causes and consenquencs of labour unrest

7/25/2019 Causes and consenquencs of labour unrest

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Comment: effect necessary corrections on red, resubmit and proceed to chapter

two. We need to agree on the chapter two outline before you proceed. Thanks.

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Labour unrest is a social problem involving a relatively large number of people. t

seems to be a global phenomenon. Labour unrests have occurred for thousands of

years, notably during the construction of the pyramids in ancient !gypt "Budd,

#$$%&. 'espite the impressive advance in living standards in the western

industriali(ing countries over the nineteenth century, including the enactment of

selected social reform measures and the outpouring of new thinking and ideas onlabour, the labour problem refused to go away ")aufman, #$$*&.

+ccording to idley "1-$& a British newspaper told its readers in 1-$- that

!nglishmen lately returned from /aris tell that respectable 0rench people alarmed

at the freuency and viciousness of labour unrest, shake their heads at the signs of

the times, and speak of another revolution. )aufman "#$$*& says that in the years

before the 0irst World War, the labour problem continued to rank in most of thecountries of !urope and 2orth +merica as the greatest domestic challenge facing

civil society.

Labour unrest in Western !urope reached its peak during the period 1-%31--4 up

to #1 million strikers for 11* million workers or almost two strikers for every ten


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workers. +s regards the number of workers involved, taly is far ahead of the other

countries with an average of over million workers on strike per year for the entire

period "1-$3-5& which represents %% per cent of the western !uropean workforce

involved in industrial action "+ligisakis, 1--&. The phenomena of labour unrest

arc found in all countries where people work for others in paid employment.

2igeria is therefore no e6ception.

The foregoing may appear to suggest that labour unrest is all about strike action. t

is not. Whether a work stoppage is by a strike action or by a lockout there is

ultimately labour unrest. +ccording to "Budd, #$$%& a lockout is similar to a strike

action in that it is a work stoppage that results from a dispute and if a lockout, it is

initiated by an employer, and if a strike action, by workers. Labour unrest has been

a feature of this 2ation workplace for decades. t is caused by either a strike action

by workers or a lockout by an employer.

The nature of workplace in any organi(ation both at the microeconomic level and

macroeconomic platform is very crucial in determining the level at which

productive activities are carried out in an economy. This is because work activities

do not take place in a vacuum but within a given work conte6t. Therefore, a sound

and harmonious industrial relations in an enterprise is essential not only to

employers and workers but also to the society because efficient production of

goods and services depends on it.

Labour unrest is a recurrent problem between the 7overnments and 2igeria Labour

8ongress, also with various labour unions, over declines of agreement between the

parties involved in sorting out their reuest over time. Labour unrest in 2igeria has

oftendue to unresolved labour matters, which ought not to have been allowed to

degenerate to a level that would disrupt the scheme of things "+kingbehin, #$1*&.

Specifically, many believe that some labour agitations also involve allegations


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regarding the refusal of one of the parties involved to stick to the terms of the

agreement reached by the parties. 9any say, workers threaten to go on strike to

press for the payment of their entitlements such as allowances, which have been

approved by the government.

There are series of labour unrest that took place during the last administration,

below are some labour unrest events that took place in "#$11 : #$15&.

The Senior Staff Association of Nigerian Universities (SSANU) once

threatened to go on strike if the 2013 budget did not capture its members

a!!o"ances#

The Nigeria Union of Teachers (NUT) "ent on strike in a sho" of so!idarit$

"ith Academic Staff Union of Universities (ASUU)% "hich had been on strike%

over &unding of universities and imp!ementation of the 200' &ASUU

Agreement#

Nigeria *abour +ongress Nation"ide "arning strike over the non,

imp!ementation of the ne" nationa! minimum "age b$ the &edera! overnment

and Agitation to revert the remova! of fue! subsid$#

The Nationa! Union of -etro!eum and Natura! as .orkers (NU-/N) and

The -etro!eum and Natura! as Senior Staff Association of Nigeria

(-/NASSAN) dec!ine their "ork activities over non,imp!ementation of

federa! government to be comp!eted

"/anford, 1--*& says that the use of industrial strike by workers remains an

important source of conflict between governments and trade unions. ;ther

uestions asked are about the economic conseuence of labour unrest, per se, on

productivity. But little said about the social conseuence of labour unrest.


