IMPACT OF COLLECTIVE BARGAINING ON ORGANISATIONAL PERFORMANCE

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IMPACT OF COLLECTIVE BARGAINING ON ORGANISATIONAL PERFORMANCE

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

Collective bargaining allows both workers and managers to discuss specific terms that can, depending on national law, determine the rules that govern their relationship, determine wages, deal with other maters of mutual interest such as hiring practices, lay offs, promotions, job functions, working conditions and hours, (Herman, 2003) work safety, workers discipline and termination, and benefit programme. It is the process where by worker organize collectively and bargaining with employers regarding the work place. In a broad sense, it is the coming together of workers to negotiate their employment (Namit, 2007).

Collective bargaining involves workers organizing together (usually in union) to meet, discuss and negotiate upon the work conditions with their employers. There are two types of collective bargaining units which are: The United Faculty of Florida (UFF), The Police Benevolent Association (PBA). The term “Collective Bargaining” was first used in 1891 by economic theorist Beatrice webb. However, collective negotiations and agreement had existed since the rise of trade unions during the nineteenth century. While organizational performance comprises the actual output or results of an organization as measured against its intended out puts or (goals and objectives).

Collective bargaining is a formal process that involves negotiation, consultation and the exchange of information between employees and workers, the end goal being an agreement that is mutually acceptable to all parties. It is traditionally a bi-partite process (i.e. a process involving two parties), although in many countries the state plays an important role in promoting collective bargaining by establishing relevant national legislation (Namit, 2007). The agreement reached through collective bargaining are legally binding and apply to all workers whether or not they actively participated in the bargaining process (Liontos, 2007). For example in the United State, the National Labour Relations Act (1935) covers most collective agreement in the private sector. This act makes it illegal for employers to discriminate, spy on, harass, or terminate the employment of workers because of their union membership or to retaliate against them for engaging or organizing campaigns or other “concerted activities” to form “Company Union”, or to refuse to engage in collective bargaining with the union that represent their employees. Union are also exempt from antitrust law in the hope that members may collectively fix a higher price for their labour.

In the words of De Gennaro, William, and Kay Mich elfeld.(2006), for effective collective bargaining to take place, regular and timely meeting must be hold between the bargaining teems. Sufficient time and human resources must also be allocated to the consultation process and assembling data in preparation for collective bargaining negotiations (Buidens and Wayne, 2001). At a work place where a majority of workers have voted for union representative, a committee of employees and union representative negotiate a contract with the management regarding wages, hours, benefits and other terms and conditions of employment, such as protection from termination of employment without just cause. Individual negotiation is prohibited. Once the workers committee and management have agreed on a contract, it is then put to a vote of all workers at the work place. If approved, the contract is usually in force for a fixed term of years, and when that term is up, it is then renegotiated between employees and management. Sometimes there are dispute over the union contract, this particularly occurs in cases of workers fired without just cause in a union workplace. These then go to arbitration, which is similar to an informal court hearing; a neutral arbitrator then rules whether the termination or other contract breach is extent, and if it is, orders that it be corrected.

Collective bargaining allows workers and managers to discuss issues and settle disputes through consensus and dialogue rather than through confrontation or labour dispute (Herman, 2003). Both parties know that there is an agreed method for handling disagreements. In addition, collective bargaining allows both employers and workers, or their representatives, to participate in the decision making process on a variety of topics such as benefits, leave, work hours and overtime as well as grievance procedures, discipline and dismissals.

1.2 STATEMENT OF THE PROBLEMS

Bargaining deadlocks can occurs when there is no movement in negotiations between employers and workers because of a lack of compromise by either party. A general precondition to effective collective bargaining is the parties negotiate “In good faith”, meaning that they should come to the negotiating table willing to give and take ultimately reach an agreement often, through each side feels compelled to “push” the other side in order to get what they want (O’Sullivan,et al,.2007). while collective bargaining has historically been confrontational in some countries and contexts, a major challenge is to try and achieve win-win negotiations. It is against this back ground that this study seeks to assess collective bargaining and organizational performance.

1.3 RESEARCH QUESTION

The following research questions were raise in order to give the study a direction.

1) Is there any significant relationship between workers motivation and organizational performance?

2) Do workers significantly perform better after reaching a favourable compromise with their supervisors?

3) Is there any significant relationship between the role of labour union and frequency in worker strike rate?

4) Would workers significantly opt for strike after collective bargaining had been done and agreement reached?

1.4 RESEARCH HYPOTHESIS (NULL (H0) AND ALTERNATIVE (H1))

H01: There is no significant relationship between workers motivation and organizational performances.

