IN NIGERIA, THE LAW PERMITS THREE TIERS UNIONS, BUT IN THE OIL AND AVIATION INDUSTRY(S) THE UNIONS HAVE NO EMPLOYERS

ASSOCIATION. CRITICALLY ACCOUNT FOR THIS TRENDS

Abstract

Many employers belong to more than one employer association, and often to associations with different and sometimes conflicting policies on major aspects of industrial relations. Against this background, this study analyses the development and functions of employers association in industrial relations as well as the reason behind absence of employers association in Oil and Aviation industry. Oil and Aviation are necessary apparatus of developed civilization and economic growth in any economy as well as air services are of great importance to the continent of Africa in general and to Nigeria in particular especially in the area of administrative and economic developments. Airplane is the fastest means of transportation in Nigeria. Thus, the growth of important administrative and mining centers has also encouraged the development of oil industry and air services. Nigeria as a country is rich in natural resources; consequently most industry activity revolves around these. Nigeria is Africa’s leading crude oil producer and oil is the country’s most important natural resource, generating up to 95% of Nigeria’s revenues. The insatiable needs of man necessitated his movement from one place to another and one major means by which he has been doing this is by flying in the aeroplane. Thus, the study of the absence of employers association in these sectors is relevant for a number of reasons that will be an eyes opener for future researchers in the area of study.

Keywords: Employers, Employers Association, Oil and Gas Sector,

Aviation Industry

1. Introduction

Employers have their fundamental organisations to deal with their

collective interests. Fajana (2005) stated that oil and gas are

necessary apparatus of developed civilization and economic growth in

any economy. Although the use of computerization has reduced the

need for a significant amount of manual work, important mechanism

still rely on human input. Thus, good employer-employee relations are

important to the stable production and supply of crude oil for the

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sustainable development of the Nigerian economy, as well as to the

world economy as a whole.

Currently in Nigeria, three of such central organisations exist the

Nigerian Association of Chambers of Commerce, Industry, Mines and

Agriculture (NACCIMA) which is the central organisation for employers

with identical interest in trade and commercial activities and matters

directly related to them; the Manufacturers' Association of Nigeria

(MAN), the central organisation which deals mainly with production and

matters relating to manufacturing in general; and the Nigeria

Employers' Consultative Association (NECA) which is the central

organisation of employers dealing mainly in personnel management

and industrial relations. These central organisations have different

purposes, and their functions and those of the Industrial Employers'

Association are inter-related and complement one another.

For example, NECA has so far played an important and enviable role in

the development and conduct of industrial relations, the development

of employers' associations and the use of collective bargaining in

Nigeria. The association has nurtured industrial relations system in the

country to the extent that it has been able to define the relative duties

and responsibilities of workers, through their trade unions, employers

and the government, and also to define and set up power and

authority relationships. The system has been able to control and keep

within tolerable limits, the responses of workers, trade unions and

management to the dislocation, frustration and insecurities inherent in

our industrialisation process.

It has established rules, practices and regulations, both substantive

and procedural, which are pre-requisite to each establishment and

industry. Although trade unions and employers claim at all times to be

'partners in progress', in practice, the dealings among the three parties

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to industrial relations - government, unions and employer - seem to be

more of 'adversaries in diversity' than 'partners in progress'. It is

anticipated that with NECA's advice and guidance, the parties would be

able to see the common challenges facing them all, address

themselves to those challenges, and cooperate in their own best

interest and in the larger interest of the country's economy.

It is anticipated that in the years ahead, the parties will emphasise and

pursue their common goals rather than individual and separate

interests. The future should witness an era of co-operation rather than

conflict. The continued encouragement of employers to form industrial

employers' associations, accept and practice the principle of collective

bargaining and undertake realistic and objective negotiations with their

employees' unions will also help to improve, consolidate and develop

further the gains the association has made so far in this regard.

The principle of collective bargaining and decision-making by

representative government associated with industrial employers'

association will actually influence and change the unorthodox,

confrontational and antiunion attitude of some employers and lead to

better union/management relations. The employer is that person or

persons who have contributed their properties in a business venture

with the intention of making some profits in return. In modern industry,

the employer is very likely to be faceless, obviously separated from the

workforce. In a public company or state parastatal, the management of

the workforce is usually delegated to a hierarchy of managers through

a board of directors. Employers categories in Nigeria include the locally

and foreign owned corporations, state governments and their

corporations and enterprises of various sizes and nationality.

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This study would examine the development and functions of employers

association in industrial relations as well as the reason behind absence

of employers association in Oil and Aviation industry.

1.1 Origin and Growth of Employers’ Associations

Employers' organisation and associations developed out of the desire

of employers to protect their collective interests. Such interests often

relate to the management of human resources which may include

personnel administration, staff training or industrial rc1ations, among

others. Unlike the trade unions, employers' associations are a

relatively new phenomenon in the development of industrial relations

in Nigeria. Although history records that by 1954 there were eight

employers' associations in Nigeria, there is no record that any of the

associations was responsible for industrial relations; rather, they were

primarily "interested in regulating trade practices and providing

friendly services.'" In fact, the first attempt at forming an employers'

association to deal with the management of human resources and

relations with the trade unions was the inauguration of the Nigeria

Employers’ Consultative Association (NECA) in 1957.

In 1978, the restructuring exercise created 9 employers’ association.

There were, however, other employers' associations which sought to

protect the interests of such employers in areas of commerce and

commercial activities. Such associations include the Chambers of

Commerce. Where the interest is related to production and

manufacturing in general, associations that emerged include

Manufacturers' Associations. The last comer in the group is the

Industrial Employers' Associations which is connected with the practice

of industrial relations. As at 1984, there were no less than 22

registered employers’ associations operating in Nigeria.

1.2 Structure and Functions of Employers’ Association

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Most employers’ associations are governed by organs such as their

secretariats, and specialised committees whose forms, character and

tenure would depend on the peculiar circumstance of the time and the

extent to which the association’s focus has been altered by the

environment.

The Nigerian employers’ association also performs the following

generalised roles:

serving the interest of members by regulating the labour market

protecting employers against the demands (or opposing the

pressures) of powerful trade unions

engaging in multi-employer collective bargaining either because

accommodation rather than opposition of trade unions is the only

feasible option

providing management information and advice to assist member

companies

Protecting the interest of employers against suppliers of raw

materials, non-employee professional bodies, etc. (a production

function).