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0rom time immemorial, there have been associations and unions in various fields

of human endeavor. The aims of the association or union in most cases include but

are not limited to the regulation of conduct and affairs of its member. n the same

vein, employers of labour do form associations and unions for the purpose of

protecting their various interests in the relationship with their employees who

usually, like their employers do form associations and unions for the purpose of

protecting their interests under their various contracts of employment. This is the

basis of the establishment and formation of Trade


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2evertheless under conditions of rapid economic and political growth the unions

have become one of the ma?or foci of political power. n spite of the small

percentage engaged in wage labour, the workers hold a strategic place in the

economics of the new nations. 0urthermore "'avis, 1-@@& is of the opinion that

because wage earners are concentrated in precisely those industries and services on

which economic development depends, they have the potential directly to influence

and control the political machine. 'avis argues further that a study of +frican trade

unionism is much more than a survey of industrial organi(ation= it is a study of

+frican societies, the course of their different struggles against imperial rule and

the conseuences for the pattern of political no less than economic power.

Labour>Trade union formation is part of 2igerian 8onstitution under Trade union

+ct, in which 2igeria workers like their counterparts in other developing countries

have witnessed fundamental changes in their condition over time. To a large e6tent,

labour unions have contributed positively in breaching some policies made by the

government in suiting the welfare of various employee and it also contribute in the

transformation of most developing countries.

7overnment is the largest employer of labour with private individual employing a

minimal proportion of the working class "0a?ana, #$$@&. n 2igeria, labour unions

has become a very important agents of socio3economic transformation and class

struggle "+remu, 1--@, +kinyan?u, 1--& which began from the colonial struggle

and continued till in the post3independence era. n the same vein under the last

administration of /resident Aonathan, labour unions was at the forefront of the

struggle against government policies and some agreement that was not reached

such as +gitation to revert the removal of fuel subsidy, retrenchment of workers,

refusal to honor agreement on wage increase, 0unding of universities and


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implementation of the #$$- 07>+S


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Since time immemorial labour unrest has always occupied the front burner of

criticisms and oppositions in 2igeria whenever the 7overnment through its

policies makes life unbearable for its citi(ens. Therefore, Labour unrest is an

organi(ing and strike actions undertaken by labor unions, especially where labor

disputes become violent or where industrial actions in which members of a

workforce obstruct the normal process of business and generate industrial unrest

are essayed.

'o all these sanctions, namely, wage>salary loss and ?ob loss have far3reaching

implicationsG +lso does labour unrest actually affect productivityG What also is the

impact of damages to properties, loss or in?ury suffered by any other person other

than those who had participated in the strike actionG

1.# Statement of the problem

n recent times, some of the perenniallabour unrest in 2igeria arisesas a result of

disagreements between Labour and government. n each case, no matter which

party is right or wrong, there has always been a damaging effect to the people with

regard to their needs, ideas, beliefs, goals or values. +s the disputes continued to

occur often, it becomes pertinent that conflict management strategies need to be

applied.

t appears that attention seems to be focused more on the conseuences of labour

unrest on productivity than on individuals or society. Surprisingly, also the causes

of labour unrest usually are not given the necessary attention by 2igerian society.

+nother instance is when the media2ews agency of 2igeriaviewed labour unrest

as affecting productivity ignoring the socio3economic dimensions as seen by


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"+kingbehin, #$1*&. t is this apparent disinterest in the wider dimension of labour

unrest that calls for this study. This researchseeks to investigate the causes and

conseuences of labour unrest during the last administration "HHtoH.).

