THE IMPACT OF TRADE UNION IN DISPUTES SETTLEMENT IN THE BANKING INSTITUTION [A Case Study of United Bank of Africa (U.B.A)]
This study dealt with the Impact of Trade Union on Disputes Settlement in Banking Institution and Its Effect on Employees with references to United Bank of Africa (UBA).
The significance of disputes settlement
machinery should be efficient and effective, so as to settle dispute or
conflict or conflict in the banking institution on time resolve dispute
This study used questionnaire method in
carrying out the study. Questionnaires were distributed to the workers
in various departments.
The findings of the study was that if
the employees are unhappy and aggrieved towards the organisation then
there will be low productivity i=under utilisation of resources and even
less profit which will be very unhealthy for the organisation.
TABLE OF CONTENTS
Title Page ` i
Table of contents vi
CHAPTER ONE: INTRODUCTION
1.1 Brief Overview of the Subject of Study 1
1.2 Statement of Problem 3
1.3 Purpose of the Study 4
1.4 Research Questions 5
1.5 Statement of Research Hypothesis 5
1.6 Scope of the Study 6
1.7 Significance /Relevance of the Study 6
1.8 Data Collection Instruments 6
1.9 Methods of Data Analysis 9
1.10 Limitations of Methodology 11
1.11 Definition of Terms 11
1.12 Sampling Size 12
CHAPTER TWO: LITERATURE REVIEW
2.1 Brief Introduction 15
2.2 Objective and Functions of Trade Union 16
2.3 Labour Management Relations 18
2.3.1 Union Right and Management Prerogatives 23
2.4 What Constitutes a Dispute? 24
2.5 What are Grievances 27
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 The Method of Research Use 36
3.2 Historical Background of UBA 36
3.3 Organisational Structure and Activities of the Bank 37
3.4 The Staff/Personnel Department 39
3.5 The Study Population 41
3.6 Availability of Sample 42
3.7 Methodology Constraint 42
CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA
4.1 Brief Introduction of the Chapter 43
4.2 Characteristics and Classification of Population being
CHAPTER FIVE: SUMMARY OF FINDINGS, IMPLICATION OF
FINDINGS, RECOMMENDATIONS AND
5.1 Summary of Findings 56
5.2 The Implication of the Findings 57
5.3 Recommendations 60
5.4 Concussion 62
5.5 Suggestions for Further Research Study 62
1.1 BRIEF OVERVIEW OF THE SUBJECT OF STUDY
Section 2(h) of the Trade Unions Act,
1926 has defined a trade union as “Any combination, whether temporary or
permanent, formed primarily for the purpose of regulating the relations
between workmen and employers, or between workmen and workmen, or
between employers and employers, or for imposing restrictive conditions
on the conduct of any trade or business, and includes any federation of
two or more trade unions (Carroll, 1969).” This definition is very
exhaustive as it includes associations of both the workers and employers
and the federations of their associations.
Only trade unions can represent
employees and bargain collectively. Individuals, clubs or corporations
cannot bargain collectively. This often makes it important to determine
if an organization has trade union status (Akpala, 1991).
Alberta (2002) defines trade union as the means
an organization of employees that has a written constitution, rules or
bylaws and has as one of its objects the regulation of relations between
employers and employees.
According to him (2002), this definition contains three requirements:
1. A trade union must be an organization of employees.
The definition calls for employees formally joining together. It
contemplates a democratic organization run by employees for their
2. A union’s governing documents must be in writing. This enables employees to understand the rules by which the union operates.
3. One of the organization’s objects must be “the regulation of relations between employers and employees.” The
exact words are less important than having an objects clause that fits
this general requirement. It distinguishes trade unions from social or
benevolent organizations unsuited to carrying out trade union duties.
According to Addison and Hirsch (1989)
they stressed that dispute is defined as a collective difference (or
“failure to agree”) on a matter concerning a number of employees, which
is pursued on their behalf by one or more recognized Trade Unions and
the University of Surrey. Banjoko (1996) added that such matters would
be connected with the employees' work or working environment and would
include all matters that might be covered under a legally declared trade
It would exclude:
- • Matters covered by national level negotiations.
- • Changes required by legislation.
- • Matters which have previously been dealt with under this procedure itself.
- • National or regional disputes declared by one or more of the recognized trade unions with a group of employers.
Allen (1984) opined that dispute is not
an individual complaint by an employee – this is dealt with through the
Grievance procedure and is not appropriate for discussion within the
Dispute Resolution Procedure.
He (1984) further stressed that the
purpose of the Disputes Resolution Procedure is to provide a fair,
structured and consistent approach for the consideration of disputes and
should be instigated when all reasonable attempts have been made to
resolve the difference, but such attempts have been unsuccessful.
The disputes between workers and
managements are considered as labour disputes (Bean and Turnbull, 1988).
However, the disputes among workers, investors - managers- employers
are also taken as labour disputes in some circumstance. According to
Ubeku (1980) some countries have broadened the circumference of labour
disputes whereas some have narrowed it. Labour dispute isn't defined in
labour laws of our country, but clear indication is towards the dispute
between employers and employees (Umesh and Ramesh, 1997).
