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INDUSTRIAL CONFLICT AND LABOUR DISPUTES: THE TERMS

DEFINED

The first labor union—the civil service union— emerged in 1912. By 1950 the number had grown to

144 with more than 144,000 members, and 300,000 in 1963 affiliated with 5 central labor associations.

Because of a series of labor problems and the meddling of politicians between 1963 and 1975, the

military government dissolved the central unions and decreed only 1 central unit, the Nigerian Labor

Congress, in 1976. In 1977 11 labor union leaders were banned from further union activity. A 1978

labor decree amendment reorganized more than 1,000 previously existing unions into 70 registered

industrial unions under the Nigerian Labor Congress. In addition to the recognized trade unions,

women's organizations, mostly professional and social clubs, collectively seek to improve women's

conditions and participation in the economic and political life of the nation. Journalists, university

professors, and students have their own organizations also as interest groups.

The term industrial conflict denotes the clash of interests, and resulting disputes of varying

intensity, between individuals, groups and organisations in the industrial relations system. The

relationship between the owners/managers and the workers/employees is frequently one of conflict.

Conflicts may exist latently or manifest themselves overtly at every level of industrial relations. The

overt forms of conflict are various and include absenteeism, sabotage, go-slows, work-to-rule,

restriction of output, non-cooperation and industrial action (strikes, lock-outs, boycotts). Industrial

conflict may centre around differences in values and objectives, and relationships in terms of power,

status and distribution. Whereas industrial conflict and peace refer to industrial relations issues, social

conflict and peace refer to issues in the wider political and social sphere. There are numerous theories

on the source of industrial conflict, ranging from radical class-oriented Marxist views to theories views
which attribute conflict to the clash of economic interests in the employment relationship, because

workers/employees and managers have different interests with regard to wages and effort.

The term industrial action refers to a situation where the employers' or the employees' side takes

collective action to exert pressure on the other collective bargaining party in order to achieve its goals.

The term is often used synonymously with labour dispute. Forms of industrial actions include strikes by

employees, lock-outs by employers, and boycotts. Industrial action can be measured in three

dimensions:

• the number of strikes and lock-outs (frequency of industrial action);

• the number of affected workers (extent of industrial action); and

• the number of working days lost (volume of industrial action).

It is much disputed whether industrial action as a means of coercion is necessary to the conclusion of a

collective agreement and whether its availability is a necessary precondition for free collective

bargaining. Some argue that strikes are just accidents in faulty negotiations or exist to show that the

trade unions' weapons are not becoming rusty. Others argue that the right to bargain collectively

presupposes that the social partners can establish and maintain a balance of bargaining power by

resorting to industrial action. Still others argue that strikes serve as filtering and information

mechanisms whereby the union receives information on the profits of the employer and the employer

receives information on union militancy. As a consequence, more profitable employers will settle more

quickly, implying higher wage rises for the unions, whereas low levels of profit will lead to long strikes

and low settlements.

New patterns of working, the globalisation of production and the introduction of information

technologies are changing the way we work. This new working environment has eliminated some risks

whilst introducing others. The importance of the psychosocial working environment for the health of

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employees is now well documented, but the effects of managerial style have received relatively little

attention. Yet management is an increasingly important aspect of companies’ policies.

In this research work, we will examine the relationship between industrial conflict management in the

workplace and self-reported measures of stress, poor general health, exhaustion and sickness absence

due to overstrain or fatigue and resolution.

Nigerian labor laws prohibit forced or compulsory labor. They also prohibit the employment of

children under 15 years of age in commerce and industry and restrict other child labor to domestic or

agricultural work. Many children, however, hawk goods in markets and junctions of major roads and

streets in the cities and assist their parents in trade and commerce. In 1974 the military government

changed the work week from 35 to 40 hours by decree and stipulated payment for extra work done over

the legal limit. Employers are required by law to compensate employees injured at work and dependent

survivors of those who died in industrial accidents.

Strikes or industrial actions by workers tend to be frequent in Nigeria. Although plagued by leadership

struggles, ideological differences, and regional ethnic conflicts, the Nigerian Labor Congress has been

able to organize or threaten nationwide workers' strikes, demanding the retention of government

subsidies on petroleum products, minimum wages, and improved working conditions. Public health

doctors organized in 1985; several labor unions in 1998 protested the austerity measures of the

Structural Adjustment Program. Similar actions were taken by the Academic Staff Union of Nigerian

Universities (1986, 1988)(and even now our universities are on strick), the National Union of Nigerian

Students (1986, 1989, 1990s), and the National Union of Petroleum and Natural Gas Workers (1997).

