Impact Of Collective Bargaining Techniques On Industrial Relations Practice (A Case Study Of Two Selected Firms From NUPENG And NUBIFE)

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Impact Of Collective Bargaining Techniques On Industrial Relations Practice (A Case Study Of Two Selected Firms From NUPENG And NUBIFE)


This study was therefore directed towards finding out the impact of collective bargaining techniques on industrial relations practices in Nigeria with two selected firms as the case study. Collective bargaining in organizations is evitable and it is because of this that this research was carried out in other to find out how agreement can be reached between the parties involve in other to have a smooth bargaining process. This work is arranged in chapters and subchapters as follows,

  • Chapter one: this introduction of the study, the background of the study, The statement of problems, the purpose, the research question and hypothesis, significance, scope or delimitation of the research and the definition of terms.
  • Chapter two: this review other authors’ works on the topic.
  • Chapter three: This describes the various method adopted in data collective and analysis.
  • Chapter four: The focuses on this chapter are on the observation of finding and interpretation of the results of the research investigation.
  • Chapter five: This deals with the necessary summaries, conclusion of the work and finally the researcher on the presence of management in the company

Table of Contents

Preliminary Page(s)

  • Title page
  • Approval page
  • Dedication
  • Acknowledgment
  • Abstract
  • Table of contents

Chapter One

1.0 Introduction

  • 1.1 background of the study
  • 1.2 Statement of problem
  • 1.3 Objectives of the study
  • 1.4 Research question
  • 1.5 Statement of hypothesis
  • 1.6 Scope of the study
  • 1.7 Limitation of the study
  • 1.8 Definition of terms

Chapter Two

2.0 Literature Review

  • 2.1 Introduction
  • 2.2 Brief history of collective bargaining in Nigeria
  • 2.3 The factures of collective bargaining
  • 2.4 Existing mechanism for collective bargaining
  • 2.5 Stage and process of collective bargaining
  • 2.6 Collective bargaining structures

Chapter Three

3.0 Research Design and Methodology

  • 3.1 Introduction
  • 3.2 Research design
  • 3.3 method of data collection
  • 3.4 Population and sample size
  • 3.5 Sample techniques
  • 3.6 Validity and reliability of measure instrument
  • 3.7 Methods of data analysis

Chapter Four

4.0 Presentation and Analysis of Data

  • 4.1 Introduction
  • 4.2 Presentation of data
  • 4.3 Analysis of data
  • 4.4 Test of hypothesis
  • 4.5 Interpretation of results

Chapter Five

5.0 Summary, Conclusion and Recommendation

  • 5.1 Introduction
  • 5.2 Summary of findings
  • 5.3 Conclusion
  • 5.4 Recommendations
  • 5.5 Suggestion for further studies
  • References
  • Appendix 1
  • Appendix 2

Chapter One

1.0 Introduction

In the environment, there is away need for workers and employers to agree on certain terms which will enhance work in that environment.

Therefore, the tool, which we used in other to reach this agreement respectively, is known as collective bargaining techniques.

Base on this we can now look at the term collective bargaining techniques, its type, then how it assist in promoting individual relations practice, the problem encountered when this techniques are use and then lastly, how this problem can be used.

DEFINITION: Collective bargaining according to Flanders (1970) can be defined as a social process that continually turns disagreement into agreement with an orderly fashion. Also according to chamberlain and Kuhn (1965) it is the political relationship in which trade unions share industrial power or sovereignty over those who are governed by the employees. From this definition, we can now see collective bargaining as the process or system by which employers and employees as a whole.

1.1 Background of Study

This means it is a system established by negotiation in other to take decisions concerning the various organizations.
Issues discussed during collective bargaining include condition of service of the workers, polices of the organization, relationship between the organization and its customers, relationship between the organization and the government lastly, relationship between the organization and the rules and regulation of the environment. This issue varies depending on the policies of the organization. It is based on these issues that items like, housing allowance, medical allowance, transport allowance, welfare allowance etc are decided by both parties in the collective bargaining process. This means organization chose any type of items and issues that will enable them boost the earning of their negotiations.

Therefore, collective bargaining provides frameworks with which the views of management and unions about disputed matters that lead to industrial disorder can be considered with the aim of eliminating the causes of disorder in the organization. It can also be seen as a joint regulating process, dealing with the regulation of management in its relationship with work, people, as well as the regulation on condition of employment. This means it has a political as well as an economical basis, which means both sides are interested in the distribution of power between them as the distribution of income.

It can also be seen or regarded as the exchange relationship in which wage work bargains take place between employers and employees through the agency of trade union. This means, trade unions, as agent has been to offset the inequality of individual bargaining power between the employer and employee. Collective bargaining techniques can be carried out in several types includes.

