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Chapter one


This chapter provides a brief summary of the study’s general description, problem statement, purpose of investigation, research questions and hypotheses, term definitions, study scope and limitations, and importance.

1.1 General Description of the Study

Most people make a living as employees, employers, or self-employed workers. Employees, in the appropriate sense of the term, are those who work for pay in cash or kind under the control of their employers.

Employers, whether acting collectively or individually, are interested in production and distribution, trade practice, efficiency, cost, prices, buying, selling, and profit maximisation

whereas employees’ scope and character of collectivism centre on the quest, not only for economic benefits of increasing salaries and wages and other fringe benefits, but also for psychological and social motives so as to be able to participate actively in making decisions that

At this stage, it is critical to understand that in order for there to be a labour group, there must have been a trade union. A trade union is a group of employees who share a shared statutory goal in relation to regulations between employers and employees about the benefits and welfare of their members (Ola, 1987).

Employers and employees in an organization’s activities revolve not only around the production of products and services, but also around the formation of unions to defend and promote their respective interests collectively, as well as the regulation of management-labor interactions.

In order to attain this common goal, both employees (workers) and employers (management) form unions based on identified differences in their interests, necessitating that both parties reach an agreement through a collective bargaining procedure.

Collective bargaining, according to current thinking, should be seen as an institution for managing both labor-management relations and the labour market.

Dunlop identified one of the major activities of collective bargaining as the determination of priorities with each side in the bargaining process, the process of compromise and assessment of priorities with each side

the rejection of some claims and the assessment of priorities to others within the Union and bargaining across the table, and the processes of administration and application of the agreement.

Any organization’s performance is determined not only by its capacity to successfully and efficiently coordinate and control available resources or profitability, but also by its ability to foster positive relationships inside or among individuals and groups in the workplace.

As a result of management’s incapacity to maintain peace and harmony in the workplace, misunderstandings may arise, which, if left unaddressed, may lead to industrial conflict.

Conflict is defined as a disagreement among organisation members about means or aims, as well as an attempt to assert their ideas over those of others. In other words, it refers to unhappiness with the relationship between labour and management in the workplace, as opposed to the organization’s pleasant industrial relations.

Three primary variables have been identified in Nigerian organisations as the root causes of workplace conflict. Among others are inadequacy of agreement, which occurs when certain issues remain unresolved during the course of the agreement, relation of agreement

which may be deliberate, and interpretation problem, which occurs when an agreement is signed but the two parties interpret it differently, resulting in industrial action.

Strikes are a typical kind of industrial action used by Nigerian workers and unions to put pressure on employers to meet their demands.

The Trade Dispute Act (1976) defines a strike as the cessation of work by a group of employees acting in concert, a concerted refusal, or a refusal under a common understanding compelling employers to accept terms of employment and physical conditions of work.

Strikes in any organisation will disrupt or lower productivity, ultimately affecting the organization’s overall performance.

1.2 Statement of the Problem

The problem of recurrent strike activities in organisations, in addition to generating organisational ineffectiveness, results in a loss of recognition (goodwill), a decline in productivity, a high worker turnover rate, and a lack of credibility among members of society. This leads to other issues such as inflation, widespread unemployment, an increase in crime rates, and corruption.

Proper management of these difficulties will ensure that the organization’s objectives are met while also improving employees’ working conditions, morale, job growth, high levels of motivation, job security, and the living standards of members of society.

Most businesses fail to recognise all of these and, as a result, confront several organisational management challenges. This becomes a major source of concern, with negative consequences for the entire organisational environment and the nation’s economic progress.


The goal of this research is to quantify the impact of strikes, identify their causes, and develop methods for avoiding, minimising, or managing strikes in companies, as well as to provide useful recommendations and draw conclusions for better and more feasible ways to ensure industrial peace.

1.4 Relevant Research Questions and Hypotheses

The relevant research questions for this project are as follows:

(a) To what extent will a strike damage an organisation’s net profit?

(b) Can striking address organisational mismanagement?

(c) Does a strike result in substantial labour turnover?

The important hypotheses to be tested are as follows:

1) There is no substantial correlation between maximum resource utilisation and strike frequency in an organisation.

2) There is no significant association between strike-related worker turnover and investment returns.

1.5 Scope and Limitations of the Study

This study will examine into strikes and their impact on organisational success as a result of decent working conditions, job security, fringe benefits, and productivity. This research will employ Health Care Product Nigeria Ltd. as a case study. All of the data for this study is available from the organisation.

The study has some limitations due to cost, time, and participant or management bias in giving the questionnaire. As a result, the findings have limited generalizability. It could only apply to organisations with similar cases.

1.6 Significance of the Study

This study will disclose the bad and beneficial effects of strikes, as well as how to manage, avoid, or minimise the unfavourable aspects while maximising the positive effects in the organisation.

The findings are intended to assist organisations in dealing with strikes in order to improve employee performance and organisational effectiveness. In other words, the study’s findings will be used as secondary data by other researchers working on a similar or related topic.

1.7 Definition of Terms

Employees are those who labour for someone else in exchange for monetary or in-kind pay or remuneration.

Employers are people who hire others to help an organisation achieve a goal and pay them in exchange.

Work – This is a creative project for our company existence, which is required for economic independence.

A trade union is an organisation of workers whose primary goal is to maintain and enhance their members’ working conditions.

Collective Agreement – This is a written agreement for the settlement of disputes over employment terms and physical conditions of work.

Collective bargaining is the negotiation of working conditions and employment terms between an employer or group of employers and one or more worker representatives within an organisation.

Industrial conflict is the unhappiness that results from the interplay of labour and management in the workplace.

Strike – A worker’s temporary refusal to work in accordance with the terms of the current employment contract or other conditions that may not have been expressed or implied in the contract.

Management is described as the persons in positions of authority and responsibility inside an organisation.

Morale refers to the spirit and confidence of an individual or organisation.

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