1.5 ;b?ectives of the Study

The broad ob?ective of the study is to assess the causes and conseuences of labour

unrest during the last administration.Thus the specific ob?ectives of the study are4

. To ascertain if public policies are responsible for labour unrest in

2igeria=

. 1& To e6amine the general nature of labour unrest in 2igeria from 1-@$=

. #& To find out the specific causes of labour unrest under /resident

AonathanFs administration "H3..&

I. 5& To identify the ma?or conseuences of labour unrest from3333to3333

I. *& To suggest solutions to the problem of labour unrest in 2igeria

I. To find out the effect of labour unrest on the nation=

I. To identify gains or losses to organi(ations and government institution in

times of labour unrest=

I. To suggest solutions to the problem of labour unres.

1.* esearch Juestions

a& +re government policies responsible for labour unrest in 2igeriaG


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b& What gains or losses do government incur in times of labour unrestG

c& What interventions or methods have been adopted to curb or prevent labour

unrestG

1.% Austification>Significance of Study

/ast literature discussed have not been sufficient empirical3econometric works to

supports the study, most especially in 2igeria.

This study may help to unearth further the causes and conseuences of labour

unrest. !ssentially, every research is a uantum of knowledge= this study will

therefore be of a theoretical significance to future researchers as it is going to

enclose the identified uestions. +lso, it is going to add to the e6isting body of

literature as it tends to e6tend the frontier of knowledge.

"/anford, 1--*&, "+?ewole, #$1*&, and "9ichael, #$1*& have identified causes of

labour unrest as including review of e6pired collective agreements, lack of

industrial harmony, industrial and economic policies, improved working

conditions, unpaid bonus, overtime work, salary arrears, removal of management

personnel, and delayed payment of allowances.

Thus its importance lies in the very fact that labour unrest is currently an occurring

pest and it is very spontaneous and topical. The study will guide labour

policymakers and implemented, employers and workers, and their respective

industrial organi(ations, among other stakeholders, to adopt appropriate measures

to overcome tendencies that allow industrial disputes to spiral into labour unrests.

nformation gathered will not only provide more insight into the causes and

conseuences of labour unrest, but will also provide probable solutions that may

help to prevent industrial disputes from escalating into labour unrest.


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1.@ Theoretical 0ramework

This study draws insights from the asymmetric information theory, which is

complemented by the pluralistic industrial relations theory. n this framework,

workers and employers, the two parties involved in the industrial relations are

believed to have strong bargaining power "the ability to persuade, ca?ole or prompt

the other party to accept a demand or an offer& and they usually seek to ma6imi(e

their respective interests "Bor?as, #$$%&. The employer seeks to ma6imi(e

productivity using unionsF "workers& services while the workers ma6imi(e their

utilities "e.g. satisfactory wages, bonuses etc& by offering their services. Whereas

the employer owns the organi(ational resources and prerogative in decision

making, the workers supply labour resource needed by the organi(ation "and may

en?oy supports from workers in other organi(ations>sectors and the larger society&.

The pluralistic industrial relations theory illustrates not only the relations between

employer and worker"s& "i.e. the individual relations& but also the relations between

employers and unions and between them and the State "collective relations&. Thus,

in the pluralistic industrial relations theory the focus is more on the collective

aspect of relations. This is as a result of the fundamental issues that pertain to

labour law, freedom of association, collective bargaining, trade unionism and so on

"de Silva, 1--D&. Kowever, in the 9ar6ist industrial relation perspective the pro3

cyclical nature of industrial crisis demonstrates that crises are products of the

bargaining power held by workers and employers. That is, industrial crises can be

embarked upon by workers when they are displeased by managementFs actions "orlabour policy&. 2onetheless, during period when the union bargaining power is

relatively weak, the union is less likely to press its demands and less likely to

resort to an industrial action in seeking a more favorable employment terms. n this

light, it could be said that while the 9ar6ist theory points more towards the


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individual industrial relations, the pluralistic industrial relations theory is collective

in its perception. +ccordingly given a study with macroeconomic perspective such

as this, the pluralistic industrial relations theory appears more appealing than the

9ar6istsF.

t is worthwhile to mention that negotiations between employers and workers

usually involve a number of issues beside wage. Kowever, "Kicks, 1-5#& surmised

that the parties, that is, employers and workers essentially negotiate over wages or

all items at the negotiation table "which usually result to industrial crisis when

agreements are not reached& can be reduced to monetary terms that can be

represented by wage. Thus, it is not that other issues are not of paramount

importance but it is con?ectured that they tend towards measurable monetary terms.

