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IMPACT OF STRIKE ACTION ON THE
ACHIEVEMENT OF TRADE UNION OBJECTIVE
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
Strike
action also called labour strike or industrial action is a work stoppage caused
by the mass refusal of employee(s) to work. A strike usually takes place in
respond to employee grievances. Strike became important during the Industrial
Revolution, when mass labour became important in factories and mines. In most
countries, they were quietly made illegal, as factory owners had far more
political power than workers. Most western countries partially legalize
striking in the late 19th or early 20th centuries.
Strikes are
sometimes used to put pressure on government to change polices. Occasionally,
strike destabilizes the rule of a particular political party or ruler. In such
cases, strikes are often part of a broader social movement taking the form of a
campaign of civil resistance. A notable example is the stoppage of work by the
indigenous railways workers in (1932) led by Pa Michael Imodu during the
colonial era and the first general strike of (1945) in Nigeria.
Since 1970
to present time, workers demand for improved condition of work and wages have
increased the number of strike actions as management most times would not
accurately satisfy the needs and requests of employees even in the face of
economic recession.
In this
study, however, we are going to examine the causes of strike, i.e. consequences
and impact in the achievement of trade union objectives.
Strikes are
the most significant aspect of industrial conflict. Strike is defined as the
temporary stoppage of work in the pursuance of grievance or demand. In practice
however, it has been difficult to separate strike from other forms of
expression of industrial dispute as employer lock out workers and workers
themselves embark on strike action.
It is more
useful to view both phenomena as part and parcel of the conflict situation, not
as opposite. Rarely does a strike occur over a single issue for an obvious
cause may be linked with several other issues that not immediately apparent to
the observation that have caused dissatisfaction because solutions to them have
been long in coming. The actual occurrence of strike depends on several factors
including prevailing circumstances. This also goes to show that few strikes
occur spontaneously especially as there is no way of guaranteeing that strike
actions instead of the other forms of industrial action would be decided upon
by workers involved.
Each time
strike occurs substantial man-hour is lost, a good example is the first general
strike of (1945), the (1993) ASU strike where universities in the country was
closed for couple of months thereby causing set back in the tertiary
institution.
The Nigeria
Labour Congress, NLC, and Trade Union Congress, TUC, the two major umbrella
bodies of workers union in Nigeria mobilized workers for an indefinite strike
action which commenced on Monday, 9th January, 2012 to drive home the protest
against the fuel subsidy removal of January 1st 2012. The government of Nigeria
removed fuel subsidy by increasing the price of petrol per litre from N65 to
N141 on January 1st 2012.
This
nationwide strike affected the country‟s economy negatively where the volume of
trading on the floor of the Nigeria Stock Exchange,( NSE) fell by 82 percent,
local flights were grounded, and lifting of crude oil was hampered. The strike
had a lot of effect on the major sector of the economy as activities of the
(NSE) that are trading slumped by 80%, while banks complied with the strike
order and closed shop, the NSE opened for business as usual. But at close of
trading, only 46.06 million shares were traded in 20 deals.
This is a
significant reduction when compared with an average 262 million shares worth
about N1.05 billion traded in 2,509 deals the previous week. The Nigeria Labour
Congress,(NLC) has led a number of general strikes in the past to mention a
few. In 2004, the Nigeria Labour Congress gave the Federal government an
ultimatum to reverse the decision to introduce the controversial fuel tax or
force a nation wide protest strike. The strike threat was made despite the fact
that the Federal High Court judgment in an earlier dispute had declared the
organization lacking legal power to call a general strike over government
policies.
It is in
this context that the research wishes to access the impact of strike action on
the achievement of trade union objectives in both private and public sectors in
Nigeria and how management policies/decisions are influenced by workers through
the representatives (trade union) to the effect of harmonizing management
polices with trade union objectives enhancing efficiency as well as maintain
good industrial relation peace and harmony in the work place using…
1.2
STATEMENT OF THE PROBLEM
The unstable
industrial relation climate in Nigeria just within the decades has resulted in
all time record of lost working hours, unprecedented work stoppage as a result
of strike action.
By October
1981,both federal and state government were broke, by December, seven out of
the nineteen state governments could hardly pay the salaries of their
employees; by June 1982,Bendel,Rivers,Cross Rivers, Benue and Imo States were
owing teachers two to four months arrears. It was only when junior workers
threatened strike action in Cross River State and teachers actually abandoned
classes in Bendel State after not receiving January salaries as at April 1982
that both government cleared part of the outstanding amount .
In the first
six months of the year 1982, Nigeria lost a total of 4,598 man- hours because
of strike action by workers. The recent strike action embarked by Nigeria
Labour Congress in January, 2012 has cost the country millions of naira as all
the sectors of the economy which engage in productivity activities in order to
boost the gross domestic product of the economy were closed down for couples of
days.
