IRP 800 HUMAN RESOURCE MANGEMENT · NATURE AND SCOPE OF INDUSTRIAL RELATIONS Industrial relations is a term which stirs up different ideas in the minds of many people. To the ordinary

IRP 800HUMAN RESOURCE

MANGEMENT

FRANCIS C. ANYIM PhDFCIPM, FNIM, FABS, FCAI

Acting Head,Department of Industrial Relations and Personnel Management, Faculty of Business Administration, University of Lagos.

E-mail:[email protected]; [email protected] No: 08033468317, 08078008008

INTRODUCTION

Introduction

OVERVIEW OF INDUSTRIALRELATIONS:

I. The concepts:

❑Industry and Relations

Introduction cont’d….

II. The subject-matter ofIndustrial Relations:

❑Example – Economics Scarcityof resources hence the need toeconomise


❑Industrial Relations arose fromconflict

❑Conflict is too wide or be seen aselastic term but industrial relationsconcern is conflict in the workplace


III. Industrial Revolution andIndustrial Relations:

❑What is Industrial Revolution?

❑Household system andcommuninalism


❑The collapse of household systemby industrial revolution

❑Is industrial revolution a curse orblessing?

Introduction Cont’d

IV. Actors in Industrial Relations:State/Government

Tripod

Employers/Associations Employees/Trade Union

Public/Citizens


❑The tripod consist of the State,employers and the employeesrepresented by their trade unions


❑ Difference between “LabourRelations” and “IndustrialRelations”.


❑The dominant among the Actorsand role it plays in the system.

❑Relationship between the Actorsi.e. from Labour Relations toIndustrial Relations

NATURE AND SCOPE OF INDUSTRIAL RELATIONS

❑Industrial relations is a termwhich stirs up different ideas inthe minds of many people.

❑ To the ordinary man in the street,the term is asssociated withstrikes, lock-out, negotiationsbetween union and management,government intervention in tradedisputes and other related issues.

Nature and Scope of Industrial Relations Cont’d…

❑ Indisputably, these issues are moreor less related to the areas of sociallife revolving around employmentand the regulation of its burdenand rewards.

❑ In a nutshell, it is connected withthe making of rules to regulate theactions of the parties in industry.


❑ Industrial Relations is mainlyconcerned with people at work,thus making employmentrelationship central to theconcept.

❑ People work for various reasons,but one of it is that they must earnan income for their livelihood.


❑ The goal of IR is to ensure‘equitable sharing’ of the wealthfrom the industry, to ensure thatindustrial peace reigns in order tofacilitate the production processand thus assist both parties toachieve their objectives.


❑ With good industrial relations,both parties would relate witheach other harmoniously andgains produced for the nationaleconomy and development


❑ Flanders (1965) sees industrialrelations as a system of rules and thestudy of the institutions of jobregulations.


❑ Matanmi (2007) views the subjectmatter of industrial relationstypically as revolving around cross-cutting relationships that involveworkers and their organizations(trade unions), employers(management) and theirassociations and the agencies ofgovernment (institutions).


❑According to Anyim (1981)most definitions of industrialrelations tend to conclude thatthe term refers to the relationsand interaction betweengovernment, labour, employersin a regulated manner aimed atfostering industrial peace andharmony in industry.


❑ In summary, industrial relationsdeals with labour problems both insubstantive and procedural termsand these include: conditions ofwork, hours of work, remuneration,grievances, disputes, level ofproduction, efficiency of work,security of employment, safety,health, welfare at work etc

ENVIRONMENTAL FACTORS INFLUENCING INDUSTRIAL

RELATIONS PRACTICE

❑The underlisted factors have significanteffect on IR:

◼ Political

◼ Economic

◼ Legal

◼ Social-cultural

◼ International organisations e.g. ILO

Environmental Factors Influencing Industrial Relations Practice Cont’d…

Political Factor

◼ In all countries, governmentpolicies affect all itspeople including the workingclass


❑ Policy framework are thereforedeveloped to shape the IR systemfor alignment with national needs,aspirations and objectives


◼ Such policies help to provideguidance and perspective forthe pattern of IR

◼ In Nigeria this has been a mixedgrill of ‘positives’ and‘negatives’.


◼ For example, on the positive side:

-The trade unions wererestructured along industrial line

-The trade unions were givendirection and new image


-There was introduction of check-offsystem for financial self-sufficiency

-Institutional machineries wereestablished for expeditioussettlement of labour disputes

- Facilities were provided for tradeunion education amongst others


◼ On the negative side:

-In 1981, the civilian regime ofAlhaji Shagari made an attemptto create another Labour centreas rivalry group to NLC becausetheir preferred candidate did notwin the NLC presidency


-President Obasanjo’s Trade Union(Amendment) Act 2005 meant todemocratise the LabourMovement was almost returningthe Labour Movement to the pre-restructuring era as the Actadvocated for the creation of moreLabour centres.

