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CHAPTER ONE
1.1

INTRODUCTION
Background of the Study

Labour unrest is a social problem involving a relatively large number of people. It


seems to be a global phenomenon. Labour unrests have occurred for thousands of
years, notably during the construction of the pyramids in ancient Egypt (Budd,
2005). Despite the impressive advance in living standards in the western
industrializing countries over the nineteenth century, including the enactment of
selected social reform measures and the outpouring of new thinking and ideas on
labour, the labour problem refused to go away (Kaufman, 2004).
According to Ridley (1970) a British newspaper told its readers in 1909 that
Englishmen lately returned from Paris tell that respectable French people alarmed
at the frequency and viciousness of labour unrest, shake their heads at the signs of
the times, and speak of another revolution. Kaufman (2004) says that in the years
before the First World War, the labour problem continued to rank in most of the
countries of Europe and North America as the greatest domestic challenge facing
civil society.
Labour unrest in Western Europe reached its peak during the period 1975-1979: up
to 21 million strikers for 114 million workers or almost two strikers for every ten

workers. As regards the number of workers involved, Italy is far ahead of the other
countries with an average of over 7 million workers on strike per year for the entire
period (1970-93) which represents 55 per cent of the western European workforce
involved in industrial action (Aligisakis, 1997). The phenomena of labour unrest
arc found in all countries where people work for others in paid employment.
Nigeria is therefore no exception.
The foregoing may appear to suggest that labour unrest is all about strike action. It
is not. Whether a work stoppage is by a strike action or by a lockout there is
ultimately labour unrest. According to (Budd, 2005) a lockout is similar to a strike
action in that it is a work stoppage that results from a dispute and if a lockout, it is
initiated by an employer, and if a strike action, by workers. Labour unrest has been
a feature of this Nation workplace for decades. It is caused by either a strike action
by workers or a lockout by an employer.
The nature of workplace in any organization both at the microeconomic level and
macroeconomic platform is very crucial in determining the level at which
productive activities are carried out in an economy. This is because work activities
do not take place in a vacuum but within a given work context. Therefore, a sound
and harmonious industrial relations in an enterprise is essential not only to
employers and workers but also to the society because efficient production of
goods and services depends on it.
Labour unrest is a recurrent problem between the Governments and Nigeria Labour
Congress, also with various labour unions, over declines of agreement between the
parties involved in sorting out their request over time. Labour unrest in Nigeria has
often due to unresolved labour matters, which ought not to have been allowed to
degenerate to a level that would disrupt the scheme of things (Akingbehin, 2014).
Specifically, many believe that some labour agitations also involve allegations

regarding the refusal of one of the parties involved to stick to the terms of the
agreement reached by the parties. Many say, workers threaten to go on strike to
press for the payment of their entitlements such as allowances, which have been
approved by the government.
There are series of labour unrest that took place during the last administration,
below are some labour unrest events that took place in (2011 2013).

The Senior Staff Association of Nigerian Universities (SSANU) once


threatened to go on strike if the 2013 budget did not capture its members
allowances.

The Nigeria Union of Teachers (NUT) went on strike in a show of solidarity


with Academic Staff Union of Universities (ASUU), which had been on strike,
over Funding of universities and implementation of the 2009 FG/ASUU
Agreement.

Nigeria Labour Congress Nationwide warning strike over the nonimplementation of the new national minimum wage by the Federal Government
and Agitation to revert the removal of fuel subsidy.

The National Union of Petroleum and Natural Gas Workers (NUPENG) and
The Petroleum and Natural Gas Senior Staff Association of Nigeria
(PENGASSAN) decline their work activities over non-implementation of
federal government to be completed

(Panford, 1994) says that the use of industrial strike by workers remains an
important source of conflict between governments and trade unions. Other
questions asked are about the economic consequence of labour unrest, per se, on
productivity. But little said about the social consequence of labour unrest.

From time immemorial, there have been associations and unions in various fields
of human endeavor. The aims of the association or union in most cases include but
are not limited to the regulation of conduct and affairs of its member. In the same
vein, employers of labour do form associations and unions for the purpose of
protecting their various interests in the relationship with their employees who
usually, like their employers do form associations and unions for the purpose of
protecting their interests under their various contracts of employment. This is the
basis of the establishment and formation of Trade Unions in Nigeria by the Trade
Unions Act, cap.432, laws of the federation of Nigeria, 1990. Section 1 (1) of the
Act defines a Trade Union as;
Any combination of workers or employers, whether temporary or
permanent, the purpose of which is to regulate the terms and
condition of employment of workers, whether the combination in
question would or would not, apart from this Act, be a lawful
combination by reason of any of its purposes being in restraint of
trade, and whether its purpose does or does not include provision
of benefits for its members (Laws of the Federation of Nigeria,
1990. Section 1 (1) ).

