TRADE UNION PRACTICES AND ENTERPRISE SUCCESS (A STUDY OF SELECTED MANUFACTURING FIRMS IN RIVERS STATE)
The study has examined the relationship between trade union practices and enterprise success. The survey research design was employed since the study was to ascertain the relationship between trade union practices and enterprises success of selected manufacturing firm in Rivers State. The study was designed to focus on selected manufacturing firms in Port Harcourt. The population of the study is one hundred and twenty (120) management and junior staff selected from the human resources department of the selected manufacturing firm in Port Harcourt, Rivers State. The Taro Yemens formula was used to determine the sample size of 96. A self-design questionnaire on trade union practices and enterprise success was used specifically for data collection. The method used to analyze the data was simple descriptive method stated in tables and expressed in percentage. The chi-square statistical test was used to test the hypotheses. The study revealed that there is a significant positive relationship between Trade union practices and profitability in manufacturing firms, there is a significant positive relationship between trade union practices and market share in manufacturing firms and there is a there is a significant positive relationship between trade union practices and sales volume in manufacturing firms in Rivers State. Based on the findings of the study, we recommended that trade union should frequently provide the training to their workers as the way to ensure that they become aware about the challenges they are facing on their daily activities at working areas and help them to perform well on their duties and apart from training the trade unions also are recommended on creating of conducive environment of working which are far from danger and influence workers to perform their works effectively.
TABLE OF CONTENTS
TITLE PAGE i
List of Tables x
CHAPTER ONE: INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of the Problems 3
1.3 Objectives of the Study 4
1.4 Significance of the Study 5
1.5 Research Questions 5
1.6 Statement of Hypothesis 6
1.7 Scope and Limitations of the Study 6
1.8 Definition of Related Terms 7
CHAPTER TWO: LITERATURE REVIEW 9
2.1 Conceptual Framework 9
2.1.1 Concept of Trade Union 9
2.1.2 Benefits of working with a recognized trade union 11
2.1.3 Dimensions of Trade union 14
2.1.4 Concept of Enterprise Success 16
2.1.5 Measures of Enterprise Success 16
2.1.6 Trade union Practices and Enterprise Success 21
2.2 Theoretical Framework 22
2.2.1 Gandhian Theory (1928) 22
2.2.2 Theory of Industrial Democracy 23
2.3 Empirical Review 24
CHAPTER THREE: RESEARCH METHODOLOGY…………………32
3.1 Research Design 32
3.2 Population of the Study 32
3.3 Sample and Sampling Technique 33
3.4 Questionnaire Design 34
3.5 Sources and Method of Data Collection 35
3.6 Data Analytical Method 35
3.7 Reliability and Validity 36
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS 39
4.1 Data Presentation 39
4.2 Data Analysis 40
4.4 Discussion of Findings 50
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS ………………………………………………….52
5.1 Summary 52
5.2 Conclusion 52
5.3 Recommendations 53
Appendix I 61
Appendix II 62
LIST OF TABLES
Table 4.1.1: Questionnaire Administration and Retrieval 39
Table 4.2.1: showing the age of respondents 40
Table 4.2.2: Showing the Gender/Sex of Respondents 40
Table 4.2.4: Showing the Marital Status of Respondents 41
Table 4.2.5: If trade union practices influence profitability in manufacturing firms in Rivers State. 42
Table 4.2.6: If trade union practices associates with market share in manufacturing firms in Rivers State. 42
Table 4.2.7: If trade union practices influence sales volume in manufacturing firms in Rivers State. 43
LIST OF FIGURES
Fig. 1: A conceptual framework showing the Relationship between Trade Union Practices and Enterprise Success. 9
1.1 BACKGROUND OF THE STUDY
Enterprise success measures how well a company meets the individual objectives of its business plan. It lies in understanding how each element can support or restrain the other, on how to balance the dynamics between the elements to determine the most constructive solutions in any situation. The concept of enterprise success has been widely studied at a global level. The theoretical framework that has been often adopted in the study of enterprise success is that of organizational performance, originally stemming from organizational effectiveness. Within this framework success of an enterprise is measured using organizational performance indicators. Initially, these indicators were largely economic, looking at return on investment, profitability, sales and employment as measures of success (Wiklund, 2009). One construct that associates with enterprise success is trade union practices.
