Impact Of Collective Bargaining On Worker’s Productivity In The Private Sector: A Case Of Coca Cola Bottling Company, Enugu.

Department: Business Administration And Management

Project Topic: Impact Of Collective Bargaining On Worker’s Productivity In The Private Sector: A Case Of Coca Cola Bottling Company, Enugu.

Number of pages: 50 pages

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ABSTRACT

This study is aimed at evaluating the impact of collective bargaining on private sectors with specific reference to Coca Cola Bottling Company, Enugu. The objective was geared towards ascertaining the impact of collective bargaining on private parastatals as a component in the achievement of industrial harmony. However, contributions of different scholars on labours relations matters were assessed. The staff of Coca-Cola Bottling Enugu formed the study population used in this study. The data used in this study were earned through primary and secondary sources. Based on investigation, the researcher concluded that there must be collective bargaining in order to attain industrial harmony. A harmonious and peaceful working environment enhances the growth, effectiveness and efficiency of every organization and this efficiency is collective bargaining. Indeed, collective bargaining and industrial harmony work in hand. It is equally for the sake of industrial harmony that collective bargaining came into place.

TABLE OF CONTENTS

Title Page                                                                                          i

Certification                                                                                      ii

Dedication                                                                                         iii

Acknowledgement                                                                             iii

Abstract                                                                                            v

Table of contents                                                                              vi

CHAPTER ONE

1.0 Introduction                                                                                1

1.1 Background of the Study                                                            1

1.2 Statement of the Problem                                                            4

1.3 Objective of the Study                                                                5

1.4 Research Questions                                                                     6

1.5 Significance of the Study                                                            6

1.6 Scope of the Study                                                                      7

1.7 Limitations of the Study                                                             7

1.8 Profile of Study Organization                                                     8

1.9 Definition of Terms                                                                     10

Reference

 

CHAPTER TWO

2.1 Introduction                                                                                12

2.2 Conceptual Framework                                                              12

2.2.1 History of Collective Bargaining In Nigeria                                       14

2.2.2 Functions of Collective Bargaining                                          15

2.2.3 Relationship Between Collective Bargaining And Industrial  Harmony                                                                                            16

2.2.4 Issues on Collective Bargaining                                                         18

2..2.5 The Structure Of Collective Bargaining                                  20

2.2.6 Problems of Collective Bargaining                                           21

References

CHAPTER THREE

3.1 Introduction                                                                                23

3.2 Research Design                                                                          23

3.3 Population of the Study                                                              24

3.4 Sample and Sampling Technique                                                         24

3.5 Determination of sample size                                                      24

3.6 Sources of Data                                                                          26

3.7 Description of Research Instrument                                            26

3.8 Validity of Data Collection Instrument                                                27

3.9 Reliability of Data Collection Instrument                                   27

3.10 Method of Data Analysis                                                                   28

CHAPTER FOUR

4.1 Introduction                                                                                30

4.2 Data Presentation and Analysis                                                  30

4.3 Discussion of Findings                                                                38

CHAPTER FIVE

5.1 Introduction                                                                                40

5.2 Summary of Findings                                                                 40

5.3 Conclusion                                                                                  41

5.4 Recommendations                                                                       42

5.5 Bibliography                                                                               43

Appendix                                                                                          45

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Collective bargaining therefore, is defined as a process through which management and union representative participate in the negotiation, administration, interpretation and enforcement of written agreements covering joints understanding with respect to wages and salaries, rate of pay, hours of work and other conditions of employment.

Once an organization is set up, there are bound to be conflict in terms of (wages, rate, employment conditions etc) and when this arises, collective bargaining is the only method in resolving the matter.

This is because in every organization, conflict is usually inevitable. The management of an organization and the labour are always in disagreement. This disagreement arises from wages and salaries, rate of pay, hours or work and other terms and conditions of employment. The conflict itself is not bad in it’s entirely to an organization as some good policies and pleasant decisions are made or taken, which in turn lead to effective realization of the organizational goals under a harmonious environment.

