economic factors affecting workers’ participation in...

International Journal of Social Sciences Vol.11, No. 1, January – March, 2017

147

Socio-Economic Factors Affecting Workers’ Participation in

Trade Union Activities in Multinational Organizations: A Case of

NPDC and PPMC.

by

Emily O. Akintoye and Angela I. Ogbu

Department of Sociology and Anthropology

Benson Idahosa University, Benin City

gmail: [email protected] ; [email protected]

Tel: 08035436975 ; 08066600649

Abstract The study was carried out to investigate the socio – economic variables influencing workers

social participation in management process of multinational organizations and its implication

for effective marketing of pipeline product in NPDC and PPMC, Edo State, Nigeria. The organizations were NPDC and PPMC. The survey design approach was adopted in the study.

Both primary and secondary sources of data were used and structured questionnaires were

used to obtain data from the respondents. The total number of respondents used for the study was 470. The objectives of the study were investigated using percentage and mean statistics,

while the Chi - square statistics was used to test the hypotheses of the study. Results revealed

that male (70%) dominated the organizations and they are of average age of about 42 years

with average working experience of 16 years and earning an average monthly income of

N151.70. Most (63%) of the respondents attended higher Institution, married (61%) with most (60%) of them belonging to the Christian religion. It was also revealed from the study that

there was significant relationship between organization patterns of management and trade

union involvement in decision making. There was also a relationship between union leadership and involvement of unions in decision making in organization. Participation of

workers in union activities was plagued by many factors. Based on findings, it was recommended from the study that the democratic style of leadership should be adopted by

leaders and trade union. Again, people with unquestionable character should be elected into

executive positions.

Keywords: Participation, trade union, multinational organization, industrial, government,

socio-economic.

1. Introduction Trade Unions evolved from the inclination of workers to pursue improvement on

working conditions through collective bargaining during the industrial revolution in

Europe. Adam (2004) declared that sustained joint suffering breeds a brotherhood of

understanding, joint action and mutual assistance. Employees, therefore, needs only to

align his interest with the general aspirations of his trade union in order to garner

sufficient weight to compel management attention to his needs and aspirations in the

organization. Hence, the employees’ willingness to participate in trade unions becomes

important and beneficial.

mailto:[email protected]

mailto:[email protected]


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Participation is a rich concept that varies with its application and definition.

Srinivasan (2003) defined participation as a process of empowerment and active

involvement of beneficiaries in decision making that affect them. Again, Sidorenko

(2006) participation has no special definition as its meaning seems to be self-evident. He

however, defined participation as a process of taking part in different spheres of social

life: political, economic, social, cultural and others. To this end in view, participation

emphasizes the rights of individuals and the choices that they make in order to participate

in one activity or the other. Sherry (2006) identified two types of participation: Passive

and active participation. The passive participation is that in which people are simply told

what is going to happen or has happened already, while active participation involves a

situation where people take responsibility for and actively contribute to project planning,

design and implementation. Daman (2003) observed that genuine participation in a group

is an opportunity for members to better their own lives in particular and the community in

general, motivates people to work together because it inculcates in them a sense of

community and recognize the benefits of their involvement. In addition, genuine

participation may bring about remuneration in cash or kind to members, and also ensures

the rendering of free social, religious or traditional obligations to members of the same

group. Thus, participating in a trade union is essential in any organization whose

adherence lies within the terms and conditions of employment. Trade unions fighting for

the interest of their members must oversee the rate of pay in order to ensure that wages

are adequate or in line with the cost of living. Unions have achieved notable organizing

and bargaining victories in several industries where such gains have historically proven

difficult, yet many have argued that labour unions must adopt systematic methods for

evaluating their current and future strategic plans (Hensman, 2011). According to Banch

and Kessler (2012), the road that workers trod to attain the recognition and right even to

participate in decision making was a long, stormy and often bitter one. The issues at the

state bordered on how to humanize the conditions of work to limit the physical dangers

and the exploitation to which the worker was prone and the right of the worker himself to

participate in the decision-making process, as of right: the inalienable or fundamental

right of a human being to determine, direct in influence the course of events, or the events

themselves. Banch and Kessler encroaches on contentious grounds in representing

workers participation as a matter of fundamental human right. This perspective negates

the impetus and guiding principles of workers’ participation which are: proper

understanding and integration of interests and proper harmonization of goals and

objectives of the industrial partners.

