ABSTRACT
The purpose of this study is to find out this issue of industrial democracy and how it can enhance labour stability in Nigeria with particular reference to Imo State. The idea of industrial democracy become necessary in view of the unending industrial unrest, strikes and labour instability bedeviling the country. Over the years, low productivity, low service delivery, unhappy workforce among others have been the bane of the Nigeria industrial organizations. A case study research method was adopted. The populations are the staff of Imo oil palm plantation, Nigeria Labour Congress (NLC) members Imo state chapter, and Nigeria union of local government Employees (NULGE), Imo State. Three research hypotheses were postulated to find solution to the problem under study. Using a stratified random sampling technique, a set of questionnaires was used to collect data from a total of 350 respondents from the three selected organizations in Imo state. Data collected was analyzed using frequency counts, percentage, table and mean test methods. The result from the respondents showed that when the independent variables; membership involvement in decision-making, management adheres to rules of engagement and labour laws, respecting the will of workers, equity and transparency are combine, they contribute greatly to effective labour-management relation and thereby bring about industrial peace and labour stability. The following findings were obtained: (i) it was discovered that industrial democratic practice will enhance industrial peace and labour stability. (ii) it was also discovered that labour unrest occur as a result of lack of industrial undemocratic practice.(iii) it was also discovered that workers are not given chance to participate in decisionmaking of the organizations. Based on the above findings, the following recommendations were made: (i) that management should adhere to rules of engagement and labour laws. (ii) That the workers should be allowed to participate in the decision-making of the organizations. (iii) There should be equity and transparency when dealing with the workers. (iv) That the will of the workers should be respected to reduce the apathy being experienced.
TABLE OF CONTENTS
TITLE PAGE ……………………………………………………………….. ……………………………..i APPROVAL PAGE ……………………………………………………………………………………………ii
CERTIFICATION ………………………………………………………………………….………….iii
DEDICATION ………………………………………………………………………………………..iv
ACKNOWLEDGEMENTS ……………………………………………………………………………v
ABSTRACT …………………………………………………………………………………………..vi
TABLE OF CONTENTS …………………………………………………….. ……………………………..vii
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study …………………………………………………………………1
1.2 Statement of the Problem …………………………………………………………………4
1.3 Objectives of the Study …………………………………………………………………6
1.4 Significance of the Study ………………………………………………………………. 6
1.5.1 Scope and Limitations of the Study ……………………………………………………..8
CHAPTER TWO: LITERATURE REVIEW AND RESEARCH METHOD
2.1 Literature Review ……………………………………………………………………….10
2.1.1. Gap in Literature ……………………………………………………………………….27
2.2 Theoretical Framework …………………………………………………………………..28
2.3 Hypotheses……………………………………………………………………………. 36
2.4 Operationalization of the Key concepts in the Hypotheses ……………………………..37
2.5 Methodology …………………………………………………………………………38
2.5.1 Research Design ……………………………………………………………………..38
2.5.2 Method of Data Collection …………………………………………………………..38
2.5.2.1 Population of the Study ……………………………………………………………39
2.5.2.2 Sampling Technique ………………………………………………………………..39
2.5.2.3 Sources of Data Collection …………………………………………………………41
2.5.2.4 Tests of Validity and Reliability of Research Instruments …………………………41
2.5.2.5 Method of Data Analysis ……………………………………………………………42
CHAPTER THREE: THE STUDY AREA/GENERAL INFORMATION
3.1 Study Location/General Information of Imo State ………………………………………43
3.2 Nigeria Labour Congress: Introduction ………………………………………………….45
3.3 Nigeria Union of Local Government Employee (NULG) ……………………………….55
3.4 Imo Oil Palm Plantation: General Information ………………………………………….57
CHAPTER FOUR: DATA PRESENTATION, INTERPRETATION AND ANALYSIS
4.1 Data Presentation…………………………………………………………………………65
4.2 Data Analysis…………………………………………………………………………….84
4.3 Findings ………………………………………………………………………………….90
4.4 Discussion of Findings …………………………………………………………………..91
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary ………………………………………………………………………………..98
5.2 Conclusion ………………………………………………………………………………99
5.3 Recommendation ……………………………………………………………………….100
Bibliography ………………………………………………………………………………..103
Appendix/ces ……………………………………………………………………………….109
CHAPTER ONE: INTRDUCTION
1:1 BACKGROUND OF THE STUDY
“Treat me fairly, treat me kindly, and involve me
Creatively in doing meaningful work in principled
way” …Stephen R. Covey.
This quotation by Stephen R. Covey is what every good management should take to heart and work simultaneously with their employees and customers to achieve the organizational goals.
In recent years, the notion of industrial democracy has been an increasing discussed issue in labour relations, especially in Europe countries where it has been revisited at both national and cross-national level. While in developing countries like Nigeria, industrial democracy is a new demand by labour to advance its participatory rights at workplace and societal levels. According to strauss and Wilpert (1998:8), participation helps satisfy employees non-pecuniary needs and these including, those for creativity, achievement and social approval. That it contributes to a sense of competence, self-worth and self-actualization.
