higher intuitions 298 63.41
M.Sc / Ph.D 45 9.57
Total 470 100.00
Marital status Single 83 17.66
Married 288 61.28
Divorced 75 15,96
Widow(er) 24 5.11
Total 470 100.00
Religious affiliation Christianity 282 60.00
Islam 94 20.00
Traditional 51 10.85
Others 43 9.15
Total 470 100.00
Work exp. (yrs) 1 - 9 158 33.62
10 – 19 141 30.00
20 – 29 126 26.81
30 – 39 45 9.57
Total 470 100.00 16.23
Income Below 50,000 08 1.70
50,000 < 100,000 63 13.40
100,000 < 150,000 146 31.06
150,000 < 200,000 176 37.45
200,000 and above 77 16.38
Total 470 100.00 151.70
Source: Field survey, 2015
Level of trade union participation in the organization decision making
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Results on the level of trade union participation in the organization’s decision
making revealed that majority (about 55%) were high participants in organization
decision making (see Table 5). Few of them (about 32%) were average participants, while
a low proportion of them were low participants in the decision making process of the
organizations. The fact that the majority of the respondents are high participants is an
indication that the management of the organizations perhaps have made participation of
workers in decision making as something compulsory. This could be seen as a channel
through which the welfare of the workers is easily met, hence their high participation.
Table 5: Level of trade union participation in the organization decision making
Level of Participation Frequency Percentage (%)
High participation 257 54.68
Average participation 149 31.70
Low participation 64 13.62
Total 470 100.00
Field survey, 2015
Pattern of relationship between trade union and management
The result of pattern of relationship between trade union and management is
shown in Table 6. The result revealed that a good proportion (about 83%) and few (17%)
of the respondents indicated that the pattern of relationship was the universal and systems
pattern respectively. The implication is that the universal pattern allows for inputs of trade
unions in decision making and this guarantees the workers welfare being met on one
hand, and a higher productivity on the other hand. Report of McCabeand Lawin (2004)
agreed with the result as they noted that trade unions have a way of expressing complaints
or dissatisfaction in the participation and involvement of employees in decision making
process in organization.
Table6: Pattern of relationship between trade union and management in
decision making Pattern of Management Union Involvement Total
Involvement Not involved Frequency Percentage
Universal 328 61 389 82.77
Systems 58 23 81 17.23
Total 386 84 470 100.00
Source: Field survey, 2015
Factors limiting respondents’ participation in trade union activities in the
organizations Table 7 shows the factors limiting respondents’ participation in trade union
activities. Some of the serious constraints why respondents do not like participating in
trade unions are poor leadership style put up by leaders (mean = 2.91), corrupt and
dishonest leadership (mean = 2.81), benefits and affairs being hijacked by few (mean =
2.78) and threat of disengaging workers (mean = 2.54). The non – serious constraints
include poor participation of workers in executive positions and failure to address / pursue
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members’ needs. The serious constraints plaguing workers participation in trade union
accounts for why many of the workers stay away from union activities.
Table 7: Factors limiting respondents’ participation in trade union activities in the
organizations
Constraints Mean Standard Deviation
Poor participation of workers in executive
positions.
2.03 0.65
Failure to address/pursue members needs. 2.10 0.68
Poor Leadership style of organization’s
Executives
2.91 0.70
Corrupt and dishonest leadership. 2.81 0.76
Hijacking of benefits & affair by few privileged
members.
2.78 0.62
Treats to workers who would have wanted to
participate in Executive positions.
2.54 0.60
*Agreed (mean ≥ 2.50);
Source: Field survey, 2015
Pattern of management and trade union involvement in decision making
Hypothesis one states: there is no significant difference between organization pattern of
management and trade union involvement in decision making. The relationship between
management and trade union involvement in decision making is showed in Table 6. The
analysis revealed thus:
Calculated Chi – Square (2 cal) value = 4.2
Tabulated Chi – square (2 tab) value = 3.84
Degree of freedom (DF) = 1
Alpha level of significance = 0.05
Decision: since the calculated Chi – square (2 cal) of 4.2 was greater than the tabulated
value of Chi – square (2 tab) of 3.48, at alpha level of 0.05 and a degree of freedom 1, the
null hypothesis was rejected while the alternative that a significant relationship did not
exist between pattern of management and trade union involvement in decision making.