Nigerian industrial relations system, like that of any other country has three

actors, namely: the workers, the employers and the government. It is the interaction of

these three actors that make up the industrial relations system of the country. It is in view

of this, that Ackers (2008) defines industrial relations as tripartism in action. The

interaction and dynamism within the system are represented by the trade unions, the

employers are represented by the management of the organization and the various

employers’ association bodies and the government plays a dual role as employer of labour

and regulator of labour. Employees in a bit to get maximum benefits from the

organization may want to be involved in the making of decisions that affect their interest.

The management on the other hand may want to restrict workers’ participation in the

making of decisions in the organization since decision making falls into its prerogative,

Akintoye, E. O. and Ogbu, A. I.


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and since such interference may adversely affect its desire to make profit and ensure the

survival of the organization. Thus, this study looks into the socio-economic factors

affecting employees’ participation in trade union activities using the Nigerian Petroleum

Development Corporation (NPDC) and; Pipeline and Product Marketing

Company(PPMC) as study areas.

2. Statement of the Research Problem

Some of the variables influencing social participation in groups such as trade

unions as as identified by Sinkanye (2005) are divided into four major categories, namely:

attendance at meetings, financial and or material support, office holding and committee

membership. Daman (2003) stressed the following factors as correlates of participation of

people in community based organizations: remuneration in cash or kind, cohesion among

members of the group, support from institutions and value for programme. Financial

and/or material support was also identified to influence participation in groups. This was

stressed to be further influenced by the socio-economic status of the members, size of the

group, perceived benefit of the group to members and intensity of group identification.

Weathers (2009) posited that worker participation in management occurs when those

at the bottom of an enterprise hierarchy take part in the authority and managerial

functions of the enterprise. The term management is both functional as well as

descriptive. At the functional level it defined the machinery responsible for the

mobilization, coordination, structuring as well as rationalization of the factors of

production. Whereas at the descriptive level, it delineates the category of personnel

responsible for the execution of the functions of management.

The management process in any multinational organization (of which the NPDC

is one), involves three actors, namely, the workers, employers and the government. For

some time now, there seem to be too much of strikes, break-down of law and order in our

multinational organizations in particular and our country in general. In a bid to revamp the

ugly trend and ensure harmony in our organization, the study attempts to study the socio-

economic variables influencing workers participation in decision making process as it is

believed,this study hopes to answer the following questions:

1. What are the socio-economic variables influencing workers’ social participation

in management process of multinational organizations?

2. What are the socio-economic characteristics of workers in the organizations?

3. What are the patterns of relationship between workers and managements in the

organizations?

4. How these patterns do affects decision making in the organization?

3. Objectives of the Study

The main objective of the study is to examine the socio-economic variables

influencing workers social participation in management process of multinational

organizations and its implications for the effective marketing of pipeline product in

NPDC and PPMC, Edo state, NIGERIA.

Specifically, the following objectives were looked into:

i. To determine the socio-economic characteristics of workers in the organizations

in Edo state.


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ii. To ascertain the extent of trade unions participation in the organization’s decision

making process.

iii. To examine how the pattern of relationship between workers and management

affects decision making in the organization

iv. To identify the factors that affect workers participation in trade union’s activities

in the organization

4. Research Hypotheses

Ho1 : There is no significant difference between the patterns of management

and trade union involvement in decision making.

Ho2 : There is no significant difference between union leadership and their

involvement in decision process in the organization

5. Review of Related Literature

Although the idea of workers participation in decision-making in organization

dates back to the 19thcentury, it sounds very new in certain environment (Aspinall, 2007).

As far as Nigeria is concerned, most especially in the public sector, people in

organizations work together in order to accomplish its objectives and these objectives are

both the individual and the organizational objectives. It must be noted that each individual

working in an organization have individual goals to achieve. Thus, while management

wants to formulate decisions that will enhance the performance of job for the purpose of

actualizing the organizational objectives, the workers through their union want to ensure

that in making decisions in organizations, their interest are well protected.

