Effect Of Industrial Crisis On Productiveness Of Workers In Abia State Polytechnic


Workers often used industrial crisis to show their disagreement towards working condition in this chapter, the researcher reviewed literature related to this work several learning materials were consulted such as textbooks, journals, seminars etc

The literature is review under the following headings.

  • The meaning of industrial crisis
  • Causes of industrial crisis
  • Effect of industrial crisis on productivities of workers
  • Effect of wages and salary on productivities of workers.
  • Government policy, the effect on workers productivity
  • Summary of Review

2.1   Meaning of Industrial Crisis

Industrial crisis is the action take by employees to express their disagreement over something toward their employers(s)

According to Reverso English Dictionary, Industrial crisis is any action, such as a strike or go-slow, taken by employees in industry to protest against working conditions, redundancies etc.

According to Yesufu (2000), industrial crisis is any form of work dissatisfaction that can manifest in several ways such as absenteeism, strike, high labour turnover. Among others. It affect the immediate parties involved which normally trickles down to the entire society especially when it occurs at a national level.

According to Oxford English Dictionary, industrial crisis is action that workers take, especially stopping work to protest to their employers about something. Industrial crisis which entails inadequacy or absence of industrial peace in workplace of concern both workers and employers(s). This normally translates to the society especially when the organization involved renders essential service, it is this injurious nature that any management and government strive to keep it to a bearable minimum.

According to Tongo and Osabuohien (2007), though industrial crisis is not peculiar to developing countries, it is occurrence and severity ten to be more as a result of variance in industrial and structural factors”

Industrial crisis could also be defined as work stoppage on the part of employees to force their demands on the employers(s) or resist a particular demand / rule made by the employer9s).

According to Ehigie (2000) industrial crisis is a state of tension when one party perceives that its expectations are being undermined by another in the work relation.

Industrial crisis is also part and parcel of industrial life, crisis in industrial is often assured to be unnatural and undesirable situation that is to be avoided at all cost.

According to Onyishi (2010) industrial crisis refers to overt behaviour arising out of one party seeks the advancement of its own interest in relationship with others.

According to Chandon (1987) industrial crisis is disagreement between two groups which each group is trying to gain acceptance of its view or objective. With all these definitions, it is known without misunderstanding the meaning of industrial crisis.

2.2   Causes of Industrial Crisis

Causes of industrial crisis are those things that are trait to employees in an industrial, those things that can decrease productivities of workers.

According to Fshina (2001) “One of the causes of industrial crisis in Nigeria work place is policy inconsistencies and wrong placement in the organizational priorities on the part of management” when the employers place higher premium on capital inpute for above the workers without appreciating that the letter makes the former product.

Industrial crisis could also result from conflict of opinions when there is asymmetric information between the workers and employers(s), this arises from clash of interests during the process of Negotiation and incompatibility resulting from incomplete means in the pursuance of their respective goals.

According to Adesina (2003) government especially military regimes had profound impact on the trade union, which manifested in the alteration of the rules of engagement between the state and the union in Nigeria.

According to Otobo (2003) this could be as a result of insincerity and insincerity in handling union demand by government and management.

According to Ojiabor and Faloseyi (2005) source of industrial crisis is the breach of collective agreement that has being reached. Ideally, once decisions are reached via the process of collective agreement (or any means), each party is supposed to adhered strictly to the terms and conditions. Employers (and government) have in most cases been guilty of this, due to their seemingly stronger force. The University of Ilorin crisis is a very good example, which has lingered on for some years where the management refused to reinstate the sacked lecturers as directed by the court with these situation, you can agree with me that the productivities of worker will be highly affected.

The economic situation especially inflationary trend in the country has not equally helped matters. The inflationary trend has always been worsened as a result of fluctuations (increases) in the prices of petroleum products which translate to increased transportation cost and higher cost of living.

        According to Osabuohien (2005), This devalues of the workers income, which is capable of increasing their agitation that could lead to industrial crisis.

Unemployment and job insecurity can also cause industrial crisis. This is because when there is high level of unemployment, employer(s) tend to have strong bargaining power, they may became authoritative which will effect the management style and work rules.

According to Mas (2004), unemployment in the country, which makes employers(s) to believe that they can always replace workers that do not comply with their domineering initiative. Then, workers are provoked to join force to resist such propensities of employers(s), thereby straining the strand of industrial tranquility that hitherto exist this is because it intensified the strength and strategies of workers as well there by prompting them to rely on the tools of trade unionisms to push forth their right and privileges that are being deny.

Onyishi (2010) highlight some causes of industrial crisis as

  • Value and goal differences
  • Delay in promotion
  • Delay in pay wages and other entitlement
  • Authority issues.

2.3   Effect of Industrial Crisis on the Productivities of Workers

The effect of industrial crisis on productivity can be doubled edged sword which tend to increase industrial productivities and uplift group goals, which on the other hand, lower industrial productivities.

The effect of industrial crisis on has positive effect and also negative effect.