Conditions for workers in Nigeria are far from ideal. Civil servants and employees of private

companies (foreign) have relatively good offices and facilities, health care, and wages, but that is not

the case for most of the others. Conditions in the pre-collegiate schools and the universities have

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deteriorated markedly because of repression, underfunding, and irregular payment of salaries. Protests

or industrial actions by trade union leaders often resulted in detention. A number of university students

were killed by the police, and the universities shut down following students' protests and riots. Some

doctors and professors lost their jobs because of industrial action. In addition, income inequalities

between the rulers and bureaucrats on the one hand and masses of workers on the other, poor wages,

and late payment of salaries demoralize workers. Furthermore, they adversely affect their standard of

living, health, and work productivity. The poor conditions contribute to the pervasive corruption in

Nigeria and the use of the country as a conduit for drug trafficking.

COMMON CAUSES OF INDUSTRIAL CONFLICT

Wage Demands

The level of wage and salaries is often the major cause of disputes between an employee and

employer. It also refers to a demand by employees for an increase in their wage rate or changes to the

way in which their wages are calculated or determined. As well, wage demands may relate to pay rates

may need to be adjusted to compensate employees in times of inflationary pressures such as GST and

interest rates. Employees are more likely to seek wage increases to maintain their standards of living.

Australian unions and workers fight for improved wages.

Working Conditions

Disputes often arise over issues of working conditions and safety at the workplace. Include disputes

concerning issues such as leave entitlements, pensions, compensation, hours of work. Employers will

need to monitor physical working conditions and provide adequate protective clothing and equipment,

first aid facilities, quality working equipment and amenities such as lunch rooms, change rooms and

toilet facilities. Employees will take action if there is a risk to either their or others health and safety.

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Management Policy

Disputes are often the result of inadequate consultation by management with their employees. Disputes

over changes that management wishes to implement will often cause industrial conflict. Matters include

terms and conditions of employment, new awards and agreements, award restructuring, outsourcing

and technology acquisitions and structural change.

Political Goals and Social Issues

This usually refers to non-industrial issues, but rather involves wider issues directed at persons or

situations rather than those relating to the employer-employee relationship. Employee unions,

federations and associations will often undertake actions that are unrelated to the basic wages and

conditions of their members.

Political Goals and Social Issues

This usually refers to non-industrial issues, but rather involves wider issues directed at persons or

situations rather than those relating to the employer-employee relationship. Employee unions,

federations and associations will often undertake actions that are unrelated to the basic wages and

conditions of their members.

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PERSPECTIVES ON CONFLICT

• The different stakeholders in employment relations view the relationship between employers and

employees from a range of different perspectives.

Unitary Perspective

In unitary perspective employees and employers work together as a team to achieve common goals.

The unitary approach in ER assumes stakeholders such as employees and their employers work “hand

in hand” to achieve shared goals. It sees the business as a unified entity in which everyone shares the

same purpose and is part of the same team. If conflict does arise, it is seen as the fault of poor employee

management or communication problems. Unions are rarely needed.

Pluralist Perspective

The pluralist perspective believes that conflict between employers and employees given their different

aims and interests is expected at times. It also recognizes that some interests are shared and that

decision making should be shared between the competing parties. Both parties need to accept that the

differing views can be considered for successful industrial relations to occur. So managers must

develop an effective system of communications that allows employees to express their views and to

resolve them without damaging the organisation and its performance.

Radical Perspective

Radical approach believes that there are such fundamental differences between employer and employee

that it’s almost certain that conflict will always occur. Sees conflict in the workplace and reflects the

traditional view of “us employees VS those employers”. It believes that employers and employees are

too opposed to work together.

• Roles of stakeholders in resolving disputes


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• Employers: Use grievance procedures and negotiate agreements directly with employees to resolve

disputes. Line managers are playing a much greater role today in resolving disputes.

• Employees: Use grievance procedures and negotiate agreements with employers with or without

unions, on a collective or individual basis.

Employer associations: Provide information and support to employers, assist in negotiations with

unions, represent employers in tribunals.

• Unions: Represent employees in disputes from the shop floor to the national level, negotiate with

management, employers and associations, represent employees in tribunals.

• Government organisations: Through their legislation can resolve or even prevent disputes.

Government has also established the rules under which the parties negotiate, whether in individual

contracts, collective bargaining or in the conciliation and arbitration system. Government also has the

responsibility of ensuring that these rules are followed, and stands ready to intervene if an agreement

cannot be reached.

TYPES OF INDUSTRIAL ACTION

• There are two main forms of industrial action that can be taken by employees or employers; overt

action (physical response, highly visible) and covert action (silent and unseen response)

Overt

Lockouts, pickets, strikes, bans, work-to-rule

Overt industrial action is highly visible, direct and aimed at gaining max awareness and well organised

by unions.

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Lockouts

Action taken by employers where employees aren’t permitted to enter the workplace and are locked out

from the workplace unless they agree to follow management order or work as directed

Pickets

Pickets is where striking workers or a union attempt to gather outside the workplace forming a line to

prevent entry of other employees, contract labour or suppliers from entering the workplace.

Strikes

A strike is a withdrawal of labour from production. Strikes are the most overt form of industrial action

and aim to attract publicity and support for the employees case. Strikes occur when employees

withdraw their labour in order to enforce a demand or express a grievance.

Bans

Is when employees refuse to form a task that is usually not specified in their employment contract, such

as overtime.