H11: There is a significant relationship between workers motivation and organizational performance.

H02: Workers will significantly perform better after reaching a favourable compromise with their supervisors.

H12: Workers significantly perform better after reaching a favourable compromise with their supervisor.

H03: There is no significant relationship between the role of labour union and frequency in workers strike rate.

H13: There is a significant relationship between the role of labour union and frequency in workers strike rate.

H04: Workers will not significantly opt for strike after collective bargaining had been done and agreement reached.

H14: Workers will significantly opt for strike after collective bargaining had been done and agreement reached.

1.5 OBJECTIVES OF THE STUDY

The broad objective of this study is to assess the effect of collective bargaining and organizational performance in Rufus Giwa Polytechnic, Owo, Ondo State. However, specific objective include:

i. The identification of the personal characteristic of respondents in the study area.

ii. Identification of collective bargaining as a catalyst to efficiency and effectiveness of workers in an organization.

iii. The determination of the various bottlenecks involving in the process of collective bargaining.

iv. Suggest how win-win negotiations can be achieved for purposeful organizational performance on daily basis.

1.6 SIGNIFICANCE OF THE STUDY

This study is set divide into collective bargaining and organizational performance. The study will ascertain the degree to which collective bargaining will serve as a catalyst or disincentive to organizational performance. According to O’Sullivan (2003), “Workers have a voice and an outlet in the collective bargaining process that reduces uncertainty and instability in the work place. Workers are often more motivated following collective bargaining as they have participated in the process and the outcome”. Collective bargaining aids in labour market Flexibility by helping workers to understand and accept the need for modernization and restructuring. This study will also provide policy makers with the following vital information; that

– Collective bargaining provides workers with a collective voice which may be more effective than dealing with managers one by one.

– Collective bargaining helps ensure adequate wages and working conditions and helps workers to receive a fair distribution of gains that might result from the introduction of new technology.

– Collective bargaining is also a vehicle for work place cooperation in that it can ensure, by mutual agreement, that participative practices are integrated into the day-to-day operations of the enterprise.

Therefore any attempt to look into a research of this nature should be seen as a welcome development as it will not only be useful for researchers in the field of business management but also to managers, human recourses managers, policy makers and stake holders.

1.7 SCOPE AND LIMITATION OF THE STUDY

The study is delimited to Rufus Giwa Polytechnic, Owo, Ondo. The scope covers both the academic and non academic staff of the institution. The study would have best been carried out using all tertiary institutions as a case study but it is highly a demanding task to undertake such research study during periods of adverse economic conditions. Thus, finance constituted a major obstacle inhibiting the researcher from pitting up a more comprehensive work, for which the research was limited to only the institution earlier mentioned. Moreover, there was the problem of lack of textbooks, journals and other useful literature collective bargaining and organizational performance to work with. However, some staff of the institution could not cooperate in supplying the necessary information as they felt it contains unnecessary details which cut across their private financial and business affairs.

1.10 METHODOLOGY

The study will adopt a descriptive approach. This will be done by distributing questionnaires to the staff of RUFUS GIWA POLYTECHNIC, OWO. One hundred questionnaires will be distributed to academic and non academic staff in equal proportion with the aim of evaluating collective bargaining and organizational performance.

PLANS OF STUDY

Others aspect of the research work shall include;

Literature review which will review all related literature in order to provides the study with a strong empirical and literary footing.

The third part of the study deals extensively on the methodology, research design, population and sample, sampling technique, method of data collection and data analysis techniques.

The penultimate chapter of the research shall analyse the data collected from the distributed questionnaires.

The last chapter shall summarize, conclude and make recommendations for policy makers and stake holders as well as make suggestions for further studies.

1.11 OPERATIONAL DEFINITION OF TERMS

Collective Bargaining: It is a process of negotiations between employers and the representatives of a unit of employees aimed at reaching agreement that regulate working conditions.

Conflict: It is a Psychological State resulting from the often unconscious opposition between simultaneous but incompatible desires, needs, drives or impulses.

NLC: Nigerian Labour Congress which is an institutions created to ensure and improve the economic and socials well being of its members through group action.

Organization: The relationships that exist between separated components in a coherent whole industrial revolution widespread replacement of manual labour by machines that began in Britain in the 18th Century and are still continuing in some parts of the world.

Performance: The way in which somebody does a job, judge by its effectiveness.

Trade Union: Association of Workers that seeks to improve the economic and social well being of its members through group action.

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