THE ROLE OF COLLECTIVE BARGAINING ON MANAGEMENT AND LABOUR RELATIONS A CASE STUDY OF FIRST ALUMINIUM COMPANY LIMITED AND WEST AFRICAN GLASS INDUSTRY LIMITED PORT HARCOURT

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TABLE OF CONTENTS

TITLE         .         .         .         .         .         .         .         .         i

APPROVAL        .         .         .         .         .         .         .         ii

CERTIFICATION         .         .         .         .         .         .         .         iii

DEDICATION     .         .         .         .         .         .         .         iv

ACKNOWLEDGEMENT      .         .         .         .         .         v

TABLE OF CONTENTS       .         .         .         .         .         vii

ABSTRACT        .         .         .         .         .         .         .         x

CHAPTER ONE

INTRODUCTION

  1. Background of the Study         .         .         .         .         1
  2. Objectives of the Study .         .         .         .         6
  3. Statement of Problems   .         .         .         .         18
  4. Significance of the Study         .         .         .         .         23
  5. Hypotheses  .         .         .         .         .         .         24
  6. Significance of the Study         .         .         .         .         25
  7. Scope of the Study         .         .         .         .         .         26
  8. Limitation of the Study    .         .         .         .         27
  9. Definition of Terms          .         .         .         .         .         28

CHAPTER TWO

LITERATFURE REVIEW

2.1 Collective Bargaining Concept         .         .         .         30

2.2 Bargaining Theories       .         .         .         .         .         33

2.3 Types of Collective Bargaining        .         .         .         36

2.4 Labour Policy Before 1968     .         .         .         .         39

2.5 Labour Policy After 1968         .         .         .         .         41

2.6 Labour /Management Dispute          .         .         .         44

2.7 Origin of Dispute   .         .         .         .         .         .         46

2.8 Incidence, Causes a Nature of Labour/

Management  Dispute .         .         .         .         .         48

2.9 Effect of Labour/Management Dispute     .         .         55

2.10 The Concept of Strikes          .         .         .         .         55

2.11 Strike and Lock-Out      .         .         .         .         .         56

2.12 Effects of Strikes and Lock-Outs   .         .         .         58

CHAPTER THREE

RESEARCH METHODOLGY

3.1 Choice of Research Methods          .         .         .         60

3.2 Research Instruments    .         .         .         .         .         62

3.3 Method of Data Analysis         .         .         .         .         64    

CHAPTER FOUR

          DATA PRESENTATION

4.1 Data Presentation           .         .         .         .         .         65

4.2 Data Analysis        .         .         .         .         .         .         66

4.3 Personal Interview          .         .         .         .         .         77

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 Research Findings         .         .         .         .         .         85

5.2    Conclusion         .         .         .         .         .         .         .         97

5.3    Recommendation        .         .         .         .         .         99

5.4 Area for Further Study   .         .         .         .         .         101

BIBLIOGRAPHY          .         .         .         .         .         .         .         102

APPENDIX         .         .         .         .         .         .         .         104

ABSTRACT

Industrial relations are inherently a bipartite relationship between union and management, representing workers and the employer. Similar to other relationship, the union management relationship is also highly fragile and complex. Collective bargaining typically refers to the negotiation, administration and interpretation of a written agreement between two parties that covers a specific period of time. this agreement or contract lay out in a specific terms the condition of employment, puts some limits on employees and sets limits on managements authority. ILO has defined collective bargaining as negotiations about working conditions and terms of employment between an employer, a group of employers or one or more employees organization on the other with a view to reaching agreement where in the terms of an agreement serve as a pc defining the rights and obligations each party in their – employment relates with one another, it fixes a large number of detailed conditions of employment and during its validity more of the matters it deals with can in normal circumstances give grounds for dispute concerning an individual worker”. The unpalatable side of industrial relations and one which the public often associates unions is the strike. The strike indicates a break down of cordial relationships between labor and management and is usually the most negative commentary. To achieve this, case study approach was adopted and subsequently, questionnaire and personal interview methods were accepted as an important instrument to dispute resolution. Also we found out that dispute is both functional and dysfunctional and that the effect of it is born by the individual organization and the economy. The concept of management labor relations has attracted attention from academicians and practicing managers during the past decades. The economic interest of the union is matched by the sensitivity of the employer to market considerations particularly in situations where competition is very keen. Employers in this position are more likely to consolidate into one bargaining entity. In any event that each party has a defined interest in variable economic factors sets the basis for conflict with respect to wages and salaries. It is important to note that in resolving the conflicting economic interests of the union and management of the agreement that emerges is somewhere within the original offer by management and the original demand by the union. The interest and the formation of bargaining structure outlined in this project have been influenced by such factors as the economic and organizational environment, in the private sector thereby leaving room for further research especially in the public sector and or other tertiary institutions.

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

The encyclopedia of social sciences defines collective bargaining as a “process of discussion and negotiation between two parties, one or both of whom is a group of k6*s acting in concert. The resulting bargain is an understanding as to terms or conditions under which a continuing service is to be performed. More especially, collective bargaining is the procedure by which an employer or employers and a group of employees agree upon the conditions of work”. The Webb described collective bargaining as an economic institution, with trade unionism acting as a labor cartel by controlling entry into the trade. Professor Allan Flander argues that collective bargaining is primarily a political rather than an economic process. It is power relationship between a trade union organization and the management organization. The agreement arrived at is a compromise settlement of power conflicts. According to Harbinson, collective bargaining is “a process of accommodation between two institutions which have both common and conflict interests”.

