This project works was
examined from all its ramification, what could be the possible effect of salary
increase and fringe benefits among Nigerian workers. It is believed that when
salaries and fringe benefits are increased, the aim is to alleviate the
sufferings of workers in regards to increasing their purchasing power and
meeting the high cost of living. But, the consequence which will come quickly
to mind is that many job will be lost and very little created. Employers will
pay higher wages, but will do so at the cost of retraction in their labour
force. Those who have been desperate for job will sink further into
desperation and more would join them through retrenchment. In analyzing the
affect on workers, the researchers carried out a research work at the Nigeria
Railway Cooperation Enugu, where opinion of some workers are sampled. By so
doing, questionnaire and personal interview were used. We equally examined the
more dynamic aspect of wage and salary administration, showing the emergency of
wage employment, salary structure, the responsibility for wage and salary and
the method of fixed salaries and fringe benefits. The project also highlight
the method for salary increase by workers and the probable side effects such as
inflation, increase in price of commodities etc. Recommendations as to how the
government could come to the aid of workers in minimizing the increase in
prices of goods and services when salaries are increased are also discussed.
of the study
of the study
of the study
of the study
of the study
of the study
of the study
2.1 Review of Related Literature/Wage
Of Fixing Wages
Of Wage Payment
Of Wage And Salary Administration
Of Incentives And Fringe Benefits
3.0 Research methodology
Source of Data
Population of the Study
Sample Size Determination
Constructions to Data Collection
Validation of Instrument
Reliability of Instrument
Presentation analysis and interpretation of data
Analysis and Interpretation of Findings
Testing of Hypothesis
5.0 Summary recommendation and conclusion
Summary of Findings
Further research needs
TO THE STUDY
In any establishment
either private or public, the impact of salary increase and fringe benefits
cannot be over-emphasized. To Nigeria Railway Corporation Enugu, satisfaction
of the public and standard of living have been their major concern.
main objective has been the development and utilization of local raw material
(coal) and mobilization of fund for the purpose of satisfaction of the
In the bid to actualize
this, the corporation finds it difficult and almost impossible to pay its
workers the exact salary and pension at the appropriate time. This as a
result, leads to inefficiency since the workers are not motivated to carry out
their functions effectively. Facilities provided by the government are not
being used and when it is used, they are not maintained properly, and the
situation hinders development process.
The whole society is
affected negatively by the poor performance of the railway corporation. A
business which involves bulky goods are slowed down because of the inadequate
facilities used by the corporation in their operation. This as a result may
lead to scarcity of some important goods.
carriage of bulky goods by trailer is now move preferable than the use of
train, since the railway corporation is inefficient. Goods that are supposed
to be carried by trains are now being carried by vehicles, which thereby
creates obstruction in our roads.
Presently, the corporation
is not generating accurate revenue for the society, because the people who make
use of the railway transportation are few.
This discussion so far,
means that the Railway Corporation is unable to achieve its objectives.
OF THE PROBLEM
It is well known fact that
workers attempt to increase their salaries and wages directly by negotiating
through a trade union, whereby the trade union threatens their employers to go
on strike if they refuse to increase their salaries and fringe benefits.
This economic impact of
salary increase and fringe benefits on workers effects many workers both in the
public and private sectors, and it can lead to increase in the rate of
unemployment and thus, inflation.
1.3 PURPOSE OF THE STUDY
It is expected for any
research work to provide answer to a particular problem. In view of this, this
To examine the
effect of salary increase and fringe benefits among Nigerian workers.
To highlight the
problems that are inherent in increasing the salaries of workers who work in
the public sector.
To identify and
correct the environmental factor that affects the salary increase and fringe
benefits of workers.
1.4 SIGNIFICANCE OF THE STUDY
This study is of great importance in the
By virtue of this study, it is
needed most. Income and expenditure of an industrial sector would be
determined, hence, the number of workers will also be accounted for. This
tells whether more workers are to be employed or deployed.
1.5 RESEARCH QUESTION
This study will attempt to answer
various specific questions like:-
you ever demanded for salary increase?
Have you enjoyed
or been given any fringe benefit?
Has there ever
been any trade dispute in the corporation?
corporation recorded any demonstration work to rule strike action?
Was any damage
done to the corporation?
benefit are not helpful in attracting employees in an organization
benefit are helpful in attracting employees in an organization
is no direct relationship between fringe benefit package and employee level of
is direct relationship between fringe benefit package and employee level of
on workers demonstration action can not help to rule strike action off.
on workers demonstration action can help to rule strike action off.
This project work is not
directed at providing solutions at all problems that arise in corporation
generally. Rather, it is narrowed to the impact of salary increase and fringe
1.8 Definition of Basic Terms
Salary: Salary can be defined as a fixed
payment at regular interval for service. It is a payment made to workers for
Wages: Wages are payment received from
becomes obvious that man has to labour himself to the point of satisfaction in
order to met up with the necessities of his life either in private or public
sector as the case of railway corporation is concerned.
To buttress this
statement, it is stated clearly in the theory of Douglas McGregor that “the
expenditure of physical and mental effort in work is natural as play or rest”.
The average human being does not inherently dislike work.
study will reveal how productivity can be effectively increased since an increase
in salaries and fringe benefits of such production section will mentally
increase the strength of workers, which enable them to work efficiently and
enable the researcher meet the requirement for the award of National Diploma in
Business Administration and Management.
the aid of the study, an industrial sector either private or public, will know
how and when the efficiency of their labour.
Benefits: Fringe benefits are payment other than wage or salary
made to an employee such as pension, leave bonus insurance, etc.
5. Workers: A
worker is a person who apply or contribute both physical and mental strength
with the purpose of getting things done to achieve a particular objective in
order to earn his living.
Sector: Public sectors are those infrastructural
organizations fundamental to the natural economy, which the government decided
to control in order to ensure a proper balance between social and commercial
aims. These organizations include: Nigeria Railway Corporation, Nigerian Post
Authority, Nigerian Airways, National Electric Power Authority, etc.
7. Corporation: Corporation
can be defined as an institution operating the service of an economic or social
character on behalf of the government.
to manage and operate in accordance with the provision of this act, the railway
undertaking transferred to the corporation by virtue of the provision of the
Act. These undertaking may include, any expansion or extension, construction
of new railway and the provision of all reasonable facilities for carriage of
passengers and goods.