A CRITICAL STUDY ON THE INDUSTRIAL CONFLICTS IN AN ORGANISATION

(A CASE STUDY OF GUINESS (NIG.) PLC IKEJA LAGOS)

By

NWACHUKWU FAVOUR CHIKA

Presented To

Department of Accounting

PREFACE

Companies' revenue and profit have been adversely affected by the ever-increasing incidence of industrial conflicts between workers and management in recent times. Each time there is a conflict, most likely strike ensues thereby giving rises to manna-day hours lost which brings about loss in productivity. This has really been a problem in the aim various sectors of the economy. It is the aim of this research work to find out the course and the remedy to industrial conflicts. This research work has five chapters.Chapter one contains a general discussion of the industrial conflicts. It further state the problem, the scope, the limitation and finally the definition of terms. A number of proof related literature examiners by other studies as it relates to industrial conflicts are highlighted in chapter two. Chapter three deals with the design of the study, the method used in collecting relevant data. In chapter four, the data got from the research survey were analyzed and interpreted. Finally, the summary of findings, conclusion on the research and recommendations made by the researcher are all in chapter five.

TABLE OF CONTENTS

Title Page

Approval Page

Dedication

Acknowledgement

Preface

Table of contents

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

1.2 Statement of problem

1.3 Objectives of the study

1.4 Research Hypothesis

1.5 Significance of the study

1.6 The scope and limitation of study

1.7 Definition of terms

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.0 Review of Literature

2.1 Parties to Industrial relation system

2.2 The origin of trade unionism in Nigeria

2.3 Forms of collective relations

2.4 Nature and causes of industrial disputes

2.5 Settlement of Industrial disputes

2.6 Effects of Industrial conflicts

CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1 Design

3.2 Area for Study

3.3 Population

3.4 Sample and Sampling procedure

3.5 Instrument for Data collection

3.6 Validation of Research instrument

3.7 Reliability of Research instrument

3.8 Administration of the Research instrument

3.9 Method of Data Analysis

CHAPTER FOUR

Presentation of Data and Results

CHAPTER FIVE

5.1 Discussion of the Results

5.2 conclusion

5.3 Recommendation

5.4 Implication of the Research Findings

5.5 Suggestion for further Research

5.6 Limitation to the Study

Bibliography

Appendix

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY:

The parties to Industrial conflict are usually the management and employees or the labour or workers union and the government and its agencies. The medium in which these parties interact is through the Industrial relation system. The aim of the various parties is maintenance of Industrial peace. But Industrial peace does not mean in the grave yard. To us Industrial peace is something more than the absence of conflict in the work place.

In labour management relations, conflict is more than the expression of irritability or ill-will. Inspite of the strong desire among the parties in the industrial relation system to co-exist, there is nevertheless latent antagonism among them because of the following factors.

Firstly, the interests of both the employer and the employee are not completely mutual. Management may be trying to keep cast down while union is seeking higher wages. The employer's representative is mainly concerned with proprietary interest, which in turn is directly related to the financial interest of the shareholders. The interest of the employee, organization or union is primarily that of people as well as their material, spiritual and physiological needs.

Secondly, the desire of the parties is more or less unlimited wages can never be as high as the workers mighty desire as profit is the determinant for managed, to consider increasing wages. Nevertheless, the money available for distribution between the contending parties or claimants is always limited in the short-run.

Thirdly, both modern and development societies are dynamic. Consequently, even if a certain distribution of income and power could be devised which was not subject to controversy in any given situation, there might be a change because of new regulations by the state, patterns of consumption, high cost of raw materials, a reduced value of the monetary unit as well as an increased income for a comparable group elsewhere. The parties would therefore need to work for a new allocation of income and power.

Finally, if management and labour are to retain their institutional identities, they must disagree and act on the disagreement: conflict or dispute is a sine qua non for survival. The union, which is in constant and total agreement with management, has ceased to be a union. The same is true of management. These factors have demonstrated the inevitability and desirability of work place conflict.

The Guinness Nigeria PLC Ikeja Lagos has about five major sectors namely:-

Bottling compound, this is a section of the industry which deals with bottles. Workers here are involved in washing and treating empty bottles.

The empty bottles are first given a preliminary hot water rinse at 50 ⁰C. A second hot water rinse at 50⁰ C is next given. The bottles are then soaked in caustic soda at the temperature of 70 ⁰C. A caustic soda spray is next given at 70⁰C. The bottles are then rinsed at 50⁰C. First warm water rinse is made at 25⁰C and second at 10⁰C. The bottles are then ready for use in the bottling hall.

Bottling hall- This section is involved with the bottling of the already made drink. The workers here are involved in the handling of the empty bottles, filling, corking and labeling of the bottles.

Brewery section is the most important because quality of the drink produced depends on how thoroughly the drink processing was.