Employers associations deal mainly with industrial relations matters;

that are, negotiating labour matter on behalf of their members. Some

also deal with secondary issues such as production, commercial and

social matters. The forum of employers’ associations enables members

to present a strong representative voice for lobbying to get favourable

labour policies.

1.2.1 Industrial Employers’ Association

When the trade unions were restructured in 1978 and industrial unions

and associations emerged, NECA advised its member-companies to

form themselves into industrial associations to counterbalance the

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strength of the new industrial unions. This was actually necessary

because it was feared that it would amount to a mismatch bordering

on a suicide bid for an industrial union to face a single employer for

negotiation purposes because, hitherto, the individual employer had

been negotiating with the house union. If NECA did not take such an

urgent step, the employers would have been worse off because the

cooperation that existed among the various house unions that

metamorphosed into the industrial unions did not exist among the

employers for reasons which may not be unconnected with keeping

their secrets.

1.2.2Structure of Industrial Employers’ Association

The Nigerian Employers’ Consultative Association is structured in such

a way that all member companies will be able to have an input into

their decision-making process. In order to function properly and

achieve the objectives, industrial employers' associations have two

standing committees. The first is the Committee of Personnel Experts

(COPE) which comprises all personnel managers in the industry. The

committee deals with industrial relations and general personnel

management matters; handles negotiation processes and procedures

with the industrial union after obtaining the required mandates from

the committee of chief executives to which it reports; prepares the

grounds for collective bargaining; and generally advises the committee

of chief executives on general personnel and industrial relations

matters.

The committee of chief executives (COCE), on the other hand, decides

on policy matters; generally sets the negotiation mandates for the

committee of personnel experts and obtains inundates from the

General Meetings, comprising all members to which it reports. The

committee is made up of all or a few elected numbers of chief

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executives. Industrial employers' associations have their secretariats

where an Executive Secretary is employed as the Chief Executive

Officer responsible to the committee of chief executives. The

secretariat provides a data bank for information and the executive

secretary is usually an expert who can offer on-the-spot advice to

members. The secretariat also provides secretarial services to all

committee meetings and the National Joint Industrial Council (NJIC).

1.2.3Central Employers' Organisations

Like the unions' central labour organisation, employers also have their

central organisations to deal with their collective interests. Currently,

three of such central organisations exist - the Nigerian Association of

Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA)

which is the central organisation for employers with identical interest

in trade and commercial activities and matters directly related to

them; the Manufacturers' Association of Nigeria (MAN), the central

organisation which deals mainly with production and matters relating

to manufacturing in general; and the Nigeria Employers' Consultative

Association (NECA) which is the central organisation of employers

dealing mainly in personnel management and industrial relations.

These central organisations have different purposes, and their

functions and those of the industrial employers' association are inter-

related and complement one another. For example, if there is no

production there cannot be sales and when there are no sales, salaries

cannot be paid. Also, if customers do not order for products, there will

be no work for the factory hands.

1.2.4Nigeria Employers' Consultative Association (NECA)

NECA is a central employers' organisation which is concerned with the

management of human resources, and is the only organisation directly

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responsible for ensuring industrial peace through proper handling of

human problems in the industry and commerce. It deals with industrial

relations and all matters that affect the human being at work. It is an

undisputable fact that wherever the development of personnel

management and industrial relations is mentioned in this country,

NECA will always be remembered as the fore-runner and 'father' of

industrial relations.

NECA is a non-profit making, consultative association of employers

inaugurated on 16th January, 1957 and registered under the

Companies Act as a registered company limited by guarantee not

having share capital but without the use of the word 'limited' at the

end of its name. It is not a trade union, should neither act as one nor

should it interfere with the individual autonomy and independence of

its members in the conduct of their affairs. It is a federation of

employers’ as well as a parliament of employers and a constitutional

monarch whose function is “to advise, encourage and warn” members.

1.2.5Structure of NECA

The association operates under the principle that while the general

membership lays down the policy, decision-making is actually done by

a representative body called the governing council. NECA also has two

standing committees which are appointed by the Governing Council -

the industrial relations committee and the training and education

committee. Members of these two committees are specialists in those

fields nominated by member companies of NECA from their employees.

In addition, NECA has a management committee which is under the

President of the association. Consequently, the organisational structure

of the Association would look like this:

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NECA also maintains an up-to-date secretariat under its Director

General. The Secretariat is responsible to the Governing Council

through the Management Committee.

1.2.6Functions of NECA

NECA assists its members in the:

Maintenance and promotion of good relations between them and

their employees.

Encourages the payment of equitable rates of wages and salaries.

Assists members as appropriate with advice on the settlement of

disputes either between members or between members and

employees.

Promotes or encourages technical and other forms of education and

research for the development of efficient employees in all or any

branches of industry and commerce in Nigeria.

Promotes influences, modifies and seeks the repeal of legislations

and other measures affecting or likely to affect employers.

It also communicates with public authorities and related bodies or

organisations on all matters affecting the interests of members and

other employers of labour.

Cooperates with other associations or chambers in such matters.

Represents the views of members both nationally and

internationally on all matters falling within the objects or

competence of the association and participates in boards, councils

and other public bodies dealing with such related issues.

Provides information, advice and guidance to members, and

undertakes education, training and other specialised services and

makes representations to government and appropriate agencies of

government on matters within the objects of the Association or

affecting or likely to affect the interests of members.

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1.2.7Other Activities of NECA

NECA provides its members with the above services by undertaking

the following activities:

Data Bank for Information and Research: The secretariat collects,

analyses, and disseminates information on matters within its

competence to its members. Much of the information given by NECA to

its members are connected with collective bargaining and industrial

relations in general. Information is collected from member companies,

industrial associations, research products, decisions of the IAP NIC and

other sources, provided the information is not injurious to the cause of

the Association or any member company, the security of the nation or

amounts to contempt of any civil court. Information dissemination is

through circular letters, NECA News (a newsletter of the Association) or

a response to specific enquiry by any member or industrial association

affiliated to NECA.

Consultation, Advice and Guidance: NECA gives advice or

guidance to its members on specific matters which may relate to

collective bargaining, trade disputes, legal matters, grievances,

application of the provisions of the labour law, interpretation of

legislations, contracts and government directives and awards of the

IAP and NIC. However, in view of more and regular involvement of

government in economic policies and industrial relations, the

association has developed a system of issuing numbered "memoranda

of advice and guidance" on matters which the governing council feels

are important and complex. Such matters must in one way or the other

be related to the management of human resources in commerce and

industry.

