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COLLECTIVE BARGAINING AS A TOOL FOR INDUSTRIAL HARMONY IN 7UP BOTTLING COMPANY PLC

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

According to Rose (2008), the term collective bargaining was originated by Webb and Webb to describe the process of agreeing terms and conditions of employment through representatives of employers (and possibly their associations) and representatives of employees (and probably their unions). Rose (2008) posits that collective bargaining is the process whereby representatives of employers and employees jointly determine and regulate decisions pertaining to both substantive and procedural matters within the employment relationship. The outcome of this process is the collective agreement. Collective bargaining as one of the processes of industrial relations performs a variety of functions in work relations. It could be viewed as a means of industrial jurisprudence as well as a form of industrial democracy. It is a means for resolving workplace conflict between labour and management as well as the determination of terms and conditions of employment. Davey (1972) views collective bargaining as “a continuing institutional relationship between an employer entity (government or private) and labour organization (union or association) representing exclusively a defined group of employees of said employer (appropriate bargaining unit) concerned with the negotiation, administration, interpretation and enforcement of written agreements covering joint understanding as to wages/salaries, rates of pay, hours of work and other conditions of employment”. International Labour Organisation (ILO) (1960) views “collective bargaining as negotiations about working conditions and terms of employment between an employer, a group of employers or one or more employers‟ organization, on the one hand and one or more representative workers‟ organization on the other, with a view to reaching agreement”.

The term public sector comprises the government as employer at the federal, state and local government levels as well as the parastatals, the universities and the state-owned companies. The public sector constitutes the largest employer of labour in the country in spite of the recession in the economy. Modern trade unionism began in Nigeria in the public sector. As Damachi and Fashoyin (1986) observe that trade unionism and labour relations originated in the civil service in 1912; but it is in this sector that unions are weaker and labour relations marginally practised. The weakness of the unions in this sector was attributed to a well documented problem of union factionalism, multiplicity and leadership squabbles which characterized Nigerian unions up to the mid- 1970s.

Omole (1987) raises the issue of the interesting features of industrial relations in the developing countries when compared to the practice in the developed countries. In the developed countries, industrial relations practice in the public sector was modeled after the practice in the private sector. In the developing countries, the opposite was the case especially with Nigeria where the industrial relations system in the private sector of the economy developed from the practice in the public service. To account for the trend, he states that the idea of bargaining for more workers emerged first in the private sector in developed countries and its law and procedures are well-established. In Nigeria, the origin of trade unionism can be traced to the public sector, which arose during colonial rule when paid employment was first introduced into the country by the colonial administrators.

The objective of this paper is to examine the dynamics of collective bargaining machinery in both the public and private sectors in Nigeria; with a view to bringing to the fore the peculiarities associated with both sectors with regard to the practice of bargaining

1.2 STATEMENT OF THE PROBLEM

Collective bargaining being the nucleus of Industrial Relations activities which seek to ensure industrial peace and harmony in the workplace has been used as an instrument that brings employer or her representatives) and employees or their representative together for a face to face interaction or discussion over issues in the terms and conditions of employment. The purpose is to create a conducive atmosphere where employee and employer can have trust and loyalty thus, enhancing productivity. However, collective agreement is often breached which has been a factor of many reasons/variables such as ability to pay, prevailing economic challenges, legislation, knowledge of the negotiating party, trade union's attitude and whenever there is breach in any of the elements that came under collective agreement, the result is the manifestation of desire of employees to down tools i.e. engaging in temporary stoppage of work to express their dissatisfaction which is known as strike.

The rationale behind the existence of every organization is usually defeated wherever employees embarked on strike as a result of loss of earnings on the part of the two parties i.e. employee has salary and other benefits to lose while employer will also lose profit for that period of time that the strike will last as well as human resource marketing power. Can a situation of endless conflict in an environment in an organization be ignored? The response should be affirmative NO. It is therefore imperative to examine how the relationship between employer and employees at work will not break down to the point of embarking on strike in order to prevent loss of earnings on the part of the two parties and one of the ways is collective bargaining hence, this study.