Historically, during the late 19th and earlier 20th centuries, industrial democracy was a concept integrated in the ideological element of the industrial and political development of labour movement throughout Europe. In essence and in practice, it came about during and after the 2nd world war as a pragmatic and temporary organizational arrangement, which was only aiming to increase production. After the 2nd world war most European countries needed to reconstruct their industrial relations system for economic recovery. To aid economic recovery, countries like Netherland, Denmark, Belgium, Germany, France and Britain introduced works councils as a means of reducing disputes and securing a co-operative effort between management and employees.
In Nigeria, joint consultation which is a form of I ndustrial democracy was introduced in
1948 by the colonial administration. It was meant to complement collective bargaining (or Whitley council in the public sector) which serves as the main machinery available for the determination of wages and conditions of services for workers. Thus, while the collective bargaining machinery is used by the representatives’ of workers and, employers, that is, the union, joint consultation is used by the workers themselves and supervisors and managers that are involved in day-to-day production in the firm. At consultative meeting, discussions usually focus on how to improve productivity, safety and cleanliness in the workplace. However, it was in the 1970s after Nigeria independence that the Nigerian organizations and governments recognized the need to integrate the workforce in the decision-making processes. The objective for doing this had two aspects. First, they had to provide the workforce with meaningful and satisfactory work environment, thus adding a social function to the organization. The second aspect, mainly seen the management point of view, was that they hope, by integrating workforce in the decision-making, it would motivate efficiency and commitment to the organization. The labour governments during that time supported these notions while favouring direct legislative intervention for more formalized and representative forms of employee participation. This lead to the set-up of Bullock committee of inquiry on industrial democracy in 1975, and the subsequent white paper that established the most important legislative intervention in 1978 which founded the joint representation committees. From 1979 onward there was another shift. Government policies changed towards being non-supportive in participation, reducing the trade union power and deregulating the labour market. And the consequence of this paradigm is the frequent industrial unrest we are seeing today in Nigeria.
Labour unrest is bound to occur in an organization or society with inappropriate or absent of industrial democratic practice within the organizations framework. Therefore, employers should involve their employees in industrial decision-making in determining vital issues that affect them (workers), such as their working conditions, settlement of disputes as they arise, as they are likely to make workers to feel accepted, thereby enhancing productivity in the organization. Again, industrial democracy is machinery used by both the employers of labour and employees to reach a compromise for job value, wages, salaries and increase in productivity of employees (Donkor, 2010).
The great strike of 1945 was a watershed in labour management relations in Nigeria (Ejiofor and Aniagoh, 1984). Several days have been lost to strikes, lockout, sit-ins, picketing, suspension and dismissals since the colonial era to present day (Eze, 2007). From the colonial day’s instability of labour have become a regular occurrence in government establishment and other sectors of the Nigeria economy. For instance, strike actions moved from 30 cases in 1956/57 to 49 cases in 1957/58 and further to 53 in 1958/59 with corresponding increase in loss of resources (Imaga, 1990). According to Akereke (2010), contends that from 2003 to 2012, hundreds if not thousands of days were lost to strikes by workers across Nigeria over conditions of service. In fact, there is no day that passes in Nigeria without strikes or threats of strikes in one form or another by Nigerian workers.
These revelations necessitated the need for industrial democracy in management which
will in turn lead to industrial stability or industrial peace. Therefore, the aim of this research is to investigate how industrial democratic practice can be institutionalized in our industrial system so that we can have industrial peace and labour stability in Nigeria and Imo state in particular. Also, so that labour unrest will be a thing of past in Nigeria.
1:2. STATEMENT OF THE PROBLEM.
One of the most fundamental problems currently causing labour unrest in Nigeria and Imo state in particular is the issue of industrial undemocratic practice in the way of government or management not fulfilling some of the employment contracts agreement between it and the workers (labour). And as a result, they (workers) adopt anti-government posture which if care is not taken can tear the state apart (Ezema, 2007).
In addition, the denial of workers active involvement in decision-making is held to be one of the major causes of the problems which are manifested daily in the work lives of the modern employees. The implication of these to employees of increasing exposure to a monetized society, raising education and wider contact among people resulting from the break-up of artificial barriers was to shift these aspirations to a more satisfying work experience, greater control over the organization of work, greater opportunity for personal development and wider scope in exercise of initiatives.
Specifically, the refusal of work organizations to recognize the human factor in industrial production through greater involvement of employees in its management decision making, tend to create several human problems in this setting. Because, a worker is asocial being who brings his personality, hopes, aspirations, anxieties, feelings and attitude to the work place. He seeks satisfaction and meaning in his work as he does in other spheres of life. However, when he finds that his work does not provide him with the opportunity to realized his potentials (for instance, through strict management control) he tends to engage in negative behaviours like absenteeism, apathy, low commitment and low productivity. The implication of these negative tendencies resulting from strict management control has therefore raised serious concern among scholars interested in healthy industrial relations.