Collective bargaining is generally recognized as a central feature of organization productivity and normally means of regulating contract of employment and setting grievance that are bound to occur from time to time.

Ideally for collective bargaining to occur, there has to be actors (unions and management) in an appropriate environment like private business organization. However, in recent years, a third variable in the industrial reaction system has come to stay.

According to Ajakemo (2010), collective bargaining, as a process  of meeting, presenting demands, discussing, presenting counter proposals, haggling, bluffing and sometimes bullying and threatening, all in bid to reach in agreement.

Collective bargaining in Nigeria was mainly between local or house unions and their various companies. However, the restructuring of the former multi-various house unions into industrial unions under the trade union (amendment) decree No. 22 of 1978 changed the scenario. From bargaining of individual house union and various companies to the bargaining between union and employers representatives.

If labour unions and collective bargaining work well for employers in the private sectors it is logical that the will be of advantageous to private organization or any other organization. However, collective bargaining is restricted issues        not determined by legislation, compensation rates, benefits are thus outside of unions. Management relationship in event of an impasse in negotiation, arbitration is provided through industrial arbitration panel.

The interest of the researcher is aroused to carry out this research work in Coca-Cola Bottling Company, Enugu because, collective bargaining is essential for determining wages and bargaining and conditions of employment which will ensure effective utilization of labour in the organization.

Despite of this effectiveness of collective bargaining in industrial conflict resolution, it can also be in our organization that conflicts are still rife. The purpose of this work, therefore, is to determine the effectiveness of collective bargaining in our public institutions or organizations with specific reference to coca-cola bottling Company Enugu.  

1.2 STATEMENT OF THE PROBLEM

Collective bargaining is essential for cooperate survival of an organization, for it deals with almost all the problems that affects the growth of the organization.

There is no doubt, that there are lots of problems in every organization both private and public. These problems are centered on human and material resources. In many organizations, no importance is attached to the working condition of workers and employment, salaries of workers, their wages, promotion, fringe benefits and allowance.

The employers have been too egocentrically, they make no attempt to harmonize their interest with that of the workers. They have not been effective collective bargaining between management and labour, more especially in private sectors and this lead to industrial disputes and lay off workers.

Industrial conflicts usually start in form of grievance when an employee’s right is considered to have been mishandled. The employee will agitate for improved conditions of service especially in terms of monetary incentive. Though some organizations are not using collective bargaining often, such an organization would likely face productivity implications of poor performance among the employees.  

Also, when there is low productivity, the organization will experience low return on investment. The system will be unstructured; delay in decision making process and this prevent the achievement of organizational goals.

Thus, effective collective bargaining will go a long way in achieving organizational productivity. Organization should see collective bargaining as a necessary ingredient or effective machinery for achieving industrial peace, in order to ensure workers productivity in a harmonious environment.

1.3 OBJECTIVES OF THE STUDY

The major purpose of this research study is to know the extent at which collective bargaining on worker’s productivity in Coca-Cola bottling Company, Enugu. The study has set for itself, the following specific objectives among others;

1. To ascertain the extent at which Coca-Cola Bottling Company, Enugu had carried out their activities with respect of achieving industrial harmony.
2. To find out, if the absence of collective bargaining affect industrial harmony in coca-cola bottling Company Enugu.
3. To ascertain the extent at which coca-cola bottling Company Enugu has achieved industrial harmony through collective bargaining.

1.4 RESEARCH QUESTIONS

The research is geared at proffering solutions to the following questions amongst others;

1.  Can organizations goals be achieved without collective bargaining in Coca-Cola Bottling Company, Enugu?
2.  What is the role of collective bargaining in achieving both industrial harmony and organizational goals and objectives?

1.5 SIGNIFICANCE OF THE STUDY

This research will be of immense advantage to the management and staff of Coca-Cola Bottling Company, Enugu and also management and staff of other institutions in general. It will also be of great help to individuals occupying managerial positions in various organizations in resolving both intra and inter departmental conflicts and also issues or differences between unions.