  1. Integrative collective bargaining techniques: This is the process which involves creating a cooperate negotiating relationship which is aimed at bringing both parties to a common ground. Here both parties win rather than face a win- lose situation
  2. Distributive collective techniques: This process is introduce when labor i.e. workers, and employers i.e. management are in disagreement over the issues in contract such as wages, benefits etc. this type enable one party to achieve its aim at the expenses of the other party. This means it makes such that there is peace but at the expenses of the other party.
  3. Concessionary collective bargaining techniques: This process is introduced in other to solve problem of mass layoffs, bankruptcy which the organization face. This means, it is a process by which agreement is reached between the employers and the employees in other to reduce the various economic problems in the organization.
  4. Productivity collective bargaining techniques: This reaching agreement on how to improve the effectiveness of the organization through the elimination of work rule and inefficiency work method that hinders productivity.

Therefore these techniques have in one problem or the other associated with it. For instance, distributive collective bargaining as techniques of collective bargaining does not always bring peace, most a times not used because problem still continue after reaching on agreement that loose. Also in integrative collective bargaining it is hard for the parties to come to a common ground because during the negotiation some issues will become a problem.
In productivity collective bargaining, the aim of their parties might be to improve productivity by introducing new techniques of improve work in other to enhance efficiency at the expense of the employees, while their employees might aim at improving work in any form, here they may want to work with less techniques so that their labour will be educed and their wages increases, this now becomes problem with this particular techniques when it is introduced.

1.2 Statement of Problem

Collective bargaining techniques in Nigeria and its practice on industrial relation have not been carried out successfully, it has encountered series of problem at any particular moment each techniques is applied but recently the problems encountered include.

Firstly, during collective bargaining, it is hard for management and labor to come to an agreement, this is because management may have its aim, which might be better improvement of organization and profit maximization while labor has its aim of having a better working condition which might be seen in the form of improved welfare scheme etc this is a problem because management and labor most a times do not agree on a particular issues. Therefore, this work will aim at providing better techniques that management and labor will follow in other to reach on agreement.

Secondly, during negotiation between labor and management the agreement reached by both parties do not promote industrial relationship practice in Nigeria, therefore this will aim at providing a better way in which these agreement reached can promote industry relation practice in Nigeria.

Lastly, when collective bargaining is use in organizations, it does not favor the employees or the employers. For instance it might favour the employees or the employers on the other hand, therefore this work will aim at providing a way so that collective bargaining will impact positively on the parties involve in the negotiation.

1.3 Objective of the Study

This work will aim at providing solution to various problems.

This means it will look at the following;

  1. To examine how the union can have effective and efficient negotiation by employing experienced and efficient consultants training the inexperienced ones so that negotiating will be carried out effectively.
  2. To evaluate how successful collective bargaining can be reached by both parties involve
  3. To find out how collective agreement reached by both parties can be observed by the parties to whom they apply.
  4. To also identify how the various organization can be brought together to a common grounds in form of the organization adopting one policy made by the unions or allowing the unions interest to supersede that of the organization.
  5. To investigate and find out how collective bargaining techniques assist in promoting industrial relations practice in Nigeria.

1.4 Research Question

This work will try to look at the various problem associated with the use of collective bargaining techniques in various organization.

Then it will try to provide solution to the various questions below;

  1. What are the problem encountered when representatives are inexperience and inefficient?
  2. What are the problems that result when various polices are involved?
  3. What are the reactions of the union when both parties do not observe agreement?
  4. Can management and labor reach an agreement that will favour both parties.
  5. Will there be an effective statement that will bring management and labor at a common ground?
  6. Lastly how do actors in industrial relation react to collective bargaining techniques?

1.5 Statement of Hypothesis

Hypothesis 1
  • HO: The use of collective bargaining techniques in Nigeria is not significantly related to the achievement of industrial harmony.
  • HI: The use of collective bargaining techniques is significantly related to the achievement of industrial harmony.
Hypothesis II
  • HO: The level of industrial harmony in Nigeria is not dependent on collective bargaining process.
  • HI: The level of industrial harmony is dependent on collective bargaining process.

1.6 Significance of the Study

This work will be impotent to two different organizations. It will reveal to the employers and employees the various ways by which negotiation is carried out by both parties, it is also reveal to management the various ways they can present their issues during negotiation and to the workers the various tactics they should employ during negotiation in order to win in the process.

This work will also provide solutions in terms of integrating unions’ interest in the organization rather than organizational interest. This is because most of the organization, always prefer their policy and issues instead of the union policy because it helps to motivate their workers in order to work more, which means it is favorable than union policy.

Also recommendation from this work will lead to a better and smooth collective bargaining techniques that are properly implemented, it will lead to workers been motivated so that productivity can increase so that Workers and management should be at peace at last.

1.7 Scope of the Study

As a result of time factor, this study does not last for long, during the course of this study, an in depth study of two companies from national union of petroleum exporting and natural gas workers (NUPEN) and national union of banks insurance and financial institutions and employees (NUBIFE) will be carried out.

This firm from NUPENG and NUBIFE are total Nigeria plc and bank of Nigeria plc. Therefore, this study will look at the various problems encountered in these companies when they introduce the various collective bargaining techniques and read agreement and maintain peace and harmony in the organization, then it will try to provide solution that I hope will go a long way in solving the problems.