1.3 PURPOSE
OF STUDY
The purpose
of this study is to probe into the effectiveness of strike action as a means of
achieving union objectives from the management. This study is based on a case
study of EMENITE LIMITED ENUGU
Precisely,
the study is focused on following issues, tools for achieving union demands
from management using strike as the major tools in achieving union objectives.
The
recommendation which will be based mainly on the findings of the research will
be implemented to strengthen the effectiveness of strike action as means of
achieving union objectives. If on the other hand, the study suggest a better
way of achieving union aims than strike, then of course the mentored will be
recommended.
1.4 SCOPE OF
THE STUDY
The research
work focuses particularly on the impact of strike on the achievement of trade
union in an organization. The research is conducted to cover and improve the
management of organization focusing on the company EMINITE LIMITED, ENUGU. For
this reason therefore, the researcher has consulted several reviews, on issues
of strike and trade union to include text books industrial relation,
management, social sciences, dissertations from academicians on related issues,
Newspaper edits journal etc. the work would be very large if all the argument
of the different authors are presented, but they have been carefully selected
so that only issues particularly concentrating on the impact of strikes on the
achievement of trade objectives are considered.
1.5
LIMITATION OF THE STUDY
A work of
this nature is not easy to accomplish for its wide scope and for the expense it
would involve such as financial problems, time constraint, material cost,
apathy on
the part of respondent and bureaucratic procedure involved in releasing data in
the organization of my case study. The research would have been more expensive
and capital intensive if it were to cover all the public sectors corporation in
the country, thus the research area is limited to……
1.6 RESEACH
QUESTIONS
1. Does the
existence of trade union lead to increase strike action?
2. Does
collective bargaining lead to human resource practices which help in the
achievement of union objective?
3. Do trade
unions influence the making and implementation of management polices?
4. Has the
trade union activities affected the organization objective negatively?
5. Is the
union management effective?
6. Does
union undertake peaceful dialogue as a means of setting trade dispute between
management and the employee?
7. How good
is the union management relation of the organization?
8. Does the
management respond to the union positively?
1.7 RESEARCH
HYPOTHESIS
The
researcher formulates the following hypothesis based on the objectives and
problems identified for the purpose of this research work, stating them in both
Null and alternate forms.
1. Ho:
Organizational objectives are low where there is a strong and viable trade
union.
H1:
Organizational objectives are high where there is a strong and viable trade
union.
2. Ho: Trade
union and management do not co-operate to raise organizational objectives
H1: Trade
union and management co-operate to raise organizational objectives
3. Ho: There
is no significant relationship between the activities of trade union and
organizational objectives.
H1: There is
a significant relationship between the activities of trade union and
organizational objectives.
4. Ho:
Unstable union- management relationship has no significant effect on the
organizational objective
H1: Unstable
union- management relationship has significant effect on the organizational
objective
5. Ho: Trade
union activities do not influence the making and implementation of management
policies in the organization.
6. H1: Trade
union activities influence the making and implementation of management policies
in the organization.
1.8
SIGNIFICANCE OF THE STUDY
This
research work will be relevant to management and employee
It will be
beneficial to other public sectors in Nigeria; it will also be of importance to
government, academicians, potential and future researchers on the issue of the
impact of strike action on the achievement of trade union objectives in
an
organization. This empirical study is also important for the reward of Bachelor
of Science (B.SC) in industrial relation and personnel management.
The study
will also identify how management and union can co-operate to enhance the
achievement of trade union objectives in an organization. It will provide a
basis for trade union re-orientation objectives are achieved for better and
harmonious industrial relationship. It will also provide a frame work for
management and union to relate for increase productivity and good condition of
service.
1.9
DEFINITION OF TERMS
STRIKE:
Strike is defined as a temporary stoppage of work in the pursuance of a
grievance or demand.
TRADE UNION:
Is a combination of workers who are wages or salary earners form for the
purpose of regulating work terms and condition for maintenance and improving
the employment condition of their members.
WORKING
CONDITION: A comfortable environment (condition of floor and workroom, dressing
rooms and cafeteria, temperature and humidity, cleanliness, comfort and safety
(of floors, tools and so fort) and efficiency (steady product flow, adequate
wage and salary, performance approval, incentive, motivation and welfare
services.
GRIEVANCE:
situation of dissatisfaction on the part of the worker of the organization.
EMPLOYEE:
Refers to worker(s), person(s) responsible for carrying out day to day
activities of the organization toward achieving the target goals.
EMPLOYER:
Refers to the management board, one who engages human and material resources
for the production of goods and services.
MANAGEMENT:
Refers in this study to be the body employer and its representatives, foremen
and supervisors inclusive.
