IN NIGERIA, THE LAW PERMITS THREE TIERS UNIONS, BUT IN THE OIL AND AVIATION INDUSTRY(S) THE UNIONS

HAVE NO EMPLOYERS ASSOCIATION. CRITICALLY ACCOUNT FOR THIS TRENDS Abstract Many employers belong to more than one employer association, and often to associations with different and sometimes conflicting policies on major aspects of industrial relations. Against this background, this study analyses the development and functions of employers association in industrial relations as well as the reason behind absence of employers association in Oil and Aviation industry. Oil and Aviation are necessary apparatus of developed civilization and economic growth in any economy as well as air services are of great importance to the continent of Africa in general and to Nigeria in particular especially in the area of administrative and economic developments. Airplane is the fastest means of transportation in Nigeria. Thus, the growth of important administrative and mining centers has also encouraged the development of oil industry and air services. Nigeria as a country is rich in natural resources; consequently most industry activity revolves around these. Nigeria is Africas leading crude oil producer and oil is the countrys most important natural resource, generating up to 95% of Nigerias revenues. The insatiable needs of man necessitated his movement from one place to another and one major means by which he has been doing this is by flying in the aeroplane. Thus, the study of the absence of employers association in these sectors is relevant for a number of reasons that will be an eyes opener for future researchers in the area of study. Keywords: Employers, Employers Association, Oil and Gas Sector, Aviation Industry 1. Introduction Employers have their fundamental organisations to deal with their collective interests. Fajana (2005) stated that oil and gas are necessary apparatus of developed civilization and economic growth in any economy. Although the use of computerization has reduced the need for a significant amount of manual work, important mechanism still rely on human input. Thus, good employer-employee relations are important to the stable production and supply of crude oil for the
1

sustainable development of the Nigerian economy, as well as to the world economy as a whole. Currently in Nigeria, three of such central organisations exist the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) which is the central organisation for employers with identical interest in trade and commercial activities and matters directly related to them; the Manufacturers' Association of Nigeria (MAN), the central organisation which deals mainly with production and matters relating to manufacturing in general; and the Nigeria Employers' Consultative Association (NECA) which is the central organisation of employers dealing mainly in personnel management and industrial relations. These central organisations have different purposes, and their functions and those of the Industrial Employers' Association are inter-related and complement one another. For example, NECA has so far played an important and enviable role in the development and conduct of industrial relations, the development of employers' associations and the use of collective bargaining in Nigeria. The association has nurtured industrial relations system in the country to the extent that it has been able to define the relative duties and responsibilities of workers, through their trade unions, employers and the government, and also to define and set up power and authority relationships. The system has been able to control and keep within tolerable limits, the responses of workers, trade unions and management to the dislocation, frustration and insecurities inherent in our industrialisation process. It has established rules, practices and regulations, both substantive and procedural, which are pre-requisite to each establishment and industry. Although trade unions and employers claim at all times to be 'partners in progress', in practice, the dealings among the three parties
2

to industrial relations - government, unions and employer - seem to be more of 'adversaries in diversity' than 'partners in progress'. It is anticipated that with NECA's advice and guidance, the parties would be able to see the common challenges facing them all, address themselves to those challenges, and cooperate in their own best interest and in the larger interest of the country's economy. It is anticipated that in the years ahead, the parties will emphasise and pursue their common goals rather than individual and separate interests. The future should witness an era of co-operation rather than conflict. The continued encouragement of employers to form industrial employers' associations, accept and practice the principle of collective bargaining and undertake realistic and objective negotiations with their employees' unions will also help to improve, consolidate and develop further the gains the association has made so far in this regard. The principle of collective bargaining and decision-making by

representative government associated with industrial employers' association will actually influence and change the unorthodox, confrontational and antiunion attitude of some employers and lead to better union/management relations. The employer is that person or persons who have contributed their properties in a business venture with the intention of making some profits in return. In modern industry, the employer is very likely to be faceless, obviously separated from the workforce. In a public company or state parastatal, the management of the workforce is usually delegated to a hierarchy of managers through a board of directors. Employers categories in Nigeria include the locally and foreign owned corporations, state governments and their corporations and enterprises of various sizes and nationality.

This study would examine the development and functions of employers association in industrial relations as well as the reason behind absence of employers association in Oil and Aviation industry. 1.1 Origin and Growth of Employers Associations Employers' organisation and associations developed out of the desire of employers to protect their collective interests. Such interests often relate to the management of human resources which may include personnel administration, staff training or industrial rc1ations, among others. Unlike the trade unions, employers' associations are a relatively new phenomenon in the development of industrial relations in Nigeria. Although history records that by 1954 there were eight employers' associations in Nigeria, there is no record that any of the associations was responsible for industrial relations; rather, they were primarily "interested in regulating trade practices and providing friendly services.'" In fact, the first attempt at forming an employers' association to deal with the management of human resources and relations with the trade unions was the inauguration of the Nigeria Employers Consultative Association (NECA) in 1957. In 1978, the restructuring exercise created 9 employers association. There were, however, other employers' associations which sought to protect the interests of such employers in areas of commerce and commercial activities. Such associations include the Chambers of Commerce. Where in the interest is related that to production emerged and manufacturing general, associations include

Manufacturers' Associations. The last comer in the group is the Industrial Employers' Associations which is connected with the practice of industrial relations. As at 1984, there were no less than 22 registered employers associations operating in Nigeria. 1.2 Structure and Functions of Employers Association
4

Most employers associations are governed by organs such as their secretariats, and specialised committees whose forms, character and tenure would depend on the peculiar circumstance of the time and the extent to which the associations focus has been altered by the environment. The Nigerian employers association also performs the following generalised roles: serving the interest of members by regulating the labour market protecting employers against the demands (or opposing the pressures) of powerful trade unions engaging in multi-employer collective bargaining either because accommodation rather than opposition of trade unions is the only feasible option providing management information and advice to assist member companies Protecting the interest of employers against suppliers of raw materials, non-employee professional bodies, etc. (a production function). Employers associations deal mainly with industrial relations matters; that are, negotiating labour matter on behalf of their members. Some also deal with secondary issues such as production, commercial and social matters. The forum of employers associations enables members to present a strong representative voice for lobbying to get favourable labour policies. 1.2.1 Industrial Employers Association