1.3 Objectives of the Study

The main objective of this study is to determine the practice of collective bargaining in the public sector as against what is obtainable in the private sector

Specific objectives include;

1. To examine the necessity of allowing the practice of collective bargaining in both private and public sectors.

2. To investigate the effect of collective bargaining on workers' welfare.

3. To assess how trade unionism protects the interests of its members by opposing unfair industrial practices.

4. To explore the relationship between the practice of collective bargaining and employees' productivity.

1.4 RESEARCH QUESTIONS

1. What are the reasons for allowing collective bargaining in both private and public sectors?

2. How does collective bargaining influence various aspects of workers' welfare, such as wages, benefits, and working conditions?

3. In what ways do trade unions oppose unfair industrial practices to protect the interests of their members?

4. Is there a correlation between the implementation of collective bargaining agreements and changes in employee productivity levels?

1.5 RESEARCH HYPOTHESES

1. There is a significant need for both private and public sectors to allow the practice of collective bargaining with employees or trade unions, as it fosters better employer-employee relations and ensures fair treatment of workers.

2. Collective bargaining positively impacts workers' welfare, leading to improvements in wages, benefits, and working conditions compared to non-unionized settings.

3. Trade unionism effectively safeguards the interests of its members by opposing unfair industrial practices, resulting in better workplace outcomes and increased job security.

4. There is a positive relationship between the practice of collective bargaining and employee productivity, as negotiated agreements often address issues that can enhance workplace satisfaction and motivation, ultimately leading to improved performance.

1.6 SIGNIFICANCE OF THE STUDY

The essence of this study is to expose managers, union executives and the general public to the need for coexistence of unions and management for effective and efficient administration of the public and private sector.

Through trade unionism and collective bargaining, the workers will be able to have more control over wages, hours and working conditions aimed at maintaining or improving the conditions of workers' lives.

Also, workers sometimes feel a need for close identification. The Labour movement therefore gives them a feeling of participation in national decisions and of being identified with worthwhile movements.

Above all, collective bargaining has come to be recognized as one of the major bedrocks of industrial relations, especially in the prices of industrial democracy. It plays a crucial role in creating and sustaining industrial peace through early recognition of emergency areas of conflict and taking steps to remove them through dialogue and agreements.

1.7 SCOPE OF THE STUDY

The Practice of Collective Bargaining in the Public Sector as against what is obtainable in the private sector is the focus of the study. Thus employers and employees relationship, working conditions, workers welfare, hours of work, compensation and fringe benefits among other factors will be considered in the study.

1.8 LIMITATION TO THE STUDY

Lot of difficulties were encountered in the course of the study. The major constraints are time factor, transportation problem, respondents' schedule of duty which makes them not have enough time to complete the questionnaire.

1.9 DEFINITION OF TERMS

1. Collective Bargaining: The process of negotiation between employers or their representatives and a group of employees, typically represented by a labor union, to determine the terms and conditions of employment.

2. Public Sector: The part of the economy composed of government-owned or government-controlled organizations and services, including government agencies, public schools, public hospitals, and other entities funded by taxpayers' money.

3. Private Sector: The part of the economy that is owned and operated by private individuals or companies, typically for profit-making purposes, and includes businesses ranging from small enterprises to large corporations.

4. Labor Union: An organization formed by workers to represent their collective interests, negotiate with employers on issues such as wages, benefits, and working conditions, and engage in collective bargaining on behalf of its members.

5. Wages: Monetary compensation paid by employers to employees in exchange for their labor or services rendered, typically calculated on an hourly, daily, weekly, or monthly basis.

6. Benefits: Non-wage forms of compensation provided by employers to employees, including but not limited to health insurance, retirement plans, paid time off, bonuses, and other perks or incentives.

7. Working Conditions: The various factors and circumstances that affect the physical, psychological, and social environment in which work is performed, including safety, hours of work, workload, job flexibility, and the overall organizational culture.

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