Engineering section is involved with the maintenance of the machines used in the industry. The engineers in this section work in all the sections of the brewery. They work on equipment ranging from air-conditioners to the complex bottling machines.

Administration and marking departments are the sections of the industry involved with the administrative job, and the marking of the company's products respectively. It is interesting to note that most of the female employees of the industry also work in these two sections.

Other sections are the security section that is involved with the surveillance of the promises. The workers in this section are posted to different gates of the premises day and might to prevent workers from stealing the company's property.

Drivers are involved in the transportation of bottled drink to different parts of the country and beyond. They are also involved in bringing the raw materials needed in the industry. Most of the vehicles used are big truck and trailers.

1.2 STATEMENT OF PROBLEM

As the title of this project implies, the researcher wishes to know.

(1) The extent to which non-consultation of union by the management or some vital issues affects the functionality of the Guinness Nigeria PLC.

(2) The extent to which inconsistency in staff promotion can affect the relationship between the management and the employees of Guinness Nigeria PLC.

(3) The researcher also sought to know the extent to which irregular payment of salaries contributes to the poor relationship between the management and the employees.

1.3 OBJECTIVES OF THE STUDY

The objectives of this study are to find out the followings:

(a) To find out the common causes of industrial conflicts in Nigeria.

(b) To ascertain how the management and union co-operate in the accomplishment of the organisational tasks.

(c) To ascertain the problems associated with industrial conflict on the organisation in particular and the society in general.

(d) To find out the effects of industrial conflicts.

(e) To recommend some practical solutions.

1.4 RESEARCH HYPOTHESIS

Having gone through some related literature (journals, magazines, and books); the researcher is carrying out this study based on the underlisted assumptions about the cause of industrial conflicts.

(1) Poor wages and salaries of workers in certain establishments.

(ii) Poor communication network within the organisational structure of the industry/company.

(iii) The non-recognition of workers union by the management also causes industrial conflicts in business organisations.

(iv) That the management do not consider the workers interest in making or planning organisational polices

(v) Finally, those industrial conflicts have an adverse effect on the earnings of an organisation.

1.5 SIGNIFICANCE OF STUDY:

Research study arises when there is a problem to solve.

It is hoped that the findings of this study will pave way for the rising wave of industrial harmony in Nigerian organisations.

The researcher will as well serve as one of the facilities the management will employ in further to serve the interest of its employees.

It will help to bring cordial relationship between the employers and employees, thus making improvement in industrial negotiations.

Furthermore, the work of industrial arbitration panel will reduce if the findings and conclusions to this study are well implemented.

Socio-political environment of the nation will be improved to further improve the investment climate of the country by the resultant industrial peace this study is capable of achieving.

Finally, the research study will help the researcher to appreciate the applicability of knowledge acquired so far from the class room work.

1.6 THE SCOPE AND LIMITATION OF STUDY:

In our country Nigeria, industrial conflicts are witnessed in almost every sector of the economy ranging from public parastatals like: NLC, ASUU, ASUP, NRC, NITEL, NUPENG etc to private bodies/corporations like some banks, manufacturing companies, trading companies, service companies etc.

However, this study is limited to the manufacturing sector, specifically Guinness (Nig.) PLC. The study is equally limited to industrial conflicts as it affects the revenue base of organisations without going other factors that do affect the organisation revenue base.

A more extensive work would have been done to cover the service organisations like the higher institutions but due to inadequate time factor, finance and other resources, this could not be achieved.

In line with the above, the researcher be done in other sectors of the economy not covered here.

1.7 DEFINITION OF TERMS:

Some of the technical terms used in this study are hereunder defined for easier comprehension.

(1) Collective Bargaining: A process by which groups of workers and the employers come together to reach at agreement by a process of negotiation.

(2) Conflict: A disagreement between two or more parties over an issue.

(3) Dispute: Any disagreement arising from a relationship.

(4) Earnings: The returns to labour that are received as a result of investment in a profitable venture.

(5) Hypothesis: Ideal/suggestion put forward as a starting point for reasoning/explanation.

(6) Industrial Relation: A network of human interactions in a company which Forster harmony.

(7) Employees: Those that service is engaged by another called employer.

(8) Interviews: A formally arranged meeting to get the views of one by a person/party called interviewer.

(9) Labour Turnover: The rate by which workers leave and are replaced in an organisation.

(10) Management: Those who are concerned in controlling a business organisation.

(11) Productivity-Being productive, power of being able to produce.

(12) Sample: A specimen part of a whole.

(13) Strike: A complete withdrawal of work/services over a certain period.

(14) Turnover: Total sales made by a business over a certain period.

(15) Trade Union: Organsed association of workers in a trade or group of period.

(16) Irrationality: Not Based, on, or not using, clear logical thought.

(17) Sine quo non: (from Latin) something that is essential before you can achieve something else.