When the trade unions were restructured in 1978 and industrial unions and associations emerged, NECA advised its member-companies to form themselves into industrial associations to counterbalance the strength of the new industrial unions. This was actually necessary because it was feared that it would amount to a mismatch bordering on a suicide bid for an industrial union to face a single employer for negotiation purposes because, hitherto, the individual employer had been negotiating with the house union. If NECA did not take such an urgent step, the employers would have been worse off because the cooperation that existed among the various house unions that metamorphosed into the industrial unions did not exist among the employers for reasons which may not be unconnected with keeping their secrets. 1.2.2 Structure of Industrial Employers Association The Nigerian Employers Consultative Association is structured in such a way that all member companies will be able to have an input into their decision-making process. In order to function properly and achieve the objectives, industrial employers' associations have two standing committees. The first is the Committee of Personnel Experts (COPE) which comprises all personnel managers in the industry. The committee deals with industrial relations and general personnel management matters; handles negotiation processes and procedures with the industrial union after obtaining the required mandates from the committee of chief executives to which it reports; prepares the grounds for collective bargaining; and generally advises the committee of chief executives on general personnel and industrial relations matters. The committee of chief executives (COCE), on the other hand, decides on policy matters; generally sets the negotiation mandates for the
6

committee of personnel experts and obtains inundates from the General Meetings, comprising all members to which it reports. The committee is made up of all or a few elected numbers of chief executives. Industrial employers' associations have their secretariats where an Executive Secretary is employed as the Chief Executive Officer responsible to the committee of chief executives. The secretariat provides a data bank for information and the executive secretary is usually an expert who can offer on-the-spot advice to members. The secretariat also provides secretarial services to all committee meetings and the National Joint Industrial Council (NJIC). 1.2.3 Central Employers' Organisations Like the unions' central labour organisation, employers also have their central organisations to deal with their collective interests. Currently, three of such central organisations exist - the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) which is the central organisation for employers with identical interest in trade and commercial activities and matters directly related to them; the Manufacturers' Association of Nigeria (MAN), the central organisation which deals mainly with production and matters relating to manufacturing in general; and the Nigeria Employers' Consultative Association (NECA) which is the central organisation of employers dealing mainly in personnel management and industrial relations. These central organisations have different purposes, and their functions and those of the industrial employers' association are interrelated and complement one another. For example, if there is no production there cannot be sales and when there are no sales, salaries cannot be paid. Also, if customers do not order for products, there will be no work for the factory hands. 1.2.4 Nigeria Employers' Consultative Association (NECA)
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NECA is a central employers' organisation which is concerned with the management of human resources, and is the only organisation directly responsible for ensuring industrial peace through proper handling of human problems in the industry and commerce. It deals with industrial relations and all matters that affect the human being at work. It is an undisputable fact that wherever the development of personnel management and industrial relations is mentioned in this country, NECA will always be remembered as the fore-runner and 'father' of industrial relations. NECA is a non-profit making, consultative association of employers inaugurated on 16th January, 1957 and registered under the Companies Act as a registered company limited by guarantee not having share capital but without the use of the word 'limited' at the end of its name. It is not a trade union, should neither act as one nor should it interfere with the individual autonomy and independence of its members in the conduct of their affairs. It is a federation of employers as well as a parliament of employers and a constitutional monarch whose function is to advise, encourage and warn members. 1.2.5 Structure of NECA The association operates under the principle that while the general membership lays down the policy, decision-making is actually done by a representative body called the governing council. NECA also has two standing committees which are appointed by the Governing Council the industrial relations committee and the training and education committee. Members of these two committees are specialists in those fields nominated by member companies of NECA from their employees. In addition, NECA has a management committee which is under the President of the association. Consequently, the organisational structure of the Association would look like this:
8

NECA also maintains an up-to-date secretariat under its Director General. The Secretariat is responsible to the Governing Council through the Management Committee. 1.2.6 Functions of NECA NECA assists its members in the: Maintenance and promotion of good relations between them and their employees. Encourages the payment of equitable rates of wages and salaries. Assists members as appropriate with advice on the settlement of disputes either between members or between members and employees. Promotes or encourages technical and other forms of education and research for the development of efficient employees in all or any branches of industry and commerce in Nigeria. Promotes influences, modifies and seeks the repeal of legislations and other measures affecting or likely to affect employers. It also communicates with public authorities and related bodies or organisations on all matters affecting the interests of members and other employers of labour. Cooperates with other associations or chambers in such matters. Represents the on views all of members falling both within nationally the objects and or

internationally

matters

competence of the association and participates in boards, councils and other public bodies dealing with such related issues.

 Provides information, advice and guidance to members, and undertakes education, training and other specialised services and makes representations to government and appropriate agencies of government on matters within the objects of the Association or affecting or likely to affect the interests of members.

1.2.7 Other Activities of NECA NECA provides its members with the above services by undertaking the following activities: Data Bank for Information and Research: The secretariat collects, analyses, and disseminates information on matters within its competence to its members. Much of the information given by NECA to its members are connected with collective bargaining and industrial relations in general. Information is collected from member companies, industrial associations, research products, decisions of the IAP NIC and other sources, provided the information is not injurious to the cause of the Association or any member company, the security of the nation or amounts to contempt of any civil court. Information dissemination is through circular letters, NECA News (a newsletter of the Association) or a response to specific enquiry by any member or industrial association affiliated to NECA. Consultation, Advice and Guidance: NECA gives advice or

guidance to its members on specific matters which may relate to collective bargaining, trade disputes, legal matters, grievances, application of the provisions of the labour law, interpretation of legislations, contracts and government directives and awards of the IAP and NIC. However, in view of more and regular involvement of government in economic policies
10