According to Bellman (1992) labour
disputes emerge because of disharmony in interest between two sides of
labour relations. Sometimes labour legislation and rules and regulations
of government under the legislation create confusion and hence disputes
come on the surface. Disputes are also caused by third party
intervention (Akpala, 1991). If the government cannot not balance itself
in terms of equidistance and fail to distance from vested interests,
labour disputes might arise. Inter-enterprise understanding and good
bipartite relation is the key point to the settlement of labour
A dispute settlement procedure can be
defined as any procedure designed to resolve disagreement between
workers and their employers or between trade unions and employers. It
is any set of procedural rules incorporating all or any of the
- a grievance procedure
- a negotiating procedure and
- a redundancy procedure.
Given the inevitability of conflict in
the workplace and the varying dimensions with which they come, the
actors in the work environment have to evolve ways and means at which
resulting grievances and disputes are resolved. The dispute settlement
machinery provides a meaningful approach to the employees and
employers. This goes a long way in ensuring the survival of the
organization in order to achieve the purpose for which it was set up.
1.2 STATEMENT OF PROBLEM
Why are we interested in trade union in dispute settlement?
If a trade union is “a continuous
association of wage earners for the purpose of maintaining or improving
the conditions of their working lives, the effective achievement of this
task depends on an effective and efficient disputes settlement
The enactment of special legislation to
forester and promote proper organization of Nigeria trade unions has
become an important part of labour policy and administration. The first
comprehensive labour – regulating legislation to be enacted in Nigeria
was the 1938. Trade union ordinance which permitted as few as 5 persons
to organize a Trade union. This was followed by the 1973. trade union
Decree which increased the number of workers that constitute a union to
50. Again in 1978, the government intervened to bring out the Trade
union (Amendment) decree which radically changed the structure of
Nigeria trade unions from craft and general unions to industrial
unions. With this restructuring there emerged better functional
industrial unions and evolution of a new industrial relation system in
Nigeria. There emerged as a result.
- 41 industrial unions of Junior workers
- 24 Senior staff Associations
- 23 Employers’ Associations
- 1 central labour organization (NLC).
In 1996 the Federal government enacted
another Decree, Trade Unions amendment decree No 4, further
restructuring the trade unions from 41 industrial union to 29. Part B
of the third schedule containing the list of senior staff association
and employer’s associations were completely omitted in the new decree.
This has led to controversies between the government and labour
1.3 PURPOSE OF THE STUDY
The purpose of this exercise is to
determine to what extent and how effectively the dispute settlement
machinery have been able to check this incidence of trade disputes in
recent times via trade unions involvement. And also to find-out
basically the role that trade unions play in dispute settlement between
employees and management.
This will be done in the following area:-
- Determine what kind of problems that might arise between management and employees.
- Determine to what
extent the management tries to solve the problem with the employees and
the stage at which the union comes in.
- Also to examine
the prospects and opportunities of the union in its bid to achieve this
arduous task enhancing working welfare.
- Evaluate the
strength and contributions of trade unions as a tool to settling
disputes between the employees and management.
- Analyze the pros and cons associated with that use of trade unions in dispute settlement.
Finally, the study would endeavour to
find feasible and realistic answer to the questions posed by the finding
and investigations carried out in the course of the study.
Furthermore, appropriate recommendations would be made on the modalities
for achieving a more and better organized union.
1.4 RESEARCH QUESTIONS
1. Should the trade union take into consideration the reasonableness of the employee’s grievance towards the management?
2. Could the trade unions truly represent the interests of their members or just representing their own interest?
3. Should the members and employees respect the opinions and decisions of their trade leaders?
1.5 STATEMENT OF RESEARCH HYPOTHESES
Ho: Trade union should not play much role in grievance settlement between employees and management.
H1: Trade union should play significant role in grievance settlement between employees and management.
Ho: trade union could not truly represent the interest of their members.
H1: Trade union could truly represent the interest of their members.
Ho: Members and employees should not respect the opinions and decisions of their trade leaders.
H1: Members and employees should respect the opinions and decisions of their trade leaders.
1.6 SCOPE OF THE STUDY
Owing to time and financial constraints,
our study shall be limited to Lagos State. The research will be
carried out in United Bank for Africa Plc (UBA), Marina Branch in Lagos
1.7 SIGNIFICANCE /RELEVANCE OF THE STUDY.
The dispute settlement machinery should
be efficient and effective, so as to settle dispute or conflict in the
banking institutions on time to resolve dispute adequately.
1.8 DATA COLLECTION INSTRUMENTS.
Data collection instrument as stated by
Asika. N. (1991) is a device for collecting the data or measuring the
variable which are used for answering researcher questions and or
testing study hypothesis.
The technique of data collective will be
basically the survey method. The characteristics of the samples are
neither controlled nor manipulated but will be a direct reflection of
the belief, opinion, understanding, feeling and perception of United
Bank of Africa (UBA) workforce of the role of the trade union in dispute
settlement in their organization. The three major instruments to be
use in data collection are:
- Data from company record.