Again, the spread of democratic value to virtually every society today has brought the need to examine the implications of this trend to other spheres of life. With respect to economic sector, employees are faced with the dilemma of how to cope with authoritative management in the work places while living in a democratic society which guarantee basic fundamental freedom.
Also, if the management in our industrial sectors respect the workers and involve them in management decisions, we probably would not see frequent industrial strikes, unconcern attitude of workers towards their management, absenteeism, redundancy, and high turn-over we do today in business. Because, surveys have indicated that the number one complaint employees have about their companies does not concern money. The primary complaint is lack of respect and caring. In other words, the very thing we do not give our employees is what they want the most. People want respect and caring more than they want monetary compensation.
However, in the light of the above expositions: this research work is set to address the following questions:
- Does poor observance of industrial democratic practice account for the endemic labour unrest in Nigeria?
- Does industrial democratic practice going to enhance industrial peace and labour
stability?
- Does participatory management motivate workers to higher productivity?
- What measures can be adopted to reduce the incidence of labour unrest in Nigeria?
1:3. OBJECTIVE OF THE STUDY.
The study have both general and specific objective.
The general objective of the study is to investigate how industrial democratic practice (which is involvement of workers in management decision making) can be institutionalize in our industrial system so that we can have industrial peace and labour stability in the industrial sector. Its specific goals are therefore:
- To find out if poor observance of industrial democratic practice account for endemic labour unrest in Nigeria.
- To find out if industrial democratic practice will enhance industrial peace and labour
stability.
- To ascertain if workers participation in management decisions that affect them will motivate them to higher productivity.
- To suggest measures that can be adopted to reduce the incidence of labour unrest in
Nigeria.
1:4. SIGNIFICANCE OF THE STUDY.
The significance of the study presents the value or contribution which the research will make to the existing knowledge. The significance of this study is categorized into theoretical, empirical and practical significance.
Theoretical, this study has the potential of contributing greatly to the growth of existing literature in the area of industrial democracy. The information and data generated will serve as a guide for further investigations. More so, the methods applied in the collection and analysis of data provides a valid picture of social reality in general and the problems inherent in management -labour relation in particular. It is hoped that it will widen the focus of social research in industrial management. Furthermore, this study will enhance better communication between management and workers which will leads to increase in productivity and more efficient and effective service delivery from a more fully engage and happier workforce thereby causing stability of labour.
Empirically, the outcome of this study will help to facilitate a more effective negotiation procedure and disputes resolutions between various parties in labour relations. This is possible through the exposure of some hidden issues that had hitherto hindered the effective labourmanagement relations in Imo State oil palm plantation, NLC and NULGE. The study will also benefit the captains of industries, the government and the workers in Imo state, as it will enable them to have good labour relations and which will in turn ensure labour stability. The study will encourage the government and employers of labour in Imo state to imbibe or institutionalize industrial democratic practice in their management system which will help to reduce industrial unrest. Furthermore, the study will look into the internal problems of workers in term of providing their socio-physiological needs and the welfare of the workers. Finally, the study is also significance because it will show the level of civilize an organization is in term of practicing industrial democracy.
Practically, this study is considered significant because it will contribute to the growth, development of organizations and appropriate way of motivating workers in organization. It will also help to expose the dangers of undemocratic practice in the workplace such as low productivity, low service delivery, employee’s dissatisfaction, industrial unrest, instability of labour, etc.
1:5.1. SCOPE AND LIMITATION OF THE STUDY.
For the obvious fact there exist numerous industrial organizations in Nigeria, it will be very hectic and rigorous for the researcher to cover the entire industrial organizations. Therefore, this study was narrowed down to Imo state industrial organizations. Even at this, studying the whole industrial organizations in Imo state will also be insurmountable for the researcher. Consequently, the width of this study was therefore restricted to Imo oil palm plantation industry, Nigeria Labour Congress (NLC) Imo state chapter, and Nigeria Union of Local Government Employee (NULGE) Imo state chapter too. Precisely, the study covers the time frame from 2007-2011.
However, be that as it may, the intention is to use the study in generalizing on the impact of industrial democracy on industrial labour in Nigerian organizations.
1.5.2. LIMITATION OF THE STUDY.
The researcher in the course of carrying out this research met with certain limitations. They are as follows:
The researcher finds it difficult to cope with the problem of finance, which makes it impossible to reach out to as many people as he would have liked.
Another limitation of this research was that of long distance. Apart from that, there was also the limitation of gathering the views of workers and top management staff.
The fact is that it is believed that by doing so, the secret of the company or organization will be exposed to the outsiders. However, we were able to overcome this through tactful approach and assurances of confidentiality to the respondents. And finally, some of the respondents subjected the researcher to some rigorous bureaucratic process, but however, despite these constraints, the research was successfully carried out through persistence and perseverance.
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