Full Project – Industrial Unrest, Causes and Effect on the Achievement of Organizational Objective

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CHAPTER ONE

1.0  INTRODUCTION

1.1  BACKGROUND OF THE STUDY

According to trade disputes Act 1990 cap 432, a strike means the cessation of work by a body of persons employed acting in combination or a concerts to refuse or any number of persons employed to continue to work for an employer in a consequence of a dispute, done as a means of compelling their employed to accept or not to accept terms of employment and physical condition of work and in this definition.  The two terms “CESSATION” and “REFUSAL” are denotes two different meanings.

1. Cessation of work includes deliberately working a less than usual speed or with less than usual efficiency and
2. Refusal to continue to work includes a refusal to work at usual speed or with less usual efficiency.

Industrial unrest is a temporary abandonment of jobs by the work force of an organization with the intension of forcing management to accept a particular goal continuing.  They maintain that since workers do act and do not want others to replace them.  A strike implies an action against the employer or any other group which threatens job ownership.

Otite (1983:42) maintains that it is a two edge sword that cut both ends.  He described it as a costly and serious understanding for most union, not to be entered into highly and he regarded it as one means of withholding services and so on coming behind.

According to Ucheghara (1976:84), strike and industrial unrest may be defined as a deliberately working act less than usual speed or less with usual efficiency or a refusal to work at usual speed or with usual efficiency.  Encyclopedia Americans (1974) asserts that strike is temporary connected withdrawal from work by a group of workers employed in the same economic enterprise for the purpose of forcing the employer ascend to their demands.

Where the rights of labor concerns the rights of the employer as conditioned by the rights the man to give of withhold their services and that the right of workman to strike is an essential element in the principal of collective bargaining.

Thus, the root causes of strike and industrial unrest between Nigeria employees and their employer may not be farfetched of after words.  As postulated above, the principal economic factor affecting union behavior is the state of the country’s economy reflected in the labor market.  During the period of economic depression and inflation, the government finds it extremely difficult to make salary include to its workers.  As the hard economic condition manifest on the workers case and standard of living there may be a time when the worker could no longer fold their hands and wait for salary reviews which may not be forth coming from the government except by the use of strike actions as was evident in 1945, 1964 and 1981 strike action.

Added to this, it is an observed fact that workers in some of our establishment be it government or private, hardly receive their arrears of salaries may run into months, causing severe hardship to the workers who have  no other source of income to take care of their families.  As a result, workers may go on strike to press the payment of their salaries as was manifested in 1982, 1983 and 1984 period when teachers from different states of the federation went on strike actions to press for the payment of their arrears salaries owed to them.

Another root cause of strike especially in the public services and parastatals is the holistic decision government takes; government takes certain economic decision before ever realizing their repercussion on the work force.  There is a rationale commissioning a wage report that will not be implemented or enforced minimum wage in the face of hard economic recession or even award, salary increase to one parastatals without cognizance of the fact that will be part off a chain of reactions eventually from other similar establishment.

This was the cause of most strike action from different parastatals who were pressing for the implementation of the federal government to find it difficult to implement during the 1981, 1982 and 1983 periods.  Other decision taken by the government which may result in an industrial unrest include the transport allowance withdrawal of certain fringe benefit like the housing allowance, transport, overtime payment, pension and gratuity grants, cutting down of workers’ salaries and a host of other adjustment policies done without the workers knowledge can spark off serious of strike action aimed at trampling down such decision.

Above all an apparent cause of strike in most industrial establishment be it private or public wrongful dismissal of workers and sheer victimization, especially union officials who take active part in union activities.  In such cases,  workers engage in strike actions to solicit of this kind of strike actions was that embarked upon the National Union of Banks, Insurance and Financial Institution Employee (NUBIFIE), Union Bank Branch in 1982.  Trouble started when the wife of the Assistant General Manager staff one of the bank, Lagos had misunderstanding with one of the banks driver officially assigned to her husband.

1.2  STATEMENT OF THE PROBLEM

       The essence of every research undertaking is to solve teething and novel problems posing serious threats to the life success and survival of any organization.  Many scholars in the field of management have shown simple concern organizational performance.  High productivity on the part of the worker could be said to be directly proportionate to the effectiveness of the leadership style and employee morals.  The problems identified are:

1. Loss of government revenue due to labor strike action.
2. High cost of transportation
3. High cost of rent
4. Galloping price of inflation of commodities
5. High cost of food stuffs in the market.

