UNIT 5 THE ROLE OF STATE IN INDUSTRIAL
3.0 MAIN CONTENT
3.1 The Components of a State
It is not easy to define the state clearly. But the state can be described as the total of all its institutions or agencies. The following have been recognised as a description of the state:
• Legislature (parliament or its equivalent)
• The executive (government ministers)
• Central administration (the civil service – bureaucrats)
• The judiciary, the police and army, local and state governments
• Specialised agencies like industrial tribunals, wages and productivity boards, conciliation, arbitration, industrial court, factory inspectors, and the prices, productivity and incomes board.
In sum, the state is an institutional system of political domination in socialist as well as capitalist economies. The state’s industrial relations role is most pronounced in planned socialist economies. In capitalist settings, it is only in so far as its structural connections with the bourgeoisie secure the conditions for capitalist accumulation that the state can be labelled capitalist.
3.2 History of the State in Industrial Relations 3.2.1 The Period Before Independence (1960)
Before independence, government interest in industrial relations matter was minimal. Few workers were in wage employment. Moreover, the colonial administration pursued a policy of “creating the right environment” for colonial enterprises to flourish. Furthermore, the public sector workers largely shied away from militant forms of unionism. Government’s first significant legislative role in industrial relations is to be seen in the 1938 Trade Union Ordinance which enabled the formation and recognition of trade unions.
In the 1940s, the number of unions had increased considerably.
Government’s involvement in industrial relations became more requisite so as to prevent labour exploitation, which trade unions largely sought after, and to maintain industrial peace. The unions had by the 1940s attained a higher level of maturity, determinedly asking for some form of indexation to cushion the effects of inflation which was brought about the world wars, among other reasons. In 1941, there was the Trade Disputes (Arbitration and Inquiry) Ordinance which was enacted to facilitate the intervention of government on labour disputes, if and when
the internal joint machinery for disputes settlement has failed. The law prescribes procedures which the Labour Minister might use in the event of failure of voluntary settlement. The methods were conciliation, Inquiry and arbitration. The Labour Code Ordinance (1945) sought to protect workers against abuses of management and employers.
3.2.2 The Period from Independence (1960) to 1979
Changes in labour policy since the 1960s can be seen as basically interventionist in approach. For example, in 1968, the Trade Disputes (Amendment) Decree was enacted. The law prescribed compulsory arbitration. An amendment in 1969 created a permanent Industrial Arbitration Panel (IAP), although the award of the panel had to be certified by the Minister of Labour to become final. The Trade Disputes Decree No. 7 modified this procedure, 1976 which established the National Industrial Court (NIC). Thus, the IAP awards can be appealed to the NIC. However, the Minister could refer a dispute directly to it.
The award of the ANIC is final and binding. Real intervention of government occurred therefore since 1968.
Moreover, the Labour Act, of 1974 was enacted and stipulates that a letter or contract of employment must be given to the employee. In addition, the contract must contain among other things, details as regards the nature of the employment, dates and rates and increases in pay and holidays. The law guides against unfair dismissals, and other unfair labour practices on the part of both sides to industry. Issues pertaining to redundancy, child labour and engagement of women are also regulated by the decree.
State also enacted a law in 1976. Under the law, the Minister is empowered to enforce any provisions of a bilateral collective agreement on the parties. This provision in the law may be used to confer legitimacy and legality to the particular portion of the collective agreement. It is noteworthy that without this provision, a collective agreement in Nigeria is not automatically a legal contract but a gentleman’s agreement like in Britain. The state has made union recognition compulsory for any registered union.
Moreover, a Trade Disputes Essential Services Decree, 1977 was enacted. Under this law, the Minister reserves the right to refer a dispute to the National Industrial Court (NIC). This is considered necessary especially if the economic activities rendered are deemed as essential to the economy.
In 1979 constitution, legislation on labour matters was reserved for the exclusive list; state assemblies were precluded from passing labour laws.
In this year, the labour ministry was renamed Federal Ministry of Employment, Labour and Productivity. Section 37 of the Constitution of Nigeria provides for freedom of assembly, political partying and trade unionism. Other labour legislations continued up to now as interventionist approach.
