Abstract
Selected trade union activities area is
key in study and considerations are made for any unionized organization, especially
the public sector. Trade union is centered on quality based on the
participation of all the involved members and aiming at long term success
through expansion. This eventually benefits all members of the unions and the
organization at large. Universities have been growing significantly over the
last few years due to increased sensitization, technological growth, and the
devolved system of government. Research on trade union activities shows that
organizational performance can be attained through solving Union matters fast
and harmoniously. A better understating is required to investigate the current
status of the selected trade union. This study seeks to assess selected trade
unions activities on performance of public universities. The main objective of
this study was to investigate on the influence of selected trade union
activities on performance. The specific ones are to establish the role of
collective bargaining, to assess the influence of employee welfare, to find out
how the code of discipline and to establish the role of code of regulations on
organizational performance.
Chapter
One
Introduction
1.1 Background to the Study
Nigerian workers like their
counterparts in other developing countries have witnessed fundamental changes
in their condition over time. To a large extent, trade unions have played
significant role in this transformation. In most developing countries,
government is the largest employer of labour with private individuals employing
a minimal proportion of the working class (Fajana, 2000). In Nigeria, trade
unions have become important agent of socio-economic transformation and class
struggle (Aremu, 1996; Akinyanju 1997). Eminent roles of trade unionism came to
the fore in the period of the colonial struggle and continued till the post
independence era. In the latter period, trade unions play an important role in
the struggle against dictatorial military rule and the restoration of civil
rule in the country. More importantly, during the civilian era, trade unions
were in the forefront in the struggle against unpopular government policies
such as deregulation of the oil sector, retrenchment of workers and refusal to
honour agreement on wage increase. Most unions claim a right of exclusivity.
The union has the authority to determine who may be a member of the union and
who may not. Most unions assert a right to mandate that only its members, and
no others, may be permitted to work at certain jobs. Furthermore, the union
contract is exclusive with regard to the employer, an employer is generally not
permitted to seek out the services of another labor union or hire another
competing labor union even if he is dissatisfied with the performance of the
current labor union (Fajana, 2000).
These organizations may comprise
individual workers, professionals, past workers, or the unemployed. The most
common, but by no means only, purpose of these organizations is maintaining or
improving the conditions of their employment (Fajana, 2000). According to Baird
(2005), in the last five decades globally, trade unions have evolved into a
number of forms, influenced by differing political and economic regimes. The
immediate objectives and activities of trade unions vary, but may include:
Provision of benefits to members: Early trade unions, like Friendly Societies,
often provided a range of benefits to insure members against unemployment, ill
health, old age and funeral expenses. In many developed countries, these
functions have been assumed by the state; however, the provision of
professional training, legal advice and representation for members is still an
important benefit of trade union membership. Collective bargaining: Where trade
unions are able to operate openly and are recognized by employers, they may
negotiate with employers over wages and working conditions. Industrial action:
Trade unions may organize strikes or resistance to lockouts in furtherance of
particular goals. Political activity: Trade unions may promote legislation
favorable to the interests of their members or workers as a whole. To this end
they may pursue campaigns, undertake lobbying, or financially support
individual candidates or parties for public office. In business organizations,
trade unions play a significant role in directly shaping organizational
effectiveness in today’s organization. The exposure of Nigerian firms and industries
to greater market pressures, a growing trend in outsourcing and the growth in a
typical employment, employer sponsored forms of participation and
representation, and the imposition of legal constraints on the ability of
unions to recruit, organize, collectively bargain and take industrial action,
has all contributed to the roles of trade unionism (Yusuf, 2008). Despite the
adoption of various internal strategies and the introduction of laws
encouraging employers to recognize unions, the downward trend in membership by
private organizations has nevertheless continued in recent years, albeit at a
slower pace. According to Fajana (2000), how unions respond to the challenges
and opportunities presented by the changing nature of work and employment
relations will be decisive in determining their level of influence in organizational
effectiveness within the workplace in the coming years.