The questionnaires were designed to
enhance the objective of the study. The questions were designed in such
a way so as to avoid ambiguity. Also respondents were assured of the
confidentiality use of information supplied by them.
The questionnaire was designed in two
parts. Part A and B. part A of the questionnaire consists of
information on the personal data of the respondents i.e. Bio-data while
the Part B of the questionnaire consist of questions based on the
research questions stated.
Section B was further divided into
sub-sections with each sub-section representing a researcher question.
The questions in section B were designed in form of liked scale in order
to ensure uniformity. The questions are stated in unambiqous natures
which are measured in a five (5) point scale. The magnitudes of
respondents’ agreement are indicated in the 5 point scale which were
rated as follows:-
Strongly Agree (SA) ------------------------------ 5
Agree (A) ------------------------------- 4
Undecided (UN) ------------------------------- 3
Disagree (D) ------------------------------- 2
Strongly Disagree (SD) ------------------------------- 1
Interview is used in obtaining verbal
information from the respondents. It can be face to face or telephone
interview. To ensure the validity of this instrument, an interview
schedule is needed by the researcher. It has immediate response, it
makes the process flexible and also it is relatively cheap when the
respondent are few and at the same location.
(c) DATA FROM COMPANY’S RECORDS.
This is the information and raw data
gathered from personal interview from staff, annual report quarterly
magazine, the history of the organization and their recent project etc.
The data collection instrument that will
be use in this research is questionnaire due to its advantages i.e. it
is economical, easy to analyze, it is available for reference purpose,
it can also be used for a large audience who may not be on one location,
it gives the respondent time to think about the answer that he has to
do than when he’s been interviewed.
1.9 METHODS OF DATA ANALYSIS.
The abstracted data will be presented in
an orderly manner using tables, graphs and diagram. Also the use of
the questionnaire (Bio-data section) will be analyzed on the based of
sex, marital status, age distribution, educational qualification length
of service, rank/present position.
We hare various method of data analysis and they are.
- correlation analysis
This deals with exploring relationship between two variables (xy). There are 2 types of correlations.
- Pearson’s correlation co-efficient
- Spearman rank correlation co-efficient
This is a statistic process for
determining the level of independence between 2 variables. It helps in
determining the whole genetic in the distribution of a simple variable.
It involves comparing 2 sets of data which are:
- The Observed
- The expected
It is an important area in statistics
which helps in forecasting. It helps to investigate whether, there is a
relationship between 2 variables x & y.
It is use for 3 or more samples.
But in this research I will be using chi-square due to its advantages.
- it is very easy to calculate
- it involves comparing 2 set of data
- it helps in determining the whole genetics in the distribution of a simple variables.
The second part of the questionnaire
which is divided into four sub-sections will be analyzed using the SPSS
(Statistical package for social science) under this package, such
statistical variables like simple percentages, means, median, mode
correlation etc, will be used to determine the degrees of agreement or
disagreement. 50% and more will be assumed to be acceptable while less
than 50% will be assumed to be unacceptable.
1.10 LIMITATIONS OF METHODOLOGY.
One of the limitations of this method is
its inability to check the personal bias of the respondents. Some of
the respondents who has personal guide against the union were very much
biased in their answering of the questions.
Also, because of the confidentiality
attached to some information in the organizations, or as a matter of
company policy, respondent may not want to divulge some information
though they may be useful to the research study.
Finally, the major limitation is the
inability of the questionnaire to reflect the ever changing
circumstances in UBA (United Bank for Africa) due to its inflexibility
it is also impossible for the questionnaire to cover all cases of the
role of trade unions in UBA and also due to the fact that their union is
not a very strong one, most of the employees could not answer most of
the questions on the trade union in the organization.
1.11 DEFINITION OF TERMS
a. INDUSTRIAL RELATION SYSTEM:
It can be define as the relationships which exist between the workers,
employers and government for the furtherance of peace, employees’
satisfaction and organizational growth.
b. INDUSTRIAL CONFLICT:
It is any dispute of difference between employers and employers or
between employees and employees or between employers and employees,
which is connected with the employment or non-employment, or the terms
of employment or with the conditions of work of any person.
c. TRADE UNION:
It can be define as a continuous association of wage earners for the
purpose of maintaining and improving the condition of their working
d. DISPUTE SETTLEMENT PROCEDURE:
It can be defined as any procedure designed to resolve disagreement
between workers and their employers or between trade unions and
employers. It is any set of procedural rules incorporating a grievance
procedure, redundancy & negotiating.
1.12 SAMPLING SIZE
In every research, there is always the
need for authentic information which will in turn give a reliable result
and due to this fact; the decision was made to choose a representative
sample from the study population since it will be impossible for the
researcher to reach the entire study population.
This researcher therefore decided to
choose as sample size of 65 employees (30) from senior employees and
(75) from junior employees in UBA which in the opinion of the researcher
is a good representative of the research population.
The sample sizes were chosen from the
marina Branch of United Bank for Africa (UBA) in Lagos State. The
samples were chosen randomly and sex and age distribution was not given