An Analytical Study of Labour Unrest and Underdevelopment in Nigeria
Chapter One
Objectives of the Study
The broad objective of the study is to assess the consequences of labour unrest on Nigeria’s development. Thus the specific objectives of the study are:
- To ascertain if public policies are responsible for labour unrest in Nigeria.
- To determine if underdevelopment is a consequence of labour unrest in Nigeria.
- To discover if dialogue and collective bargaining can curb labour unions in Nigeria
Chapter Two:
Public Policy and Labour Unrest in Nigeria
Economic Reforms and Retrenchment of Workers
With a population of 160 million people, that makes Nigeria the most populous country in Africa and a GDP second only to South Africa, yet following several years of military rule and poor economic management, Nigeria experienced a prolonged period of economic stagnation, rising poverty levels, and the decline of its public institutions. Thus by most measures human development indicators in Nigeria were comparable to that of other least developed countries while widespread corruption undermined the effectiveness of various public expenditure programs.
However, following years of economic stagnation Nigeria embarked on a comprehensive economic reform program during Obasanjo’s second tenure. The program was based on National Economic Empowerment and Development Strategy (NEEDS) which focused on four (4) major areas aimed at improving:
- macro-Economic Environment
- Pursuing Structural Reforms
- Strengthening Public Expenditure Management
- Implementing Institutional and Governance Reforms.
Though in previous decades, there were severe infrastructural bottlenecks that hindered private sector activities. In particular the poor condition of the power sector prior to the economic reform illustrated the severity of Nigeria’s infrastructural deficit.
In a nutshell, the economic reform called NEEDs (National Economic Empowerment Development Strategy) embarked by President Olusegun Obasanjo’s second tenure was complemented by individual state economic empowerment and development strategy (SEEDS) which were prepared by all 36 Nigerian states and the FCT (Federal Capital Territory).
The NEEDs program emphasized the importance of private sector development to support wealth creation and poverty reduction in the country which is evident in the four major area’s enumerated above. Furthermore, for proper understanding, we shall provide a brief background prior to the reform and subsequently examine the reform measures and program made so far.
Macro-Economic Reform:
Nigeria’s economic performance in the last decade prior to economic reforms was generally poor. Over the 1992-2002 annual GDP growth had averaged about 2.5 percent with an estimated population growth of 2.80 percent per annum. This implied a contraction. In per capital G.D.P over the years that had resulted in a deterioration of living standards for most citizens.
Thus a major challenge for the Nigerian economy was its macro-economic volatility driven largely by External terms of trade stocks and the country’s large reliance on oil export earnings. By some measures, Nigeria’s economy ranked among the most volatile in the world for the period 1960-2000 (World Bank, 2005).
Chapter Three:
Labour Unrest and Under Development
Labour Unrest and Loss of Revenue
Labour unrest according to Amesen Eric (2007) is a term used by employers or those generally in the business community to describe organizing the strike actions undertaken by labour unions especially where labour disputes becomes violent or where industrial actions which members of a workforce obstruct the normal process of business and generate industrial unrest are essayed. Thus, there is hardly any gainsaying the fact that industrial conflict or labour unrest are realities of any economic system where workers and managers interact which seems more pronounced in the public sector especially labour unions tends to have sustainable market power and are more usually in a position to play key roles in the political and economic process and it is this position that makes them conflict prone.
Chapter Four:
Strategies for Curbing Labour Unrest in Nigeria
The Decentralization of Labour Union
First decentralization simply means the diffusion of authority i.e. the dispersal of authority of decision making to the lower level. It could also mean taking power or control from a central location and thus spreading it out.
Chapter Five:
Summary, Conclusion and Recommendation
Summary
This study on labour unrest and underdevelopment in Nigeria; An appraisal from 2000 – Date gave an insight on the situation of things in Nigeria each time Nigeria government embark on labour policies that are not favorable to labour unions and Nigerians. In most cases like the increment in fuel price, kerosene etc that often resort to labour unrest and underdeveloped the country.
Labour unrest is one of the most threatening problems which has eaten deep into the core of Nigeria state, and has gradually and regrettably become a tragic and now regular phenomenon of the National sensibility and consciousness of labour unions and Nigerians as a whole.