and

industrial

relations,

the

association has developed a system of issuing numbered "memoranda of advice and guidance" on matters which the governing council feels are important and complex. Such matters must in one way or the other be related to the management of human resources in commerce and industry. Education and Training: Carried out through the training and education committee, its second standing committee, NECA trains and develops employees at all levels in member-companies while increasing the training consciousness of members. To this end the committee maintains very useful contact with bodies and agencies responsible for training and allied matters. Such bodies include the West African Examinations Council (WAEC), Industrial Training Fund (ITF), National Board for Technical Education (NBTE), Centre for Management Development (CMD), Council for Registered Engineers (COREN) and National Universities Commission (NUC). In addition, NECA organises training courses for employees of member companies. Such courses are organised either by NECA on its own or in association with other bodies as in the itinerant Personnel Management and Industrial Relations Workshop. On its own, NECA runs the Advanced Course on Industrial Relations, opened to members and nonmembers alike; the course is internationally recognised by the ILO to be of acceptable standard for employers' representatives from other countries. Personnel Management and Industrial Relations: NECA seeks to foster the development of sound personnel policies and enlightened personnel management which are necessary ingredients required to reduce industrial conflicts to ensure that workers have the motivation required for the efficient operation of the undertaking and to provide

11

the employer with an established framework of thought so as to react intelligently and consistently to new problems. NECA also provides necessary documentation and guidelines for employers in formulating their personnel policies. In this regard, emphasis is laid on such areas as communication, recruitment, training, collective bargaining, joint consultation, conditions of employment, wages and salaries structure and administration. NECA also advises and sometimes assists its members in the selection of their personnel specialists to ensure that the person holding the post has adequate training and experience to hold such a sensitive position. This function is very important since the Association realises that the incumbent will be involved in collective bargaining and negotiations with the trade unions - a source of prospective conflict between the employer and the employees. To this end, the association's policy is to strictly use collective bargaining system and it assists the employers in the training of their negotiators. The association therefore constantly reminds its members of the legal position of collective bargaining which is to influence the method of decision making rather than the decisions and also to make the principles of cooperation between employer and employees continue to play an important role in industrial relations with a view to preventing strikes and any form of industrial action. Consequently, collective bargaining is gaining more ground and prominence in the functions of personnel management and industrial relations. Finally, NECA, in its attempt to forestall the economic and social disruption that results from strikes, work stoppages and any form of industrial action, has accepted responsibility for the development of the industrial employers' association. NECA therefore encourages and
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gives

practical

assistance

to

employers

to

form

an

industrial

employers association where there is none; provide support services for those employers' associations that have no full-time executive secretaries; and provide physical facilities that would enable as many industrial employers' associations as possible to operate from offices in the-same building as NECA or as near as possible to foster the spirit of oneness and facilitate consultations. Relationship with Government: NECA's views on labour matters are quite appreciated and respected by the government. Through NECA, the private sector has co-operated fully with the government especially on legislations that affect the economic and social life of the country. NECA plays an important role in seeking amendment to existing or proposed legislations which could have a harmful effect on its members or to improve the practical execution of the government's intentions. In view of this cordial relationship, the association is represented on twenty-six Boards and Committees set up by the federal and state governments, the universities and other institutions of higher learning and voluntary organisations. Such bodies include the National Labour Advisory Council, Nigeria Social Insurance Trust Fund Management Board, Productivity Prices and Income Board, National Board for Technical Education, Nigerian Council for Management Development, Industrial Training Fund, National Youth Service Corps, Plateau State College of Technology, National Manpower Board, etc. In addition, by the publication in the Federal Republic of Nigeria Official Gazette Extraordinary No.55 of 26th October, 1979 in which the responsibilities assigned to the Ministers is published, NECA is officially recognised as one of the eight bodies with which the Federal Ministry of Employment, Labour and Productivity should have relations.

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Relationship with other Central Employers' Organisations: NECA has maintained a very cordial relationship with other central employers' organisations, e.g. the Manufacturers' Association of Nigeria (MAN) and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA). The three bodies have formed themselves into the 'organised private sector' and have been meeting with government on matters of interest to managementlabour relations, production and the economy in general. Relationship with the Nigeria Labour Congress (NLC): Since the creation of NLC in 1978, NECA has been able to establish working relations with that body to discuss matters of common interests. The relationship is of mutual benefit because it is aimed at bringing both capital and labour closer with the aim of removing areas of conflict thereby improving relations. International Relations with other Organisations: NECA believes that labour matters have no frontiers and that the industrial relations experience of one country can be useful to another provided such experience is considered in the light of the conditions prevailing in the other country and used to create something new and original to serve a particular need. Thus, NECA belongs to the International Organisation of Employers (IOE) which is a coordinating body for private enterprise employers participating in meetings, conferences and other activities of the ILO. As a member of IOE, NECA receives advance and detailed information on ILO meetings, international developments in wages, labour and industrial relations, training and hours of work, which NECA passes to its members. NECA's international relations has brought to its members, results of discussions, meetings and conferences aimed at bringing together, the three forces at work in the dynamics of modem industrial relations to
14

combine in a courageous and fertile collaboration by means of constant dialogue for the study and solution of ever renewed and recurring problems. Links with Institutions of Higher Learning: NECA's relations and interactions with universities and other institutions of higher learning has helped the industries in assessing their manpower needs, supply of better qualified manpower, industrial training and manpower development, access to a variety of post-experience training facilities, research results and the use of the physical facilities of these institutions and the expertise of their staff. However, as a federation of employers, NECAs role among its members is purely consultative, since it does not enforce its advice on its members, although the constitutional or standing rules of the association must be obeyed. 2. Theoretical Framework Why do employers belong to associations? The literature on employer associations links membership to the purposes and functions which associations serve. According to Gardner and Palmer (1992), collective employer activity has four main purposes: opposition to unionism, control of procedures, taking wages out of competition, and responding to State policies. In pursuit of these objectives, associations perform five main functions. These consist of representation of employers in collective bargaining, lobbying, public and media relations, provision of a forum for discussion and debate, and provision of specialised services. The last includes information, research and advice, education and training, and assistance to individual members with disputes. Associations are also increasingly diversifying services into such areas as recruitment, other human resource management practices, and contract management services.
15

