This research examined Collective
Bargaining as a Tool for Improving Organisational Peace and Productivity
with special reference to U.B.A and Access Banks. The research adopted
survey research design. Data were gathered through primary source with
the aid of a well-structured questionnaire. Simple random sampling
technique was adopted in the selection of sample, this was used to
eliminate biasness in the selection process of the respondents.
Data garnered were presented on table
using percentage. The result of the analysis shows that Collective
bargaining serves as a tool for improved organizational peace and
productivity in the organization. Also, collective bargaining has
positive effect on the management and worker union, management
compensate workers regularly even when collective bargaining is adopted
and that collective bargaining has helped in preventing strikes and
lockouts in your organization.
Based on the conclusion of the analysis, recommendations were proffered to the staff and management of U.B.A and Access Banks.
TABLE OF CONTENT
Cover Page 1
Table of Content 3
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study 5
1.2 Statement of the Problem 12
1.3 Objectives of the Study 13
1.4 Significance of the Study 14
1.5 Scope and limitation of the study 15
1.6 Research Questions 16
1.7 Research Hypothesis 16
1.8 Operational Definition of terms 17
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction 21
2.2 Concept of Collective Bargaining 25
2.3 Union and Management 50
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction 53
3.2 Research Design 53
3.3 Population 53
3.4 Sample and Sampling Procedure 53
3.5 The Research Instrument and Description 54
3.6 Response Rate 56
3.7 Technique of Data Analysis 56
CHAPTER FOUR: PRESENTATION AND DISCUSSION OF FINDINGS
4.0 Introduction 57
4.1 Analysis of Respondents Demographic Features 57
4.2 Analysis of Research Questions 64
4.3 Discussion of Findings 70
CHAPTER FIVE: SUMMARY, RECOMMENDATIONS AND CONCLUSION
5.1 Summary 74
5.2 Recommendation and Conclusion 75
5.3 Suggestions for Further Studies 77
Research Questionnaire 80
1.1 Background to the Study
The economic growth and development of
any country depends so much on the peaceful and harmonious industrial
relations existing in such country. Every organization or industry is
prone to conflict, human beings themselves are elements of conflict.
Therefore. Conflict is a good feature of any human society but the most
important thing is how such conceit is managed. Conflict cannot be
curbed in human society. Conflict will continue to exist as long as
human beings exist/man is a social being and in every social
organization either for work or other purpose, conflict is bound to
Most nations of the world are aware of
the prominent role of organizational peace in the realization of sound
economic system which is achieved only through a better collective
bargaining (International Labour Organization (ACT/EMP) Publications).
Collective bargaining is a mechanism for conflict resolution and valid
framework for grievance procedure. In practical terms, collective
bargaining involves two parties in negotiation and hence it is customary
for the workers to make demand and the employers to cut down the demand
by giving reasons these reason include inability to pay, solvency,
liquidity and profitability.
Before independence our political
leaders has encouraged the use of collective bargaining in industry. The
Prime Minister of Nigeria, Late Tafawa Balewa in 1955 said:
Government reaffirms its confidence in
the effectiveness of negotiation and wages bargaining for the
determination as wages. The long-term interest of government, employees
and trade unions alike would seem to rest on the process of consultation
and discussion which is the foundation of democracy in industry.
Government intervention in the general field of wages should be limited
to the establishment of statutory wages fixing machinery for any
industry or occupation where wages are unreasonably low by reference to
the general level of wages…
Also, the then Minister of Labour, Late Chief Festus Okotie-Eboh in 1955 reiterated the government policy as follows:
Can the various types of collective
bargaining familiar to other individual societies thrive in different
conditions of under-developed countries today…?
Flowing from the immediate discourse, it
is pertinent to understand that, the process of achieving improved
organizational peace and productivity rest on the application of the
principles of collective bargaining. Collective bargaining on issue of
employment from time to time must be based on the commitment of the two
parties not only to bargain in faith but also be ready to implement the
negotiated agreement. The willingness of the employer at both the public
and private sector to implement the agreed negotiation is another issue
which is subject to deregulation.
