The Impact Of Trade Union And Industrial Relation Practice On Organisational Peace

Project and Seminar Material for Industrial Relations and Personnel Management

The Impact Of Trade Union And Industrial Relation Practice On Organisational Peace


In this project work, an attempt has been made to study how the impact of Trade Union andindustrial Relations Practice on Organizational Peace’ and Harmony, using Union bank of Nigeria as a case of Study, As Trade Union implies as a continuous association of wage earners for the purpose of maintaining and improving the conditions of their working lives. This view pointed out the calibre of people forming Trade Union and the purpose for which Trade Union is established.

Therefore, there is the need to evaluate the role of Trade Union and Industrial Relations practice on Organizational Peace and Harmony because Trade Union represents any avenue through which issues relating to workers are discussed. As a result of this, management and Union will then bargains collectively over matters pertaining to wages, hour of work and other conditions of employment and agreement is reached. Also” almost every worker owes and allegiance to a particular Trade Union and such worker will maintain an in-Group membership by confronting to the internal decision reached by the Union.

This study was also designed to find out the reliable way of improving worker productivity and to know the various problems facing trade unionism in most organizations and how the trade union contributed to organizational growth. In the realization of the foregoing, the following serves as the summary of the findings.

The study pointed out that a Trade Union should not restrict itself to working for the interest of members alone, but also for the interest of the entire Organization in order to help the Organization to accomplish its objective. If this is done, in the interest of the both -parts as major actors in the Industrial Management are taking care of and growth which is joint responsibility will be enhanced.

Chapter One

Background Of The Study

1.1 Introduction

In every organization where people of different background and interest have to interact in the collective efforts towards achieving a common goal, there must be a cordial relationship. As Bankole (2000) argues that Organization does not exist without people with various skills, experience, specialization, psychological. Disposition and the need to make out a living, but Organization exist with people, management and Labour. Therefore, Trade Unions are the principle institution of workers in modern capitalist societies.

In Nigeria, Trade Unionism has witnessed some historical phases. It can be traced to the colonial era prior to the development of Personnel Management. At any stage of Industrial development, workers performance cannot be overlooked because it is a major determinant for an Organizational growth. Therefore, an organization that focuses on issues affecting Economic growth must also have a corresponding implication on the level of workers Union in an Organization. In the words of Matanmi (1999:17) “whatever affects 53tuworkers could also make or mar an improved productivity in an Organization which is the condition for growth and developments”.

Fadeyi (1999) defines Trade Union as continuous association of wage earners for the purpose of maintaining and improving the conditions of their working lives. This definition points out the caliber of people forming Trade Union and the purpose for which Trade Union is established. However, Yesufu (1984) defines Trade Union as association of Employees for the. Promotion and deference of the terms and conditions of Employment of their members including their standard of living. Nigerian Trade Ordinance (1938) reports that A Trade Union is any combination of workers and Employers whether temporary or permanent, the principal purpose of which is the regulation of relationship between workmen and workmen, or between master and masters, whether such combination would or could not. This second definition embraces Employees association as well as organizations of workers.

As a result of the foregoing, the study evaluates the impact Trade Union and Industrial Relations Practice on organizational Peace. This become necessary because Trade Union represent an avenue through which issues relations to workers are discussed. Also, almost every worker owes an allegiance to a ‘particular Trade Union and such worker will maintainan in-group membership by confronting to the internal decision reached by the Union. Bankole (2000) says that the upsurge of Trade Unions in the 1940s with the attendant Industrial Conflicts prompted Management of most Organization to according more time and attention to Labour problems, grievances and disputes for the general interest of Organization.

For instance, the Nationwide General Strike of 1945 led by a Pa Micheal Imodu was a watershed in the annals of Labour management relations in Nigeria. The need, was felt after the strike to appoint on full time basis persons whose responsibility would be to receive and attend to labour matters by in sing with Trade Union Official and negotiate labour issues before the degenerating into National Crises (Bankole, 2000). From this Example it is clear that Trade Union is a machinery that ensures that the working conditions and socio-­economic climate of work environment are in good condition.

This research study aim to explore the impact of Trade Union In Union Bank of Nigeria, Ojo Branch, Lagos State. Nigeria Union of Bankers as a Labour Union is essential to the Establishment and maintenance of good labour relations. Whether it be a question of defending the interest of the members of the financial institution or determining condition of employment or of settling litigation, which may arise In respect of institutional growth (Matanmi 1998). The studying of Trade Union activities and the implication on Organizational growth. It can be noted that the use of strike as an instrument of collective bargaining has been predominant in contemporary Industrial situation in Nigeria. In the light of this, this study intends to explore the imperativeness of unionism engendering industrial peace in union bank of Nigeria.