Trade/labour union traditionally have a constitution which details the governance


of their bargaining unit and also have governance at various levels of government,
depending on the industry that binds them legally to their negotiations and
functioning.

The advent of Europeans in Africa in general and Nigeria in particular was a


landmark in African history. It altered to a large extent, traditional social
relationships and created new forms of social organization. The creation of a wage
labour force and its historical antecedent, the trade unions, in Africa is essentially a
product of white settlement and the European colonial administrations. Therefore
trade unionism in Africa is comparatively recent in origin.

Nevertheless under conditions of rapid economic and political growth the unions
have become one of the major foci of political power. In spite of the small
percentage engaged in wage labour, the workers hold a strategic place in the
economics of the new nations. Furthermore (Davis, 1966) is of the opinion that
because wage earners are concentrated in precisely those industries and services on
which economic development depends, they have the potential directly to influence
and control the political machine. Davis argues further that a study of African trade
unionism is much more than a survey of industrial organization; it is a study of
African societies, the course of their different struggles against imperial rule and
the consequences for the pattern of political no less than economic power.

Labour/Trade union formation is part of Nigerian Constitution under Trade union


Act, in which Nigeria workers like their counterparts in other developing countries
have witnessed fundamental changes in their condition over time. To a large extent,
labour unions have contributed positively in breaching some policies made by the
government in suiting the welfare of various employee and it also contribute in the
transformation of most developing countries.
Government is the largest employer of labour with private individual employing a
minimal proportion of the working class (Fajana, 2006). In Nigeria, labour unions
has become a very important agents of socio-economic transformation and class
struggle (Aremu, 1996, Akinyanju, 1997) which began from the colonial struggle
and continued till in the post-independence era. In the same vein under the last
administration of President Jonathan, labour unions was at the forefront of the
struggle against government policies and some agreement that was not reached
such as Agitation to revert the removal of fuel subsidy, retrenchment of workers,
refusal to honor agreement on wage increase, Funding of universities and

implementation of the 2009 FG/ASUU Agreement, Agitation for better working


conditions and so on.
Consequently, in 2005, the trade union act section 33 (2) was amended by
substituting the phrase central labour organization for the phrase federation of
trade unions the intention was to weaken the cohesion of the trade unions because
the of the much chaos and power it has to orchestrate labour unrest in the nation.
Before the amendment act, there were series of labour unrest in the country. From
the data compiled from the Central Bank of Nigeria Annual Statistical Bulletin, for
various years; the number of disputes declared in Nigeria between 1968 and 2004
is 6, 287; the number that resulted in strikes or work stoppages is 4,079 or 64.88%
when compared to the number of disputes declared. Within the same period, the
number of workers involved is 10,755,205 while man-days lost is 296,189,399.
The average of these figures per annum show that the number of disputes reported
is 170; work stoppages 110; number of workers involved 290,681 and man-day
lost 8,005,118. The trend shows that the number of disputes settled by conciliation
within the same period is 3,719 or 59.15% of the number of disputes reported; the
number settled through the process of arbitration, that is Industrial Arbitration
Panel (IAP), is 601 or 9.53% of disputes reported while 411 or 8.53% of the
disputes reported were settled through the National Industrial Court (NIC). These
statistics as a matter of fact are not healthy and palatable for a developing economy
like Nigeria. Consequently, the problem calls for a dispassionate and objective
study with a view to tackling the identified problems through the deployment of
efficient and effective trade disputes settlement mechanisms.
According to (Bonaventure, 2015), approximately a total of 10 - 15 labour unrests
have been recorded for the period of 2010 to 2014.

Since time immemorial labour unrest has always occupied the front burner of
criticisms and oppositions in Nigeria whenever the Government through its
policies makes life unbearable for its citizens. Therefore, Labour unrest is an
organizing and strike actions undertaken by labor unions, especially where labor
disputes become violent or where industrial actions in which members of a
workforce obstruct the normal process of business and generate industrial unrest
are essayed.
Do all these sanctions, namely, wage/salary loss and job loss have far-reaching
implications? Also does labour unrest actually affect productivity? What also is the
impact of damages to properties, loss or injury suffered by any other person other
than those who had participated in the strike action?

1.2

Statement of the problem

In recent times, some of the perennial labour unrest in Nigeria arises as a result of
disagreements between Labour and government. In each case, no matter which
party is right or wrong, there has always been a damaging effect to the people with
regard to their needs, ideas, beliefs, goals or values. As the disputes continued to
occur often, it becomes pertinent that conflict management strategies need to be
applied.
It appears that attention seems to be focused more on the consequences of labour
unrest on productivity than on individuals or society. Surprisingly, also the causes
of labour unrest usually are not given the necessary attention by Nigerian society.
Another instance is when the media News agency of Nigeria viewed labour unrest
as affecting productivity ignoring the socio-economic dimensions as seen by

(Akingbehin, 2014). It is this apparent disinterest in the wider dimension of labour


unrest that calls for this study. This research seeks to investigate the causes and
consequences of labour unrest during the last administration (to.).

