Collective Bargaining As A Tool For Industrial Harmony In 7Up Bottling Company Plc

Project and Seminar Material for Industrial Relations and Personnel Management

Collective Bargaining As A Tool For Industrial Harmony In 7Up Bottling Company Plc


This research project tends to examine Collective Bargaining as a Tool for Industrial Harmonyin 7up Bottling Company Plc.

Survey design was employed with the use of a well structured questionnaire. Respondents were selected based on simple random sampling technique. Sample size of One Hundred (100) respondents were selected from the staff of 7up Bottling Company Plc.

Three hypotheses were formulated and tested with the use of Chi-Squre analysis. The analysis resulted to rejecting all null hypotheses and hence accepting the three alternate hypotheses.

Based on decisions of the tested hypotheses conclusions were reached thatCollective bargaining has effect on industrial harmony in 7up Bottling Company; There no relationship between collective bargaining and performance; Management of industrial conflict does lead to performance. It was recommended that every organization must try to hold strong collective bargaining to enhance organizational harmony.

Chapter One


1.1 Background Of The Study

Once an organization is set up, there are bound to be conflict in term of (wages, rates, employment condition etc) and when this arises, collective bargaining is the only method in resolving the matter. Collective bargaining is generally recognized as a central feature of organization productivity and normally means of regulating contract of employment and settling grievances that are bound to occur from time to time.

Pertaining to the rate of employee productivity, because of this symbol which has the integrative rule of negotiation and agreement, all parties (employer and employee) ran towards it for the safety and betterment description. Any organization without conflict and collective bargaining is as good as dead. It is an area where the displacement of individual workers, such as (weakness, lack of strength) are effectively based upon. It also attempt in order to effect better changes in conditions of employment and also replaces it with hardworking, dedicated and experienced workers, when the non-dedicated workers are been thrashed out by their union or employer

In essence, collective bargaining covers all arrangements in which employee do not negotiate individually, but negotiate collectively through representatives for instance Academic Staff Union of the University (ASUU) because it is their representatives that will carry out their function with a genuine manner.

Negotiation should not be left out and taking an agreement as a room, while negotiation will stand for key to the room. These two processing are perfectively recognized in order to make a collective bargaining perfect. Any negotiation that does not result into agreement is an incomplete argument.

This collective bargaining does not stop at the stage of negotiation, it extend to the stage of agreement which inevitable must be jointly signed by both parties i.e. workers and employers.

1.2 Statement Of The Problem

Collective bargaining is a negotiating process between the employers and employees or their association on issues concerning terms and conditions of employment.

Most of the conflicts that has been occurred in organization has been adduced to ineffective or breakdown of collective bargaining machineries. A lot of man working hours and revenue has been lost due to crises in organization, it perceived the other parties co-exists and collectively take’ decisions that affect both the organization and individual in the organization negatively for instance, (Nafdac new law on pure water sachet).

1.3 Objectives Of Study

The main objectives of this study are to highlight the importance of collective bargaining as a tool for industrial harmony in manufacturing companies generally. Specifically, the study is designed to achieve the following objectives:

  1. Examine if collective bargaining will increase efficiency in an organization
  2. Evaluate the effect of collective bargaining on workers
  3. Examine the contribution of the NLC in the settlement of industrial disputes/conflicts through collective bargaining process.
  4. Identify and proffer solutions to the problem encountered by the Nigeria Labour Congress in the course of reaching any bargaining agreement with employers
  5. Provision of strategic approach is the case study industrial union to the settlement of strikes, disputes or grievances using collective bargaining as the cornerstone.

1.4 Research Questions

The research study would provide answers to the following questions:

  1. Can collective bargaining improve the performances of employee in an organization?
  2. Can collective bargaining split out the influences of employer and management separately?
  3. Can the industrial development history of work from the cradle till the present, point significant features of collective bargaining?
  4. Can the relationship of collective bargaining in terms of policy and strategy cover the whole organization productivity without hesitation or doubting?
  5. Been a mechanism for organizational productivity, can collective bargaining achieved its targeting goal through the medium of productivity?

1.5 Statement Of Research Hypotheses

To achieve the aforementioned objectives, the following hypothesis will be postulated and tested for their validity.

  1. Ho; Collective bargaining has no effect on industrial harmony in 7up Bottling Company.
    H1; Collective bargaining has effect on industrial harmony in 7up Bottling Company.
  2. Ho; There is no relationship between collective bargaining and performance.
    H1; There no relationship between collective bargaining and performance.
  3. Ho; Management of industrial conflict does not lead to performance
    H1; Management of industrial conflict does lead to performance

1.6 Research Methodology

Research is of utmost important in personnel management. It is necessary, if we are to go beyond mere speculation to obtain concrete evidence, which allows us to describe and explain events. Research efforts are designed with the goal of contributing to the existing knowledge on a particular field. (Babalola, 1998).

Research methodology refers to the various steps’ to be adopted by a researcher, i.e. it deals with procedures to be adopted for data collection and analysis. The research work used both primary and secondary data. For the primary data the research instrument, that was used for data collection is the questionnaire method. The secondary data includes consultation of relevant text books, journal, newspaper as well as other publications. The responses of the questionnaire will be analyzed using simple percentage while the hypothesis was tested with chi-square table

The formula for the chi-square is stated as follows

X2 = ∑(oi – ei)/ei


  • X2 = Chi-square
  • Oi = Observed frequency
  • ei = Expected frequency
  • ∑ = Summation

1.7 Significance Of The Study

  1. The study will match the employee abilities with the job requirement and organizational need
  2. The research work will enhance organization to the standard of visibility and transformation processing.
  3. It will create the motion of awareness to the fundamental and also develop the principle of an organization.

1.8 Scope And Limitation Of The Study

This study was limited to manufacturing companies operating in Lagos State particularly in Beverages production between 1990-2014. The scope of this research was restricted to 7up Bottling Company in Lagos State due to financial constraint on the research. In carrying out the research certain limitation were suggested. The major ones are the un-corporative attitude of the company toward filling the questionnaire and answering oral questions, so a lot of time was spent in making repeated calls to a particular company.

1.9 Organization Of The Study

The study will be organized into five (5) chapters as follows:-

Chapter one focused on the introduction including statement of the problems, significance of the study, statement of research hypothesis, scope and limitation of the study.

Chapter two focused on literature review, chapter three focused on structural composition and theoretical framework of the study, chapter four also focused on data analysis and discussion of result while chapter five focused on summary of findings, recommendation and conclusion of the study.

1.10 Definition Of Terms


Is a person or company that employs people into an organization. It also has the right to carried out the organizational function with rule and protocol.


Is a group of people working in an organization for a return, basically on wages and salaries.


This can simply be defined as a particular piece of work assigned of by an employee in an organization


Is the act of planning and how it is effectively innovated with purpose of functioning.


It is common in between the representative of employee and employer in order to reach total conclusion.


It is a device of both ’employee representatives and employer in order to reach a motion of doubting and coming to an agreement with having a total conclusion on their matter arising. If the matter is not yet reaching an agreement, it is not a collective bargaining while it is also known as incomplete bargaining.

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