-


- Presently, NLC has two factions:Wabba and Ajaero led groupswith the attitude of Governmentto the unhealthy developmentless than serious


◼ On Remedial side:

-The promotion of good labour-management cooperationbetween the social partners

-Continued guarantee of Freedomof Association


-Enforcement of minimumconditions of employment,safety, health and welfare atwork (Employee CompensationAct, 2010)


❑Economic Factors

❑ One of the intents of IR is to controland appropriate economic wealth

❑ Union activities and IR atmosphereis generally affected by prevailingeconomic climate economic glut,inflation, unemployement, foreignreserves,


❑ Changes in price of fuel pump priceshave led to major strikes andprotests by unions across thecountry.


Legal Factors

◼ The practice of IR involves stateintervention, regulations andcontrol.


◼ Could be direct or indirect but theprocess is carried out by means oflegal framework


◼ Through the legal frameworkgovernment promotes, sustains,participates, influences or determinesthe terms and conditions ofemployment, the relationship of theparties in IR etc. through enactmentof relevant legislations and policies


◼ Government also provide legalframework that gives institutionsthe environment to regulate IRpractice like Industrial ArbitrationPanel, National Industrial Court.


◼ The government is a member of ILOand a signatory to some of itsConventions which it uses to guideits legal and statutory roles


Socio-Cultural

◼ Most traditional African societies haveextended family support and so aworker is usually affected by what isgoing on in the wider society whichaffects union responses to economicproblems when interacting with theiremployers.


❑ A negative or eroded take-home paywill breed conflict and disaffection inthe workplace when the employeecannot meet the legitimateobligations to his house hold andeven the extended family

DEVELOPMENT OF TRADE UNIONS IN NIGERIA

❑The development of trade unions inNigeria can be categorized into threemain parts:

-Pre-ordinance period - 1900 to 1938.

-Laissez-faire and restructuringperiod - 1939 to 1978.

-Industrial Unionism - 1978 to date

Development of Trade Unions in Nigeria Cont’d…

1.Pre-ordinance period - 1900 to1938.

◼ Three unions came into being atthis period.

◼ The first was Southern Nigerian CivilService Union (NCSU) in 1912 and withthe amalgamation of the Southern andNorthern Protectorate by Lord Lugardin 1914, it was renamed Nigeria CivilService Union (NCSU).


◼ The second and third wereNigeria Union of Teachers(NUT) and Nigeria RailwayUnion in 1931

◼ The NCSU and NUT were madeup of white collar workers andwere less militant than NigerianRailway Union which comprisedblue collar workers.


◼ All the unions emerged from thepublic sector which understandablyreflected the dominance of publicservice employment at the period

◼ Up to the 1929 depression, NigeriaLabour history was more or less thehistory of the Civil Service Union.


◼ Between the period of theestablishment of the first trade unionin Nigeria and the 1929 depression, acombination of agitation forincreased wages and the demand forAfricanization of various posts, someof which had been grudginglygranted opened the flood-gate forthe emergence of other unions(Ananaba, 1970)


2.The Laissez-Faire andRestructuring Period

◼ In 1938, trade unions wereaccorded legal recognition by thecolonial Trade Union Ordinanceof 1938. This loose legislationallowed any 5 or more persons toform a trade union.


◼ This led to the proliferation ofover 1000 mushroom unions thatwere badly managed and not wellorganized

◼ There was apathy, non-payment ofdues and dominance by activeminority

◼ Financial handicap led to relianceon aids from foreign unions


◼ There was lack of educationalfacilities for labour educationcoupled with inexperience in theart of collective bargaining by theunion leaders.

◼ This led to frequent unorganizedstrike action.


◼ A General Secretary as a paid officialand administrative head of theunion could hold positions in morethan one union thus impairing theireffectiveness and efficiency

◼ Incessant leadership tussle andfactionalization of the unions


Central LabourUnions/Organisations – as atthe end of 1975 there were fourCentral Labour Organizations,namely:

➢ United Labour Congress ofNigeria (ULCN)


➢ Nigerian Trade Union Congress(NTUC)

➢ Nigerian Workers ’ Council(NWC)

➢ Labour Unity Front (LUF)


◼ Most of the mushroom unionswere affiliated to one centrallabour organization or the other.