1.3

Objectives of the Study

The broad objective of the study is to assess the causes and consequences of labour
unrest during the last administration. Thus the specific objectives of the study are:
I.

To ascertain if public policies are responsible for labour unrest in


Nigeria;

II.

1) To examine the general nature of labour unrest in Nigeria from 1960;

III.

2) To find out the specific causes of labour unrest under President


Jonathans administration (-..)

IV.
V.
VI.
VII.

3) To identify the major consequences of labour unrest from----to---4) To suggest solutions to the problem of labour unrest in Nigeria
To find out the effect of labour unrest on the nation;
To identify gains or losses to organizations and government institution in
times of labour unrest;

VIII.

1.4

To suggest solutions to the problem of labour unres.

Research Questions

a) Are government policies responsible for labour unrest in Nigeria?

b) What gains or losses do government incur in times of labour unrest?


c) What interventions or methods have been adopted to curb or prevent labour
unrest?

1.5

Justification/Significance of Study

Past literature discussed have not been sufficient empirical-econometric works to


supports the study, most especially in Nigeria.
This study may help to unearth further the causes and consequences of labour
unrest. Essentially, every research is a quantum of knowledge; this study will
therefore be of a theoretical significance to future researchers as it is going to
enclose the identified questions. Also, it is going to add to the existing body of
literature as it tends to extend the frontier of knowledge.
(Panford, 1994), (Ajewole, 2014), and (Michael, 2014) have identified causes of
labour unrest as including review of expired collective agreements, lack of
industrial harmony, industrial and economic policies, improved working
conditions, unpaid bonus, overtime work, salary arrears, removal of management
personnel, and delayed payment of allowances.
Thus its importance lies in the very fact that labour unrest is currently an occurring
pest and it is very spontaneous and topical. The study will guide labour
policymakers and implemented, employers and workers, and their respective
industrial organizations, among other stakeholders, to adopt appropriate measures
to overcome tendencies that allow industrial disputes to spiral into labour unrests.
Information gathered will not only provide more insight into the causes and
consequences of labour unrest, but will also provide probable solutions that may
help to prevent industrial disputes from escalating into labour unrest.

1.6

Theoretical Framework

This study draws insights from the asymmetric information theory, which is
complemented by the pluralistic industrial relations theory. In this framework,
workers and employers, the two parties involved in the industrial relations are
believed to have strong bargaining power (the ability to persuade, cajole or prompt
the other party to accept a demand or an offer) and they usually seek to maximize
their respective interests (Borjas, 2005). The employer seeks to maximize
productivity using unions (workers) services while the workers maximize their
utilities (e.g. satisfactory wages, bonuses etc) by offering their services. Whereas
the employer owns the organizational resources and prerogative in decision
making, the workers supply labour resource needed by the organization (and may
enjoy supports from workers in other organizations/sectors and the larger society).
The pluralistic industrial relations theory illustrates not only the relations between
employer and worker(s) (i.e. the individual relations) but also the relations between
employers and unions and between them and the State (collective relations). Thus,
in the pluralistic industrial relations theory the focus is more on the collective
aspect of relations. This is as a result of the fundamental issues that pertain to
labour law, freedom of association, collective bargaining, trade unionism and so on
(de Silva, 1998). However, in the Marxist industrial relation perspective the procyclical nature of industrial crisis demonstrates that crises are products of the
bargaining power held by workers and employers. That is, industrial crises can be
embarked upon by workers when they are displeased by managements actions (or
labour policy). Nonetheless, during period when the union bargaining power is
relatively weak, the union is less likely to press its demands and less likely to
resort to an industrial action in seeking a more favorable employment terms. In this
light, it could be said that while the Marxist theory points more towards the

individual industrial relations, the pluralistic industrial relations theory is collective