Work-to-Rule

Working to rule is similar to a work ban and involves workers only performing what is contained in

their employment contract or award and following the strict terms of their employment contract or

award.

Covert

Absenteeism, sabotage, turnover, exclusion from decision-making in business. Covert action is not

openly acknowledged or displayed with no organisation.


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Absenteeism

Usually refers to when employees are unhappy, usually when employees are not being considered by

employers in times of dispute, the employees may undertake a system where they do not show up to

work, and absent themselves. Employees may undertake mass absenteeism with many being off at the

same time, or rotational absenteeism where they almost roster who will be taking time off. Action of

this sort disrupts the business but does not stop the employee’s income (sick leave), so it is favored by

some employees

Sabotage

Employees may take industrial action in the form of deliberately damaging physical items and causing

vandalism in the workplace. Damage is done by employees to either the product or in the production of

the product. Employees usually take such action to harm or destroy the image of a firm.

Staff Turnover

High voluntary labour turnover (resignation) rates are often linked with absenteeism rates as indicators

of conflict and dissatisfaction among employees.

EXCLUSION FROM DECISION-MAKING IN BUSINESS

Conflict can arise when employees believe that they haven’t been given the opportunity to have their

say for e.g. not inviting employees to meetings. It occurs when an employer does not involve

employees in decisions that affect them.

Dispute resolution processes – conciliation, arbitration, grievance procedures, negotiation, mediation,

common law action, business/division closure


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Many firms now try to develop a corporate climate in which disputes are minimised through

collaborative working relationships, and by training staff in procedures, policies and guidelines for

managing disputes.

Grievance Procedures

The very first step of negotiating any industrial relations issue starts in the workplace. A grievance

procedure is a formal series of steps which are meant to be followed when a dispute arises. They

usually start with the first point of contact, such as a supervisor and then to senior levels of

management.

Negotiation

This involves a formal or informal discussion between the employee and employer level in which both

parties agree to a mutual agreement to resolve the dispute. Under the process of negotiation parties do

not require the assistance of unions or other assistance.

Mediation

Mediation follows if negotiation is unsuccessful. Mediation occurs when a neutral third person is

introduced who helps the parties to find a basis for an agreement that is acceptable to the disputing

parties to reach a final agreement.

Conciliation

Conciliation is the formal means of settling a dispute when it cannot be resolved and may be referred to

a third party, such as the AIRC, usually an industrial commissioner with the necessary qualification and

skillswho encourages the parties to negotiate their own agreement and brings the parties together.

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Arbitration

If conciliation fails, the matter may be referred to arbitration, arbitration is very similar to the

procedures of conciliation, where the independent third party again comes from the Industrial Relations

Commission.

The main difference here is that the arbitrator considers the arguments of both sides and makes the final

decision, which is legally binding on the parties involved.

Common law action

This is where a dispute goes beyond the boundaries of a quick resolution such as conciliation,

arbitration; grievance procedures, negotiation and mediation, and needs to be settled in court, where

common law applies. Here the Australian legal system will be used if the party believes that the dispute

or action has broken the law. This could be a breach in tort law or contract law.

Business/division closure

If the dispute is impossible to resolve it may result in the closure of that division or business. Closure of

a division or a business permanently or temporarily may also be a resolution or outcome of a dispute

COSTS AND BENEFITS OF INDUSTRIAL CONFLICT

Industrial conflicts have both costs and benefits although in many cases they are difficult to
measure. The costs and benefits may be financial, personal, social, political and international.

Financial: Costs

Cost could include loss of production and reduced productivity due to bans, and loss of wages for the

employee if the dispute results in cutting production and work. Firm’s reputation may be damaged. The

cost associated with legal representation is a financial burden upon the firm.

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Benefits

Benefits could mean better work practices and increased productivity, and for employees through

higher wages. It could result with fewer disputes and less absenteeism and labour turnover.

Personal: Costs

Could include a high level of stress for employer and employee and reduced job satisfaction and could

result with an increase in absenteeism.

Benefits

Could mean improved working conditions for employees, including better occupational health and

safety, and better more efficient production processes for employers. Greater employee involvement

and motivation.

Social: Costs

Tensions and dissatisfaction at work can lead to breakdowns at home, even domestic violence.

Employers could suffer from vandalism of the workplace and conflict in the community.

Benefits

For both employers and employees could be that the conflict clears the air and leads to improved

communications systems.

Political: Costs

Cost could include damaged reputations for some politicians and political parties associated with

industrial conflicts. Bitterness between unions and government can lead to political conflict

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Benefits

Could flow to politicians and political parties who present policies that reduce industrial conflict

International: Costs

Nations reputation for stability can be lost and Gain a reputation as being an unreliable supplier.

Productivity levels drop increasing costs and making Australian business less competitive against

overseas efficient businesses. Furthermore a loss of export income could occur after periods of

disruption.

Benefits

Conflict improves business’s international competitiveness presenting opportunities for international

expansion and improved production.

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