2.3.1  The Negative Effect

The Industrial Crisis Effect on Economy. The effect of industrial crisis that normally result when the workers and employer(s) are unable to reach a resolution are not usually beneficial to economy.

According to Mas (2004) the workers of the unions involved lose their immediate pay and hence their market purchasing power that results to reduction of welfare. On the other hand the employer(s) whose workers are on strike loses the union services and as a result becomes unable to meet their customers orders; or this invariable affects their return and profit margin. It is also result to loss of output of goods and services.

The effects of industrial crisis on Higher Institutions

The effects of industrial crisis are usually more several when it affects higher institutions. This is because when they suffer protracted industrial crisis, student are tempted to study mainly to pass and against the tradition of studying for knowledge acquisitions. This affects academic performance and standard of education in the country. Therefore, it may not be surprising to see students forget the title of the courses offered when they come for their transcripts after graduation.

This could also be one of the reasons why most employers of labour insist on second-class upper division and above for their applicants.

In some cases, the higher institution lost a whole academic year as a result of the unresolved industrial crisis. For instance, between Federal Government And Academic Staff Union Of Polytechnic. ASUP lasted for almost 10 months in 2014-2015 which make most polytechnics lose 2014/2015 Academic Session.

According to Nyong (1998) he state that in addition to the 1993/1994 academic session that was earlier lost as a result of “June 12 strike” for virtually all Nigerian higher institutions.

This great loss for the students as they spend more both in terms of direct lost and opportunity cost of being in school. Their parents and guardians are not left out in the pains as they suffer some dashed aspirations of children/wards graduation. Above all the society loses with respect to the quality of human capital formation.

General negative effect of industrial crisis

Industrial crisis has some negative general effect which are

–       Frequent and high level of conflict may stimulate

psychological withdrawal (apathy, indifference, attention) and physical withdrawal (turnover, stagnation, absenteeism, etc).

–       Other undesirable behaviour may come up in form of hostility, negligence, aggressiveness, sabotage, withholding and leakages of vital information, strikes etc.

According to Onyishi (2010) some of the negative result of industrial crisis are

  • Feeling of defeat of some people
  • Increase in turnover in industry
  • Rise of negative stereotypes
  • A climate of distrust and suspicion being developed.
  • Increase in distance between workers and employer(s).

According to project and researchwork.com (2015).

It states the essential function which include armed forces, health care post and telecommunications, fire, electricity, aviation, water and sanitation where the occurrence of an industrial crisis would endanger security. Public health and welfare and safety, also ports, banks and petroleum if they engage in industrial crisis, it will affect the economy both individual, the nation and worker productivity.

2.3.2        Positive effect of industrial crisis

According to www.project and research work.com(2015). The role of the industrial crisis as means of ensuring favourable employment condition to workers then becomes crucially important. In other words, without effective collective bargaining, the industrial crisis is the main avenue for given expression to employee’s grievance. And since only the industrial crisis can induce the employer(s) to negotiated therefore, industrial crisis is the effective means of workers to negotiate and get what they need form their employer(s).

Again, with industrial crisis, workers can express and force employer(s) to see some minor problem which they do faced in the work place and which management or government or employer(s) felt reluctant to solve or notice.

According to Onyishi (2010) industrial crisis may stimulate the parties involved to search for new way to reduce or resolve their disagreement thereby, increasing productivities of workers which lead to innovation, change, creativity and further initiative.

Industrial crisis may provide worker with the opportunity for accomplishing and getting numerous extrinsic and intrinsic rewards.

Various researchers recommend that a total absence of industrial crisis bring about stagnation, lethargy and complacency in the industry. They equally recommended that moderate level of focused industrial crisis can provide motivation, creativity, promotion of healthy competition and generation of new idea.

According to www.easyprojectmaterial.com (2014).

The industrial crisis makes the management to take union seriously in future negotiations. The industrial crisis if successful improve the economic well being of the members of trade union as they can win salary increase as a result of industrial crisis.

Industrial action tends to repute good relationship between managers and trade union leader because it could lead vengeful action against union leaders.

According to Onyishi (2010). Some of positive view of industrial crisis are:

  • Reduction intension and allaying of fears.
  • Better generation of ideas and analytical thinking.
  • Promotion of healthy competition and increased effort.
  • Search for a new approaches
  • Increase productivities if successfully resolved.
  • An opportunity and chance for people to rest the capabilities.

2.4   The Effect of Wages and Salary on Productivities of Worker

Wages and salary are motivational tool to increase workers productivity, if workers did not receive their wages and salary for months, they will be force to embark on industrial crisis which did not tell good about organization or industry.

According to Chukwuma (2004), Organizations had used wages and salary as a primary means of motivating worker to improve their performance, satisfactory wages and salary were assured to satisfy employees and motivate them to work faster and more efficiently in pursuit of overall organizational goals.

According to Agwu (2012), salary and wages, if the association administration paid the reasonable remunerations in time and fixing the salaries, then enactment of the employees habitually increase. Otherwise not well. Because salaries and wages is the main and very important motivational aspect that effect the employees performance in the organization or industry.

