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INDUSTRIAL RELATION

Trade Union of National Telecommunication Corporation

MAY 6, 2019
SUBMITTED TO: MR ASIM GILL
SUBMITTED BY: JAMIL AHMAD
MUHAMMAD INAM
ATHER ZUBAIR
SHAHID MEHMOOD
SAYED GHALIB HASSAN
Table of Contents
Company: ...............................................................................................................................................2
Acknowledgements: ..............................................................................................................................3
Executive summary: ...............................................................................................................................4
Introduction: ..........................................................................................................................................5
Background of the Study .......................................................................................................................6
Purpose of the Study .............................................................................................................................6
Research Questions ...............................................................................................................................6
Trade union: ...........................................................................................................................................7
Structure of Trade Union: ......................................................................................................................7
Nature and Scope of Trade Union: ........................................................................................................8
Objectives of trade unions: ....................................................................................................................8
Functions of Trade Unions: ....................................................................................................................9
Militant Function: ..................................................................................................................................9
Fraternal Function: ................................................................................................................................9
Benefits of Trade Unions .....................................................................................................................10
Challenges of Trade Unions .................................................................................................................10
Trade Unions and Organizational Productivity ....................................................................................11
Data presentation, results and discussion ...........................................................................................12
Table 1: Gender ...................................................................................................................................12
Table 2: Trade Union mobilization for collective action ......................................................................12
Table 3: Negotiation for wages and working condition terms .................................................................13
Table 4: Recourse to strikes when negotiation fails ............................................................................13
Table5: Regulation of employer-employee relations ..........................................................................13
Table 6: Representation at disciplinary hearing ..................................................................................14
Table 7: Influence on Politics ...............................................................................................................14
Table 8: Negotiations for wages and working condition to increase organizational Productivity ......14
Table 9: Strikes and low organizational productivity ...........................................................................15
Table 9: Organization productivity before and after the formation of Trade Unions .........................15
Table 10: Trade Unions' disruption to organizational productivity .....................................................15
Table 11: Social corporate responsibility role of trade unions and how such increases their work
performance ........................................................................................................................................16
Table 12: Trade unions' provision of a level field of engagement between employers and employees
toward greater productivity ................................................................................................................16
Summary: .............................................................................................................................................16
Our Findings .........................................................................................................................................16
Conclusion............................................................................................................................................17
Recommendations ...............................................................................................................................18

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Company:

“National Telecommunication Corporation”

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Acknowledgements:

We would like to express our sincere gratitude to the Project Teacher, Mr Asim Gill for

his precious and valuable suggestions he helped us throughout our industrial relation subject. It

would not have been possible to complete this Project without his support and feedback.

Our sincere thanks to the National telecommunication Center officials, for providing us all the

necessary information and helping us in designing the questionnaire for the experimental study.

Our appreciation goes to our family and friends for their continuous support.

Above all special thanks to Almighty God.

Thank you.

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Executive summary:

This report is the product of a program of NTC and research on the future of Trade

union. The Project report included analysis of trade union membership trends, a face-to face

survey with workers.

The study aims at finding out the effects of trade unionism on workers in NTC. The

main objectives of this study were to first identify how the practices of trade union NTC effects

on workers. Another aim was to determine how union works in offering benefit for its

members. In addition, other functions of trade union that aim towards benefiting both

organization and employees were highlighted in the study. The study also examined how to

settle industrial conflicts in organization.

The findings of this Project indicate that trade union has an active role in maintaining

the quality life of the workers and its members also believe that by joining Union the interests

of wage earners are promoted effectively whereas there is very little relationship between the

trade union members and their performance at work.

Finally, Union should avoid the path of confrontation but continue dialogue through the

collective bargaining process.

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Introduction:
National Telecommunication Corporation is a Government claimed media transmission
association to give media communication organization to its assigned clients who incorporate
Federal and regional Governments and their specializations.

The most fundamental being the test to keep set up the security necessities of the
Government of Pakistan (GOP) and to guarantee the new players in this field from the standard
practices of the tenant directors to secure their bit of the general business. To overcome these
troubles GOP set up National Telecommunication Corporation (NTC) in January 1996 under
the Telecom Reorganization Act 1996.The essential objective was to have an establishment free
of each and every other manager that can be used with the true objective of government
correspondence and as an elective help for the chairmen entering the market.