The essence of trade unionism according to Webb and Webb (1920) has always been to maintain or improve the wage and other working conditions of their members. In virtually all medium -sized and large organizations, trade unionism have found an enduring place in operations of enterprises. The practice of trade unionism in organizations have contributed to the sustenance of the practice of trade unions in organizations (Hyman, 1975, Krans, 2007, Kerr,1998, and Fashoyin, 2002).The Webbs (1974) define trade union as ” a continuous association of wage earners for the purpose of maintaining or improving the conditions of their employment”(Webbs,1894 cited by Hymn, 2001).Trade union is therefore the platform on which employees( wage earners) come together for the purpose of maintaining and enhancing the service conditions in their employment relations.
Trade unions alongside the employers and the state constitute the industrial actors of any democratic and progressive society. They have become virile and so potent in a hybrid of developed and developing nations that they are deemed as integral part of the civil society and are deemed as a new that have risen in the world (Onuora, 1999).The above categorically pinpoints the progression in the incursion of trade unions as well as its potency. Trade unions and their members are often referred to as the “creators of Nation’s Wealth” even in emerging economies of the world. In developed countries of the world, the trade unions and their members share amply in the benefits and profits of their labour. This is not exactly the same in developing nations of the world (Frank-Oputu, 1999).Trade unions are cardinal platforms in the general struggle for the sustenance of the civil society and the values they present. Trade unions also serve as the bedrock for the contention of the welfare of their members and by extension the civil society. This is occasioned by the might of the employers and the near helplessness of single individual employees in the bid to confront the employer(Fashoyin,1980). Organizations are goal directed, systems which tend to be effective or ineffective with regards to acquire and utilize scarce and valued resources in their operating environment as expeditiously as possible in their pursuit for their operations and operational goals (steers, 1997).
Kendal (19975) posits that employee’s decision to align themselves in a union is indicative of a class consciousness with the intention to organize pragmatically on their behalf for enhanced conditions this he asserted contributed in organizational stability, enhanced productivity and the concomitant improvement in the level of profitability. Cross-¬sectional studies aimed which are (Georg Ellis and large, 2010; Torrington, Hall and Taylor, 2005, Waddington, 2003, Taxler, 2000, Waddington, 2000) indicates that employees join unions for instrumental rather than ideological considerations. The converse is the case in Australia where individuals who hold a reformist ideology and support socialist political parties are more likely to become members of Trade unions (Deary and Declaric, 1991;.Moeti-Lysson and Ongori, 2011) indicates effectiveness in representing workers in Botswana. The study is therefore intended to examine the relationship between trade union practices and enterprise success in selected manufacturing firm in Rivers State.
1.2 STATEMENT OF THE PROBLEM
Many are worried about the causes of labour management conflict and which industries are mostly affected. Since the management of conflict is inefficient in Nigeria and meaningful productivity in manufacturing firms has become a matter of concern for both government and the general public, care must therefore, be taken to check bad industrial relations existing in it.
This is very important since it will help to discover the reason for the seemingly strained relationship between Nigeria workers and their employers, with particular focus on manufacturing firms in Rivers state. Most conflicts have to do with welfare matters. The issues like nonpayment of salaries and other benefits have been the issues of the strained relationship between the union and management. As a matter of facts, workers have been forced to seek divine help. This is a serious problems, as many of them are owed salaries and arrears for several months. As a result, the morale of workers towards work is now low. This has forced many employee to seek for other jobs to survive. This ugly development is seriously affecting the overall development and success of manufacturing sector in Nigeria.
It is against this backdrop that the study seeks to examine the relationship between trade union practices and enterprise success in selected manufacturing firms in Rivers state. This is the gap in literature which triggers the mind of the researchers and which this study intends to fill.
1.3 OBJECTIVES OF THE STUDY
The objective of this study is to investigate the relationship between trade union practices and enterprise success in selected manufacturing firms in Rivers state. The specific objectives of the study are to:
1. Determine the relationship between trade union practices and profitability in selected manufacturing firms in Rivers State.