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Education and Training: Carried out through the training and

education committee, its second standing committee, NECA trains and

develops employees at all levels in member-companies while

increasing the training consciousness of members. To this end the

committee maintains very useful contact with bodies and agencies

responsible for training and allied matters. Such bodies include the

West African Examinations Council (WAEC), Industrial Training Fund

(ITF), National Board for Technical Education (NBTE), Centre for

Management Development (CMD), Council for Registered Engineers

(COREN) and National Universities Commission (NUC).

In addition, NECA organises training courses for employees of member

companies. Such courses are organised either by NECA on its own or in

association with other bodies as in the itinerant Personnel

Management and Industrial Relations Workshop. On its own, NECA runs

the Advanced Course on Industrial Relations, opened to members and

nonmembers alike; the course is internationally recognised by the ILO

to be of acceptable standard for employers' representatives from other

countries.

Personnel Management and Industrial Relations: NECA seeks to

foster the development of sound personnel policies and enlightened

personnel management which are necessary ingredients required to

reduce industrial conflicts to ensure that workers have the motivation

required for the efficient operation of the undertaking and to provide

the employer with an established framework of thought so as to react

intelligently and consistently to new problems.

NECA also provides necessary documentation and guidelines for

employers in formulating their personnel policies. In this regard,

emphasis is laid on such areas as communication, recruitment,

training, collective bargaining, joint consultation, conditions of

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employment, wages and salaries structure and administration. NECA

also advises and sometimes assists its members in the selection of

their personnel specialists to ensure that the person holding the post

has adequate training and experience to hold such a sensitive position.

This function is very important since the Association realises that the

incumbent will be involved in collective bargaining and negotiations

with the trade unions - a source of prospective conflict between the

employer and the employees. To this end, the association's policy is to

strictly use collective bargaining system and it assists the employers in

the training of their negotiators. The association therefore constantly

reminds its members of the legal position of collective bargaining

which is to influence the method of decision making rather than the

decisions – and also to make the principles of cooperation between

employer and employees continue to play an important role in

industrial relations with a view to preventing strikes and any form of

industrial action.

Consequently, collective bargaining is gaining more ground and

prominence in the functions of personnel management and industrial

relations.

Finally, NECA, in its attempt to forestall the economic and social

disruption that results from strikes, work stoppages and any form of

industrial action, has accepted responsibility for the development of

the industrial employers' association. NECA therefore encourages and

gives practical assistance to employers to form an industrial

employers’ association where there is none; provide support services

for those employers' associations that have no full-time executive

secretaries; and provide physical facilities that would enable as many

industrial employers' associations as possible to operate from offices in

the-same building as NECA or as near as possible to foster the spirit of

oneness and facilitate consultations.

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Relationship with Government: NECA's views on labour matters are

quite appreciated and respected by the government. Through NECA,

the private sector has co-operated fully with the government especially

on legislations that affect the economic and social life of the country.

NECA plays an important role in seeking amendment to existing or

proposed legislations which could have a harmful effect on its

members or to improve the practical execution of the government's

intentions.

In view of this cordial relationship, the association is represented on

twenty-six Boards and Committees set up by the federal and state

governments, the universities and other institutions of higher learning

and voluntary organisations. Such bodies include the National Labour

Advisory Council, Nigeria Social Insurance Trust Fund Management

Board, Productivity Prices and Income Board, National Board for

Technical Education, Nigerian Council for Management Development,

Industrial Training Fund, National Youth Service Corps, Plateau State

College of Technology, National Manpower Board, etc. In addition, by

the publication in the Federal Republic of Nigeria Official Gazette Extra-

ordinary No.55 of 26th October, 1979 in which the responsibilities

assigned to the Ministers is published, NECA is officially recognised as

one of the eight bodies with which the Federal Ministry of Employment,

Labour and Productivity should have relations.

Relationship with other Central Employers' Organisations: NECA

has maintained a very cordial relationship with other central

employers' organisations, e.g. the Manufacturers' Association of

Nigeria (MAN) and the Nigerian Association of Chambers of Commerce,

Industry, Mines and Agriculture (NACCIMA). The three bodies have

formed themselves into the 'organised private sector' and have been

meeting with government on matters of interest to management-

labour relations, production and the economy in general.

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Relationship with the Nigeria Labour Congress (NLC): Since the

creation of NLC in 1978, NECA has been able to establish working

relations with that body to discuss matters of common interests. The

relationship is of mutual benefit because it is aimed at bringing both

capital and labour closer with the aim of removing areas of conflict

thereby improving relations.

International Relations with other Organisations: NECA believes

that labour matters have no frontiers and that the industrial relations

experience of one country can be useful to another provided such

experience is considered in the light of the conditions prevailing in the

other country and used to create something new and original to serve

a particular need. Thus, NECA belongs to the International Organisation

of Employers (IOE) which is a coordinating body for private enterprise

employers participating in meetings, conferences and other activities

of the ILO. As a member of IOE, NECA receives advance and detailed

information on ILO meetings, international developments in wages,

labour and industrial relations, training and hours of work, which NECA

passes to its members.

NECA's international relations has brought to its members, results of

discussions, meetings and conferences aimed at bringing together, the

three forces at work in the dynamics of modem industrial relations to

combine in a courageous and fertile collaboration by means of

constant dialogue for the study and solution of ever renewed and

recurring problems.

Links with Institutions of Higher Learning: NECA's relations and

interactions with universities and other institutions of higher learning

has helped the industries in assessing their manpower needs, supply of

better qualified manpower, industrial training and manpower

development, access to a variety of post-experience training facilities,

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research results and the use of the physical facilities of these

institutions and the expertise of their staff. However, as a federation of

employers, NECA’s role among its members is purely consultative,

since it does not enforce its advice on its members, although the

constitutional or standing rules of the association must be obeyed.

2. Theoretical Framework

Why do employers belong to associations? The literature on employer

associations links membership to the purposes and functions which

associations serve. According to Gardner and Palmer (1992), collective

employer activity has four main purposes: opposition to unionism,

control of procedures, taking wages out of competition, and responding

to State policies.

In pursuit of these objectives, associations perform five main functions.

These consist of representation of employers in collective bargaining,

lobbying, public and media relations, provision of a forum for

discussion and debate, and provision of specialised services. The last

includes information, research and advice, education and training, and

assistance to individual members with disputes. Associations are also

increasingly diversifying services into such areas as recruitment, other

human resource management practices, and contract management

services.

The literature is not explicit on why or how employers choose to join

particular associations, where overlapping jurisdictions exist, although

some writers relate this decision to the standard of services delivered.