After foundation in 1996, NTC began to focus individually framework inside couple of
years; it adjusted itself to rising innovative territories (1,517 Km) alongside around 150,000
advanced lines trade. Other than this, unique undertaking executed like Pakistan Educational
Research Network (PERN), situating of PAKSAT to secure involve the (2008-2009) were
additionally effectively actualized.

So as to keep itself side by side with innovative progression, NTC arranged a far
reaching intend to relocate its inheritance Time Division Multiplier (TDM) trades with most
recent IP based Next Generation Network (NGN) innovation. Through this movement venture
approx. 54,000 Telephone and 14,000 Broadband ports have been produced which influences
35% substitution of (TDM) to organize. Pakistan Education and Research Network (PERN) are
a bit of vision, mission and objectives of Information Technology Action Plan that was impelled
by Prof. Dr. Atta-ur-Rahman as Minister of Science and Technology.

The endeavor is financed by the Government of Pakistan in cooperation with Pakistan


Telecommunication Company Limited (PTCL). The system outlined, worked, and kept up by
NTC. The venture is to be expected an essential piece of general education system of nation and
intended to interlink all Public, Private Sector, Universities, Degree granting institute enrolled
with Higher Education Commission of Pakistan and Government of Pakistan.

The task was propelled by the Ex-President of Pakistan General Pervez Musharraf.

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Background of the Study

Trade unions have an immense effect on labor markets and societies. The main objective
of this Project is to examine how trade unionism affects workers. The subject matter of trade
unionism and workers in company is of interest to both the government and employers. Trade
unionism, which is the activities of association of workers in a workplace have been accepted
and recognized as a necessary action. A trade union can be simply defined as ‘an alliance of
workers to strengthen their efforts in bargaining with their correspondents.’

There have been lots of work done in industrial relations. Broadly, speaking the effects
of unions may be positive or negative. The issues to be discussed in this project are the effect
of trade unions on wages, effects on fringe benefits, collective bargaining which directly or
indirectly affects the performance of workers. This is the main aim of the whole project and the
primary reason for this project is to study the union efforts for wages and non-wages
benefits of workers.

Purpose of the Study

This study aims at finding out the effect of trade unionism on workers and employer. It
will also highlight other functions of trade unions that aim towards benefitting both organization
and employees. It also seeks to examine the relationship between trade unionism and the actions
of management. Finally, it describes how to settle industrial conflict in an organization.

Research Questions

It is pertinent to pose some necessary research questions:

1. Does trade unionism in any way influence workers?

2. What are the effects of trade unionism in your organization?

3. How is conflict resolved in your organization?

4. Does trade union exist solely to fight for the interest of the workers?

5. What effort have unions made to improve the performance of the workers in an
organization?

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Trade union:
Trade Union is defined in the Employment Relations Act 2008 as “an association of
persons, whether registered or not, having as one of its objects the regulation of employment
relations between workers and employers”

The Trade Union or Labor Union movement is a continuous and voluntary association
whose membership comprises of salary earners, employees and union leaders. Those members
have bonded together motivated by a simple motto “Unity makes strength”. Workers will
therefore utilize trade unions as their representative voice when dealing with employers or on
the board of directions.

Independently, the workers do not bear the power to defy the top management.
Therefore they grouped and seek to institute their terms and conditions of employments. When
they realized that negotiating as an individual, the manager would be more powerful, due to the
fact that an individual would not matter as much a group in regard of running an organization.

The main role of trade union is to ensure the welfare of its members such as safeguarding
the interests of its members, protecting the reliability of its trade, achieving higher wages by
securing economic benefits. It also optimizes the working conditions at the workplace and
guarantees a job security while protecting members against unfair dismissal at workplace.

Through its leadership, trade union engages in collective bargaining, whereby labor
contracts are negotiated with the employers. Also it acts as a recruiting manager, the Union
leaders interfere with the recruitment and selection of the company, its intention is to maximize
the number of employees an employer can hire.

Structure of Trade Union:


The trade unions structure is divided into several parts, namely:

The Annual Delegates Congress

The Executive Council

It comprises of the President, the General Secretary and the eight elected members.
Among them, one is the 1st Vice president and another is the 2nd vice president, a 3rd as
Assistant Treasurer and a fourth one who the organizing secretary is.