The present study is used to examine employees productivity in beverage industries. Results from present study suggest that if beverage industries motivate their workers by using these tool such as wages and salaries, compensation, job security and other incentives the workers productivities or performance will automatically increased and the industry achieve their goals easily there will be nothing like industrial crisis which is a setback to the industrial.

According to Agburu (2012), Institutions or industrial that seek to attract and retain highly productive and efficient employees cannot shy away from facing the challenges posed by the need to pay wages adequately in competitive environment.

According to Essien (2002), Wages and salaries are related costs (pension, etc) make up about 65 percent of the total costs of running a business. Be it as it may, industrial or establishments that lack ability to pay wages and salaries regularly are in danger of disintegration. Poor wage and salary are a constant source of frustration and can result in declines in productivity. As such, industrial or organizations must spend a great deal of time and effort in finding appropriate payment system in their organization.

Nwachukwu (2000) has aptly observed wages and salaries constitute a significant part of the overall cost of operations observing that in some organizations wages and salaries constitute over 50 percent of the operating costs.

Wages and salaries to be paid by organizations must be able to attract talented human resources, serves as legal requirements, help to retain and finally motivate employees on their job which will increase individual output and invariably, enhanced the organizational performance.

According to Agburu (2012), wages and salaries should not only be adequate but they must also show some element of equity: this is, particularly, true from the view point of the employees. Anything short of a fair and equitable wage or reward can quickly attract the wrath of employees in an economy such as any African country for any average African employee, wages or salaries are highly critical issues hey are decisive because without them in sufficient quantities, life becomes extremely precarious for the workers and members of his / her family. As direct financial rewards, wages and salary are the most emphasized by the employees, thus they sort of take a centre state in the scheme of things as far as rewards for work is concerned.

To this end, therefore, inadequate wages and salaries will bring about inadequate motivation and all these put together will attract:

  • Low productivity or performance
  • Absenteeism
  • Labour turnover
  • Sabotage etc.

With all these of it has been known that poor wages and salaries effect the productivities of workers.

2.5   Effect of Government Policy on Workers Productivities

Government policy on income tax is one of the problem faced by workers in industrial to have a good productivity. The rise in income tax of workers decrease their salary also affect the purchasing power of their income. According to Nihal and Mombert (2011), Apart form poor electricity supply, bad road network, high taxation is one of the major impediments to do business and work in Nigeria.

High taxation levels and various types of taxes have significant implications on Nigeria business by reducing incentives to expand production leading to high prices and distorting factors incomes which affect workers and their productivity. As a firms take investment decisions based on long-run returns to capital, the cost of taxation reduce the size of capital stock and aggregate output. Despite the constant review and enforcement of taxes on the citizens, the social goods which are necessitate to Nigerians such as acceptable quality of infrastructure, industrial plants, roads, power stadiums, rail ways and ports, affordable medical services, access to clean drinking water and education. All these basic minimum conditions that encourage global investments and improve the welfare of Nigerian economy are inadequate and to what extent do all these affect manifest?

According to Osundina and Olanrewaju (2013) it is worthy to note that the prevailing tax system in makes the poor to be poorer and the rich to be richer by tax avoidance and evasion which is affecting the standard of living. The question now is what impact do these heavy taxes have on the national income? And what is the welfare impact of taxation on the Nigerian citizens? All these effect of taxation policy on workers can lead to industrial crisis because it affect worker productivity and the workers are not getting much service from government base on utilization of those tax collected from workers, company and industries.

Another side which government policy affect workers productivities the Minimum Wage Policy.

The Federal Government through the department of labour has imposed a minimum wage since 1938. Nearly all the state governments also impose minimum wages the laws prevent employers from paying wages below a mandated level. Economic research show that minimum wages usually and up harming workers and when the workers are harmed, it affect productivity and it can lead to industrial crisis decrease or stagnant of minimum wage, decrease the income of workers and their productivities increase in minimum wage increase workers productivity.

According Gary Becker (2006), A rise in minimum wage increased the demand for workers with greater skills because it reduce competition form low skilled workers. This is an important reason why unions have always been strong supporters of high minimum wages because these reduce the competition faced by union members from the largely non-union workers who receive low wages. Over the years workers have protested about low minimum wage, this shows that government minimum wage policy has a lot to do with workers productivities.

2.6   Summary of Review

Effect of industrial crisis on productivity of workers in Abia State Polytechnic, Aba Abia State is a very difficult task facing the institution because it reduces the interest of workers to increase productivity.

Recognition of workers union by the institution management or government has a vital role to play in making workers more productive in their job.

It is also believed that a favourable negotiation by management / government and union will amount to good productivity of workers in an institution.

Finally wages and salaries increment and promotion will also amount to a high outcome of productivities of workers in an institution.

Also government policies on taxation and minimum wage should be in favour of workers, so that they will put their best to increase productivities.

References: http://eprints.covenantuniversity.edu.ng/4400/1/Causes and Effects Industrial crisis in Nigeria%3B Some empirical clarifications NJLIR.pdf

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