Monday 15 January 2018

IMPACT OF COLLECTIVE BARGAINING ON EMPLOYEE AND EMPLOYER RELATIONS

CHAPTER ONE
INTRODUCTION
1.1     BACKGROUND OF THE STUDY
Collective bargaining according to Adeogun (2006) is viewed as a term applied to those arrangements under which wages and condition of employment are settled by bargaining in the form of an agreement between employers or association of employers and workers in an organization, usually labor or trade unions.

Organizational vitality is the capacity of the organization to continue to survive and develop in the era of business complexities which results from a continuous and rapid change within the social system. Conflicts and disputes whether in the form of open hostility or quiet dissention becomes an inevitable issue that every organization must strive to curtail. This dispute or conflict is usually a threat to organizational vitality if not adequately managed or handled even though conflicts between persons or management and employers could be thought of as natural events. Nakoji (2001) posited that organization should be very much aware that such conflicts could cause destruction and industrial crisis or disharmony in the long-run.

For example, conflicts or disputes among management and employers (labor) can lead to one or both parties having their feelings hurt. Thus, leading to issues that can inherently affect the smooth running of the organization in which they work or manage.

On the other hand, conflicts or disputes can serve to enhance the effectiveness of the organization, since it can safely be assured that conflicts, although ever present in a social system, but not always as destructive as portrayed.

The central question among a lot of scholars, human resource managers and of course, employers of labor is how to, in their own varying capacities and activities effectively and efficiently manage conflict and its resolution to ensure that their organization benefit rather than suffer from occasional labor management clashes.

Admittedly, organizational conflicts erupt in organization because of the inability of the employers and his/her employees to work together in peace. This may be as a result of poor communication gap, non-exclusive decision that affects employees or lack of in-adequate or good working conditions or incentives and non existence of union that employees can channel their grievances through. Thus, collective bargaining as a tool becomes a necessary aid to enhancing a congenial labour management relationship. This tool allows the parties {two parties} to meet regularly so as to identify the dissonance that exist between them with the aim of resolving them amicably so as to prevent industrial disputes or conflicts.

1.2     STATEMENT OF THE PROBLEM
Theoretically, it is argued that peaceful labour management relations could be achieved through the application of collective bargaining Odumo (2004) found that collective bargaining not only bring the relations between labour and management in an organization.

Okeke (2003) posited that some scholars have argued that collective bargaining have weakens management’s power and pressure within an organization which if fully effective should preserve the interest of both labor (employees/workers) and management (employers) that exist within an organization and ensure the harmony of their individual interests which usually arise due to grievances. A version of such view as postulated by Okeke (2003) stresses that rigorous engagement in collective bargaining and too much exclusion in major decision making process that affect the organization is likely to be comfortable for managers (employers). These contending views suggest putting aside text-book rationale; there is concession among theories on the widely acclaimed positive effect of collective bargaining in achieving peaceful labour management relations.
The problem this study/research attempts to resolve therefore is to find out which theoretical position is supported by evidence of researches on collective bargaining in Hamdala hotel. This would help up to be able to determine whether the effect of collective bargaining has impact on good employee and employer relation in Hamdala hotel? If it is, how can it be effectively used so as to achieve this aim?

1.3     OBJECTIVES OF THE STUDY
The objective of this research is to identify factors that cause or may give rise to industrial conflicts or disputes in an organizations. The specific objectives are;
                               i.            To determine necessary solutions to the problems of industrial conflicts or disputes.
                             ii.            To establish the effect of collective bargaining in achieving good labor and management relation specifically in Hamdala hotel.
                          iii.            To find a lasting solution to the problems that can hinder the proper use of collective bargaining for achieving industrial harmony by promoting a peaceful labour and management relation in an organization.




1.4     STATEMENT OF THE RESEARCH HYPOTHESIS
The necessary hypothesis is stated as follows:
Ho:    There is no significant relationship between collective bargaining and a peaceful work environment.
Hi:     There exist a significant relationship between collective bargaining and a peaceful work environment.

