COLLECTIVE BARGAINING EXERCISE AND WORKFORCE COMMITMENT IN NIGERIA (A CASE STUDY OF SELECTED COMMERCIAL BANKS IN PORT HARCOURT)

CHAPTER ONE

INTRODUCTION

1. 1. BACKGROUND OF THE STUDY

Organizational viability is the capacity of the organization to continue to service and develop in this era of business complexities which banking result from continuous and rapid changes within the social system, conflicts and dispute, whether in the form of open hostility or quite dissemination becomes inevitable issues that every banking organization must strive to curtail this pertinent because dispute or conflicts are usually a threat to organizational viability if not adequately managed or handled even though conflicts between persons or management and employees could be thought of as natural events Nakodi A. (2001) posited that organization should be very much aware that such conflicts could cause distrust and organizational crises or disharmony in the long run Conflicts or disputes among management and employees (labour) can lead to one or both parties having their feelings hurt, thus leading to issue that can inherently affect the smooth running of the organization in which they work or manage. By its very nature, collective bargaining is democratic and as such introduces organizational democracy in the workplace. Through elected representations, workers make direct and significant count in the functioning of the organization, thus reducing employer’s unilateral actions and at the same time managements still allowed its legitimate rights and privileges to control the organization. The democratic nature of collective bargaining is that people in work relations are left to manage their own affairs, provided no damage is done to important general interest while doing so. In the process, employee job productivity and organizational goal attainment is ensured. On the other hand collective bargaining exercise can serve to enhance the effectiveness of an organization since it can safely be assumed that conflicts although ever present in a social system, may not always be as destructive as they are portrayed, the central question among a lot of scholar human resources managers and of course employers of labour is how to, in their own varying capacity and abilities effectively and efficiently manage conflicts and its resolution to ensure that their organization benefit rather than suffer from occasional labour management clashes. Admittedly, organizational conflicts do erupt in organization because of the inability of employer and this or her employees to work together in peace. This may be as a result of ineffective communication, non-exclusion in decisions that affects employees, or lack of adequate or good working conditions or incentives and non existence of unions that employees can channel their grievance through, thus collective bargaining as a tool allows the parties.   There is need for the two parties to meet regularly so as to identify the dissonance that exists between them amicable so as to prevent organizational dispute or conflicts.

1. 1. STATEMENT OF PROBLEM

The need for a conducive work environment, cordial relationship between the three actors in industrial relations (labour, management and the government) and how to promote and maintain employee job satisfaction and productivity has engaged the attention of the management of both public and private organizations. This is because; it is a fact that these variables are very crucial to the survival of every organization. A close look at these variables suggests that Labour - management relations is a crucial factor that may determine or influence the other variables. One basic feature of the components of an organization is varying interests. Every stakeholder in an organization has his/her interest which normally may differ from other stakeholder’s interests. The extent to which these interests are harmonized and satisfied determines the extent to which the organizational climate/environment is conducive for team work and maximum production. These interests are often realized through collective bargaining - an instrument in labour/management relations which allows both management and workers to discuss issues and take joint decisions that will ensure the survival of the organization. However, there have been growing sensitivity and concern over the dismal performance of the Nigerian commercial banking sector, thus, the number of reforms aimed at repositioning it - giving it a greater capacity to perform. In spite of these reform measures, there has continued to be the unlikelihood of the attainment of the purposes for which the Nigerian banking sector was established. On the other hand, there is a strong conviction of the role the central bank of Nigeria can play in enhancing the performance and repositioning these commercial banks. However by acts of commission or omission, the Nigerian commercial banks have not done much in enhancing organizational performance. The central bank of Nigeria should be ideally mobilizing their members toward higher productivity. While this condition holds in the private sector, it hardly does in its public counterpart.

1.3. AIMS AND OBJECTIVES OF THE STUDY

The major aim of the study is to evaluate collective bargaining exercise and workforce commitment. Other specific objectives are as follows;

1. To examine the extent to which collective bargaining in commercial banks has helped to ensure organizational peace.
2. To examine the extent to which collective bargaining exercise has helped to ensure employee commitment to optimal job productivity.
3. To examine the extent to which the commercial banks has used collective bargaining to enhance organizational performance.
4. To examine the effect of collective bargaining exercise on the workforce commitment of the commercial bank staffs.
5. To examine the relationship between collective bargaining and workforce commitment in commercial banks.
6. To provide appropriate recommendation and suggestion for future resolution of organizational disputes and industrial actions. 

1.4. RESEARCH QUESTIONS

1. To what extent does collective bargaining in commercial banks helped in ensuring organizational peace?
2. To what extent does collective bargaining exercise helped ensuring employee commitment to optimal job productivity?
3. To what extent has the commercial banks used collective bargaining to enhance organizational performance?
4. What are the effects of collective bargaining exercise on the workforce commitment of the commercial bank staffs?
5. What is the relationship between collective bargaining and workforce commitment in commercial banks?
6. What are the appropriate recommendation and suggestion for future resolution of organizational disputes and industrial actions? 

1.5. RESEARCH HYPOTHESES

H01: There is no significant effect of collective bargaining exercise on the workforce commitment of the commercial bank staffs.

H02: There is no significant relationship between relationship collective bargaining and workforce commitment in commercial banks

1.6. SIGNIFICANCE OF THE STUDY

This study is expected to make new contributions to the literatures on collective bargaining exercise and workforce commitment in the banking sector. Specifically, it will help create industrial harmony, promote peace and cordial relations amongst the stakeholders that will engender improved performance of the employees, overall performance of banking sector and the Nigerian economy in general. Therefore, it becomes obvious that this study will provide data that will improve the employees’ job satisfaction that propels them to improve on their level of productivity in the banking sector. The study will also provide data that will enhance the organization’s performance and therefore reduce the frequent cases of strikes, disputes and work stoppages and loss of funds. It will radically improve the performance of the banking sector which will in turn contribute to the revenue generation of Nigeria. The study is significant to the government as it formulates labour reforms and policies that would be widely accepted and would be of international standards in the country. It would also enable the government promote industrial harmony between the government and its employees. The study will also be significant to the various trade unions in the country as it would educate its members and leaders on the principles and practices of collective bargaining in the banking sector. To a large extent, the study will be of immense benefit to all stakeholders in the private sector, as it would suggest ways on how to address or avoid organizational conflicts. This study will provide a background on further research studies in this area that will bring benefits to the banking sector of Nigeria.

1.7. SCOPE OF THE STUDY

The study is restricted to collective bargaining exercise and workforce commitment: case study of selected commercial banks in Port Harcourt.

1.8 LIMITATION OF STUDY

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.8 DEFINITION OF TERMS

Collective Bargaining: Good-faith process between an organization's management and a trade union representing its employees, for negotiating wages, working hours, working conditions, and other matters of mutual interest. To the management, this process presents (usually) one set of people to negotiate with; to the employees, it gives greatly enhanced bargaining-power. Collective bargaining is the fundamental principle on which the trade union system is based.

Exercise: An activity carried out for a specific purpose, putting into action, use, operation or effect.

Workforce: Total number of employee (usually excluding the management) on an employer's payroll.

Commitment: Is something which regularly takes up some of your time because of an agreement you have made or because of responsibilities that you have.