The literature is not explicit on why or how employers choose to join particular associations, where overlapping jurisdictions exist, although some writers relate this decision to the standard of services delivered. Plowman (1978: 249), for example, discusses a shopping around for the best deal philosophy among Nigerian employers. He notes that while each association has its loyal followers, many employers regard their association as simply an advisory service, and membership as a service-for-fee relationship. Windmuller (1984) notes that associations rarely launch recruiting drives, instead relying on peer pressure, patterns of unionism, and inducements, in the form of technical services and representational functions. On a more abstract level, Gardner and Palmer (1992) argue, employer association purposes might be cast in terms of defending the interests of capital as a whole or specific interests of their members. Most of the literature on associations focuses squarely on their pursuit of the direct interests of members as employers. Moreover, Fox et al. (1995) observe that when confronted with the dilemma of acting in their own interests or the interests of employers as a class, employers are far more likely than employees to choose the former. However, other writers have argued that the inherent class asymmetry in the organising capacity of employers and employees provides employers with a broader array of strategy options. Thus, for example, individual firms can exploit their own market power to achieve ends and business can act collectively in a non-associational manner, pursuing objectives through informal contacts and other means (Matthews, 1994). The reasons why employers join particular associations and indeed maintain dual or multiple memberships may therefore be more complex than suggested by arguments concerning fee-for service attractions. Scholars have recently argued vigorously that employers make strategic choices to shape their environment (Kochan et al.,
16

1986; Gardner and Palmer, 1992) and questions related to joining employer associations are clearly amenable to explanation through discussion of concepts of strategic choice. As employer associations are one means of exercising a collective voice, and in countries like Nigeria, there is typically a range of associations to which employers can belong, we can postulate that employers exercise strategic choice in association membership, joining particular groups in order to achieve a specific set of objectives. This has implications for employer expectations and behaviour within associations. This is particularly the case for the determination of policy priorities for instance, whether they expect associations to pursue their interests directly as employers or indirectly as representatives of capital. An employer may, for example, join one association for the direct services it offers and another for its focus on the broader objectives of capital. Disunity among employers is a common theme in the industrial relations literature. Collective organisation of employers is difficult because of the diversity of business interests based on their organisational size, market position, geographical location and competitive relationships (Tolliday and Zeitlin, 1991). In addition, the class logic of collective action is that unlike labour, individual firms can use their own market power and organisational resources to achieve influence, reducing the need for collective activity (Matthews, 1994). As a result, cohesion and solidarity can be difficult for associations to achieve and subject to challenge from a variety of sources. According to Windmuller (1984), these include union pressure on individual firms to break ranks, management efforts to keep marginal enterprises afloat, principled inter-firm differences over labour relations policies, and the search of employers for competitive advantage in product and labour markets.

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These centrifugal tendencies create difficulties for associations in policy formation and enforcement, and institutionalise financial and organisational instability. The lack of employer cohesion within associations mirrors relations between associations. Organising principles and membership coverage overlap, and as Plowman (1978: 249) notes, for employers very little soul-searching accompanies a transfer to another association. In Nigeria, collective organisation has produced overlapping representation, rivalry, and the periodic fracturing and reconstitution of associations. One outcome has been that it has been difficult for a single peak body to establish itself as a united voice for Australian employers (Matthews, 1994). According to Plowman and Street (1993), this fragmentation has recently undermined association campaigns to change policy agendas of governments and unions and reshape the industrial relations system. However, more recently, Thornthwaite and Sheldon (1996: 195) have questioned the link between disunity and failure, arguing that in the last decade at least, disunity enabled employers to voice a variety of competing and common objectives ... [so that public debate came to embrace the concepts, and focus only on the precise details of the changes . According to Bell (1994), disunity and fragmentation are not necessary characteristics of employer organisations and in a number of European countries, business is relatively cohesive. Both he and Matthews (1994) argue that the State and economic structure largely determine the shape of associations in different countries. They cite the fragmented State structure, divisions between export and domestic industry sectors, and firm-centred business culture in Australia as reasons for the pronounced disunity of Australian employers. Bell (1995) adds that the macrostructures of public policy, particularly the

18

arbitration system and industry protectionism, have reinforced this associational fragmentation. There are, however, also forces for cohesion among employers. As Tolliday and Zeitlin (1991) write, some problems such as the regulation of labour markets and labour law reform require coordination of firms to represent interests effectively. For Streeck (1987: 283), employer solidarity is conditional on the presence of favourable institutional and economic conditions that induce similar individual responses of their members and thereby help associations contain the strong centrifugal tendencies among their membership. In a similar vein, Bell (1994) argues that in recent decades, two major sets of challenges to employer associations have been facilitating greater unity in Australia. First, the progressive dilution of the traditionally divisive national policy frameworks of arbitration and protectionism, once major sources of association activity, has posed associations the challenge to find new roles in order to retain members. Second, the increasing sophistication and competitiveness of the policy advocacy environment has pushed employers to match the intellectual rigour of other lobby groups, particularly in the provision of solid economic analysis. The result has been the emergence of three broad developmental strategies which change relationships between associations and members: the provision of increasingly sophisticated research-based advocacy by associations; an expansion of services to member firms; and adoption of quasipublic roles such as industry self-regulation and assistance to government in implementing public policies. In addition, fragmentation of collective activity has been partially offset by the formation of ad hoc coalitions, in the form of networking and strategic alliances between associations on key policy issues (Bell, 1995). There is little information on the role of endogenous factors in accentuating or mitigating employer
19

association

disunity

and

fragmentation (Plowman, 1987: 29). Endogenous factors include various aspects of the internal environment such as the calibre, dynamism and personalities of association leaders, membership composition, internal government, financial resources, and interorganisational relationships. Windmuller (1984: 14) has pointed out that there is universally a strong preference for consensual decision-making in association affairs and a correspondingly strong disinclination to let internal differences be exposed to public view. Typically, controversies are not aired in association meetings, decisions and compromises being reached informally beforehand. However, there has been little scholarly attention to such issues. Dual membership is one such neglected endogenous factor. The result of building associations on the basis of organising principles which are partly overlapping and partly competitive is that there is typically more than one association representing the interests of any particular employer. There are no data on dual membership in Australia, but anecdotal evidence suggests it is not uncommon for employers to retain membership of more than one association (Evans, 1993). The impact of this on internal cohesion and inter-association fragmentation is unclear. Dual membership may, for example, divide loyalties and confuse lines of representation (Wanna, 1992). However, this depends on many factors including the reasons for employer membership of particular associations and whether the policies of associations conflict or are complementary. For example, if employers belong to associations with conflicting policies on key industrial relations issues, their commitment to the policies of one of the associations may be jeopardised. However, if distinct purposes are associated with membership of different associations, then conflict between policies may be unproblematic, or indeed may serve the interests of the