n furtherance, it is believed that each party will prefer to resolve any form of

industrial crisis as soon as possible and may not want it to deteriorate due to its

deleterious nature. This is predicated on the fact that the employer will lose the

services offered by the workers during the industrial crisis period. +s a result, they

would not be able to meet up with their customersF orders. 0or e6ample, the cost

that resulted from loss of service flow due to inferior uality euipment emanating

from trade dispute was estimated at #*$ billion


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satisfaction, reduction in e6pectation of those that depend on the workers to eke

out a livelihood, among others. + ready e6ample is the general strike of #$$* that

involved financial institution and several sectors of the economy in which

meaningful economic activities were negatively affected "8B2, #$$*&. +nother

instance is the general strike of #$1# that involved most workers in all sectors of

the economy, which was embarked upon to e6press gross displeasure over the

removal fuel subsidy which alleged to price hike of fuel in the 8ountry.

1. esearch methodology

1..1 Kypothesis

n accordance with the research uestions and founded on empirical

verification deduced from the research study hypotheses thus4

Ho14 There is no significant difference between government policies

and labour unrest in 2igeria.

Hi14 There is significant difference between government policies and

labour unrest in 2igeria.

Ho24 There is no significant difference between gains or losses and

government incur in times of labour unrest.

Hi24 There is significant difference between gains or losses and

government incur in times of labour unrest.

Ho34 There is no significant relationship between interventions or

methods and ways to curb or prevent labour unrest.

Hi34 There is significant relationship between interventions or

methods and ways to curb or prevent labour unrest.


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1..# 9ethodology of the Study

The study will adopt ualitative research paradigm. 'ue to the nature of the

variables under review, and the abundance of diverse literature related to the

work only relevant secondary materials will be used for the work. The

method of data collectionto beused in this research study is the secondary

source which is also known as documentation due to the spontaneous nature

of the issue under investigation.The necessary information needed to answer

the set ob?ectives of the study will be gathered from, te6tbooks, articles,

maga(ine, ?ournals, newspapers,etc which are relevant to the study.

The framework of content analysis is what we adopted due to the fact that it

will aid us in giving better appreciable acknowledgment to the study and

make us knowledgeably acuainted to the sub?ect under analysis.

1.D Scope and Limitations of the Study

The Scope of this study is to look inwards into the causes and conseuences the

various labour unions has created in the country. This study will discuss on

proactive labour unionsthat have in one way or the other succeeded in influencing

7overnmental policies and decision during the administration of /resident !bele

7oodluck Aonathan.Such labour unions are4 2ational


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+s regards to the limitation of this study, we would point out that there were

indeed limited documented materials on the issue and the factors of it being timely

in con?unction with financial impediments or constraints, time and numerous

academic work in campus.

1.- 'efinitions of Terms

This term that have been carefully selected for definition in this research work are

those that are related to the course of study and those terms which also have

ambiguous meaning, here an attempt is made to give clarity on their usage in this

research work.

Labour Unrest: This is a term used by employers or those generally in the

business community to describe organi(ing and strike action undertaken especially

when 7overnment tends to implement policies not favorable to their members.

Labour Union: This are group of people who come together in line with their

profession or career with the sole aim of protecting their interest through

influencing 7overnment policies through strike actions and protest.

Industrial Ations: ndustrial action is the refusal by employees to perform work

or the performance of work in a manner that is intended to reduce productivity in a

workplace.

Industrial Relations: +ccording to "0a?ana, #$$@& industrial relations is defined

broadly as a discipline concerned with the systematic study of all aspects of the

employment relationship. t deals with everything that affects the relationship

between workers and employers= perhaps from the time the employee ?oins the

work organi(ation until he leaves his ?ob.


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!tri"es: This is a refusal to work organi(ed by a body of employees as a form of

protest typically in an attempt to gain a concession or concessions. Thus itFs a work

stoppage undertaken in support of a bargaining position or in protest of some

aspect of a previous agreement or proposal agreement between labour unions and

the management or the 7overnment.

References

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causes and consenquencs of labour unrest

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