1.3  OBJECTIVES OF THE STUDY

The purpose of this study is to show how industrial unrest and constant strike action affects organizational goals and objectives. The researcher also intends to show the impact of motivation towards organizational goals and objectives..  Specifically, the purpose of this study includes these below:

1. To determine the extent fuel subsidy removal affects the standard of living.
2. To determine the extent the removal of fuel subsidy causes inflation.
3. To determine the extent of fuel subsidy removal causes unemployment.
4. To determine the extent of fuel subsidy removal affect the cost of transportation
5. To determine if fuel subsidy removal has leads to economic improvement.

1.4  RESEARCH QUESTIONS

In order to get a clear picture and focus for this study, we can pose serious questions necessary for the solution of the problems we have identified in solution 1.2 above that such question includes:

1. To what extent does fuel subsidy removal affect the standard of living?
2. To what extent does fuel subsidy removal cause inflation?
3. To what extent does the fuel subsidy removal affect the organizational product and profit?
4. To what extent does the fuel subsidy removal cause high cost of rent?
5. To what extent does fuel subsidy removal cause high cost of transportation?
6. To what extent does fuel subsidy removal affect the government revenue due to labor strike action?

1.4  SIGNIFICANCE OF THE STUDY

The study has a lot to do with creating awareness on the negative effect of t he industrial unrest and strike in organization on head of government and Nigeria at large.

It would generally educate manager and the captains of industries and nations on ways and means of addressing the problem of industry and country when it occur in the workplace.  It would also serve as a reference material in the discipline of business administration, public relation and human management.

It will also serve as a basis for further research on industrial unrest resolution formula in organization and the country.

1.6  SCOPE OF THE STUDY

This study is limited to reviewing the patterns, causes, and effects of industrial unrest in achievement of organizational objective.  Emphasis would be land on industrial unrest in removal of fuel subsidy strike action in January, 2012.

1.7  LIMITATION OF THE STUDY

This study is limited to reviewing industrial unrest and causes that have occurred in Nigeria during removal of fuel subsidy in January 2012. It is also to find out their causes and effect of reducing the rate at which they occur but unfortunately, there are means of incorporating all the industrial unrest that took place during the period of fuel subsidy removal pronounced by the president of the country.

This is due to the fact that some industrial unrest, strike, especially those engaged by Nigeria Labour Congress Trade Union Congress and hoodlums are neither reported to the Ministry of Labor, nor receive any courage from our media houses, and such they are not documented for reference purpose.

With respect to removal of fuel subsidy embarked upon by Nigeria citizen, the researcher was faced with poor response by the respondents, most of the labor worker, civil servants, drivers and many were unfriendly.  This was attributed by fears of reprisal by the government.  Should they divulge their ill-feelings to outsiders.

The government officials such as officers of internally generated revenue were unable to release relevant documents for this research.  These developments caused a lot of harm to the researcher as well as limiting the smooth progress of the entire work.

The hoarding of relevant documents was meant to conceal the trade secrets of the Nigeria and government hence certain classified document were made available to the researcher.  Other limiting factors to this study are lack of finance, time factor and distance etc.

1.8  DEFINITION OF TERMS

The salient terms used in this work which may have specialized meanings are defined as here under:

• Lock-Out: Means the closing of a place of employment, or the suspension of work or the refusal of an employer to continue to employ and number of persons employed by him in consequence of a dispute, done with a view of compelling those person, or to aid another employer in compelling persons employed by him to accept terms of employment and physical conditions of work.
• Picketing: A group of workers posted to discussed with other workers or clients from entering another place of work during a strike.
• Strike: A strike means the cessation of work by a body of person employed acting in combination or a concerted refusal under a common understanding of any number of persons employed to continue to work for an employer in consequences of dispute, done as a means of compelling their employer or any person or body of person employed, to accept or not to accept terms of employment and physical conditions of work.
• Lay-Off: This is when management is retrenching some of its workers for reasons best known to them.  It is a temporal exercise used by management to survive a hard economic condition.  Workers laid off may be called back when the company financial position improves.
• Trade Dispute: Any dispute between employers and workers or between workers and workers which is connected with the employment or non employment or the terms of employment or conditions of works of any person.
• Wild-Cart Strike: A work stop page which is neither non-stimulated by authoritative structures such as management of the unions, and take the form of collective protest to force authoritative structures to concern themselves with the neglected problem of the employees.
• Trade Union: A group of employees who have joined together with sole aim of furthering and protecting their common unrest.
• Nigerian Labor Congress: A group of civil servant with different professions joined together with the aim of furthering, protecting their common interest and opposing government decisions that are not favorable to their welfare.
• Work to Rule: A form of industrial action whereby workers strike rigidly to the rules and regulation governing the way employees perform tasks.

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Full Project – Industrial Unrest, Causes and Effect on the Achievement of Organizational Objective