20

employer, and at the same time, reduce the scope for disunity within each association. Dual membership may also facilitate the formation of the coalitions and increased cooperation between associations to which Bell (1995) refers. However, this may vary according to employer expectations of the different associations to which they belong, and the approach they adopt to policy development within these associations. We argue there are essentially three approaches which may be adopted: fusion, lowprofile or fission. A low-profile approach involves a firm taking a relatively passive role in policy-making forums, not actively pursuing any particular policy agenda. A fusion approach is characterised by moderating behaviour, with members seeking to build coalitions among associations by minimising differences of opinion between them. In contrast, a fission approach involves pursuing divergent policy agendas in different associations and widening existing cleavages. 2.1 Overview of Union in Oil and Gas Industry Nigerian oil workers generally belong to one of two national unions: NUPENG and PENGASSAN. Both unions organize workers across the upstream (production and refining) and downstream (transportation and retail) sectors of the oil and gas industry, although NUPENG traditionally represents blue-collar workers and PENGASSAN speaks for white-collar professionals. While the two are affiliated with separate national labor bodies PENGASSAN with the Nigerian Trade Union Congress (TUC) and NUPENG with the Nigeria Labour Congress (NLC)they communicate openly on most issues and have a long history of cooperation. Internationally, both are members of the International Federation of Chemical, Energy, Mine and General Workers Unions (ICEM) the global union federation of energy sector unions.
21

Both economic and social factors are putting pressure on union membership. Oil workers attempts to organize non-union workers and negotiate on behalf of union members have sometimes been met with police violence (Solidarity Centre, 2010). Yet despite the riches oil brings to Nigeria, its legacy in the delta is marked by intractable poverty, corruption, human rights violations, environmental devastation, and the ever-present potential for community discontent to fuel large-scale political violence (Solidarity Centre, 2010). Oil employers are generally averse to sectoral wage negotiations and prefer to decide wages at the company level, rather than at the sectoral level. One obstacle to sector-wide negotiation is the tendency for employers to keep information on wages confidential so that they have more control over wage determination (Fajana, 2005). The oil industry is the backbone of the Nigerian economy. Nigeria is the sixth largest producer of crude oil in the world. Its oil industry generates over 95 percent of the countrys foreign revenue, and about 80 per cent of government revenue. The oil industry alone creates over 65,000 direct jobs in Nigeria, and more than 250,000 jobs in non-direct employment. Most of the exploration and production of crude oil is concentrated in the Niger Delta, where six major multinational oil companies operate. All of them have made joint venture agreements with the Government of Nigeria, which holds the majority share.

Until March 2005, the government of Nigeria promoted compulsory union membership at the workplace. In the oil industry this has resulted in a 60 per cent unionization rate. Oil workers are unionizes by occupational category: white-collar workers belong to the Petroleum and National Gas Senior Staff Association (PENGASSAN) and production
22

workers to the National Union of Petroleum and National Gas Workers (NUPENG). These oil industry-wide trade unions affiliate with different national centres, the Trade Union Congress of Nigeria (TUC) and the Nigeria Labour whole. Prior to 1938, Nigeria had no laws or regulations that guaranteed basic workers rights and trade unions rights. In addition to the 1938 Trade Union Ordinance, the basic laws covering trade union activities are: the trade Union Act 1973, amended by the Trade Union (Amendment) Decree No. 22 of 1978, the Trade Union (Miscellaneous Provisions) Decree No. 17 of 1986 and No. 25 of 1989, and Trade Union (Amendment) Decree No. 22 of 1996; and Trade Union (Amendment) Act 2005. At first glance, the laws in Nigeria seem to recognize freedom of association, and oil companies appear to respect workers basic rights. However, the right to strike is restricted as any industrial action that falls within the category of essential services- which include the oil sector, is banned. The Trade Dispute (Essential Services) Act 1976, states that the President can proscribe any trade union or association, whose members are employed in an essential service, if they have caused industrial unrest or been involved in acts calculated to disrupt the smooth running of the essential services. The government of Nigeria thus makes it difficult for trade unions to exercise their right to strike. In March 2005, the government amended the Trade Dispute (Essential Services) Act to bring it in line with ILO standards. In some area, freedom has been strengthened, but any
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Congress

(NLC),

respectively.

There

is

no

employers

organization to represent the interests of the Nigerian oil industry as a

industrial action in the oil industry remains categorically outside the law. Nonetheless, illegal strikes have occurred frequently, with the state intervening with armed forces. Iyayi (2009) made an attempt to fill an important gap in the existing literature on trade unions by providing a more adequate theoretical formulation of trade union environments. However, unlike the environment of business and related organizations whose causal texture is understood in terms of uncertainty, complexity, instability and turbulence the trade union environment needs to be understood in terms of hostility (Iyayi, 2009). In the capitalist state, environmental hostility denotes the existence of a set of subjective and objective barrier conditions that are consciously erected and sustained for the purpose of limiting labours selfconscious and self-liberating understanding and actions. These barrier conditions vary in range, density, and scope. Different combinations of levels of density, range and scope of barrier conditions lead to different levels of hostility in the environment which may range from the mildly hostile, through the hostile to the deeply hostile (Iyayi, 2009). A culture of corruption is embedded in the political and economic system in Nigeria and this is the biggest obstacle to growth. While the ruling Peoples Democratic Party (PDP) has consolidated its power since the 2003 elections, powerful economic forces from within and outside the ruling party remain, and have opposed attempts at reform (Fajana, 2005). Uncompensated exclusion, which connotes that the privileged few enjoy ample advantages in the use of natural resources while the majority is largely excluded. Nigerian workers constitute a large proportion of the excluded majority (Okafor and Akinwale, 2012).