◼ There was serious rivalry if nothostility among them withrampant cases of division andfusion.


◼ Many differences bordering on–Personality, Ideological, Politicalactivity/involvement, affiliationwith foreign unions, etc.


3.Industrial Unionism – 1976 todate

◼ Against the background ofplethora of issues In 1976, thegovernment set up the Late JusticeDuro Adebiyi Tribunal of Inquiryto probe the activities of the tradeunions from 1960 to 1975.


❑ The report showed that all was notwell with the organization,administration, finance,leadership and foreignrelationship/affiliation of theunions.


Promulgation of Decree No 44 of 1976

◼ Proscription of the four CentralLabour Organizations

◼ Appointment of an Administratorof Trade Unions to restructure theover 1000 mushroom unions intofewer Industrial Unions and toevolve a single Central LabourOrganization.


◼ The administrator’srecommendations led to thepromulgation of Trade UnionsDecree No.22 of 1978 whichamended the Trade UnionsDecree No.31 of 1973 with 70Industrial Unions as follows:


✓9 Employers Associations(now 23)

✓ 19 Senior Staff Associations(now 24)

✓42 Junior Staff Unions (now29)


❑Other Highlights of the Decree

➢ Compulsory check-off dues tobe made by employers andremitted to union accounts –no more dependence onforeign Trade Unions.


➢ Union recognition was madeautomatic once it is amongthe recognised ones

➢ brought great relief to manyunions as they had foughtunending battles with manyemployers over the issue.


➢ Establishment of a CentralLabour organisation

➢ Incessant strikes werereduced


➢ Establishment of Nigeria LabourCongress, as the only CentralLabour Organization to protectand represent the interests ofgenerality of Nigerian workersboth locally and internationally


➢ It was the only central body towhich all junior staff unionsmust affiliate


➢ As a fall-out, Senior Staff Unionsformed a central body calledSenior Staff ConsultativeAssociation of Nigeria (SESCAN)which was registered under theLand Perpetual Act but not by theOffice of the Registrar of TradeUnions


Some Recent Developments

◼ Approval of more central labourbodies by The Trade Unions(Amendment) Act of (2005).


❑Registration and recognition ofTrade Union Congress (TUC)which was also given the statusto serve as a central labourbody in addition to the NigeriaLabour Congress (NLC)

❑TUC serves as a central body forthe senior staff unions

EMPLOYERS’ ASSOCIATION

◼ As workers are organized into tradeunions for the purpose of improvingthe conditions of their working livesthrough the process of collectivebargaining, in like manner, employers(represented by management) are alsoorganized into employers’ associationfor the purposes of collectivebargaining.

Employers’ Association Cont’d…

◼ The difference between the twobodies is that the trade unionshave individuals as members whilethe employers’ associations havecorporate bodies or companiesrepresented by members of theirmanagements as members.


◼ Aside from the industrialemployers’ associations, wehave in Nigeria two distincttypes of employers’organizations organized ontrade lines and economicgroups.


◼ The first is National Associationof Chambers of Commerce,Industrial, Mines and Agriculture(NACCIMA) which was formed in1961 to coordinate the work of theaffiliates operating in the majorurban centres.


◼ NACCCIMA is primarilyconcerned with economic andcommercial interests of itsmembers. The second body is theManufacturers’ Association ofNigeria (MAN) founded in 1964.


◼ MAN confines its activities mainlyto the manufacturing companiesand concern itself with the generaleconomic and production mattersaffecting its members.


◼ NACCIMA and MAN haveorganized themselves alongindustrial or product lines,consequently, there is certaindegree of complementarity in thework of the trade groups andindustrial employers’ association(Fashoyin, 1992).


❑ It may be imperative to note thatemployers’ organizations may beorganized at industrial or at tradegroup’s level but at the centre ornational level in Nigeria, we havethe Nigerian Employers’Consultative Association (NECA).

Functions of Employers Association Cont’d…

◼ Functions of Employers’Associations

I) Industrial employers’ associationsdeal mainly with industrial relationsmatters (i.e. negotiating on behalf oftheir members) i.e. those in the tradegroups discuss production,commercial and social matters. Insome countries e.g. US, oneorganisation can perform thesefunctions (Fajana, 2000)


II) It serves the interest of itsmembers in regulating the labourmarket;

III) It protects its members againstthe demands of powerful tradeunions;

IV) It engages in multi-employercollective bargaining on behalf of itsmembers;


V)It provides advisory andmanagerial assistance to itsmembers;

VI)It protects the interest of itsmembers against supplier of rawmaterials;


VII)It prevents some individualemployers operating informallyfrom cutting wage rates or agreeingon maximum rates;

VIII)In the course of industry-widebargaining, the interest of less well-off employers are protected to avoidcompeting them out of the industryby the stronger ones;


IX) It allows employers a strongrepresentative voice for lobbying toget favourable labour and economicpolicies;

X) The bodies have promotedprofessionalism as persons withrequisite qualifications now manpersonnel/human resourcedepartment in many offices; and


XI) It shapes the level and contentof issues for negotiations withthe unions and protects jealouslythe vital element of “managerialprerogative” at the workplace.