The result showed that the majority of the respondents believed that pattern of
management and trade union involvement means a lot to their organizations. By
implication, management patterns allow for the inputs of trade union indecision making.
The practice guarantees an assurance of higher productivity in the organizations. This
finding and assertion is in line with the assertion of Boxall and Purcell (2011) who stated
that the trend in most organizational decision making is collective bargaining where the
involvement of workers in decision making is considered as a tool for inducing
motivation in the workers leading to positive work attitude and higher productivity.
Leadership and involvement of trade union in decision making in organization
Hypothesis two states: There is no significant difference between union leadership and
their involvement in decision process in the organization. Table 8 shows the difference
between Union leadership and their involvement in decision making in the organizations.
From the Table, the following could be deduced;
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Calculated Chi – Square (2cal) value = 5.23
Tabulated Chi – square (2 tab) value = 3.84
Degree of freedom (DF) = 1
Alpha level of significance = 0.05
Decision: the null hypothesis was rejected while the alternative hypothesis was accepted.
This decision was based on the fact that the calculated Chi – Square value of 5.23 was
greater than the tabulated Chi – Square value of 3.84 at alpha level of 0.05 and a degree of
freedom of 1. This means that there is a significant relationship between union leadership
and involvement of union in decision making in the organization. The implication of the
result is that the stronger the leadership, the more involved they would be in decision
making. The assertion is in line with that of Beardwell and Claydon (2007) who observed
that transparency and democratic decisions tend to reduce incidence of factions and intra
– union conflicts. The emerging fact therefore is that union leadership is significant in
structuring the union which impacts significantly on the union’s contribution in decision
making, the performance of the leader, which in turn depends upon the skills and styles of
the union leaders.
Table 8: Difference between leadership and involvement of trade union in
decision making in organization Union
leadership
Union Involvement Total
Involvement Not involved Freq. Percentage
Strong 296 53 349 74.25
Weak 83 38 121 25.75
Total 379 91 470 100.00
Field survey, 2015
9. Conclusion and Recommendations Findings revealed a positive relationship between trade union’s involvement and
decision making. Despite the problems associated with workers active participation in
trade union activities, the participation level was still high and this has permitted the
respondents inputs in decision making. This has virtually translated to ensuring that the
workers welfare is steadily being met on workers side and higher organization’s
productivity on the other hand. Findings revealed that trade union’s involvement in
decision making is more when leadership strength is stronger.
The following recommendations are advanced based on findings of the study;
- Trade unions should be encouraged in government organization especially
multinational organizations to act as check and balance to correct wrong style of
leadership.
- Seminars and workshops should be organized to orientate employers and
employees on the various leadership style to suit this civilized age.
- The leadership style adopted by most of the trade unionist is the autocratic style.
This has a way of impacting negatively on the people. Efforts should be put in
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place to ensure a reverse, and adopt the best style of leadership that could
encourage participation of workers in trade union.
-
- Study found that most of the executives/leaders are corrupt and dishonest. Efforts
should be made to ensure that only people (workers) with unquestionable
characters are elected into executive positions. This will go a long way in
reducing the menace put up by some of the leaders. And should be made to face
the law when found guilty of corruption.
-
- The welfare of the employees should be the main focus of executives of trade
unions while self should be relegated to the background else the objective of
participating is defeated
-
- Efforts should be made to adopt the services of occupational social
workers/sociologists in trade unions, this will help to understand the behaviour of
unionists, that is, the reason decisions are taken in the manner it was taken and
resolve any possible socio-economic defect this could led to.
- - Also, efforts should be made by government to ensure that no worker or trade
unionist is threatened or sacked for performing or participating in union’s activity.
This will go a long way in canceling or eliminating fear from the workers mind
and therefore make them participate more in trade union activities.
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