1.2 Statement Of Problems

The frequent occurrence of strike action, which is usually organized by Trade Union has caused a lot of problem relation to Organizational growth. Even in the Banking Sector, some workers are usually less productive during the period of Industrial actions called upon by the labour Union. On the part of worker or employee, it has resulted in unequal hardship and principally brain drain (Obisi 1999).

Trade Union rely on industrial conflict as a means of machinery of achieving the desired goals but industrial conflicts does not give room for industrial harmony, and this has an adverse impact on Organizational growth and development (Fapohunda, 1980)

In the views expressed by Fadeyi (1999) Trade Union plays an active role in improving workers performance by setting target which could be achieved by the workers provided they are well motivated by their Employers. The effective functioning of Trade Union is also facing some problems like poor leadership, rivalry, ethnicity, poor financing and power tussle (Adeogun 1980 & Fadeyi 1999). Other forms of problems that exist between Trade Union and Management in an Organization are lobby, demonstration, lock-out, slowdown of production and so on. All these industrial disputes lead to in- effective and lack of growth in the organization, which could be avoided if strike is totally averted. Thus, this study shall make attempts to find solutions to some of the problems stated in this study.

1.3 Research Questions

This research project shall provide answers to the following relevant questions:

  1. How does trade unionism contribute to the organization growth?
  2. Is it compulsory for every worker to join trade union in union bank of Nigeria?
  3. Does there exist any relationship between the existence of trade union and industrial- relation practices in union bank of Nigeria?
  4. What are the main problems facing trade Union in Nigeria.
  5. How can the problems facing trade Unionism be solved.

1.3 Objectives Of The Study

The main objectives of this study is to evaluate the impact of trade Union and Industrial relation practice on organizational Peace in the study area.

Other specific objectives are stated as follows:-

  1. To examine the strength and contribution of Trade Union as a tool to settling grievances between the employees and Management.
  2. To examine the relationship between Trade Union and Organizational growth.
  3. To discover a reliable method ofimprovinq workers contri­bution to Organizational growth.
  4. To examine the impact of trade union as a means of engendering workers productivity.

1.4 Significance Of The Study

Since both Trade Unionism and Industrial Relation Practice are very important to the Economic institution of the nations, this project is very crucial because it shall provide. New knowledge regarding the subject matter of this research. The concept of Organizational efficiency and productivity is very important in nation building. Therefore, there is no doubt in the fact that this project will contribute towards improving Organizational growth through recommendation and suggestion for further studies.

Also, this study is worth doing because it will evaluate the relevance of Trade Unionism. That is, this project will be a springboard that will enable people to know the reasons why workers form Trade Unions.

The standard of living of every citizen is important for the socio-economic development of the effectiveness and the role of Trade Unions and Industrial Relations Practice on organizational Peace. The relevant data of this study could therefore be adopted by Policy planners, Government Officials. And the General Populace for effective organizational Peace in Nigeria. Thereby the study would have bridged gap in knowledge and public policy formulation and implementation.

1.5 Scope And Limitations Of The Study

This study will be limited to Union Bank of Nigeria Pic, and the impact of Trade Union and Industrial Relations practice on organization Peace in the study area. The research also examines the concept of Trade Union and Industrial Relations Practice process, its effective functioning towards the achievement of Organizational growth, industrial peace. Thus, due time and financial constraints, the study will be limited to Union Bank of Nigeria pic. Headquarters office at Marina, Lagos State.

1.6 Definition Of Terms

Some of the relevant concepts, which has been used in this research study are defined as follows:-

Trade Union

Reynolds (1949) defines Trade Union as a continuous association of wage earners for the purpose of maintaining and improving the conditions of their working lives.


Organization can be defined as consisting of group large or small collaborating in a structured and relatively permanent ways in order to achieve one or more goals.

Organization Growth

This is the certainty of being able to change, that is, which exist. It is the certainty of being able to better today than yesterday. It is the will to improve on the present situation, no matter how good it may look.

Organization Performance

The organizational performance refers to the effectiveness and efficiency of any Organization in” terms of goal setting and goal attainment. This could be meeting up the Organization in terms of production, marketing and sales or expansion.


Workers refer to persons who are employed, especially as manual or industrial labour for a wage. They are the groups who work in particular field or industry.

Collective Bargaining

Collective bargaining is the process whereby employers represented by Management and employee represented by the Union negotiate and reach, agreement on issues of ‘divergent interest such as wages and salaries, allowances, hours of work etc.


Foilet (1920) defines Management as the act of getting things done through people. This means that Management is an act because it depend on personal qualities and Manager’s ability to make good use of the employers in an Organization.


This is the process whereby Trade Union members, employers of labour and respected administrators deliberate on cases involving essential services in an Organization.


This refers to the process of arousing energy in an individual towards the gratification of a particular objective goal.

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