According to Owolabi and Abdul-Hameed (2011) opined that there is an

assumption held by many scholars and managers that if employees are adequately

informed about mattersconcerning them and are afforded the opportunity to make

decisions relevant totheir work, then there will be benefits for both the organization and

the individual (Shadur et al., 1999). Hence, the following are the benefits of employee

involvement indecision making: It increases employees’ involvementsatisfaction and

enhances productive efficiency (Chang and Lorenzi, 1983). It provides employees the

opportunity to use their private information, which can lead to better decisions for the

organization (Williamson, 2008). As a result of the incorporation of the ideas and

information from employees, organizational flexibility, product quality, and productivity

may improve (Preuss and Lautsch, 2002). It contributes to greater trust and a sense of

control on the part of the employees (Chang and Lorenzi, 1983). Through employee

involvement, resources required to monitor employee compliance (e,g., supervision and

work rules) can be minimized, hence reducing costs (Arthur, 1994; Spreitzer and

Mishra,1999). When employees are given the opportunity to contributing their ideas and

suggestions in decision making, increase employee involvement in decision making

maximizes viewpoints and a diversity of perspectives (Kemelgor, 2002).

Furthermore, Yusuf and Metiboba (2012) opined the need to provide a safe work

environment for employees has had a long history in human resource management.

Spector and Beer (1994) acknowledged that work systems cannot only affect

commitment, competence, cost effectiveness and congruence but also have long term

consequence for workers’ well-being, there are some evidences to indicate that work

systems designs may have effects on physical health, mental health and longetivity of life



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itself. Conducive work environment ensures the well-being of employees which

invariably will enable them exert themselves to their roles with all vigour that may

translate to higher productivity (Akinyele, 2007). Kohun (1992), defined work

environment as an entirely which comprises the totality of forces, actions and other

influential factors that are currently and, or potentially contending with the employee’s

activities and performance. Work environment is the sum of the interrelationship that

exists within the employees and the employees and the environment in which the

employees work. Brenner (2004) was of the opinion that “the ability to share knowledge

throughout organizations depends on how the work environment is designed to enable

organizations to utilize work environment as if it were an asset. This helps organizations

to improve effectiveness and allow employees to benefit from collective knowledge”. In

addition, he argued that work environment designed to suit employee’s satisfaction and

free flow of exchange of ideas is a better medium of motivating employees towards

higher productivity.

6. Material and Method

Area of study

The study was carried out in Edo State. The State is one of the nine states of the Niger

delta area of Nigeria. It is the remnant of the defunct Bendel State after the Delta State

was carved out in August 1991. The state presently has 18 local government areas with its

capital seat at Benin City. Its population size according to 2006 census is 3,218,332

people and that is still in use till today. They are spread over about 19,639.7 square

kilometers, the average population density is about 110 people per square kilometer but

the densities are higher in Benin city and other urban areas and local government

headquarters such as Auchi, Ekpoma, Uromi, etc. (NAEC, 2008).

Most of the communities in Edo State trace their origin to the ancient Bini

Kingdom, whose first traditional head, was the Oba of Benin. Edo State has various

linguistic and cultural affinities. Their main spoken language is Edo, with its various

dialects and lingua franca which is pigeon English, the official language is English

Language. Edo State is rich in culture and can boast of the world best wood carvers, and

bronze sculptors. The people are also popular in arts and crafts and these have contributed

to the tourism and creation industry in the State. Benin-City has developed to be the

administrative, commercial and industrial nerve centre of the Edo State, The State has

major industries at NIFOR, Ewu, Okomu, etc. major crops grown in the State include,

rubber, timber oil palm and cocoa (in Akoko Edo, Owan and Etsako areas) production

before Nigeria oil rich. Several mineral endowed in the State are quartzite, marble,

limestone, lignite, gold. Petroleum is found in Ovia and Orhionmwon areas of the State

(NAEC, 2008).

Research Design

The study employed the survey research design. This survey research design was

adopted because it stands the most efficient way to draw respondents of the study since

the population was large and findings obtained can be generalized for the larger

population.