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In Nigerias vastly profitable oil and gas industry, the benefits go to a few stakeholders while the majority is left outside the circle of prosperity. This isolation from riches has given rise to another term often used in the Niger Deltathe enclave economy. (Solidarity Centre, 2010). 2.1.1 Industrial Relations in the Oil Sector Freedom of association and right to organize Right to strike Failure to implement the terms and conditions agreed in CAs Workers exclusion from companys decision making process. Job losses in connection to company restructuring- Shell 2003-04 Lack of local content ExxonMobil strike in 2004. CAs- negotiated at company level. On November 18, 2007, the Nigerian militarys Joint Task Force (JTF) attacked third-party contract workers demonstrating at the Nigeria Liquefied Natural Gas (NLNG) Bonny Island Terminal (Solidarity Centre, 2010). ILO freedom of association and protection of the right to organize convention, 1948 (No 87). The Nigerian government has consistently limited the right to strike in the oil industry. Some of the relevant legislation may be found in the Trade Disputes Acts of 1969, 1976 and 1996. The Trade Unions (amendment) Decree of 1996 made trade union check-off conditional on a no strike clause throughout the lifetime of a collective agreement. Indeed, it clearly stated that employers were not to give trade union dues to the trade union concerned unless union members agreed to this no strike clause. Contrary to ILO convention 87, strikes in the
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essential services, including the oil and gas industry are totally forbidden in Nigeria. Section 9 of the Trade Dispute (Essential Services) Act, 1976, which lists the economic sectors which fall within essential services, includes the oil industry. Subsection (b) refers to any service established, empowers the President to proscribe violators. Trade Union (Amendment) Act 2005 makes union membership voluntary; it introduced a general strike ban in the essential services. 2.1.2 Collective Bargaining in Oil Sector In the oil sector in Nigeria, collective agreements are negotiated at the company level. There are no industry-wide negotiations because of the inability of the oil employees to come together in collective negotiations. Some oil employers meet informally to review industry trends but do not engage in industry-wide collective negotiations with NUPENG and PENGASSAN national bodies. Each company and their employees constitute a bargaining unit. Wage increases and other terms of working conditions are negotiated at the company level. The outcomes of the negotiations are therefore often governed by each companys financial situation. In order to increase their bargaining power, workers in small and medium-size oil companies unite to negotiate with their companies- but the large oil companies unions have yet to come up with such strategy. Collective agreements are valid for two years in the oil industry, and often include a re-open clause to enable the parties to re-negotiate for contingencies before the expiration of an existing agreement. States often intervenes (directly or through her agencies) in industrial disputes in the oil industry on the grounds of protecting law and order. Violations of trade union rights are widespread in Nigeria and include: intimidation of workers; refusal by employers to recognize trade
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unions; and dismissal of workers representatives for trade union activities. An increase in the casualisation of workers has made it difficult to organize workers, particularly in the oil sector. It is difficult to estimate accurately the number of casual workers in the oil sector. There are no official records showing the magnitude and trends of casualisation, and oil companies do not disclose this information. In Nigeria, oil companies view local contract workers as cheap labour and they are therefore often found in casual work. They are denied the right to unionize, have no entitlements, have no benefits or entitlements and their employment terms are unspecified (Ogbeifun, 2004; 25; in Fajana, 2005) There is considerable disparity between the terms and conditions of work of expatriate workers and Nigerian workers. The average pay ratio of expatriate workers to Nigerian workers is about 4:1- often targets of jealous and protests for improved working conditions. By the end of the 1980s, many Niger Delta communities began to actively voice their grievances over poverty and environmental degradation to the Nigerian government and its multinational oil partners. The governments heavy-handed response to these protests foretold its intentions regarding union activities. 2.2 Unions in Aviation Industry There is no doubt, the importance of airlines services in the enhancement of the movement of passengers, freight and development of the passenger in Nigeria. Remarkably, an airline service has indeed improved generally in Nigeria. This improvement is generally tied to the concept of deregulation and globalization that induce competition regime among the airline operators. Wensveen

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(2007) identified a 3 phases period that characterized the level of airlines services and responsiveness of consumers. These 3 phases are production, sales and consumer oriented period. The contextual argument for transition reliably holds in emergence of changing and dynamics of services and market structure of airline services to attract market share in a competitive regime. Indeed, it is worthy to say that airline services have benefited from twin concept of globalization and deregulation in Nigeria. Prior to deregulation, the Nigeria airline services are characterized of irregular and ineffective services and were generally shambolic in nature (Ogunkoya, 2008). The consumer were left with Hobsons choice as alternatives do not exist there were limited participant and no options offered irrespective of the quality of services rendered (Adeniji, 2000). These were the prevalent features which characterized the airline services in Nigeria prior to deregulation. However after deregulation, the airline services in Nigerian witnessed a new era of growth and advancement. The deregulation regime offered an increased interest and investment in the more dormant Nigerian aviation industry. As more airlines entered the market, an enhanced investment in fleets of aircraft to retire the old and risky fleet also to imbue confidence in the market. The services offered witnessed a turnaround as market driven innovations came to bear to attract more passengers. The corollary of this is the emergent of varieties of services to suit all categories of air travelers which were never a feature of the industry. In addition, the air service in the domestic and international terminal recorded tremendous changes as compared to the old. Also, foreign airlines use the nations terminals as hubs for flights operations within
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and without the continents. On the other hand, the domestic operations of airline services benefited from deregulation and privatization as consortium invested in terminal development. The improved facilities and amenities offered in the new terminal engendered improved services to the passengers. Indeed, the airline services in Nigeria after deregulation witnessed an improved, standardized services compared to the period before deregulation. The principal functions of the federal Airports Authority of Nigeria (FAAN) are to: Develop and maintain all the airports within the Nigeria territory provide accommodation and other facilities for effective handling of passengers and freight. Development and provide facilities for ground transportation. Prohibit the installation of structure which by virtue of its high position is considered to endanger the safety of air navigation. Provide adequate conditions under which passengers and goods maybe carried by air and under which aircraft may be used for other gainful purposes. Charge for services provided by the authority at airports. Carryout at airports (either by itself or by agent or in partnership with any other person) such other commercial activities which are not relevant to air transport but which in the opinion of the Authority maybe convenient without prejudice to specified functions.

