COLLECTIVE BARGAINING AS A TOOL FOR IMPROVING ORGANISATIONAL PEACE AND PRODUCTIVITY

Introduction

1.1 Background to the Study

The economic growth and development of any country depends so much on the peaceful and harmonious industrial relations existing in such country. Every organization or industry is prone to conflict, human beings themselves are elements of conflict. Therefore. Conflict is a good feature of any human society but the most important thing is how such conceit is managed. Conflict cannot be curbed in human society. Conflict will continue to exist as long as human beings exist/man is a social being and in every social organization either for work or other purpose, conflict is bound to exist.

Most nations of the world are aware of the prominent role of organizational peace in the realization of sound economic system which is achieved only through a better collective bargaining (International Labour Organization (ACT/EMP) Publications). Collective bargaining is a mechanism for conflict resolution and valid framework for grievance procedure. In practical terms, collective bargaining involves two parties in negotiation and hence it is customary for the workers to make demand and the employers to cut down the demand by giving reasons these reason include inability to pay, solvency, liquidity and profitability.

Before independence our political leaders has encouraged the use of collective bargaining in industry. The Prime Minister of Nigeria, Late Tafawa Balewa in 1955 said:

Government reaffirms its confidence in the effectiveness of negotiation and wages bargaining for the determination as wages. The long-term interest of government, employees and trade unions alike would seem to rest on the process of consultation and discussion which is the foundation of democracy in industry. Government intervention in the general field of wages should be limited to the establishment of statutory wages fixing machinery for any industry or occupation where wages are unreasonably low by reference to the general level of wages…

Also, then Minister of Labour, Late Chief Festus Okotie-Eboh in 1955 reiterated the government policy as follows:

Can the various types of collective bargaining familiar to other individual societies thrive in different conditions of under-developed countries today…?

Flowing from the immediate discourse, it is pertinent to understand that, the process of achieving improved organizational peace and productivity rest on the application of the principles of collective bargaining. Collective bargaining on issue of employment from time to time must be based on the commitment of the two parties not only to bargain in faith but also be ready to implement the negotiated agreement. The willingness of the employer at both the public and private sector to implement the agreed negotiation is another issue which is subject to deregulation.

This is principally out of the availability of resources to meet the agreement by the two parties. It is difficult to provide meaningful expression because the environmental variables which include customers, labour, technological sub-system, legal sub-system, competitors and advertisement as well as the individual leadership good will have often been neglected in terms of fulfilling negotiated terms. This has continued to cause failure in the process of collective bargaining.

According to Omole (1995), collective bargaining in the Nigerian Milieu is normally a product of a “real conflict” or “zero-sum” situation necessarily resulting in losses to the other party. This explains why it is almost always proceeded by corporate mistrust and suspicion, distorted operational efficiency, thwarted organizational goal, open hostilities and most importantly diminished or distorted communication.

It also explains why a conciliator is usually considered necessary in order to ensure a free flow of information and counteracts the effect of the inevitable conflict of interest in an organization with homogenous workforce.

A careful examination of this discourse shows that collective bargaining connotes a negotiation striking an industrial treaty for the purpose of business stability. Such an industrial treaty is expected to reflect a set of rules (regulations) and terms stating workers’ condition of employment, associated workers remuneration schedule, workers and management, job remuneration schedule, workers and management, job security and other related programmes. In essence, collective bargaining is a prerequisite to industrial harmony and improved organizational peace and productivity. However, it is only limited to imposition but could not be effective in conflict resolution where two parties, presumably the employers and trade union are involved in bargaining fro improved condition of services and incre3ased productivity.

This bilateral bargaining approach as the name implies, is one in which a formally designated negotiator or negotiating team represents employees. The objective of these negotiators or negotiating team is to reach a tentative agreement which the two negotiators or groups will take to their respective bodies which they represent for ratification. The negotiators are assumed to be the public spokesman for their respective bodies which each represents and all negotiations between the management and employees must be channeled through them.

Multilateral bargaining also belongs to the class of collective bargaining and to some extent, it is incorporated in the definition of collective bargaining. Abu (1997), defines multilateral bargaining as a process of negotiation in which more than two distinct parties are involved in such a way that a false dichotomy does not exist between employees and management in an organization. In the language of the same theory, the concept of bilateral and multilateral bargaining correspond to two parties and three parties respectively.

The interrelationship of people, objective and structure together with the efficient use of available non-human and human resources will determine the success or failure of the organization and the extent of its productivity. An organization is a complex social system which is the sum of many interrelated variables whose operation are influenced by the external and internal environment of which it is part.

The six features of an organization according to Mullin (1996) are: Objective, legal entity, structure. People, evaluation and management.

Therefore, an organization is the interaction of people in order to achieve “objective” through some structural arrangement, it is through people’s interaction that efforts are channeled and co-ordinate to necessitate “management”. The organization must be a legally registered entity that is subject to litigation and can be subjected to litigation action on the basis of its operations.