This has been largely as a result of the disruption of socio – political and economic activities, loss of revenue and loss of investment, infrastructure etc which hinders development and tend to delay in the attainment of National goals embarked by Government, but inspite of these lost by the Nigeria, the issue of labour unrest still surfaces each time major policies on labour are taken, yet the Government have yet to diverse mean to prevent future occurrence, even though sometimes labour unrest seems to be the only avenue the government listens to the voice of the people.
The first chapter of this study presented the thrust of the research, which is to ascertain if public policies are responsible for labour unrest in Nigeria. It traces the problem to government labour policies in Nigeria taken without due consultation by the government of the day with major labour stakeholders so as to prevent unrest if a decision is reached by the government.
And defined labour unrest as a term used by employer or those generally in the business community to describe organizing and strike action undertaken especially when government tend to implement public/labour policies not favorable to their members.
It was discovered to overcome the paradox of labour unrest inherent in every civilian administration since 1799, Government need to always embark on consultations with stakeholders of labour leaders capable of mobilizing people for protest thereby leading to unrest. In summary, one would no doubt say that the impact of labour union on some Government public labour policies which often lead to labour unrest that the positive implication seems to outweigh its adverse effects because in most cases as examined in the 2002, 2000, 2008 and most recently 2012 this policies are reversed to some extent even though it may not be reversed 100%.
Conclusion
I tried to answer the question posed by hypothesizing that public policies are responsible for labour unrest in Nigeria, and that labour unrest is a product of Government obvious policies unfavorable to workers (labour union) and that decentralization of labour union or the use of coercion is not the best approach to adopt a curb labour unrest in a democratic and multi-ethnic state like Nigeria, but rather dialogue option is the best approach to adopt during labour unrest.
On the basis of the finding of this study, I conclude by drawing attention to the grievous harm caused by labour unrest in Nigeria such as the enormous loss of revenue in the banking and oil sector specially in Nigeria’s economy, the loss of investments where investors take their funds to neighboring countries like Ghana, Chad, Cameron, Niger Republic etc, vandalization of Government properties, loss of lives, theft etc just to mention but a few.
Over the last decade, labour unrest have contributed to Nigeria’s underdevelopment because like we examined, the labour unions plays significant pole in the prosperity and development of any society because of its great impact in socio-economic, political and even cultural activities.
However it is observed that several policies initiated to curb labour unrest in Nigerian society tends not to have been effective since Nigeria’s transition from military regime to civilian administration.
Even in 2002, when president Olusegun Obasanjo took labour union to court to stop the union from embarking on strike action it wanted to undertake, which was though granted by the court, but it only resulted to the suspension of the strike for just two (2) days. This is because labour constitutes the masses to a large extent.
And those who are empowered to implement substantive labour policies tend to implement labour policies that would be in then own selfish interest.
More so, the issue of underdevelopment according to Rodney (1972) is as a result from an equal interaction between two (2) societies, the more this unequal relationship last, the more the backwardness.
Therefore interaction and due consultation between labour and Government should be encouraged each time Government wants to embark on any major public labour policy.
Recommendation
This research work has carried out an extensive analysis and evaluation of the causes of labour unrest in Nigeria and the surest way to avert future occurrence. I therefore recommend based on the findings of the research work taking into consideration the contemporary issue concerning labour unrest the following so as to have a free flow and conducive environment where investors will feel safe and comfortable to invest their money without being worried if Government labour/public policy could undermine their daily activities.
- Labour union stakeholders be incorporated into the Government to specialize on issues pertaining the formulation and implementation of public policies that could prompt labour unrest in the country. Hence underdevelopment.
- Government needs to abolish the use of force (coercion) during labour unrest when it arises and diverse some other approach to quench the prevailing unrest because it seems to be the only avenue the citizens tend to express their views on policies taking by government that is unfavourable to them.
- Government must always try to fulfill agreement reached, because for instance the new minimum wage of 18,000 for workers have still not being fully implemented by some state government across the land because agreement made must be kept as Hugo Grotius puts it.
- Collective bargaining should be encouraged in the quest for industrial peace, because by dialogue and collective bargaining, the workers could use the forum and potrate their grievance and pain to the Government about the said policy that tends to bring labour unrest in the country.
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