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Provide adequate facilities and personnel for effective security at all airports.

Create conditions for the development in the most economic and efficient manner of air transport and the services Connected to it.

Managements difficulties are usually analyzed on a total industry basis, with sight more often than not being lost of the individual components of the industry. Similarly, all unionized employees are treated as "labour," even though wide disparities exist in the functions, responsibilities, compensation, and strength of the 82,000 employees involved. (Henzey) A strike threat has potency in aviation far greater than it does in industry generally. In many businesses, a strike threat produces a spurt in sales as the public stocks up on the product which may become unavailable if the strike occurs. If the strike does not occur, the employer may actually have gained additional revenue. If it does, however, the stockpiling greatly limits, or averts, any ultimate loss. Airline travel, however, cannot be stockpiled in this way. The advent of jet aircraft has exacerbated many of the problems of airline labor relations. Small airline unions beset by fears of technological unemployment or dislocation will probably consolidate in order to protect their position. Accordingly, the Teamsters may make substantial inroads unless union-management friction can be minimized or the larger airline unions attempt to forestall this penetration of the air industry. Management, meanwhile, will continue to look to such measures as "mutual aid" to meet with such powerful unions as the ALPA, the IAM, and the TWU on more equal terms. If management is successful in this endeavor, however, some labor
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quarters may invite greater government intervention in, and perhaps even outright regulation of, airline labor relations. Airline labor negotiations take 1.3 years, on average, to conclude, and about half go into Federal mediation; much of the variance in the duration of negotiations can be attributed to which particular airlines and unions are bargaining, not to economic conditions. Most interesting is the fact that the identities of the bargaining parties are the major predictors of the duration of negotiations. There is noticeable variation across carriers and unions in the average negotiation time (Von Nordenflycht and Kochan, 2003). Nigerian Aviations Economic Benefits Air transport to, from and within Nigeria creates three distinct types of economic benefit; contribution to GDP, jobs and tax revenues generated by the sector and its supply chain. But the economic value created by the industry is more than that. The principal benefits are created for the customer, the passenger or shipper, using the air transport service. In addition, the connections created between cities and markets represent an important enabling infrastructure foreign direct asset that generates benefits through investment,

business clusters, specialization and other spill-over impacts on an economys productive capacity. Contribution to Nigerian GDP The aviation sector contributes N119 billion (0.4%) to Nigerian GDP. This total comprises: N59 billion directly contributed through the output of the aviation sector (airlines, airports and ground services);

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N34 billion indirectly contributed through the aviation sectors supply chain; and

N27 billion contributed through the spending by the employees of the aviation sector and its supply chain.

In addition there are N78 billion in catalytic benefits through tourism, which raises the overall contribution to N198 billion or 0.6% of GDP.

Major Employer The aviation sector supports 159,000 jobs in Nigeria. This total comprises: 44,000 jobs directly supported by the aviation sector; 64,000 jobs indirectly supported through the aviation sectors supply chain; and 51,000 jobs supported through the spending by the employees of the aviation sector and its supply chain. In addition there are a further 130,000 people employed through the catalytic (tourism) effects of aviation. Contribution to Public Finances The aviation sector pays over N8.5 billion in tax including income tax receipts from employees, social security contributions and corporation tax levied on profits, with a further N17.0 billion of revenue coming from VAT on domestic and international flights originating in Nigeria. It is estimated that an additional N8.9 billion of government revenue is raised via the aviation sectors supply chain and another N7.1 billion through taxation of the activities supported by the spending of employees of both the aviation sector and its supply chain (Oxford Economics, 2012).

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22 airports managed by FAAN; 4 privately owned and 6 international airports 62 federal and several privately owned airstrips 10 scheduled domestic airlines with 3 Nigerian Airlines operating on International Routes and 21 Foreign Airlines operating in Nigeria

Passenger traffic growing at CAGR of 17.6% 14.6m passengers in 2011 Concentration of passenger and cargo traffic in the international airports. Lagos alone accounts for >50% of air travel. Lagos, Abuja and Kano Airports are able to cover their operating costs. 90% of revenues in 2011 from Lagos and Abuja. We have made significant improvement in infrastructure, but our airports still rank low compared to other African countries.

2.2.1 Challenges of airline services in Nigeria In spite of all the improvement and innovation accompanying the deregulation and privatization of airline services in Nigeria however, there are some challenges still prevalent in the system. For instance, some challenges as inadequate stand for airline users, flight information and public address systems echoes, poor customer relations, flight delay, missing luggage and personal items and security issues. The Nigerian airline industry needs huge investment in both

infrastructure and operational characteristics to further buoy the growth in the industry because most of the facilities at the airports to enhance airline services are dilapidated. The air navigation services
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and equipment need complete overhauling and replacement with modern devices to improve airline services in the country. Similarly, the existing metrological equipment ought to be modernised to impinge efficient airline services in the country. The institutional reform ought to fully capture the entire segments of the Nigerian aviation industry. The present intervention does not cover the entire segments of the industry. In this light, there is need for the bouleversement of all the institutions regulating the Nigerian aviation industry for optimal airline services and the development of the Nigerian aviation industry. Remarkably, the impacts of the airline services under the present reform in the Nigerian aviation industry cannot be overemphasised when compared to the prevalent situation prior the reforms in the Nigeria aviation industry. Indeed, the sector has witnessed a tremendous innovation in airline services delivery. Moreover, the sector has attracted investments leading to infrastructure and facilities refurbishment, competition induced service products varieties to catch the attention of consumers and all travellers alike making use of airline services in MMA2 in Nigeria. 3. Main Body of the Work In Nigeria, there is no employers organization completely representing the Oil and Aviation industry. Efforts were made to form Petroleum and Natural Gas Employers Association (PNGEA), as well as an Oil Producers' Trade Sectors (OPTS), and Aviation Industry but none of these efforts made were successful. There is, however, a coordinating body of oil employers among the members of the Nigeria Employers' Consultative Association (NECA),