President:

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He represents the Federation and he is the spokesman of the federation.

General Secretary:

The General Secretary arranges meetings and draw up the minutes of the meeting. Along
with the General Secretary, Deputy General Secretary and the Assistant General make up the
Secretariat of Federation.

Treasurer:

He is in charge of the accounts of the federation.

Organizing Secretary:

He is in charge of organizing events like training sessions, seminars, workshop among


others.

Public Relation Officer:

He deals with the media for conferences, coverage, reports and other information that
will be published by the media.

Nature and Scope of Trade Union:


Trade Unions are currently considered as a sub-system which attends a precise sub-
groups interest. When defending a particular sector they consider themselves as an integral part
of the organization in respect to the feasibility, growth and development of the community of
which they formed part of.

Objectives of trade unions:


The main body of a trade union usually consists of individual workers, sometimes
professionals and past workers. Their primary aim is to ensure that the employment conditions
of employees are respected and that fair working conditions are offered. However, trade unions
also engage in issues like:

 Negotiation
 Representation
 Information and advice
 Member services
 Bargaining for higher wages and for better working conditions for its members
 Providing management suggestions on personnel policies and practices.

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 Helping workers in getting the control of industry.
 Protecting members against discrimination and unfair justice of employers.
 Helping workers in all matters which results in workers interests.

Functions of Trade Unions:


Broadly speaking, trade unions perform different types of functions:

Militant Function:
Amongst the various activities performed by trade unions is the betterment of the
position of their members in relation to their employment. The aim of such activities is to ensure
that all the clauses of the hiring and psychological contract are respected. When the union fails
to accomplish these aims through collective bargaining and negotiation, in extreme conditions
they adopt drastic measures in the form of go-slow, strike, boycott, work sabotage etc. to make
the management react and reconsider their requests. Hence, these functions of the trade unions
are known as militant or fighting functions.

Fraternal Function:
Another actions performed by trade unions are to provide help to its members in needy
times, and improving their efficiency. Trade unions try to nurture a spirit of cooperation, mutual
aid and promote friendly relationships and sharing of knowledge and culture among their
colleagues. In some cases, they also arrange for legal assistance. Besides, these, they undertake
many welfare measures for their members, e.g., school for the education of children, library,
reading-rooms, in-door and out-door games, and other recreational facilities. These activities,
which may be called fraternal functions, obviously depend on the availability of funds, which
the unions raise by subscription from members and donations from outsiders, and also on their
competent and enlightened leadership. Another broad classification of the functions of unions
may be as follows:

Intra-mural activities:

These deals with whatever happens on the site of work and has direct impact on employees
e.g. wages, strikes

Extra-mural activities:

These activities help the employees to maintain and improve their efficiency or productivity
e.g., methods intended to foster a spirit of cooperation, promote friendly relations

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Political activities:

Modern trade unions also take up political activities to achieve their objectives. Such
activities may be related to the formation of a political party or those reflecting an attempt to
seek influence on public policy relating to matters connected with the interests of working
class.

Benefits of Trade Unions


Trade unions offer a number of benefits or advantages to their registered members, these
benefits and/or advantages arise from the work that trade unions perform.

 First, trade unions lead employees in their negotiations and agreement with their
employers on appropriate payment and work conditions.
 It is much easier for workers to push for salary increments unlike an individual employee.
Thus, by joining a trade union, an employer may be able to enjoy the advantages of
collective bargaining about better salaries and wages among other remuneration packages.
 Secondly, trade unions represent workers and protect them from any possible exploitation
by employers. Whenever employees have concerns relating to the workplace, trade unions
take up those concerns and discuss them with employers.
 These concerns include health and safety standards, more holidays and working hours.
This means that if employees join trade unions, they are able to have these concerns
discussed without delays, fear or intimidation.
 In these productivity deals, employers and union leaders agree on output targets whereby
the unions undertake to mobilize their members to achieve the set targets whereas
employers promise to increase the rewards to employees. These kinds of agreement
ensure mutual benefits for both workers and organization.
 At the end of the day, no party feels that it has suffered a loss. Another important function
of trade unions is that they enable their members to access education facilities as well as a
number of consumer benefits like discounted insurance.
 Unions direct their efforts at protecting their workers against the ravages of inflation, and
trying to improve living standards which have been depressed for historical reasons.
Moreover, they try to defend their member‟s right to work and are supportive of both
macro and micro economic policies which would be conducive to high employment

Challenges of Trade Unions


Although trade unions are beneficial to employees and employers, they also have some
challenges or disadvantages.