This is principally out of the
availability of resources to meet the agreement by the two parties. It
is difficult to provide meaningful expression because the environmental
variables which include customers, labour, technological sub-system,
legal sub-system, competitors and advertisement as well as the
individual leadership good will have often been neglected in terms of
fulfilling negotiated terms. This has continued to cause failure in the
process of collective bargaining.
According to Omole (1995), collective
bargaining in the Nigerian Milieu is normally a product of a “real
conflict” or “zero-sum” situation necessarily resulting in losses to the
other party. This explains why it is almost always proceeded by
corporate mistrust and suspicion, distorted operational efficiency,
thwarted organizational goal, open hostilities and most importantly
diminished or distorted communication.
It also explains why a conciliator is
usually considered necessary in order to ensure a free flow of
information and counteracts the effect of the inevitable conflict of
interest in an organization with homogenous workforce.
A careful examination of this discourse
shows that collective bargaining connotes a negotiation striking an
industrial treaty for the purpose of business stability. Such an
industrial treaty is expected to reflect a set of rules (regulations)
and terms stating workers’ condition of employment, associated workers
remuneration schedule, workers and management, job remuneration
schedule, workers and management, job security and other related
programmes. In essence, collective bargaining is a prerequisite to
industrial harmony and improved organizational peace and productivity.
However, it is only limited to imposition but could not be effective in
conflict resolution where two parties, presumably the employers and
trade union are involved in bargaining fro improved condition of
services and incre3ased productivity.
This bilateral bargaining approach as
the name implies, is one in which a formally designated negotiator or
negotiating team represents employees. The objective of these
negotiators or negotiating team is to reach a tentative agreement which
the two negotiators or groups will take to their respective bodies which
they represent for ratification. The negotiators are assumed to be the
public spokesman for their respective bodies which each represents and
all negotiations between the management and employees must be channeled
Multilateral bargaining also belongs to
the class of collective bargaining and to some extent, it is
incorporated in the definition of collective bargaining. Abu (1997),
defines multilateral bargaining as a process of negotiation in which
more than two distinct parties are involved in such a way that a false
dichotomy does not exist between employees and management in an
organization. In the language of the same theory, the concept of
bilateral and multilateral bargaining correspond to two parties and
three parties respectively.
The interrelationship of people,
objective and structure together with the efficient use of available
non-human and human resources will determine the success or failure of
the organization and the extent of its productivity. An organization is a
complex social system which is the sum of many interrelated variables
whose operation are influenced by the external and internal environment
of which it is part.
The six features of an organization
according to Mullin (1996) are: Objective, legal entity, structure.
People, evaluation and management.
Therefore, an organization is the
interaction of people in order to achieve “objective” through some
structural arrangement, it is through people’s interaction that efforts
are channeled and co-ordinate to necessitate “management”. The
organization must be a legally registered entity that is subject to
litigation and can be subjected to litigation action on the basis of its
Nevertheless, all activities within the
organization stand to be evaluated to establish the achievement of its
stated objectives (The Nigerian Journal of Industrial Education and
labour relation volume 5 No 1. June 2003). For any organization to
progress, to achieve its goals all the features stated above must be
property adhered to in a peaceful environment. The organization will
progressively achieve its objectives,, peace and increase ion
productivity in an organization is a function of collective
This study therefore involves a study of
the extent to which collective bargaining system is used in ensuring
improved organizational peace and productivity in UBA and
Inter-Continental Banks Plc UCH Ibadan. As industries that engage in
financial transactions, and other money related marketing, one would not
expect absence of industrial conflicts due to dynamic governmental
policies which always affect the organizational policies. This study
investigate the role of collective bargaining in promoting improved
organizational peace and productivity.
1.2 Statement of the Problem
The major focus of industrial relations
is how individuals groups and organizations determine decisions
affecting the employment relationship between the employers and
employees on one hand and the power relationships between employers and
trade unions within the working environment on the other hand.
It has been observed that every human
organization is affected by conflict which is an obstacle to improved
organizational peace, harmony and productivity in the banking sectors.