Nigerian Employers Consultative Association (NECA)…

◼ Employers’ Organisation atNational Level (NECA)

◼ Nigerian Employers ConsultativeAssociation (NECA) was founded inFebruary 1957 and provides nationalplatform for all employers both publicand private to participate in theformulation of National Labour Policy.

NECA Cont’d…

◼ NECA is a federation ofemployers as well as of employersassociation and is concerned withthe broad field of industrialrelations, industry andcommerce.

NECA Cont’d…

◼ NECA provides a platform for privatesector employers to interact with theGovernment, labour, communitiesand other relevant institutions in andoutside Nigeria for the purpose ofpromoting harmonious businessenvironment that will engenderproductivity and prosperity for thebenefit of all.

NECA Cont’d…

◼ NECA is not a trade Union but adynamic and highly respectedprofessional body registeredunder the Company and AlliedMatters Act, 1990.

NECA Cont’d…

◼ NECA does not make laws thatmust be constitutionally obeyedby its members and enforcedaccordingly because it acts purelyas a consultative body. However,it enjoys the singular privilege ofconsulting and negotiating withGovernment in matters affectingemployers in the country.

Structure of Collective Bargaining Cont’d…

◼ Mission

◼ To be the Primary BusinessMembership Organizationinfluencing Economic and Socio-Labour policies that will create afavourable business environmentin Nigeria.

Structure of Collective Bargaining Cont’d…

◼ Vision

◼ To be the Voice of Business in thepromotion of enablingenvironment for enterprisecompetitiveness and growth.

FUNCTIONS OF COLLECTIVE BARGAINING TO WORKERS

◼ Core Values

➢ Integrity

➢ Social Dialogue

➢ Responsiveness

➢ Quality Service

NECA Cont’d…

◼ v. Membership

(a) Ordinary Members

◼ These are individual companies ororganizations engaged in business oreconomic activities (manufacturing,distribution, retailing, agriculture,mining, finance, transport, services,consultancy, etc) employing aminimum of 5 workers.

Functions of Collective Bargaining to Workers Cont’d…

◼ They are mainly, but notexclusively in the private sector.At present, they form the bulk ofNECA members.

Functions of Collective Bargaining to Workers Cont’d…

b) Affiliate Members

◼ These are the industrial/sectoralemployers’ associations,industrial groups or tradeassociations most of which aretrade unions

Functions of NECA…

◼ Functions of NECA

◼ The primary function of NECA isto protect employers’ interest andenthrone the private sector as adependable engine ofdevelopment. This it does throughthe following:

Functions of NECA Cont’d…

❑ Influence economic agenda andpolicies through public advocacyand group representation togovernment on issues of interestto employers.

◼ Create the forum for employers toconsult and dialogue amongstthemselves on issues of interest tothem.


◼ Provide the opportunity foremployers to share informationand create linkages that willenhance the growth of theirbusiness.


❑ Defend and promote, at alltimes and in all places, thelegitimate rights of membercompanies.


❑ Provide on hand assistance toSmall and Medium ScaleEnterprises (SMEs) etc.

◼ Other consultancy services tomeet members’ specific needs.

Governing Council of NECA…

◼ Governing Council andCommittees

◼ NECA is managed by a GoverningCouncil and four committeeswhich provide supportive servicesto the Council. They are:

Governing Council of NECA Cont’d…

◼ Human Resource Experts whichdeal with personnel andlabour/industrial relationsmatters.

◼ Finance Experts which handlefinancial matters.


◼ Company Secretary/LegalAdvisers which handle secretarialand legal matters; and

◼ Learning and DevelopmentExperts that handle education andtraining matters.


❑ The Governing Council which isthe highest organ of theAssociation formulates policies,sets subscriptions, appointssenior staff of the secretariat andhas power to discharge them.

EMPLOYMENT RELATIONS

◼ Employment relations focus onthe relationship between theemployees and employers in theworkplace.