1.2 Statement of the Problem
In Nigeria, welfare of employees is not
a priority to most organizations, besides, most employees in the public sector
often put up lowered morale due to the uncompetitive welfare package given to
them by their employees. This has often sparked misunderstanding between
employees and their employers. In most public sectors, employees are not
properly carried along in policy review and implementation. This break in
communication is inimical to overall effectiveness in the organization as
incessant disagreement with the management often lead to wastage of useful time
and drags productivity. Unions in public organizations often negotiate poorly
with their employers instead of having concrete and implementable decision,
their negotiations are often undefined and generic and as such unable to
address efficiency across boards. Management-employees’ relations are a
constraint that often triggers breakdown of law and eventual down-tool by
employees. This leads to loss of huge resources as useful time is expended on
placating the two parties namely, employers and employees. Hence, the need for
Trade Unionism and organizational Effectiveness
1.3 Purpose of the Study
The purpose of the study was to:
1. assess how Trade Union helps in
providing welfare measures for their members in an organization
2. determine how trade union demands for
workers’ participation in management.
3. evaluate the extent to which trade
union contributes in reducing industrial disputes in an organization
4. appraise the extent to which
management-employees’ relations influences productivity in the organization.
1.4 Research Questions
The following research questions were
asked in the course of this study:
I.
How
does trade Union help in providing welfare measures for their members in an
organization?
II.
Does
trade union demand for worker’s participation in management?
III.
To
what extent does trade union contributes in reducing industrial disputes in an
organization?
IV.
Do
management-employees relations influence productivity in the organization?
1.5 Significance of the Study
Effectiveness of trade unionism has
generated a lot of argument over time. The impact of these on effectiveness of
organizations has become heated arguments amongst the educated and the
illiterates; the rich and the not so rich; and the elites and nobles in the
country. There is a dearth of work on the subject matter of this study so the
study is aimed at filling the gap. Policy makers would find the academic piece
a very good guiding document when policies pertaining to the management of
employee-employer’s relationship are to be formulated. For citizens, the
research work would make a good enlightening piece for people who intend to
know about the subject matter of the research work. Researchers who are
interested in this area would find the book a good reference and starting point
for their research.
1.6
Scope of the Study
The study made a research on trade
unionism and organizational effectiveness. The study was informed by the quest
to numerically evaluate the extent to which trade unionism affects
effectiveness in an organization. The study was limited to Nestle Nigeria
Plc. Lagos.
1.7 Operational Definition of Terms
Compensation Management: According to
Ivancevich et al (1994), this can be said to be the totality of financial and
non-financial rewards that employee receives in return for his labour or
services.
Conflict Resolution: This is organized
way of resolving employer-employee differences usually caused by disagreement
on pay package or staff welfares as a whole.
Wage: This is the reward for labour
that is paid on a daily or weekly basis.
Organization goals: These are goals set
by organization to increase its performance indices. This could be long or
short term.
Organization: According to Katz and
Kahn (1966), it is defined as an integrated social system with these three cardinal
features:
Reward System: This is an existing
employees’ reward structure or system in place in an organization. It is
usually guided by organizational policy.
Salary: This is the reward for labour that
is paid on a monthly basis.
The following terms are defined as used
in the study
The ideological justification or values
that supports the norms and rules provide for individual commitment to the
organization. The members are functionally interdependent;
The norms of behavior of members are
governed by acceptable behavior defined by the authority structure and enforced
by reward and sanctions; and
Trade Union: A trade union or labor
union is an organization of workers. The trade union, through its leadership,
bargains with the employer on behalf of union members (rank and file members)
and negotiates labour contracts with employers. This may include the
negotiation of wages, work rules, complaint procedures, rules governing hiring,
firing and promotion of workers, benefits, workplace safety and policies. The
agreements negotiated by the union leaders are binding on the rank and file
members and the employer and in some cases on other non-member workers.