DISPUTE: Is
any argument or disagreement between employer and workers, or between workers
and workers which is concerned with the employment and non employment
conditions of work of any person.
WORK: This
implies any kind of purposive action i.e. whether paid or unpaid, full time or
part time, formal or informal with reference to an organization; it used to
imply the operation involved in a particular job or work.
ORGANIZATION:
A group of people brought together for the purpose of achieving certain
objectives, while these members may change the role of organization which is
its basic unit is maintained.
LABOUR
RELATION/INDUSTRIAL RELATION
It refers to
the totality of interaction between an organization‟s management and the
organized labour/trade union. Its purpose is to serve the interest of both the
state and the working classes. It is often called collective bargaining. It is
not only for industrial or manufacturing context, but extends also to issues
and procedure concerning employment in any working environment.
COLLECTIVE
BARGAINING: is a process of discussion and negotiation between two parties one
or both of whom is a group of persons acting in consent.
LOCKOUTS:
refers to the action of an employer in temporarily closing down or shutting
down the undertaking or refusing to provide its employees with work with
intention of forcing them to either to accept the demand made by them or to
withdraw the demand made by them on him.
LABOUR
FORCE: they refer to the collection of people who are available to perform work
in an economy or organization.
POLICY: A
set rules or principle to guide the activities of the members of an
organization towards the achievement of a given objective or purpose within a
specific time.
HARMONY:
Used in this study to mean peace among the workers and management.
SYSTEM: This
means chain or line of operational activities.
COLLECTIVE
AGREEMENT: This is a contract of employment negotiated between management and a
union.
MACHINERY:
As a function unit, it means a system by which something is kept in action
through which a desired result is obtained.
1.10
THEORITICAL FRAMEWORK
Theoretical
framework is defined as a theoretical mirror or pillar upon which research work
are seen. The importance of it can not be over emphasized. According to Obassi
(1999:9), it is a device or scheme for adopting or applying the assumption, a
theoretical framework is a way of describing, analyzing, interpreting and predicting
phenomenon, it has the potentiality to provide the significance rational of a
study. Therefore, it provides the theoretical framework of this study is based
on interactionistic perspective organization. A more recent view of conflict is
a positive force and necessary for effective performance. This approach
encourages a minimum level of conflict within the group in order to encourage
self criticism, change and innovation and to help prevent apathy or to quest a
tolerance for harmony and the status quo.
the overall
background of the research.
Conflict
perse is not necessarily good or bad but an inevitable feature of
organizational life and should be judged in terms of its effect on performance.
Even if
organization has taken great care to try and avoid conflict, it will still
occur. Conflict must continue to emerge despite attempts to suppress it.
For long,
the strike as been recognized as a legitimate weapon of workmen for ventilating
their grievance or seeking enforcement of right. But it is not a fundamental
right because otherwise, it could not have been controlled by statutes like the
Industrial dispute Act. The Indian constitution does not consider the right to
strike as a fundamental right.
The general
right to resort to strike has been recognized by defining the circumstances
under which a strike is to be regarded as illegal. The right to strike,
however, is not unjustified; it is a relative right which can be exercised with
due regard to the right workers. A strike therefore, should be used as a weapon
only as the last resort when all avenues have proved futile and so long as it
is used in a restrained peaceful manner for good and justifiable reasons.
Mahatma
Gandhi recognized the workers right to strike but he warned that such a strike
should be conducted when all other methods have failed. The national commission
on labour is of the opinion that “The right to strike and the right to lockout
with reasonable restraint have been recognized in all democratic societies,
though the degree of freedom grated for the exercise has varied in different
countries. According to the social, economic and political system prevailing
there”
BACKGROUND/
HISTORY OF THE STUDY
Emenite Ltd
is an abestor roofing ceiling sheet producing company incorporated in (1961)
with registration number Rc 2712. It started operations in (1963). The company
is a member of the Belgium Etex group.
OWNERSHIP
The company
is a joint venture between the eteroutremer society Anonyme of Belgium (now
Etex group S.A) and the Anambra and Imo state (now Anambra, Enugu, Imo, Abia,
Ebonyi state) government with a shareholding capacity of 51% and 45%
respectively as at March, 24 (1988).
The company
was formerly named Turner Abestor cement company Nigeria limited, with
shareholder of 80% to Turner and Newall Ltd and government of eastern Nigeria
20% as at 1961. In 1973 due to the decree on indigenization, the shareholding
changed to Turner and Newall Ltd with 60% to the company and 40% to Eastern
government as the company changes its name to Turner building products (Emene)
limited.
In 1988
after Turner and Newall diverted interest in the company, it transferred it 51%
shareholding to Eteroutremer society Anonyme of Belgium (Now Etex group S.A)
The remaining share of 45% went to the Easter government of Nigeria and had a
change of name which is known as Emenite up to date.
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