Sampling Technique and Size


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The stratified sampling technique was employed because the organizations

(PPMC and NPDC) used for the research had different categories of workers and

stratification was necessary to ensure that each category was well represented in the

study. The population of the study comprised of workers of Pipeline Product Marketing

Company (PPMC) and Nigeria Products Distribution Company (NPDC), both

subsidiaries of Nigeria National Petroleum Corporation (NNPC). The total number of

workers in NPDC was six hundred and twenty (620), while that of PPMC was three

hundred and twenty (320) workers. This brings the total number of workers of both

subsidiaries to nine hundred and forty (940) workers (see Table 1).

Table 1: Distribution of workers in the subsidiaries used for the study

Staff Categories NPDC workers PPMC workers

Management staff 32 20

Senior staff 53 32

Supervisors 71 30

Junior staff 464 238

Total 620 320

Source: Field survey, 2015

From the population, an equivalent number of 50% was drawn from both

organizations (PPMC and NPDC) to make up the sample used for the study. This brought

the sample size to four hundred and seventy (470). The distribution of the staff of both

companies according to their categories and the number sampled is shown in Table 2 and

3 respectively

Table 2: Distribution of NPDC workers according to their category

Staff Categories NPDC workers PPMC workers (app.50%)


Senior staff 53 27

Supervisors 71 36


Total 620 311


Table 3: Distribution of PPMC staff according to their category

Staff Categories NPDC workers PPMC workers (app. 50%)


Senior staff 32 16

Supervisors 30 15


Total 320 160


Method of Data Collection

The data for the study was collected from primary and secondary sources.

Primary data was collected from the respondents through the aid of structured



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questionnaires, while the secondary data was elicited from books and other literature

obtained from the Human Resources Departments of both companies. The questionnaire

were distributed and retrieved by the researcher..

7. Method of data Analysis

The data obtained were analyzed using both the descriptive and inferential

statistics. Descriptive statistics involves analyzing socio – economic characteristics in

frequency tables, percentages and means. Inferential statistics on the other hand, involves

the use of Chi – Square in analyzing the hypotheses of the study.

In using Chi – Square statistics, attention was paid to the rules for validating the results.

In addition, degrees of freedom were calculated based on columns and rows. Finally, level

of significance was chosen.

Formular for Chi – square is given below;

2 = ∑ [ (Fo - Fe)

2] / Fe

Where; Fo = Obtained or observed frequency in a cell.

Fe = Expected frequency

∑ = Summation which is taken over all cells in the contingency table

Decision Rule

If the calculated Chi – square (2cal) exceeds (>) the tabulated Chi – Square (

2

tab), the null hypothesis is rejected while the alternative hypothesis is accepted.

i.e. if 2 cal >

2 tab, reject null and accepted alternative hypothesis

on the other hand, if X2 cal <

2 tab, accept null and reject alternative hypothesis

8. Result and Discussion

Socio – Economic Characteristics of the Respondents

The socio – economic characteristics of the respondents is shown in Table 4.

Results revealed that most (71%) of the respondents were males while the others were

females. This large difference in the numbers could be attributed to the nature of the work

which males are most favourably disposed to. In where age is concerned, most (37%) of

the respondents belong to the age bracket of between 30 – 39 years. About 9% of them

were less than 40 years while about 53% of them were more than 39 years. The mean age

was 42 years. The results indicated that the respondents were in their active age group.

Educationally, good proportion (63.41%) attended higher Institution and beyond,

while few of them (27%) did not school beyond secondary school level. The educational

level makes it possible for the workers to attain managerial positions and handle

challenges when they arise. Large proportion (about 61%) of the respondents is married.

About 16%, 5% and 18% were respectively divorced, widow(er) and single. Having most

of them as married people is a reflection that they are responsible people and have people

to cater for.

In terms of religious affiliation, a larger proportion (60%) of the respondents is

Christians. Few (20%) are Muslims, about 11% are of the Traditional religion while about

9% belong to other religion. The dominance of Christians in the organizations could be

attributed to type (Christianity) practiced in the area of study.

Considering the respondents on the basis of working experience, results showed

that the mean years of working experience was about 16 years, most (about 34%) of the

respondents had less than 10 years working experience while others had more than 9


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years working experience. The result implied that the workers hadput in reasonable

numbers of years and so could be termed as experienced in the job. The survey on income

level reflected an average income of N151,700 and majority (about 38%) belonged to this

category (N150,000 – N200,000). About 16% of them earned above N200,000, while

about 46% earned below N150,000. The income level indicated that the respondents are

economically stable and can meet with most of their domestic responsibilities.