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 Trade unions drive up wages, they inadvertently cause unemployment especially if the
wages rise above the equilibrium. This means that trade unions have a challenge of
ensuring that employees are paid high wages without leading to unemployment, this is not
easy to attain due to lack of sufficient information and expertise that trade unions need in
order to negotiate for equilibrium wages.
 Secondly, trade unions do not represent workers who are not registered as members of the
union. In case a worker who is not registered has problems with the company or at a
personal level, unions usually ignore such workers.
 Unions must work hard to ensure that all the workers see the benefits of union
membership so that they can be members and union can serve all the workers without
perceptions of discrimination.
 In addition, trade unions can easily lead to inflation since when wages rise above inflation
rate, general inflation sets in. When general wages are increased due to trade union
campaigns, workers end up having more disposable 24

Trade Unions and Organizational Productivity


The question of trade unions and organizational productivity has received considerable
debate on how the later affects the former. Trade unions have an impact of organizational
productivity since they affect profitability and labor. Scholars in industrial relations argue that
trade unions distort the labor market through a number of methods such as the push for higher
wages, employment restrictions, and defense against layoffs.

As already indicated, trade unions have the potential to cause unemployment. This means
that organizational productivity can be affected by such unemployment since unemployment
causes output losses. However, it is not exactly clear how trade unions affect organizational
productivity. In any case, there is a lot of controversy concerning the effects of trade unions on
organizational productivity.

A clear understanding of this relationship is important for policy formulation in


organizations. One way of gaining an understanding of the relationship between trade unions and
organizational productivity is to carry out empirical research on this question. Such research must,
however, be guided by theory and literature review.

Trade unions affect organizational productivity either positively or negatively. They affect
productivity positively if they lead to increased employee productivity by successfully negotiating
for better working conditions and remuneration packages.

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Trade unions can also have a negative effect on the organizational productivity by causing
employees to stop working or to engage in sabotage. This is done in cases where trade unions
mobilize their members to go on strike where peaceful negotiations fail. Strikes, go slows and acts
of sabotage decrease organizational productivity.

In addition, productivity can further be compromised based on the disciplinary action that
is taken against union members and their leaders after strikes.

Data presentation, results and discussion


Introduction

This chapter presents the finding of the study. The content was analyzed according to the
responses provided by the respondents on the questionnaires. The results of the survey were
analyzed by cross tabulation using Microsoft Excel software.

Response Rate

The researcher attained a response rate of 100% since all the three questionnaires were
returned. The respondents were the human resource manager, Production Manager and Admin
Manager of the three unionized NTC companies.

Table 1: Gender
No. Male Female Total
1 Respondents 3 0 3
2 Percentage 100% 0% 100%

All the respondents were males that are three men giving 100% and there was no female thus 0
and 0%. This is presented in table 1.

Table 2: Trade Union mobilization for collective action

Strongly Agree Undecided Disagree Strongly Total


Agree Disagree
2 1 0 0 0 3
66.67% 33.33% 0.00% 0.00% 0.00% 100%

When the respondents were asked about whether trade unions in their organizations mobilize
employees for collective action when negotiations fail, two respondents indicated that they agreed
very strongly while one respondent indicated that he agreed. In terms of percentages, those who
indicated that they agreed very strongly represented 66.67% while those who indicated that they
agreed represented 33.33% .

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Table 3: Negotiation for wages and working condition terms
Strongly Agree Undecided Disagree Strongly Total
Agree Disagree
3 0 0 0 0 3
100.00% 0.00% 0.00% 0.00% 0.00% 100%

When the respondents were asked to indicate their level of agreement on the statement that trade
unions in their organizations negotiate wages and working condition terms for their members,
there was an overwhelming agreement. All the respondents (100%) indicated that they agreed very
strongly with this statement.