Nevertheless, the effectiveness of this interventionist policy depends on the extent to which the internal machinery available to the parties has been able to resolve the dispute.
3.3 The Role of a State in Industrial Relations
The government of a state is the third party that completes the tripod of industrial relations. The role of the state in industrial relations is to influence both the workers unions and employers’ associations to promote industrial peace and productivity. Specifically, government has three main roles in industrial relations:
• The direct regulation of terms and conditions of employment
• Regulation of the manner in which organised labour and management relate to each other
• As an employer.
The Ministry of Employment, Labour and Productivity is the arm of government through which the regulating activities of government are carried out. The government serves as a data bank to both the employers and the unions, gives advice to both sides and issues guidelines on disputes and how to settle them. It is the responsibility of the ministry to supervise both the Industrial Arbitration Panel (IAP) and the National Industrial Court and also to apprehend trade disputes before any of the parties behaves foolishly. It also appoints arbitrators to settle disputes and advises employers on labour laws. This is the pivot upon which the strength of the government stands.
Government indirectly regulate situations in the private sector. A typical example is the wage freeze which government imposed on the employers and employees in the private sector between 1982 and 1987, the indirect effect is that government on its own could not review the salaries of its employees because the inflationary trend was regulating was common to both the public and private sectors. In 1988, the state assisted the labour movement to create internal peace when it could not bring all its affiliates together to elect new leaders during the ill-fated Enugu Delegates Conference of the Nigeria Labour Congress. Mr.
Ogunkoya was appointed an administrator for the Congress. He administered the outfit between this period and 1989.
Another reason government intervenes in industrial relation matters is that it is the largest single employer of labour in the country. The areas of control of state are employment, work and distribution of economic employment policies, job protection of employees’ rights and job creation are policy outcomes. The state is also involved in the distribution of economic activities, income redistribution through taxing and spending, and equalisation of market situations through education in some of the policy areas.
3.4 The National Labour Advisory Council
The tripartite nature of modern industrial relations in Nigeria is best exemplified by the National labour Advisory Council. It is made up of representatives of the government, those of the organised private sector represented by NECA and representative of Central Labour Unions represented by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC). The committee is charged with the responsibility of advising the state (federal government) on labour and industrial relations matters.
SELF-ASSESSMENT EXERCISE
Explain the meaning and components of a state involved in industrial relations.
4.0 CONCLUSION
In this unit, we examined the institutions of the state, the history, role of a state as a regulator, employer and serving on the board of National Board of Labour Advisory Council.
5.0 SUMMARY
The role of the state in industrial relations has been described. The new philosophy of government in labour relations is the principle of limited intervention and guided democracy. This policy stipulates the right of government to intervene in both union and management and labour-management relations. Aside the fact that the state is an employer, it also helps to regulate laws between employer and employees in the private sector. However, conflicts often arise as the state wants to play safe so as not to get caught up in its rules. In general, the confusion has arisen over the role of the state as a governing body and its role as the largest employer of labour. Eager to forge meaningful development for itself, the state has continued to pursue policies that would seem to put labour in safe channels so that energies are not dissipated over perceived anti-development activities. Nevertheless, the effectiveness of this
interventionist policy depends on the extent to which the internal machinery available to the parties has been able to resolve the dispute.
6.0 TUTOR-MARKED ASSIGNMENT
The dominance of the state in industrial relations is inevitable. Discuss.
7.0
REFERENCES/FURTHER READING
Fashoyin, T. (1980). Industrial Relations in Nigeria. Lagos: Longman.
Fajana, S. (2006). Industrial Relations in Nigeria. Lagos: Labofin and Company.
Onasanya, S.A.B. (2005). Effective Personnel Management and Industrial Relations, Revised Edition. Lagos: Centre for Management Development Publications.
Otobo, D. & Omole, M. (1987). Readings in Industrial Relations in Nigeria. Lagos: Malthouse.
Ubeku A.K. (1983). Industrial Relations in Developing Countries: A Case of Nigeria. London: Macmillan Press Ltd.
MODULE 3
Unit 1 Industrial Conflicts in Organisations Unit 2 Industrial or Trade Disputes
Unit 3 Resolution of Industrial Conflicts Unit 4 Collective Agreements
Unit 5 Productivity Bargaining and Agreement