Finally, it will also assist and guide future researchers towards a successful accomplishment of their research work.

1.6 SCOPE OF THE STUDY

This research is focused on private organizations in Nigeria with specific reference to Coca-Cola bottling Company, Enugu. It is based on the impact of collective bargaining in private sectors and aimed at ascertaining if collective bargaining is really of earnest importance in the survival of any organization.

1.7 LIMITATIONS OF THE STUDY

It is, therefore pertinent note that because of time, space or distance and financial constraints among other cogent reasons, this study is strictly limited to Coca-Cola Bottling Company, Enugu. In as much as the researcher invested all efforts on this research work, the problem of time constraint was inevitable and thus did not allow for more detailed and comprehensive study of this piece.

This is because one might have to make return and talk to the respondents; therefore getting the questionnaires answered which will involve increase in transportation cost.

1.8 PROFILE OF THE STUDY OF ORGANIZATION

Coca-cola first arrived in Nigeria in 1951 that same year, the Nigerian bottling Ltd (NBC) was incorporated to bottle and sell carbonated non-alcoholic beverages. NBC has the dole from chise to bottle coca-cola products in Nigeria. Ever since NBC has combined on its journey keeping its promises of refreshing consumers, strengthening its communities, enriching the work place and preserving the environment while recording many memorable mile stones alone the way. The mention a few.

In 1953, production of coca-cola began a bottling facility in Ebute-metta, Lagos state. The same year the Company opened it first bottling plants in Apapa. In 1961, it commissioned its second bottling facility at Ibandan, Oyo state and rapidly expanded its operation over the next couple of years.

In 1972, it listed its shares on the Nigerian stock exchange and become a publicity quote Company and in 1991, it acquired the Eva premium worker and Schweppes Brands.

In the year 2000 and 2001, it become a member of the newly formed Coca-Cola Hellenic Bottling Company S.A (an anchor bottling group with operations in 28 countries worldwide) and commissioned the first ultramodern fully automated NBC plant in Benin respectively.

In 2008, introduced the more environmentally friendly “Ultra” glass packaging for its returnable glass bottle product segments. In 2010, NBC was recognized by the Lagos state Government for its support of the “support our school” project with the 2010 LASG CSR Award.

Today the operations stand at 13 facilities and 59 depot across the country in 2010 among which Enugu plant is one of the plants.

Enugu plant started operation in 1975 and is located in 9^th mile in the capital city of Enugu State in South East Nigeria. The Enugu plant is responsible for the production of Coca-Cola, Fanta, Sprite and Schweppes and distribution of product categories. The Nigerian bottling Company was recognized for its corporate social responsibility activities as the most environment friendly Company on the social enterprise reporting awards in 2011 and also obtained Nigeria’s first safely systems certification (FSSC 2200). In 2015, NBC was voted by consumers as the best in product excellence at the Nigerian Construction Awards organized by the consumer protection Council (CPC), and also among other growth and remarkable achievements.

1.9 DEFINITIONS OF TERMS

MANAGEMENT: Management is the process of planning, organizing, leading and controlling the effort of the organizational members and the use of other organizational resources to achieved the stipulated/stated goals.  

ORGANIZATION: It is a social unit that is structured and managed to meet a need or to pursue an objectives. It can also be seen as the foundation upon which the whole structure of management is built.

LABOUR: Is defined as man’s ability or capacity t produce effort. This labour is the most important asset or resources of any firm because it controls all other factors of production. The reward for labour is wage.

CONFLICTS: Can be seen as disagreement between two or more individuals within an organization as a result of difference in status, scare economics resources, goals and interdependent nature of work activities etc. and it is based on the incompatibility of goals and arises from opposing behaviours.

EFFECTIVENESS: This means doing the right thing. Thus, doing those work/task that will help the organization reach its goal/objective.

NEGOTIATION: This is the formal discussion between people who are trying to reach an agreement.