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which has no capacity for maintaining industrial relations with its counterparts. The following can be seen as the reasons behind non-existence of employers association in Oil and Gas and Aviation Sector can be seen as follows: Air transport is the main transport mode for tourists, high-value exports and imports; and perishable goods. The service has the potential to facilitate economic growth. Expansion and modernization of the aviation industry capacity is, therefore, vital to the growth of the Nigerian economy. The Federal Government enacted the Civil Aviation Act with the aim of making the Nigerian Civil Aviation Authority autonomous with increased funding. Each of this Oil Sector negotiates with the NUPENG AND PENGASSAN in-house. There is no joint agreement done by all organisations with their unions. No central employers body to harmonize the agreements done by each house union The employers have no interest in forming unions because they believe organising any union is like inviting radical to the system They do not want to divulge their trade secrets to other employers in the same line of business In his themselves are not so serious in pushing them to harmonize their decision for the industry as a whole. In oil sector there are strong employees unions but no employers union.
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They think employers association has the same attribute with the trade union.

They see union has a treat to organisation. There is an act that provided back up for both trade union and employer association.

In terms of the registration, both trade union and employers association

Labour Act makes employer Association a Trade union they shared the same registration Act.

They are registered under trade union Act. Ministry of labour also treat employer association like trade union Multinational firms do not allow association (they prefer to pay employees well, give employees good welfare system so that the employees wont think of any union) thus, they find it irrelevant to form any form of association.

Also

in

aviation

industry

was

dominated

by

government

employer before recently when we now have private owners in the sector There is belief in aviation sector before now that Trade union in the sector is weak. In Oil and Gas sector, there is an effective labour management relation. In Oil and Gas industry, there is social partnership between staff and management.
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In this industry, their ideology is not a revolutionary ideology.

4.

Recommendation It is recommended that employers in oil sector should endeavour to form combinations for the purpose of achieving industry-wide bargaining which many have argued would engender enduring industrial peace in this strategic sector of the Nigerian economy. More so, both the NUPENG and PENGASSAN should always encourage and engage in social dialogue and collective bargaining to resolve their problems with management in the spirit of give and take. NUPENG and PENGASSAN demands should be backed up with facts and figures and should avoid adversarial and confrontational strategies in negotiations with management at all times if enduring industrial harmony and sustainable national developments are to be realized. Responsibility of partners to ensure good industrial relations, unity and productivity in the oil sector. Oil employers should support each other by uniting in one employers organization, so that they might work together with their counterparts, as should the employers of national and multinational oil companies; the existing Oil Producer Trade Sector could form the basis for an employers organization in the oil industry. Government- father of all; more active role. The 50-plus-year focus of Nigerian and international oil elitesaccessing and exporting the deltas oil and gas for profithas consistently relegated community level economic demands to a low priority. As a result, decades of community anger and simmering local disputes over oil have escalated into violent confrontations (Solidarity Centre, 2010).
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Trade Unions- give and take; hardline posture. See each other as social partner- engage in social dialogue, partners in progress, promote regime of CA and joint consultation, discussions done in good faith, share information. Measures appropriate to national conditions shall be taken where necessary to encourage and promote the full development and utilisation of machinery for voluntary negotiation between employers or employers organizations and employees with a view to the regulation of terms and conditions of employment by means of collective agreements (Okafor and Akinwale, 2012). The ILO should seek to ensure that workers rights to strike and their entitlement to freedom of association are being maintained in the oil industry, particularly in the context of the signing of recent partnership agreements which may run counter to such rights. (Forde et al, 2005). 5. Conclusion This study have examined employers associations, their structure and functions and services that are similar to those of trade unions of workers - economic, social, educational, managerial, that led to the formation of industrial employers association, manufacturers association and Nigerian Employers Consultative Association as well as the reason why there is no employers association in Oil and Aviation Industry. Though, NECAs role among its members is consultative, as it does not enforce its advice on members, it is playing a credible role in industrial relations system in Nigeria. Employers have their central organisations to deal with their collective interests. Currently, three of such central organisations exist the
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Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) which is the central organisation for employers with identical interest in trade and commercial activities and matters directly related to them; the Manufacturers' Association of Nigeria (MAN), the central organisation which deals mainly with production and matters relating to manufacturing in general; and the Nigeria Employers' Consultative Association (NECA) which is the central organisation of employers dealing mainly in personnel management and industrial relations. These central organisations have different purposes, and their functions and those of the Industrial Employers' Association are inter-related and complement one another. For example, NECA has so far played an important and enviable role in the development and conduct of industrial relations, the development of employers' associations and the use of collective bargaining in Nigeria. The association has nurtured industrial relations system in the country to the extent that it has been able to define the relative duties and responsibilities of workers, through their trade unions, employers and the government, and also to define and set up power and authority relationships. The system has been able to control and keep within tolerable limits, the responses of workers, trade unions and management to the dislocation, frustration and insecurities inherent in our industrialisation process. It has established rules, practices and regulations, both substantive and procedural, which are pre-requisite to each establishment and industry. Although trade unions and employers claim at all times to be 'partners in progress', in practice, the dealings among the three parties to industrial relations - government, unions and employer - seem to be more of 'adversaries in diversity' than 'partners in progress'.

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It is anticipated that with NECA's advice and guidance, the parties would be able to see the common challenges facing them all, address themselves to those challenges, and cooperate in their own best interest and in the larger interest of the country's economy. It is anticipated that in the years ahead, the parties will emphasise and pursue their common goals rather than individual and separate interests. The future should witness an era of co-operation rather than conflict. The continued encouragement of employers to form industrial employers' associations, accept and practice the principle of collective bargaining and undertake realistic and objective negotiations with their employees' unions will also help to improve, consolidate and develop further the gains the association has made so far in this regard. The principle of collective bargaining and decision-making by representative government associated with industrial employers' association will actually influence and change the unorthodox, confrontational and antiunion attitude of some employers and lead to better union/management relations.

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