1.5     SIGNIFICANCE OF THE STUDY
This study is prompted as a result of the concern and will enlighten labour leaders, trade unions, employee of labor, organization management and government on the role and dynamics of the effect of collective bargaining.

This study is particularly significant in that it would provide clues into the perspective of collective bargaining process, given the opportune time with which this study is been carried out.

Also, the study would also help us to find out how collective bargaining can be used to achieve a harmonious relationship within an organization.

This study would be significant in that, it would try to present an application of collective bargaining in Hamdala hotel, identify obstacles and how they can be eliminated so as to achieve the goal of attaining a peaceful labour management relations

As a potential human resource practitioner in the nearest future, there is need for a thorough understanding on issues boarding on industrial disputes and how it can be managed.

1.6            SCOPE OF THE STUDY
This study is limited to Hamdala Hotel Limited Kaduna. It is stated with the review of related literature on the subject matter paying particular attention solutions to the problems of industrial conflicts or disputes, effect of collective bargaining in achieving good labor and management relation. solution to the problems that can hinder the proper use of collective bargaining for achieving industrial harmony by promoting a peaceful labour and management relation in an organization.

1.7     LIMITATION OF THE STUDY
This research works like many others of its and is limited by certain factors. This limitation comes in the form of in-adequate finance and time. Access to relevant information from the organization under study was not easy as employees and top-management of Hamdala Hotel, Kaduna were not too co-operative.



1.8     HISTORICAL BACKGROUND OF HAMDALA HOTEL
Hamdala hotel is one of the oldest, if not the oldest in the northern part of Nigeria. This hotel was established and officially opened for business on the 14th of January 1961.by the premier of the northern region in person of the late sir, Ahmadu Bello (the Sardauna of sokoto). Hamdala Hotel was then established to serve as a hub of tourism by providing an up-to-date hospitality business in Kaduna and neighbouring towns and cities. The hotel which is presently owned (wholly by the new Nigeria Development Company) (NNDC) a company owned by the nineteen northern states. Is a subsidiary company of the NNDC. In view of the rationalization and organization of the hotel in  2002, personnel management department came up with a number of inputs to restore employee’s confidence and to quell un-necessary conflicts and disputes that were hitherto higher with the following strategies.

The personnel department which supervises industrial relation issues was retrieved their scope of affairs broad to encompass regular meetings with employees or their representatives on vital issues they may arise either from the management or from employees. Regular negotiations and communication channels where both parties presented their individual problems or input to resolving disputes in their initial stages was established. This is not to mention the regular conduct and organization of seminars, workshops or conferences by the personnel department to enlighten employees on very important issues that could be their peaceful relationship with their management. Also,  industrial relations were continuously viewed and appraised and also adapted in line with development and changes in the socio economic and political environment. Thus, a good and strong mutual understanding was established by the organization.

This organization, being a four-star hotel has enough employees to manage a hotel of its status. Presently about eight (8) top management staff, comprising the general manager who is the chief executive officer and supported by seven (7) functional managers all handling key position in the hotel. Also, twenty (20) middle management staff are on its pay roll, this cadre are those who act as immediate supporting staff to the top managers to enable them efficiently carry out their duties. Four hundred and fifty-five (455) inter-meddling and junior staff are also on the hotel’s employees list, this makes the total staff strength of hamdala hotel to stand at four hundred and ninety (490).

1.9     DEFINITION OF TERMS
EMPLOYERS:- these are owners or managers of an organization.
INDUSTRIAL CONFLICT:- crises or disputes that occurs in an organization due to disagreement.
INDUSTRIAL RELATIONS:- the cordial relationship that exist between employers and employees as a result of a good condition of working terms.
TRADE UNIONS:- representatives of workers or labour who strive to improve the working condition and living standard of its members.
EMPLOYEES:- people whose service are engaged by an organization in exchange for wages or salaries and for the achievement and upliftment of organization’s set goals and objective.
COMMUNICATION:- the act of passing message between two or more people through a channel or medium in order to pass vital information.
COLLECTIVE BARGAINING:- an act of coming together by a group of people in order to settle matters of individual interest among them.