It has been discovered that strike and lockouts occurred in the industries due to unsuccessful collective bargaining.
Also, it has been discovered that the
employees in the bank are poorly remunerated and compensated and this
has been the main causes of industrial conflict in the industries.
Therefore, the conditions for successful
collective bargaining such as observance of the agreement, proper
internal communication and good faith to the union are not properly
adhered to and this has hindered an improved organizational peace and
1.3 Objectives of the Study
The major objective of the study is to
examine in details how collective bargaining serves as a tool for
improved organizational peace and productivity in the selected banks.
However, the specific objectives are as follows:
- To examine how the management of the banks and their workers union
accept collective bargaining as a means of ensuring improved
organizational peace and productivity.
- To find out how collective bargaining has helped to prevent and restrain strikes and lockouts in the organizations.
- To examine the effect of collective bargaining of the management,
workers’ union, government, society and organizational productivity.
- To investigate the working conditions of employees in the banks and how they are compensated.
- To offer suggestions and relevant recommendations which have emerged from the findings.
1.4 Significance of the Study
Among other issues, this research is
intended to improve the working system of both the management and the
workers union. It will help in preventing and resolving conflicts in our
Through this research, other researchers
will be interested in other areas related to this study and base their
own research on such area. In other words, it will serve as a good
reference and springboard for those interested in studying issues
related to collective bargaining.
Finally, this study will revitalize the
organization system in the banking sector and open the eyes of people to
the advantages of collective bargaining
1.5 Scope and limitation of the study
The study investigates collective
bargaining as a tool for improved organizational peace and productivity.
This is a general issue, collective bargaining exists in all
organizational structure and administration in order to maintain
organizational peace and productivity. Every organizational peace and
productivity. Every organization uses collective bargaining as a tool
for improved organizational peace and productivity but the banking
sector is used as a case study of this research. Some selected banks are
used in this study to see how collective bargaining achieves its aims
of organizational peace and productivity.
This study is delimited due to: i) the
short period of time available for the research, ii) economic situation
of the researcher and the merger resources at the disposal of the
researcher. Therefore, U.B.A and Access banks headquarters in Lagos were
used for this study.
1.6 Research questions
1. Does collective bargaining serve as a tool for improved organizational peace and productivity in your organization?
2. Does collective bargaining has positive effect on the management and workers union?
3. Does management compensate workers regularly when collective bargaining is adopted?
4. Has collective bargaining helped to prevent and strikes and lockouts in yours organization?
1.7 Research Hypothesis
HI. Collective bargaining does not serve as a tool for improved organizational peace and productivity in the organization.
H2 Collective bargaining does not have positive effect on the management and worker union.
H3 Management does not compensate workers regularly even when collective bargaining is adopted.
H4. Collective bargaining has not helped in prevention strikes and lockouts in your organization.
1.8 Operational Definition of terms
Collective Bargaining: Voluntary
negotiation between employers or employers’ organization/union and
workers organization or union, with a view to the regulation of terms
and conditions of employment by collective agreements.
Industrial conflict: A dispute between or among the actors in an industry.
Conflict resolution: This is a means of solving and regulating conflict in order to bring peace and harmony into the organization.
Actors: The body involved in organization and administration of an industry. They are: the workers, management and the government.
with seeing to the effectiveness and efficiency of an organization or
industry through decisions for planning and guiding the operations in
Labour: Category of
people in an organization who own nothing but their ability to work and
earn money for their labour (energy) contributed to the means of
production. The collectivity of these people is called labour.
Organization: A complex
social system with interrelated variables whose operations are
influenced by the external and internal environmental factors.
Industry: Social system and structure where goods and services are produced.
Negotiation: Dialogue between two or more parties in an industry or organization on employment and conditions of work.
Arbitration: Formal process of settling argument or disagreement between two people by a person or body who is not in either of the parties.
Union: The free
association formed either by the management for the employers or by
labour for the workers or employees to protect the interest of its
Collective Agreement: Consent to a decision by all the affected parties or members.