Table 4: Recourse to strikes when negotiation fails


Strongly Agree Undecided Disagree Strongly Total
Agree Disagree
2 1 0 0 0 3
66.67% 33.33% 0.00% 0.00% 0.00% 100%

On the question aimed at establishing whether strikes are common whenever negotiations fail,
majority of the respondents indicated that they agreed with the statement very strongly while only
one respondent said that the agreed. Therefore, 66.67% of respondents agreed strongly that strikes
have been the primary tool for trade unions to express themselves whenever negotiations fail
while only 33.33% agreed to the statement plainly.

Table5: Regulation of employer-employee relations


Strongly Agree Undecided Disagree Strongly Total
Agree Disagree
1 1 0 1 0 3
33.33% 33.33% 0.00% 33.33% 0.00% 100%

Regarding the question to establish any influence of trade unions on the employer-employee
relationships, the responses were very diverse whereby one responded agreed strongly, another
one agreed plainly and another one disagreed. In terms of percentages, 33.33% strongly agreed,
33.33% simply agreed while 33.33% disagreed.

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Table 6: Representation at disciplinary hearing
Strongly Agree Undecided Disagree Strongly Total
Agree Disagree
1 2 0 0 0 3
33.33% 66.67% 0.00% 0.00% 0.00% 100%

This statement attempted to find out whether trade unions stand by their members during
disciplinary actions or during other times of resolving grievances, only one respondent agreed
strongly that trade unions represent their members during hearings for disciplinary and/or
grievance issues. Two respondents agreed plainly to the statement and none disagreed. In 36

terms of percentages, 33.33% of respondents agreed strongly while 66.67% simply agreed.

Table 7: Influence on Politics


Strongly Agree Undecided Disagree Strongly Total
Agree Disagree
0 2 1 0 0 3
0.00% 66.67% 33.33% 0.00% 0.00% 100%

The researcher aimed at determining whether trade unions in the company exert any political
pressure for labor laws and legislations that are friendly to the workers. Of the three respondents,
two agreed that their trade unions have an influence on political decisions in the country in terms
of pushing for laws that are friendly to workers. This represented 66.67% while 33.33% of the
respondents indicated that they were undecided.

Table 8: Negotiations for wages and working condition to increase organizational


Productivity
Strongly Agree Undecided Disagree Strongly Total
Agree Disagree
1 2 0 0 0 3
33.33% 66.67% 0.00% 0.00% 0.00% 100%

On the effect of wage and better terms of service negotiation done by trade unions and their
effects on organizational productivity; one out of the three respondents agreed strongly while the
two agreed plainly. In terms of percentages, 33.33% of respondents indicated that they strongly
agreed to the statement that organizational productivity increases due to trade union initiatives in
negotiating for wages and better working conditions. 66.67% agreed to this statement although not
strongly.
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Table 9: Strikes and low organizational productivity
Strongly Agree Undecided Disagree Strongly Total
Agree Disagree
3 0 0 0 0 3
100.00% 0.00% 0.00% 0.00% 0.00% 100%

In assessing the disruptive nature of trade unions on organizational productivity through strikes
particularly about reducing productivity, there was common agreement that trade unions reduced
organizational productivity. All the three respondents strongly agreed (100%) that trade unions
decrease organizational productivity whenever they use strikes as their primary tool to express
themselves when negotiations fail.

Table 9: Organization productivity before and after the formation of Trade Unions
Strongly Agree Undecided Disagree Strongly Total
Agree Disagree
0 0 0 2 1 3
0.00% 00.00% 0.00% 66.67% 33.33% 100%

The comparison of organizational productivity prior to and after trade unions that were intended to
determine whether the trade unions increase organizational productivity when all other factors are
kept constant received a unanimous agreement that there is a noted increased productivity
attributable to trade unions. Additionally, the respondents had mixed responses that trade unions
had an effect of reducing productivity of the organization if all other factors are kept constant.
Two disagreed with the statement in plain terms while one respondent strongly disagreed. This
means that 66.67% disagreed while 33.33% disagreed strongly. This is consistent with the finding
that productivity increased since trade unions were established.