Plowman (1978: 249), for example, discusses a shopping around for

the best deal philosophy among Nigerian employers. He notes that

while each association has its loyal followers, many employers regard

their association as simply an advisory service, and membership as a

service-for-fee relationship. Windmuller (1984) notes that associations

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rarely launch recruiting drives, instead relying on peer pressure,

patterns of unionism, and inducements, in the form of technical

services and representational functions.

On a more abstract level, Gardner and Palmer (1992) argue, employer

association purposes might be cast in terms of defending the interests

of capital as a whole or specific interests of their members. Most of the

literature on associations focuses squarely on their pursuit of the

direct interests of members as employers. Moreover, Fox et al. (1995)

observe that when confronted with the dilemma of acting in their own

interests or the interests of employers as a class, employers are far

more likely than employees to choose the former. However, other

writers have argued that the inherent class asymmetry in the

organising capacity of employers and employees provides employers

with a broader array of strategy options. Thus, for example, individual

firms can exploit their own market power to achieve ends and business

can act collectively in a non-associational manner, pursuing objectives

through informal contacts and other means (Matthews, 1994).

The reasons why employers join particular associations and indeed

maintain dual or multiple memberships may therefore be more

complex than suggested by arguments concerning fee-for service

attractions. Scholars have recently argued vigorously that employers

make strategic choices to shape their environment (Kochan et al.,

1986; Gardner and Palmer, 1992) and questions related to joining

employer associations are clearly amenable to explanation through

discussion of concepts of strategic choice. As employer associations

are one means of exercising a collective voice, and in countries like

Nigeria, there is typically a range of associations to which employers

can belong, we can postulate that employers exercise strategic choice

in association membership, joining particular groups in order to

achieve a specific set of objectives. This has implications for employer

16

expectations and behaviour within associations. This is particularly the

case for the determination of policy priorities for instance, whether

they expect associations to pursue their interests directly as

employers or indirectly as representatives of capital. An employer

may, for example, join one association for the direct services it offers

and another for its focus on the broader objectives of capital.

Disunity among employers is a common theme in the industrial

relations literature. Collective organisation of employers is difficult

because of the diversity of business interests based on their

organisational size, market position, geographical location and

competitive relationships (Tolliday and Zeitlin, 1991). In addition, the

class logic of collective action is that unlike labour, individual firms can

use their own market power and organisational resources to achieve

influence, reducing the need for collective activity (Matthews, 1994).

As a result, cohesion and solidarity can be difficult for associations to

achieve and subject to challenge from a variety of sources. According

to Windmuller (1984), these include union pressure on individual firms

to break ranks, management efforts to keep marginal enterprises

afloat, principled inter-firm differences over labour relations policies,

and the search of employers for competitive advantage in product and

labour markets.

These centrifugal tendencies create difficulties for associations in

policy formation and enforcement, and institutionalise financial and

organisational instability. The lack of employer cohesion within

associations mirrors relations between associations. Organising

principles and membership coverage overlap, and as Plowman (1978:

249) notes, for employers very little soul-searching accompanies a

transfer to another association. In Nigeria, collective organisation has

produced overlapping representation, rivalry, and the periodic

17

fracturing and reconstitution of associations. One outcome has been

that it has been difficult for a single peak body to establish itself as a

united voice for Australian employers (Matthews, 1994). According to

Plowman and Street (1993), this fragmentation has recently

undermined association campaigns to change policy agendas of

governments and unions and reshape the industrial relations system.

However, more recently, Thornthwaite and Sheldon (1996: 195) have

questioned the link between disunity and failure, arguing that in the

last decade at least, disunity enabled employers to voice a variety of

competing and common objectives ... [so that public debate came to

embrace the concepts, and focus only on the precise details of the

changes .

According to Bell (1994), disunity and fragmentation are not necessary

characteristics of employer organisations and in a number of European

countries, business is relatively cohesive. Both he and Matthews

(1994) argue that the State and economic structure largely determine

the shape of associations in different countries. They cite the

fragmented State structure, divisions between export and domestic

industry sectors, and firm-centred business culture in Australia as

reasons for the pronounced disunity of Australian employers. Bell

(1995) adds that the macrostructures of public policy, particularly the

arbitration system and industry protectionism, have reinforced this

associational fragmentation.

There are, however, also forces for cohesion among employers. As

Tolliday and Zeitlin (1991) write, some problems such as the regulation

of labour markets and labour law reform require coordination of firms

to represent interests effectively. For Streeck (1987: 283), employer

solidarity is conditional on the presence of favourable institutional and

economic conditions that induce similar individual responses of their

members and thereby help associations contain the strong centrifugal

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tendencies among their membership. In a similar vein, Bell (1994)

argues that in recent decades, two major sets of challenges to

employer associations have been facilitating greater unity in Australia.

First, the progressive dilution of the traditionally divisive national policy

frameworks of arbitration and protectionism, once major sources of

association activity, has posed associations the challenge to find new

roles in order to retain members. Second, the increasing sophistication

and competitiveness of the policy advocacy environment has pushed

employers to match the intellectual rigour of other lobby groups,

particularly in the provision of solid economic analysis. The result has

been the emergence of three broad developmental strategies which

change relationships between associations and members: the provision

of increasingly sophisticated research-based advocacy by associations;

an expansion of services to member firms; and adoption of quasi-

public roles such as industry self-regulation and assistance to

government in implementing public policies.

In addition, fragmentation of collective activity has been partially offset

by the formation of ad hoc coalitions, in the form of networking and

strategic alliances between associations on key policy issues (Bell,

1995). There is little information on the role of endogenous factors in

accentuating or mitigating employer association disunity and

fragmentation (Plowman, 1987: 29). Endogenous factors include

various aspects of the internal environment such as the calibre,

dynamism and personalities of association leaders, membership

composition, internal government, financial resources, and

interorganisational relationships. Windmuller (1984: 14) has pointed

out that there is universally a strong preference for consensual

decision-making in association affairs and a correspondingly strong

disinclination to let internal differences be exposed to public view.

Typically, controversies are not aired in association meetings,

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decisions and compromises being reached informally beforehand.

However, there has been little scholarly attention to such issues.