The process is “collective” because representatives of employees in groups rather as individuals solve issues relating to terms and conditions of employment The term” bargaining “refers to evolving an agreement using methods like negotiations, discussions, exchange of facts and ideas, rather than confrontation. The process of collective bargaining is bipartite in nature, I .e. the negotiations are between the employers and the employees, without a third party intervention. Divergent view points are put forth by the parties concerned, and through negotiations, a settlement is reached. The objective is to arrive in agreement. Collective bargaining serves as a number of important functions.

It is a rule making or legislative process in the sense that it formulates terms and conditions under which labor and management may cooperate and work together over a certain stated period, It is also a judicial process for every collective agreement there is a provision or clause regarding the interpretation of the agreement and how many difference of opinion about the intention or scope of a particular clause is to be resolved, it is also an executive process for both management and union undertake to implement the agreement signed.

Salient features of collective barraging are:

1.      It is a “group” process wherein one group represents the employers and the other represents employees. They sit together to negotiate terms of employment.

2.      The collective bargaining process follows a number of steps. It begins with the presentation of the chapter of demands and the reaching of an agreement.

3.      Negotiations form an important aspect of the process of collective bargaining deliberations rather than confrontation.

4.      It is a bipartite process involving the employers and the employees.

The ILO convention No. 98 (1949) relating to the right organize and to bargain collectively describes collective bargaining as:

“Voluntary negotiation between employers and employers” organizations and workers organizations, with a view to the regulation of terms and conditions of employment by collective agreements”.

There are several essential features of collective bargaining, all of which cannot reflect in a single definition or description. They are as follows:

i.        It is not equivalent to collective agreements because collective bargaining refers to the process or means, and collective agreements to the possible result, of bargaining. There may therefore be collective bargaining without a collective agreement.

ii.       It is a method used by trade unions to improve the terms and conditions of employment of their members, often on the basis of equalizing them across industries.

iii.      It is a method that restores the unequal bargaining position as between employer employee.

iv.      Where it leads to an agreement it modifies, rather than replaces, the individual contract of employment, because it does not create the employer-employee relationship.

v.       The process is bipartite, but in some developing countries the state plays a role in the form of a conciliator where disagreements occur, or may intervene more directly (e.g., by setting wage guidelines) where collective bargaining impinges on government policy.

vi.      Employers have in the past used collective bargaining to reduce competitive edge based on labor costs.

          There has been wide spread belief within the industrial circle that prior to 1968, industrial relation policy in Nigerian had the unique characteristics of volunteerism. This rather amorphous concept describes a policy by which the government plays the primary role of prescribing minimum standards of practices, while leaving day by day practices to both sides of industry. This view is correct only if the only yard-stick for regulating labour laws of the period is regarded as the only yard-stick for regulating labour management relations. But there is overwhelming evidence of a substantial state invention and control in the actual practice of labour-management relations, both during and after the colonial period and much of that amended from outside the legal framework.

          In 1968, the civil war has started and the government was resolved to prevent labour unions from any distraction capable of undermining the task of the military government to maintain the unity of the country. Subsequent policies, starting with Trade Disputes (Emergency provisions) decree of that year, marked the end of voluntarism and the beginning of state limited intervention relations. This new policy officially referred to as limited intervention and guided democracy has had profound consequences on the state of labour-management relations. This new policy by and large had produced contradictory results which are advantageous and disadvantageous to the union and management with government introduction of restrictive legislation, such as the Trade Dispute (Essential Services) Decree of 1976 which outlawed the strike, raising questions about the purposeful role of government. The unions on the other hand have violated the non-strike injunction, thus exposing the impotence of the policy. This is a clear manifest that unresolved problems abound.

          As mentioned by Elanders (1958) whether Trade Union structure is under debate or the organization of employers association, or the prospect of an income policy, or the frequency of unofficial strikes, or the relaxing of restrictive practices or failure of joint consultation to realize the earlier hope that were placed in it, no one is any longer disputing that pressing largely unresolved problems abound:-

          It is these desires of the parties that are more or less unlimited, inspite of the wish to co-exist that gives rise to in Damachi’s words latent antagonism within themselves.

          But as pointed out by kilby (1973) despite the careful constructed institutional framework and avoided commitment of all parties concerned, voluntary collective bargaining has failed to function as a significant mechanism for fixing wages. But in Nigeria private sector skill claims that they operate collective bargaining, but what makes Kilby’s argument valid, is that because the Nigerian management negotiate on a much stronger power position than the union the agreement from such negotiation tend in effect to be largely dictated by management rather than being a product of bargain.

The role of the state in industrial relating in this respect becomes very important not so much because government policy had produced contradictory results and consequences but primarily because it expresses the value and priorities in the industrial relation system.

What Is Collective Bargaining?      

THE ROLE OF COLLECTIVE BARGAINING ON MANAGEMENT AND LABOUR RELATIONS A CASE STUDY OF FIRST ALUMINIUM COMPANY LIMITED AND WEST AFRICAN GLASS INDUSTRY LIMITED PORT HARCOURT