Table 10: Trade Unions' disruption to organizational productivity


Strongly Agree Undecided Disagree Strongly Total
Agree Disagree
0 0 0 2 1 3
0.00% 0.00% 0.00% 66.67% 33.33% 100%

WE attempted to gauge the attitude of human resource managers regarding trade unions and the
perception that trade unions interrupt production processes in organizations. Although the
respondents earlier on indicated that trade unions reduce organizational productivity due to strikes,
none of the respondents agreed that they should be disbanded.

Two respondents disagreed that they should be disbanded while one strongly disagreed. In terms
of percentages, 66.67% disagreed while 33.33% strongly disagreed.
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Table 11: Social corporate responsibility role of trade unions and how such
increases their work performance
Strongly Agree Undecided Disagree Strongly Total
Agree Disagree
0 0 0 1 2 3
0% 0% 0.00% 33.33% 66.67% 100%

Table 12: Trade unions' provision of a level field of engagement between


employers and employees toward greater productivity
Strongly Agree Undecided Disagree Strongly Total
Agree Disagree
2 1 0 0 0 3
66.67% 33.33% 0.00% 0% 0% 100%

Summary:
This report has presented the results of the study and discussed the findings. It has been
established that trade unions activate their members for collective action and strikes are the
primary tool for the unions to express themselves when negotiation fails. Trade unions also
regulate relationships between employers and employees and facilitate members to access
educational facilities.

Moreover, they represent their members at disciplinary and grievance hearings shield their
members from inflation pressures but they do not represent non-members. They negotiate better
wages and working conditions for their members and help in attaining the balance of power
between employers and employees.

The study has established that although strikes decrease organizational productivity, trade
unions appear to increase such productivity through their activities. These activities include
representation of their members, negotiating wages and better terms of work as well as facilitating
members‟ education. Thus, those activities that motivate employees have an effect of increasing
productivity. When all other factors are held constant, trade unions have increased organizational
productivity since they were established.

Our Findings
The first objective of the study was to establish the various activities of trade union within
the NTC Company.

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 These include negotiations for better wages, better working conditions, mobilizing
employees for collective action when negotiations fail, facilitation of education
opportunities for members, organizing strikes when negotiations fail, these has been used
as a primary tool, they regulate relations between employee and employer
 They also represent employees during disciplinary hearings. However, it was noted from
the findings that activities such as the trade union representing the non-unionized members
was out of question.
 The second objective of the study was to establish the challenges of trade unions activities
in the NTC Industry in Pakistan.
 This means that trade unions have a challenge of ensuring that employees are paid high
wages without leading to unemployment sufficient information and expertise that trade
unions need in order to negotiate for equilibrium wages.
 In the findings it was noted that the respondents agreed that the trade unions negotiate pay
raise on behave of its members.
 It was also found that trade unions may fail to agree with the management on the way
forward during negotiations and as a result, trade unions mobilize their members to go on
strike. In cases where such strikes take a long period, companies end up losing revenues
due to discontinuity in production.
 The third objective of the study was to determine the effect of trade unions on
organizational productivity in NTC Industry.

Conclusion
 In conclusion, the reason being that it has always been said by trade unionists that their
existence is good for the organization's workers in particular and the whole firm in
general. Indeed, the unions have architecture a number of activities to its members that
ensure their well-being at the places of work.
 This, however, does not mean that every company has a trade union. Many employers,
particularly small and medium-size companies loath trade unions and in most cases, they
attempt to suppress their formation.
 The research problem of this study was based on the insufficiency of literature that
addresses the connection between workers' membership to trade unions and organizational
productivity.
 This was basically converting the activities into a positive or negative role in the
organization. Ultimately, it emerged that the existence of trade unions in a National
Telecommunication company enhances organizational productivity.

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Recommendations
Based on the findings of this study, a number of recommendations are made.

 First, companies should try to encourage the growth of trade unions since they are
associated with increases in organizational productivity.
 Secondly, companies should try to create a positive working relationship with trade unions
and the negotiation environment should be friendly enough to avoid stalemates that turn
into strikes since strikes disrupt productivity.
 Thirdly, companies that do not have trade unions should consider encouraging their
employees to join or form them for the companies‟ own benefits.
 Lastly, companies should consider encouraging trade unions to participate in corporate
social responsibility initiatives instead focusing only on their narrow employee
representation.

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