Dual membership is one such neglected endogenous factor. The result

of building associations on the basis of organising principles which are

partly overlapping and partly competitive is that there is typically more

than one association representing the interests of any particular

employer. There are no data on dual membership in Australia, but

anecdotal evidence suggests it is not uncommon for employers to

retain membership of more than one association (Evans, 1993). The

impact of this on internal cohesion and inter-association fragmentation

is unclear. Dual membership may, for example, divide loyalties and

confuse lines of representation (Wanna, 1992). However, this depends

on many factors including the reasons for employer membership of

particular associations and whether the policies of associations conflict

or are complementary. For example, if employers belong to

associations with conflicting policies on key industrial relations issues,

their commitment to the policies of one of the associations may be

jeopardised. However, if distinct purposes are associated with

membership of different associations, then conflict between policies

may be unproblematic, or indeed may serve the interests of the

employer, and at the same time, reduce the scope for disunity within

each association.

Dual membership may also facilitate the formation of the coalitions

and increased cooperation between associations to which Bell (1995)

refers. However, this may vary according to employer expectations of

the different associations to which they belong, and the approach they

adopt to policy development within these associations. We argue there

are essentially three approaches which may be adopted: fusion, low-

profile or fission. A low-profile approach involves a firm taking a

relatively passive role in policy-making forums, not actively pursuing

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any particular policy agenda. A fusion approach is characterised by

moderating behaviour, with members seeking to build coalitions

among associations by minimising differences of opinion between

them. In contrast, a fission approach involves pursuing divergent policy

agendas in different associations and widening existing cleavages.

2.1 Overview of Union in Oil and Gas Industry

Nigerian oil workers generally belong to one of two national unions:

NUPENG and PENGASSAN. Both unions organize workers across the

“upstream” (production and refining) and “downstream”

(transportation and retail) sectors of the oil and gas industry, although

NUPENG traditionally represents blue-collar workers and PENGASSAN

speaks for white-collar professionals. While the two are affiliated with

separate national labor bodies— PENGASSAN with the Nigerian Trade

Union Congress (TUC) and NUPENG with the Nigeria Labour Congress

(NLC)—they communicate openly on most issues and have a long

history of cooperation. Internationally, both are members of the

International Federation of Chemical, Energy, Mine and General

Workers Unions (ICEM) the global union federation of energy sector

unions.

Both economic and social factors are putting pressure on union

membership. Oil workers’ attempts to organize non-union workers and

negotiate on behalf of union members have sometimes been met with

police violence (Solidarity Centre, 2010). Yet despite the riches oil

brings to Nigeria, its legacy in the delta is marked by intractable

poverty, corruption, human rights violations, environmental

devastation, and the ever-present potential for community discontent

to fuel large-scale political violence (Solidarity Centre, 2010).

21

Oil employers are generally averse to sectoral wage negotiations and

prefer to decide wages at the company level, rather than at the

sectoral level. One obstacle to sector-wide negotiation is the tendency

for employers to keep information on wages confidential so that they

have more control over wage determination (Fajana, 2005).

The oil industry is the backbone of the Nigerian economy. Nigeria is the

sixth largest producer of crude oil in the world. Its oil industry

generates over 95 percent of the country’s foreign revenue, and about

80 per cent of government revenue. The oil industry alone creates over

65,000 direct jobs in Nigeria, and more than 250,000 jobs in non-direct

employment. Most of the exploration and production of crude oil is

concentrated in the Niger Delta, where six major multinational oil

companies operate. All of them have made joint venture agreements

with the Government of Nigeria, which holds the majority share.

Until March 2005, the government of Nigeria promoted compulsory

union membership at the workplace. In the oil industry this has

resulted in a 60 per cent unionization rate. Oil workers are unionizes by

occupational category: white-collar workers belong to the Petroleum

and National Gas Senior Staff Association (PENGASSAN) and production

workers to the National Union of Petroleum and National Gas Workers

(NUPENG).

These oil industry-wide trade unions affiliate with different national

centres, the Trade Union Congress of Nigeria (TUC) and the Nigeria

Labour Congress (NLC), respectively. There is no employers’

organization to represent the interests of the Nigerian oil industry as a

whole.

22

Prior to 1938, Nigeria had no laws or regulations that guaranteed basic

workers’ rights and trade unions’ rights. In addition to the 1938 Trade

Union Ordinance, the basic laws covering trade union activities are: the

trade Union Act 1973, amended by the Trade Union (Amendment)

Decree No. 22 of 1978, the Trade Union (Miscellaneous Provisions)

Decree No. 17 of 1986 and No. 25 of 1989, and Trade Union

(Amendment) Decree No. 22 of 1996; and Trade Union (Amendment)

Act 2005.

At first glance, the laws in Nigeria seem to recognize freedom of

association, and oil companies appear to respect workers’ basic rights.

However, the right to strike is restricted as any industrial action that

falls within the category of ‘essential services”- which include the oil

sector, is banned. The Trade Dispute (Essential Services) Act 1976,

states that the President can proscribe any trade union or association,

whose members are employed in an essential service, if they have

caused industrial unrest or been involved in acts calculated to disrupt

the smooth running of the essential services.

The government of Nigeria thus makes it difficult for trade unions to

exercise their right to strike. In March 2005, the government amended

the Trade Dispute (Essential Services) Act to bring it in line with ILO

standards. In some area, freedom has been strengthened, but any

industrial action in the oil industry remains categorically outside the

law. Nonetheless, illegal strikes have occurred frequently, with the

state intervening with armed forces.

Iyayi (2009) made an attempt to “fill an important gap in the existing

literature on trade unions by providing a more adequate theoretical

formulation of trade union environments”. However, “unlike the

environment of business and related organizations whose causal

texture is understood in terms of uncertainty, complexity, instability

23

and turbulence” the trade union environment needs to be “understood

in terms of hostility” (Iyayi, 2009).

In the capitalist state, environmental hostility denotes the existence of

a set of subjective and objective barrier conditions that are consciously

erected and sustained for the purpose of limiting labour’s self-

conscious and self-liberating understanding and actions. These barrier

conditions vary in range, density, and scope. Different combinations of

levels of density, range and scope of barrier conditions lead to different

levels of hostility in the environment which may range from the mildly

hostile, through the hostile to the deeply hostile (Iyayi, 2009).

A culture of corruption is embedded in the political and economic

system in Nigeria and this is the biggest obstacle to growth. While the

ruling People’s Democratic Party (PDP) has consolidated its power

since the 2003 elections, powerful economic forces from within and

outside the ruling party remain, and have opposed attempts at reform

(Fajana, 2005). Uncompensated exclusion, which connotes that the

privileged few enjoy ample advantages in the use of natural resources

while the majority is largely excluded. Nigerian workers constitute a

large proportion of the excluded majority (Okafor and Akinwale, 2012).