in its perception. Accordingly given a study with macroeconomic perspective such
as this, the pluralistic industrial relations theory appears more appealing than the
Marxists.
It is worthwhile to mention that negotiations between employers and workers
usually involve a number of issues beside wage. However, (Hicks, 1932) surmised
that the parties, that is, employers and workers essentially negotiate over wages or
all items at the negotiation table (which usually result to industrial crisis when
agreements are not reached) can be reduced to monetary terms that can be
represented by wage. Thus, it is not that other issues are not of paramount
importance but it is conjectured that they tend towards measurable monetary terms.
In furtherance, it is believed that each party will prefer to resolve any form of
industrial crisis as soon as possible and may not want it to deteriorate due to its
deleterious nature. This is predicated on the fact that the employer will lose the
services offered by the workers during the industrial crisis period. As a result, they
would not be able to meet up with their customers orders. For example, the cost
that resulted from loss of service flow due to inferior quality equipment emanating
from trade dispute was estimated at 240 billion US dollars in the construction
equipment resale market alone in the United States (Mas, 2004). The workers on
the other hand suffer some psychological shocks and temporary loss of income
(utility) as long as the crisis persists. In fact, it can lead to permanent job
displacements (Mas, 2004).
It is also interesting to note that the both parties may not bear the direct and
indirect burden of the industrial crisis alone. It will affect the society at large
resulting from low output, poor products qualities, not meeting the consumers

satisfaction, reduction in expectation of those that depend on the workers to eke


out a livelihood, among others. A ready example is the general strike of 2004 that
involved financial institution and several sectors of the economy in which
meaningful economic activities were negatively affected (CBN, 2004). Another
instance is the general strike of 2012 that involved most workers in all sectors of
the economy, which was embarked upon to express gross displeasure over the
removal fuel subsidy which alleged to price hike of fuel in the Country.

1.7

Research methodology
1.7.1 Hypothesis
In accordance with the research questions and founded on empirical
verification deduced from the research study hypotheses thus:
Ho1: There is no significant difference between government policies
and labour unrest in Nigeria.
Hi1: There is significant difference between government policies and
labour unrest in Nigeria.
Ho2: There is no significant difference between gains or losses and
government incur in times of labour unrest.
Hi2: There is significant difference between gains or losses and
government incur in times of labour unrest.
Ho3: There is no significant relationship between interventions or
methods and ways to curb or prevent labour unrest.
Hi3: There is significant relationship between interventions or
methods and ways to curb or prevent labour unrest.

1.7.2 Methodology of the Study


The study will adopt qualitative research paradigm. Due to the nature of the
variables under review, and the abundance of diverse literature related to the
work only relevant secondary materials will be used for the work. The
method of data collection to be used in this research study is the secondary
source which is also known as documentation due to the spontaneous nature
of the issue under investigation. The necessary information needed to answer
the set objectives of the study will be gathered from, textbooks, articles,
magazine, journals, newspapers, etc which are relevant to the study.
The framework of content analysis is what we adopted due to the fact that it
will aid us in giving better appreciable acknowledgment to the study and
make us knowledgeably acquainted to the subject under analysis.

1.8

Scope and Limitations of the Study

The Scope of this study is to look inwards into the causes and consequences the
various labour unions has created in the country. This study will discuss on
proactive labour unions that have in one way or the other succeeded in influencing
Governmental policies and decision during the administration of President Ebele
Goodluck Jonathan. Such labour unions are: National Union of Petroleum and
Natural Gas Workers (NUPENG), Nigeria Labour Congress (NLC), Trade Union
Congress (TUC), Academic Staff Union of Universities (ASUU), Petroleum and
Natural Gas Senior Staff Association of Nigeria (PENGASSAU) and Nigeria
Medical Association (NMA).
This is study is limited to the evolution of the causes and consequences of labour
unrest under President Jonathan administration alone. It is not interested in labour
unrests in the administrations before and after the tenure of President Jonathan.

As regards to the limitation of this study, we would point out that there were
indeed limited documented materials on the issue and the factors of it being timely
in conjunction with financial impediments or constraints, time and numerous
academic work in campus.

1.9

Definitions of Terms

This term that have been carefully selected for definition in this research work are
those that are related to the course of study and those terms which also have
ambiguous meaning, here an attempt is made to give clarity on their usage in this
research work.
Labour Unrest: This is a term used by employers or those generally in the
business community to describe organizing and strike action undertaken especially
when Government tends to implement policies not favorable to their members.
Labour Union: This are group of people who come together in line with their
profession or career with the sole aim of protecting their interest through
influencing Government policies through strike actions and protest.
Industrial Actions: Industrial action is the refusal by employees to perform work
or the performance of work in a manner that is intended to reduce productivity in a
workplace.
Industrial Relations: According to (Fajana, 2006) industrial relations is defined
broadly as a discipline concerned with the systematic study of all aspects of the
employment relationship. It deals with everything that affects the relationship
between workers and employers; perhaps from the time the employee joins the
work organization until he leaves his job.

Strikes: This is a refusal to work organized by a body of employees as a form of


protest typically in an attempt to gain a concession or concessions. Thus its a work
stoppage undertaken in support of a bargaining position or in protest of some
aspect of a previous agreement or proposal agreement between labour unions and
the management or the Government.
References
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