Employment Relations Cont’d…

◼ It is a structural pattern that aims atfostering the growth of theorganization, improves interpersonalrelationships, proffers solutions toorganizational problems; such as short-comings, failures, poor managementstyle and promotes industrial peace andharmony.


◼ A positive employment relationshipexists where management andemployees are interdependent - bothparties recognize and acknowledgeeach other’s indispensability as workpartners, extend their mutual concernsbeyond the familiar issues of wages,hours of work and other conditions;


▪ discuss and dispose problems asthey arise without recourse to athird party and work out aprocedure for settling theirdifferences amicably amongstothers when such arise.


◼ The procedural agreement alsoincluded checks and balances tosafeguard the interest of bothparties.


◼ There are a multitude of factors atplay in the workplace that shape upthe relationship among workers,employers and the State. Employersin the present time prefer to use theterm “employment relations whichrefers to the relationship that exist inboth unionized and non-unionisedorganizations and workplaces.


◼ The intention of employers is tomanage employees as individualsand by such approach raise theirmorale and productivity.


◼ Consequently, employmentrelations as a concept is graduallyreplacing industrial relationsbecause of the realization of thefact that there is much more atthe workplace than industrialrelations could handle or cover.


◼ In general, employment relationscan be considered as a study ofrelations between employees andemployers; so as to find ways ofresolving conflicts and to help inimproving productivity of theorganization, by increasingmotivation and morale of theemployees.


◼ The concept is also concernedwith providing information toemployees regarding the goals ofthe organization to enable theemployees have a betterunderstanding of the aims,objectives and policies oforganization.


◼ It extends to issues concerningperformance shortfalls and means ofcorrecting them. It also, relates togrievance handling, taking care ofemployees’ problems and educatingthem on their rights in the workplace.Therefore, employment relations gobeyond industrial relations matters.

Differences Between Industrial Relations and Employment Relations…

i) In the world of employment andreference to the social relations in workplace, Industrial relations as a register,predates employment’s relations.

Differences Between IR and ER Cont’d…

ii)Industrial Relations involvestudying the legal and proceduralrelations in the world of workprimarily, while EmploymentRelations deal more with peoplecontext relationship in the workenvironment.


◼ This involves managing people’sfeelings, their tendencies andreactions; which if not wellmanaged or understood couldendanger the achievement of theobjective of the organization


iii)Industrial Relations designpolicies and practices that couldguide social relations in the workplace while employment relationsdemand that human face needsto be put behind the applicationof the policies and practices inthe social context.


iv)Industrial relations is surrounded bynormative rules and principles, whilethe model of employment relationsrejects the treatment of labour as acommodity in favour of takingworkers as human beings with feelingsand emotions and also entitled tohuman right, especially in democratic

communities.


◼ According to Anderson (2014), thedifference between industrialrelations and employment relationsrests on the following assumptions:


a)That Industrial Relations focus onemployees regarded as collectivebody or entity while employmentrelations put a strong emphasison employees and regard them asindividuals with differentpotentials.


b)Employment Relations are basedon a greater cooperation betweenmanagement and employee andthe employees being motivated toadd value to the organization.


❑ The Employment Relations areconsidered as being based onmanagement practices based ontrust, fairness, knowledge andunderstanding of employeesaspirations and attention toemployees’ voice obtained through avariety of channels e.g. employeesand union representativesinvolvement and participation.


c)In a similar vein, the HumanResource Management (HRM)approach is tilted towardstreating employees asinvestments, emphasizingpolicies, programmes andpractices that lead to aproductive environment.


❑ The HRM focuses more onemployees as individuals and not asa collective body (Union). Besides,the concept of HRM is generallyassociated with a movement startingfrom collectivist employmentrelations towards individual’snegotiations reinforced by individualcontracts and performance–basedpayment system (Casale, 2011).


d)Industrial Relation dominates theworkplace because of the need todeal with conflict between partieswhile Employment Relation seems todeal with a working environmentwhere conflict is less likely to occurand even when it happens, it is dealtwith promptly and effectively byparties involved (Gennard andGraham, 2010).


e)There are many dimensions to therelationship between parties. Asan economic exchange, it has arelationship which is contractualand has both legal andpsychological dimensions.


◼ Some see the relationship dominatedby conflicts of interest between thesocial partners while on the otherhand, others perceive the relationshipas one that should be dominated bycooperation, moral involvement,compliance to commitment whichwould ultimately lead to continuousattachment by the parties to eachother.

Thank you

Documents

IRP 800 HUMAN RESOURCE MANGEMENT · NATURE AND SCOPE OF INDUSTRIAL RELATIONS Industrial relations is a term which stirs up different ideas in the minds of many people. To the ordinary