2. Investigate the relationship between trade union practices and market share in selected manufacturing firms in Rivers State.
3. Ascertain the relationship between trade union practices and sales volume in selected manufacturing firms in Rivers State.
1.4 SIGNIFICANCE OF THE STUDY
The study has both theoretical and practical significance. Theoretically, this study will add to the body of knowledge by enriching the existing literature on the subject of trade unionism in Nigeria, especially, in the manufacturing sector in Nigeria, it will also be a useful literature to industrial relations practitioner. The study hopes to serves as a useful literature base to management students both post graduates and undergraduates, as it will serve as a useful material in their studies or research related topics.
The study will also be of practical use of the general public as well as individuals who wish to have an understanding of Nigeria union of the manufacturing sector in Nigeria. The study will help both the management and workers in the manufacturing sector in Nigeria on how best to relate in order avoid unnecessary crisis. It will help the government on how to play her role very well in case of any disagreement between employees and employers. It will help the leader and followers in the enhancement of their union. Finally, the policy makers and other interest group will benefit immensely from the finding and recommendation of the work.
1.5 RESEARCH QUESTIONS
This study seeks to elicit answers to the following research questions:
1. What is the relationship between trade union practices and profitability in selected manufacturing firms in Rivers State?
2. What is the relationship between trade union practices and market share in selected manufacturing firms in Rivers State?
3. What is the relationship between trade union practices and sales volume in selected manufacturing firms in Rivers State?
4. Does safeguarding the interest of the workers head to enterprise success?
5. Does monitoring employees compliance associate with enterprise success?
6. Does dispute settling enhance enterprise success?
7. Does trade union practice lead to enterprise success?
8. Does promotion of equality enhance enterprise success?
9. Does improved staff retention lead to increased enterprise success?
10. Does trade union help in increasing employee benefit in the organization?
1.6 STATEMENT OF HYPOTHESIS
Drawing from our research questions the following research hypotheses are proposed.
H0: There is no significant relationship between trade union practices and market share in selected manufacturing firms in Rivers State.
H1: There is significant relationship between trade union practices and sales volume in selected manufacturing firms in Rivers State.
1.7 SCOPE AND LIMITATIONS OF THE STUDY
The study is delimited under the following headings; content scope, geographical scope and unit of analysis.
Content Scope: The content of this study involves on investigation to ascertain the relationship between trade union practices and enterprise success of manufacturing in Firms in Rivers State.
Geographical Scope: This study is delimited to trade union practices and enterprise success of selected of manufacturing in Firms in Rivers State. Which include Berger paint Trans-Amadi, Brightway Glove Aleto, First Aluminium Plc Trans-Amadi and New Rivoc Nigeria Limited, Trans-Amadi.
Unit of Analysis: The unit of analysis involved the staff of the selected manufacturing firms at the terms of carrying this study.
In carrying out an investigation of this nature the researcher must of necessity be faced with some constraints.
Firstly, the time constraints, the time frame provided for this study was short.
Secondly, Financial constraints. Usually, a study of this nature involved some level of expenditure therefore; finance was also a limiting factor.
Thirdly, Poor response from the respondent and inability to access the entire population of the study.
1.8 DEFINITION OF RELATED TERMS
In this research, it will be important to defined key terms that will be featuring in this study, they include the following:
Labour Unrest: Labour unrest occurs when there is a serious disagreement with management over issues that bothers on the workers welfare.
Strike: It means a collective stopping of work initiated by workers as means of pressurizing their employers over a demand.
Trade Disputes: It means any dispute between employers and workers or between workers and workers or between trade unions and management, which is related to the employment, terms of employment or conditions of work of any person or the rights and welfare of the Nigeria workers.
Trade union: Trade union is an association of wage earners for the purpose of maintaining or improving the conditions of their employment.
Employer: This is the person who receives services of a worker and pays wages or salary for the services so received.
Worker (employee): A worker or an employee is any person who has agreed to render services to another and in the process of rendering this services, to obey his employer and to submit to his instruction and directives for remuneration called a wage.
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