Also in this work, on the management side, the top management is made up of the chief executive officer, and management staff.

On the side of the employers are workers the leader of their union i.e. their chairman, their secretary and pro will be interviewed.

1.8 Limitation of the Study

It is necessary to highlight some of the problem the research encountered in the course of carrying out the research, they include

  1. Financial constraints
  2. Time constraints
  3. Delay in releases of the required information by some public servants in the local government towards completing the questionnaire given to them.

1.9 Definition of Terms

Good research ethics demands that terms be defined in right sense; they are used to remove any ambigllous meaning. In pursuant of this belief, the following terms are defined as they are used in the study.

Collective Agreement

A record of all binding conclusion and agreement reached between management, employees and their union representative concerning the terms and conditional employment.


In this content, means those top management and decision makers in organization i.e. employer representative in collective bargaining.


This is any person who enters into a contact of employment with his employers in order to offer his labor for a reward. He is also known as worker.

Trade Union:

This is an organized association of employees formed to protect and promote their common interest.

Collection Bargaining:

This is those methods system by which group of workers and their employers come together in an attempt to reach an agreement in matters and issues relating to the employees at large in order to have a conductive and smooth negotiations.


Section 90 of the labor decree (Act) 1974) defines an employer as any person who enters into a contact of employment to employ any other person as a worker.

Industrial Relations:

This is that network of relationship between the employees and their unions, employers and their associations, the government and its various agencies in their attempt to directly or indirectly maintain peace of them.


This as it relates to the context refers to the various things that are involve in collective bargaining for instance we have salaries and wages, incentives like transport allowance housing allowance, medical allowance etc.

Chapter Five

5.0 Summary, Conclusion and Recommendation

5.1 Introduction

This work, which is the impact of collective bargaining techniques on industrial relations practice was carried out in order to find out, if there is any relationship between the workers and their employees in the organization involved; this was done by the researcher defining collective bargaining and the various techniques, which I adopted in organization in order to reach agreement between the employers and workers. The research was made more effective by the researcher analyzing.

5.2 Summary of Findings

The following findings were made:

  1. That there exist stronger relationship between trade union and management and the relationship is cordial as can be seen in table 5.
  2. That the workers and management reach at an agreement through collective bargaining
  3. The workers are represented by their trade unions in the negotiation process.
  4. That inability of both parties to reach agreement result to trade disputes, which they try to settle through negotiations.
  5. That agreement reach had serious effect on workers attitude towards their work.
  6. That most dispute in establishment are as a result of lack of adequate communication of management decision polices and the motives of such decision to workers.
  7. Lastly, that strike actions is taken as the last resort when every means tried to reach a compromise between trade union and management had failed.

5.3 Conclusion

The issues of employers and employees not reaching agreement posses fear on both parties. It is an issue that blows no wind to both parties and therefore, it becomes necessary that employers of labor and other unionized group strive to fit an acceptable collective agreement when the times comes.

Thus, the only way to solve or resolve the issue of trade dispute permanently is to first of all create a conducive environment where the workers and management can sit down together on a round table conference i.e. Face to identify their problems and to resolve such problems amicably or mutually.

Where both parties, management and unions refuse to yield to reach each other is request, it can militates against production, bring down an organization, lead to destruction of organization property, personal injuries, retardation of organizational progress and lead to workers resignation and the organization replacing the resigned workers which amounts to labour turnover with its attendant high cost to the origination. As a warning signal it calls for immediate attention and its proper handling can result in redressing the wrong or the disagreement and improving relationship between management and labour union.

5.4 Recommendation

Base on the researcher’s findings, she makes the following recommendations?

  1. She recommend that a forum be created whereby management and workers representative (NLC) can come together to resolve their dispute amicably, seminars, conference etc should be organziaed from time to time to enlighten them on the need to work together.
  2. Management should involve the various representatives (NLC) in decision making that relates to both management and workers. This is called industrial democracy.
  3. Both parties should be encouraged to see each other as friends and not enemies fighting for the betterment of each other
  4. Management should be encouraged to confirm to all collective agreement reached as this will help prevent unhealthy working environment i.e. (labour may become violent and can destroy employers property) and improve workers morale.
  5. Management should ensure that salaries of workers are paid promptly
  6. Both parties should learn to resolve dispute internally instead of inviting a third party (i.e an arbitrator) so as to foster mutual understanding.
  7. Management should promote, on merit and not on false ground
  8. Rather than perceiving trade union action as personal attacks, it should be seen as a mere agitation for better environment for achieving individual goals for which the employers joined the organizations.
  9. Personal training could be used in educating the employers in the use of and on the need to follow the grievance procedure religiously.

5.5 Suggestion for Further Studies

The researcher wrote to suggest that if all the recommendations she has gave are studied and applied or adopted it will go along way in enhancing the relationship between management and workers in any organization and makes collective bargaining easy to carry out. It is also hoped that further research work can be done on this on a wider coverage to discover more worker able recommendation.

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