Table 4: Socio-economic characteristics of respondents

Characteristics

Categories Frequency Percentage Mean

Gender Male 332 70.64

Female 138 29.36

Total 470 100.00

Age 20 – 29 42 8.94

30 - 39 175 37.23

40 - 49 155 32.98

50 - 59 98 20.85

Total 470 100.00 41.58

Educ. Qual. Pri. sch. 15 3.19

Sec. sch 112 23.83

Higher intuitions 298 63.41

M.Sc / Ph.D 45 9.57

Total 470 100.00

Marital status Single 83 17.66

Married 288 61.28

Divorced 75 15,96

Widow(er) 24 5.11

Total 470 100.00

Religious affiliation Christianity 282 60.00

Islam 94 20.00

Traditional 51 10.85

Others 43 9.15

Total 470 100.00

Work exp. (yrs) 1 - 9 158 33.62

10 – 19 141 30.00

20 – 29 126 26.81

30 – 39 45 9.57

Total 470 100.00 16.23

Income Below 50,000 08 1.70

50,000 < 100,000 63 13.40

100,000 < 150,000 146 31.06

150,000 < 200,000 176 37.45

200,000 and above 77 16.38

Total 470 100.00 151.70


Level of trade union participation in the organization decision making



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Results on the level of trade union participation in the organization’s decision

making revealed that majority (about 55%) were high participants in organization

decision making (see Table 5). Few of them (about 32%) were average participants, while

a low proportion of them were low participants in the decision making process of the

organizations. The fact that the majority of the respondents are high participants is an

indication that the management of the organizations perhaps have made participation of

workers in decision making as something compulsory. This could be seen as a channel

through which the welfare of the workers is easily met, hence their high participation.

Table 5: Level of trade union participation in the organization decision making

Level of Participation Frequency Percentage (%)

High participation 257 54.68

Average participation 149 31.70

Low participation 64 13.62

Total 470 100.00

Field survey, 2015

Pattern of relationship between trade union and management

The result of pattern of relationship between trade union and management is

shown in Table 6. The result revealed that a good proportion (about 83%) and few (17%)

of the respondents indicated that the pattern of relationship was the universal and systems

pattern respectively. The implication is that the universal pattern allows for inputs of trade

unions in decision making and this guarantees the workers welfare being met on one

hand, and a higher productivity on the other hand. Report of McCabeand Lawin (2004)

agreed with the result as they noted that trade unions have a way of expressing complaints

or dissatisfaction in the participation and involvement of employees in decision making

process in organization.

Table6: Pattern of relationship between trade union and management in

decision making Pattern of Management Union Involvement Total

Involvement Not involved Frequency Percentage

Universal 328 61 389 82.77

Systems 58 23 81 17.23

Total 386 84 470 100.00


Factors limiting respondents’ participation in trade union activities in the

organizations Table 7 shows the factors limiting respondents’ participation in trade union

activities. Some of the serious constraints why respondents do not like participating in

trade unions are poor leadership style put up by leaders (mean = 2.91), corrupt and

dishonest leadership (mean = 2.81), benefits and affairs being hijacked by few (mean =

2.78) and threat of disengaging workers (mean = 2.54). The non – serious constraints

include poor participation of workers in executive positions and failure to address / pursue


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members’ needs. The serious constraints plaguing workers participation in trade union

accounts for why many of the workers stay away from union activities.

Table 7: Factors limiting respondents’ participation in trade union activities in the

organizations

Constraints Mean Standard Deviation

Poor participation of workers in executive

positions.

2.03 0.65

Failure to address/pursue members needs. 2.10 0.68

Poor Leadership style of organization’s

Executives

2.91 0.70

Corrupt and dishonest leadership. 2.81 0.76

Hijacking of benefits & affair by few privileged

members.

2.78 0.62

Treats to workers who would have wanted to

participate in Executive positions.