Nevertheless, all activities within the organization stand to be evaluated to establish the achievement of its stated objectives (The Nigerian Journal of Industrial Education and labour relation volume 5 No 1. June 2003). For any organization to progress, to achieve its goals all the features stated above must be property adhered to in a peaceful environment. The organization will progressively achieve its objectives,, peace and increase ion productivity in an organization is a function of collective bargaining.

This study therefore involves a study of the extent to which collective bargaining system is used in ensuring improved organizational peace and productivity in UBA and Inter-Continental Banks Plc UCH Ibadan. As industries that engage in financial transactions, and other money related marketing, one would not expect absence of industrial conflicts due to dynamic governmental policies which always affect the organizational policies. This study investigate the role of collective bargaining in promoting improved organizational peace and productivity.

1.2 Statement of the Problem

The major focus of industrial relations is how individuals groups and organizations determine decisions affecting the employment relationship between the employers and employees on one hand and the power relationships between employers and trade unions within the working environment on the other hand.

It has been observed that every human organization is affected by conflict which is an obstacle to improved organizational peace, harmony and productivity in the banking sectors.

It has been discovered that strike and lockouts occurred in the industries due to unsuccessful collective bargaining.

Also, it has been discovered that the employees in the bank are poorly remunerated and compensated and this has been the main causes of industrial conflict in the industries.

Therefore, the conditions for successful collective bargaining such as observance of the agreement, proper internal communication and good faith to the union are not properly adhered to and this has hindered an improved organizational peace and productivity.

1.3 Objectives of the Study

The major objective of the study is to examine in details how collective bargaining serves as a tool for improved organizational peace and productivity in the selected banks.

However, the specific objectives are as follows:

1. To examine how the management of the banks and their workers union accept collective bargaining as a means of ensuring improved organizational peace and productivity.
2. To find out how collective bargaining has helped to prevent and restrain strikes and lockouts in the organizations.
3. To examine the effect of collective bargaining of the management, workers’ union, government, society and organizational productivity.
4. To investigate the working conditions of employees in the banks and how they are compensated.
5. To offer suggestions and relevant recommendations which have emerged from the findings.

1.4 Significance of the Study

Among other issues, this research is intended to improve the working system of both the management and the workers union. It will help in preventing and resolving conflicts in our banking sectors.

Through this research, other researchers will be interested in other areas related to this study and base their own research on such area. In other words, it will serve as a good reference and springboard for those interested in studying issues related to collective bargaining.

Finally, this study will revitalize the organization system in the banking sector and open the eyes of people to the advantages of collective bargaining

1.5 Scope and limitation of the study

The study investigates collective bargaining as a tool for improved organizational peace and productivity. This is a general issue, collective bargaining exists in all organizational structure and administration in order to maintain organizational peace and productivity. Every organizational peace and productivity. Every organization uses collective bargaining as a tool for improved organizational peace and productivity but the banking sector is used as a case study of this research. Some selected banks are used in this study to see how collective bargaining achieves its aims of organizational peace and productivity.

This study is delimited due to: i) the short period of time available for the research, ii) economic situation of the researcher and the merger resources at the disposal of the researcher. Therefore, U.B.A and Access banks headquarters in Lagos were used for this study.

1.6 Research questions

1. Does collective bargaining serve as a tool for improved organizational peace and productivity in your organization?
2. Does collective bargaining has positive effect on the management and workers union?
3. Does management compensate workers regularly when collective bargaining is adopted?
4. Has collective bargaining helped to prevent and strikes and lockouts in yours organization?

1.7 Research Hypothesis

HI Collective bargaining does not serve as a tool for improved organizational peace and productivity in the organization.

H2 Collective bargaining does not have positive effect on the management and worker union.

H3 Management does not compensate workers regularly even when collective bargaining is adopted.

H4 Collective bargaining has not helped in prevention strikes and lockouts in your organization.

1.8 Operational Definition of terms

Collective Bargaining:

Voluntary negotiation between employers or employers’ organization/union and workers organization or union, with a view to the regulation of terms and conditions of employment by collective agreements.

Industrial Conflict:

A dispute between or among the actors in an industry.

Conflict Resolution:

This is a means of solving and regulating conflict in order to bring peace and harmony into the organization.

Actors:

The body involved in organization and administration of an industry. They are: the workers, management and the government.

Management:

Concerned with seeing to the effectiveness and efficiency of an organization or industry through decisions for planning and guiding the operations in the organization.

Labour:

Category of people in an organization who own nothing but their ability to work and earn money for their labour (energy) contributed to the means of production. The collectivity of these people is called labour.

Organization:

A complex social system with interrelated variables whose operations are influenced by the external and internal environmental factors.

Industry:

Social system and structure where goods and services are produced.

Negotiation:

Dialogue between two or more parties in an industry or organization on employment and conditions of work.

Arbitration:

Formal process of settling argument or disagreement between two people by a person or body who is not in either of the parties.

Union:

The free association formed either by the management for the employers or by labour for the workers or employees to protect the interest of its members.

Collective Agreement:

Consent to a decision by all the affected parties or members.