In Nigeria’s vastly profitable oil and gas industry, the benefits go to a

few stakeholders while the majority is left outside the circle of

prosperity. This isolation from riches has given rise to another term

often used in the Niger Delta—the “enclave economy.” (Solidarity

Centre, 2010).

2.1.1 Industrial Relations in the Oil Sector

Freedom of association and right to organize

Right to strike

Failure to implement the terms and conditions agreed in CAs

24

Workers’ exclusion from company’s decision making process.

Job losses in connection to company restructuring- Shell 2003-04

Lack of local content ExxonMobil strike in 2004.

CAs- negotiated at company level.

On November 18, 2007, the Nigerian military’s Joint Task Force (JTF)

attacked third-party contract workers demonstrating at the Nigeria

Liquefied Natural Gas (NLNG) Bonny Island Terminal (Solidarity Centre,

2010). ILO freedom of association and protection of the right to

organize convention, 1948 (No 87).

The Nigerian government has consistently limited the right to strike in

the oil industry. Some of the relevant legislation may be found in the

Trade Disputes Acts of 1969, 1976 and 1996. The Trade Unions

(amendment) Decree of 1996 made trade union check-off conditional

on a ‘no strike’ clause throughout the lifetime of a collective

agreement.

Indeed, it clearly stated that employers were not to give trade union

dues to the trade union concerned unless union members agreed to

this ‘no strike’ clause. Contrary to ILO convention 87, strikes in the

essential services, including the oil and gas industry are totally

forbidden in Nigeria. Section 9 of the Trade Dispute (Essential Services)

Act, 1976, which lists the economic sectors which fall within ‘essential

services’, includes the oil industry. Subsection (b) refers to ‘any service

established, empowers the President to proscribe violators. Trade

Union (Amendment) Act 2005 makes union membership voluntary; it

introduced a general strike ban in the essential services.

2.1.2Collective Bargaining in Oil Sector

25

In the oil sector in Nigeria, collective agreements are negotiated at the

company level. There are no industry-wide negotiations because of the

inability of the oil employees to come together in collective

negotiations. Some oil employers meet informally to review industry

trends but do not engage in industry-wide collective negotiations with

NUPENG and PENGASSAN national bodies.

Each company and their employees constitute a bargaining unit. Wage

increases and other terms of working conditions are negotiated at the

company level. The outcomes of the negotiations are therefore often

governed by each company’s financial situation. In order to increase

their bargaining power, workers in small and medium-size oil

companies unite to negotiate with their companies- but the large oil

companies’ unions have yet to come up with such strategy.

Collective agreements are valid for two years in the oil industry, and

often include a re-open clause to enable the parties to re-negotiate for

contingencies before the expiration of an existing agreement. States

often intervenes (directly or through her agencies) in industrial

disputes in the oil industry on the grounds of protecting law and order.

Violations of trade union rights are widespread in Nigeria and include:

intimidation of workers; refusal by employers to recognize trade

unions; and dismissal of workers’ representatives for trade union

activities. An increase in the casualisation of workers has made it

difficult to organize workers, particularly in the oil sector. It is difficult

to estimate accurately the number of casual workers in the oil sector.

There are no official records showing the magnitude and trends of

casualisation, and oil companies do not disclose this information. In

Nigeria, oil companies view local contract workers as cheap labour and

they are therefore often found in casual work. They are denied the

right to unionize, have no entitlements, have no benefits or

26

entitlements and their employment terms are unspecified (Ogbeifun,

2004; 25; in Fajana, 2005)

There is considerable disparity between the terms and conditions of

work of expatriate workers and Nigerian workers. The average pay

ratio of expatriate workers to Nigerian workers is about 4:1- often

targets of jealous and protests for improved working conditions. By the

end of the 1980s, many Niger Delta communities began to actively

voice their grievances over poverty and environmental degradation to

the Nigerian government and its multinational oil partners. The

government’s heavy-handed response to these protests foretold its

intentions regarding union activities.

2.2 Unions in Aviation Industry

There is no doubt, the importance of airlines services in the

enhancement of the movement of passengers, freight and

development of the passenger in Nigeria. Remarkably, an airline

service has indeed improved generally in Nigeria. This improvement is

generally tied to the concept of deregulation and globalization that

induce competition regime among the airline operators. Wensveen

(2007) identified a 3 phases period that characterized the level of

airlines services and responsiveness of consumers.

These 3 phases are production, sales and consumer oriented period.

The contextual argument for transition reliably holds in emergence of

changing and dynamics of services and market structure of airline

services to attract market share in a competitive regime. Indeed, it is

worthy to say that airline services have benefited from twin concept of

globalization and deregulation in Nigeria.

27

Prior to deregulation, the Nigeria airline services are characterized of

irregular and ineffective services and were generally shambolic in

nature (Ogunkoya, 2008). The consumer were left with Hobson’s

choice as alternatives do not exist there were limited participant and

no options offered irrespective of the quality of services rendered

(Adeniji, 2000). These were the prevalent features which characterized

the airline services in Nigeria prior to deregulation.

However after deregulation, the airline services in Nigerian witnessed a

new era of growth and advancement. The deregulation regime offered

an increased interest and investment in the more dormant Nigerian

aviation industry. As more airlines entered the market, an enhanced

investment in fleets of aircraft to retire the old and risky fleet also to

imbue confidence in the market. The services offered witnessed a

turnaround as market driven innovations came to bear to attract more

passengers. The corollary of this is the emergent of varieties of

services to suit all categories of air travelers which were never a

feature of the industry.

In addition, the air service in the domestic and international terminal

recorded tremendous changes as compared to the old. Also, foreign

airlines use the nation’s terminals as hubs for flights operations within

and without the continents. On the other hand, the domestic

operations of airline services benefited from deregulation and

privatization as consortium invested in terminal development. The

improved facilities and amenities offered in the new terminal

engendered improved services to the passengers.

Indeed, the airline services in Nigeria after deregulation witnessed an

improved, standardized services compared to the period before

deregulation.

28

The principal functions of the federal Airports Authority of

Nigeria (FAAN) are to:

Develop and maintain all the airports within the Nigeria territory

provide accommodation and other facilities for effective handling

of passengers and freight.

Development and provide facilities for ground transportation.

Prohibit the installation of structure which by virtue of its high

position is considered to endanger the safety of air navigation.

Provide adequate conditions under which passengers and goods

maybe carried by air and under which aircraft may be used for

other gainful purposes.