2.54 0.60

*Agreed (mean ≥ 2.50);


Pattern of management and trade union involvement in decision making

Hypothesis one states: there is no significant difference between organization pattern of

management and trade union involvement in decision making. The relationship between

management and trade union involvement in decision making is showed in Table 6. The

analysis revealed thus:

Calculated Chi – Square (2 cal) value = 4.2

Tabulated Chi – square (2 tab) value = 3.84

Degree of freedom (DF) = 1

Alpha level of significance = 0.05

Decision: since the calculated Chi – square (2 cal) of 4.2 was greater than the tabulated

value of Chi – square (2 tab) of 3.48, at alpha level of 0.05 and a degree of freedom 1, the

null hypothesis was rejected while the alternative that a significant relationship did not

exist between pattern of management and trade union involvement in decision making.

The result showed that the majority of the respondents believed that pattern of

management and trade union involvement means a lot to their organizations. By

implication, management patterns allow for the inputs of trade union indecision making.

The practice guarantees an assurance of higher productivity in the organizations. This

finding and assertion is in line with the assertion of Boxall and Purcell (2011) who stated

that the trend in most organizational decision making is collective bargaining where the

involvement of workers in decision making is considered as a tool for inducing

motivation in the workers leading to positive work attitude and higher productivity.

Leadership and involvement of trade union in decision making in organization

Hypothesis two states: There is no significant difference between union leadership and

their involvement in decision process in the organization. Table 8 shows the difference

between Union leadership and their involvement in decision making in the organizations.

From the Table, the following could be deduced;


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Calculated Chi – Square (2cal) value = 5.23

Tabulated Chi – square (2 tab) value = 3.84

Degree of freedom (DF) = 1

Alpha level of significance = 0.05

Decision: the null hypothesis was rejected while the alternative hypothesis was accepted.

This decision was based on the fact that the calculated Chi – Square value of 5.23 was

greater than the tabulated Chi – Square value of 3.84 at alpha level of 0.05 and a degree of

freedom of 1. This means that there is a significant relationship between union leadership

and involvement of union in decision making in the organization. The implication of the

result is that the stronger the leadership, the more involved they would be in decision

making. The assertion is in line with that of Beardwell and Claydon (2007) who observed

that transparency and democratic decisions tend to reduce incidence of factions and intra

– union conflicts. The emerging fact therefore is that union leadership is significant in

structuring the union which impacts significantly on the union’s contribution in decision

making, the performance of the leader, which in turn depends upon the skills and styles of

the union leaders.

Table 8: Difference between leadership and involvement of trade union in

decision making in organization Union

leadership

Union Involvement Total

Involvement Not involved Freq. Percentage

Strong 296 53 349 74.25

Weak 83 38 121 25.75

Total 379 91 470 100.00

Field survey, 2015

9. Conclusion and Recommendations Findings revealed a positive relationship between trade union’s involvement and

decision making. Despite the problems associated with workers active participation in

trade union activities, the participation level was still high and this has permitted the

respondents inputs in decision making. This has virtually translated to ensuring that the

workers welfare is steadily being met on workers side and higher organization’s

productivity on the other hand. Findings revealed that trade union’s involvement in

decision making is more when leadership strength is stronger.

The following recommendations are advanced based on findings of the study;

- Trade unions should be encouraged in government organization especially

multinational organizations to act as check and balance to correct wrong style of

leadership.

- Seminars and workshops should be organized to orientate employers and

employees on the various leadership style to suit this civilized age.

- The leadership style adopted by most of the trade unionist is the autocratic style.

This has a way of impacting negatively on the people. Efforts should be put in


158

place to ensure a reverse, and adopt the best style of leadership that could

encourage participation of workers in trade union.

-

- Study found that most of the executives/leaders are corrupt and dishonest. Efforts

should be made to ensure that only people (workers) with unquestionable

characters are elected into executive positions. This will go a long way in

reducing the menace put up by some of the leaders. And should be made to face

the law when found guilty of corruption.

-

- The welfare of the employees should be the main focus of executives of trade

unions while self should be relegated to the background else the objective of

participating is defeated

-

- Efforts should be made to adopt the services of occupational social

workers/sociologists in trade unions, this will help to understand the behaviour of

unionists, that is, the reason decisions are taken in the manner it was taken and

resolve any possible socio-economic defect this could led to.

- - Also, efforts should be made by government to ensure that no worker or trade

unionist is threatened or sacked for performing or participating in union’s activity.

This will go a long way in canceling or eliminating fear from the workers mind

and therefore make them participate more in trade union activities.

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