Charge for services provided by the authority at airports.

Carryout at airports (either by itself or by agent or in partnership

with any other person) such other commercial activities which

are not relevant to air transport but which in the opinion of the

Authority maybe convenient without prejudice to specified

functions.

Provide adequate facilities and personnel for effective security at

all airports.

Create conditions for the development in the most economic and

efficient manner of air transport and the services Connected to

it.

Managements’ difficulties are usually analyzed on a total industry

basis, with sight more often than not being lost of the individual

components of the industry. Similarly, all unionized employees are

treated as "labour," even though wide disparities exist in the functions,

29

responsibilities, compensation, and strength of the 82,000 employees

involved. (Henzey)

A strike threat has potency in aviation far greater than it does in

industry generally. In many businesses, a strike threat produces a

spurt in sales as the public stocks up on the product which may

become unavailable if the strike occurs. If the strike does not occur,

the employer may actually have gained additional revenue. If it does,

however, the stockpiling greatly limits, or averts, any ultimate loss.

Airline travel, however, cannot be stockpiled in this way.

The advent of jet aircraft has exacerbated many of the problems of

airline labor relations. Small airline unions beset by fears of

technological unemployment or dislocation will probably consolidate in

order to protect their position. Accordingly, the Teamsters may make

substantial inroads unless union-management friction can be

minimized or the larger airline unions attempt to forestall this

penetration of the air industry. Management, meanwhile, will continue

to look to such measures as "mutual aid" to meet with such powerful

unions as the ALPA, the IAM, and the TWU on more equal terms. If

management is successful in this endeavor, however, some labor

quarters may invite greater government intervention in, and perhaps

even outright regulation of, airline labor relations.

Airline labor negotiations take 1.3 years, on average, to conclude, and

about half go into Federal mediation; much of the variance in the

duration of negotiations can be attributed to which particular airlines

and unions are bargaining, not to economic conditions. Most

interesting is the fact that the identities of the bargaining parties are

the major predictors of the duration of negotiations. There is noticeable

variation across carriers and unions in the average negotiation time

(Von Nordenflycht and Kochan, 2003).

30

Nigerian Aviation’s Economic Benefits

Air transport to, from and within Nigeria creates three distinct types of

economic benefit; contribution to GDP, jobs and tax revenues

generated by the sector and its supply chain. But the economic value

created by the industry is more than that. The principal benefits are

created for the customer, the passenger or shipper, using the air

transport service. In addition, the connections created between cities

and markets represent an important infrastructure asset that

generates benefits through enabling foreign direct investment,

business clusters, specialization and other spill-over impacts on an

economy’s productive capacity.

Contribution to Nigerian GDP

The aviation sector contributes N119 billion (0.4%) to Nigerian GDP.

This total comprises:

N59 billion directly contributed through the output of the aviation

sector (airlines, airports and ground services);

N34 billion indirectly contributed through the aviation sector’s

supply chain; and

N27 billion contributed through the spending by the employees

of the aviation sector and its supply chain.

In addition there are N78 billion in „catalytic‟ benefits through

tourism, which raises the overall contribution to N198 billion or

0.6% of GDP.

Major Employer

The aviation sector supports 159,000 jobs in Nigeria. This total

comprises:

31

44,000 jobs directly supported by the aviation sector;

64,000 jobs indirectly supported through the aviation sector’s

supply chain; and

51,000 jobs supported through the spending by the employees of

the aviation sector and its supply chain.

In addition there are a further 130,000 people employed through

the catalytic (tourism) effects of aviation.

Contribution to Public Finances

The aviation sector pays over N8.5 billion in tax including income tax

receipts from employees, social security contributions and corporation

tax levied on profits, with a further N17.0 billion of revenue coming

from VAT on domestic and international flights originating in Nigeria. It

is estimated that an additional N8.9 billion of government revenue is

raised via the aviation sector’s supply chain and another N7.1 billion

through taxation of the activities supported by the spending of

employees of both the aviation sector and its supply chain (Oxford

Economics, 2012).

22 airports managed by FAAN; 4 privately owned and 6

international airports

62 federal and several privately owned airstrips

10 scheduled domestic airlines with 3 Nigerian Airlines operating

on International Routes and 21 Foreign Airlines operating in

Nigeria

Passenger traffic growing at CAGR of 17.6% -

14.6m passengers in 2011

Concentration of passenger and cargo traffic in the international

airports.

Lagos alone accounts for >50% of air travel.

Lagos, Abuja and Kano Airports are able to cover their operating

costs.

32

90% of revenues in 2011 from Lagos and Abuja.

We have made significant improvement in infrastructure, but our

airports still rank low compared to other African countries.

2.2.1Challenges of airline services in Nigeria

In spite of all the improvement and innovation accompanying the

deregulation and privatization of airline services in Nigeria however,

there are some challenges still prevalent in the system. For instance,

some challenges as inadequate stand for airline users, flight

information and public address systems echoes, poor customer

relations, flight delay, missing luggage and personal items and security

issues.

The Nigerian airline industry needs huge investment in both

infrastructure and operational characteristics to further buoy the

growth in the industry because most of the facilities at the airports to

enhance airline services are dilapidated. The air navigation services

and equipment need complete overhauling and replacement with

modern devices to improve airline services in the country.

Similarly, the existing metrological equipment ought to be modernised

to impinge efficient airline services in the country. The institutional

reform ought to fully capture the entire segments of the Nigerian

aviation industry. The present intervention does not cover the entire

segments of the industry. In this light, there is need for the

bouleversement of all the institutions regulating the Nigerian aviation

industry for optimal airline services and the development of the

Nigerian aviation industry.

Remarkably, the impacts of the airline services under the present

reform in the Nigerian aviation industry cannot be overemphasised

when compared to the prevalent situation prior the reforms in the

33

Nigeria aviation industry. Indeed, the sector has witnessed a

tremendous innovation in airline services delivery. Moreover, the

sector has attracted investments leading to infrastructure and facilities

refurbishment, competition induced service products varieties to catch

the attention of consumers and all travellers alike making use of airline

services in MMA2 in Nigeria.

3. Main Body of the Work

In Nigeria, there is no employers’ organization completely representing

the Oil and Aviation industry. Efforts were made to form Petroleum and

Natural Gas Employers’ Association (PNGEA), as well as an Oil

Producers' Trade Sectors (OPTS), and Aviation Industry but none of

these efforts made were successful.

There is, however, a coordinating body of oil employers among the

members of the Nigeria Employers' Consultative Association (NECA),

which has no capacity for maintaining industrial relations with its

counterparts.

The following can be seen as the reasons behind non-existence of

employers’ association in Oil and Gas and Aviation Sector can be seen

as follows:

Air transport is the main transport mode for tourists, high-value

exports and imports; and perishable goods. The service has the

potential to facilitate economic growth. Expansion and

modernization of the aviation industry capacity is, therefore, vital

to the growth of the Nigerian economy.

The Federal Government enacted the Civil Aviation Act with the

aim of making the Nigerian Civil Aviation Authority autonomous

with increased funding.

34

Each of this Oil Sector negotiates with the NUPENG AND

PENGASSAN in-house. There is no joint agreement done by all

organisations with their unions.

No central employers body to harmonize the agreements done

by each house union

The employers have no interest in forming unions because they

believe organising any union is like inviting radical to the system

They do not want to divulge their trade secrets to other

employers in the same line of business

In his themselves are not so serious in pushing them to

harmonize their decision for the industry as a whole.

In oil sector there are strong employees unions but no employers

union.

They think employers’ association has the same attribute with

the trade union.

They see union has a treat to organisation.

There is an act that provided back up for both trade union and

employer association.

In terms of the registration, both trade union and employers’

association

Labour Act makes employer Association a Trade union “they

shared the same registration Act”.

They are registered under trade union Act.

Ministry of labour also treat employer association like trade union

Multinational firms do not allow association (they prefer to pay

employees well, give employees good welfare system so that the

employees won’t think of any union) thus, they find it irrelevant

to form any form of association.

Also in aviation industry was dominated by government

employer before recently when we now have private owners in

the sector

35

There is belief in aviation sector before now that Trade union in

the sector is weak.

In Oil and Gas sector, there is an effective labour management

relation.

In Oil and Gas industry, there is social partnership between staff

and management.

In this industry, their ideology is not a revolutionary ideology.

4. Recommendation

It is recommended that employers in oil sector should endeavour to

form combinations for the purpose of achieving industry-wide

bargaining which many have argued would engender enduring

industrial peace in this strategic sector of the Nigerian economy.

More so, both the NUPENG and PENGASSAN should always encourage

and engage in social dialogue and collective bargaining to resolve their

problems with management in the spirit of give and take.

NUPENG and PENGASSAN demands should be backed up with facts and

figures and should avoid adversarial and confrontational strategies in

negotiations with management at all times if enduring industrial

harmony and sustainable national developments are to be realized.

Responsibility of partners to ensure good industrial relations, unity and

productivity in the oil sector. Oil employers should support each other

by uniting in one employers’ organization, so that they might work

together with their counterparts, as should the employers of national

and multinational oil companies; the existing Oil Producer’ Trade

Sector could form the basis for an employers’ organization in the oil

industry.

36

Government- father of all; more active role. The 50-plus-year focus of

Nigerian and international oil elites—accessing and exporting the

delta’s oil and gas for profit—has consistently relegated community

level economic demands to a low priority. As a result, decades of

community anger and simmering local disputes over oil have escalated

into violent confrontations (Solidarity Centre, 2010).

Trade Unions- give and take; hardline posture. See each other as social

partner- engage in social dialogue, partners in progress, promote

regime of CA and joint consultation, discussions done in good faith,

share information.

Measures appropriate to national conditions shall be taken where

necessary to encourage and promote the full development and

utilisation of machinery for voluntary negotiation between employers

or employers’ organizations and employees with a view to the

regulation of terms and conditions of employment by means of

collective agreements (Okafor and Akinwale, 2012).

The ILO should seek to ensure that workers’ rights to strike and their

entitlement to freedom of association are being maintained in the oil

industry, particularly in the context of the signing of recent partnership

agreements which may run counter to such rights. (Forde et al, 2005).

5. Conclusion

This study have examined employers’ associations, their structure and

functions and services that are similar to those of trade unions of

workers - economic, social, educational, managerial, that led to the

formation of industrial employers’ association, manufacturers’

association and Nigerian Employers’ Consultative Association as well

as the reason why there is no employers association in Oil and Aviation

37

Industry. Though, NECA’s role among its members is consultative, as it

does not enforce its advice on members, it is playing a credible role in

industrial relations system in Nigeria.

Employers have their central organisations to deal with their collective

interests. Currently, three of such central organisations exist the

Nigerian Association of Chambers of Commerce, Industry, Mines and

Agriculture (NACCIMA) which is the central organisation for employers

with identical interest in trade and commercial activities and matters

directly related to them; the Manufacturers' Association of Nigeria

(MAN), the central organisation which deals mainly with production and

matters relating to manufacturing in general; and the Nigeria

Employers' Consultative Association (NECA) which is the central

organisation of employers dealing mainly in personnel management

and industrial relations. These central organisations have different

purposes, and their functions and those of the Industrial Employers'

Association are inter-related and complement one another.

For example, NECA has so far played an important and enviable role in

the development and conduct of industrial relations, the development

of employers' associations and the use of collective bargaining in

Nigeria. The association has nurtured industrial relations system in the

country to the extent that it has been able to define the relative duties

and responsibilities of workers, through their trade unions, employers

and the government, and also to define and set up power and

authority relationships.

The system has been able to control and keep within tolerable limits,

the responses of workers, trade unions and management to the

dislocation, frustration and insecurities inherent in our industrialisation

process. It has established rules, practices and regulations, both

substantive and procedural, which are pre-requisite to each

38

establishment and industry. Although trade unions and employers

claim at all times to be 'partners in progress', in practice, the dealings

among the three parties to industrial relations - government, unions

and employer - seem to be more of 'adversaries in diversity' than

'partners in progress'.

It is anticipated that with NECA's advice and guidance, the parties

would be able to see the common challenges facing them all, address

themselves to those challenges, and cooperate in their own best

interest and in the larger interest of the country's economy. It is

anticipated that in the years ahead, the parties will emphasise and

pursue their common goals rather than individual and separate

interests.

The future should witness an era of co-operation rather than conflict.

The continued encouragement of employers to form industrial

employers' associations, accept and practice the principle of collective

bargaining and undertake realistic and objective negotiations with their

employees' unions will also help to improve, consolidate and develop

further the gains the association has made so far in this regard. The

principle of collective bargaining and decision-making by

representative government associated with industrial employers'

association will actually influence and change the unorthodox,

confrontational and antiunion attitude of some employers and lead to

better union/management relations.

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