Project – Effect of labour relations on construction craftsmen productivity in Gombe metropolis

ABSTRACT

This study investigates the effect of labor relations between craftsmen and employers on productivity within construction sites. The research aims to achieve three main objectives: firstly, to assess the factors that contribute to enhancing cordial relationships between construction craftsmen and employers; secondly, to examine the key drivers of such relationships; and finally, to establish the correlation between construction craftsmen-employer relationships and productivity in the construction industry. Data was collected through the questionnaire method using the simple random sampling. Out of the 100 questionnaires administered; 94 were retrieved indicating a 94% response rate. The SPSS version 20 was used for the analysis and content analysis. The findings of this research reveals that the major important drivers for employer-employee cordial relationship in a construction organization were employee effective commitment to his/her schedule of duties with average mean scores of 4.5551 while adherence to employee statutory daily working break ranked second with average mean score of 4.509. Furthermore, the study found that the most highly effective enhancing factors of construction craftsmen productivity in a construction organization are: availability of tools and equipment for craftsmen task and avoidance of craftsmen fatigue by curtailing overtime with mean average score of 4.6239 and 4.4271 respectively. This study established that there is a positive relationship between employer-employee cordial relationship and construction craftsmen productivity which accounts for 52.71% of construction craftsmen productivity in construction organizations in Gombe State Nigeria. Therefore, the study recommends that construction organizations in Gombe State should adhere to the drivers for employer – employee cordial relationship for more productivity and better performances. Also, the Government (both National and State) and professional regulatory bodies should ensure that all labour provisions on employer and employee rights and obligations are duly observed.

CHAPTER ONE

1.0       INTRODUCTION

1.1       Background to the Study

Building and Construction sector is very crucial in any nation’s social and economic development. There are many factors responsible for this. Apart from the sector’s potential with respect to employment generation, the various activities undertaken in the sector are very germane to fostering effective sectorial linkages and enhancing, as well as sustaining economic development. For instance, efforts at ensuring sound and sustainable national and economic development cannot ignore the importance of infrastructural development (transportation-road, rail, air, sea modes), industrial development (construction of industrial parks and factories), construction of institutional buildings, and provision of accommodation with respect to construction of various types of buildings, among others. These are areas where the building and construction sector is indispensable (Musa, 2016).

The Building and Construction sector has been relevant in the development of the Nigerian economy. Housing is a major component of the building and construction sector. As noted by Kissicket al. (2006), “housing is a key input in economic, social, and civic development; many housing-related activities contribute directly to achieving broader socio-economic development goals; it is a major driver of economic growth; worldwide and especially in low-income countries, housing construction creates job opportunities”. As also noted by Glossop (2008), housing matters to economic development as it enhances economic performance. Similarly, in Nigeria, the construction sector has provided employment for different categories of employees, especially in major Nigerian cities where construction activities have been immense.

Employee relation is defined as the relationship between employees and managers to enhance moral, commitment and trust of employees and to create suitable working environment which enables them to exert their at most effort for the achievement of organizational goals Bajaj, Sinha & Tiwari, (2013). An effective employee relation involves creating and cultivating a motivated and productive workforce.

Broadly defined, employment relations are concerned with the relationship between the policies and practices of the organization and its staff, and the behavior of work groups (Laurie, 2005). While productivity can be defined as performance measures, which encompasses both efficiency and effectiveness (Bhatti & Qureshi, 2007). The last quarter of the twentieth century generally saw the decline of traditional industries and the enormous growth of the service sector and New Economy. Now some well-established modern industries are finding the going tough. Yet the hard messages of competitiveness remain – companies and their workforces must offer that little extra to survive and win in the global economy. This is where good employment relations play a vital role. When employers, employees and trade unions or other employee representatives work together in a relationship of mutual trust the benefits are enormous. Difficulties can be discussed and sorted out before they become problems, productivity and profitability can be increased with greater rewards for the workforce (Donaghy, 2001).

It is tragic to note that employers are not aware of the effect of lack of communication to productivity, if information’s are communicated effectively to the employees, it will help them to put their effort in the right direction and prevent waste, information should flow freely from the lowest in the organization to the highest, it is important that workers know at all times what is going on if they are to work happily and confidently (Onwu, 2012).

The need to manage the relationships that exists between the employers and employees has been at the forefront ever since the beginning of industrial revolution. Effective employee relationship management is vital to the workplace, whether at the time of recruitment, during an employee’s tenure or at the time of separation (Rose, 2008). Employee relationship management is relatively a recent term defined as a strategy to effectively manage employees in a way they can attain organizational objectives (Gren & Anderson, 2013). Employee relationship management includes various activities on which an organization implemented by the management so as to develop friendly cooperative relationship with its employees. It helps to create cohesive work environment in which all employees work together in collaboration to ensure the realization of its goals. Besides, it promotes commitment, facilitates employees in achievement of organizational objectives minimizes workplace conflict and increases trust (Bajaj et al., 2013).

1.2       Statement of Problem

Labour is the engine for any delivery of construction product; as they are force that drives the successful delivery of construction, which they may be categorized into two broad sectors: the formal and informal sectors. The formal sector largely comprises professionals and some craft/trade operatives who are formally employed in duly registered Organisation within the construction industry. In many developing countries, there is also a widespread use of the contracting system in the employment of labour, where workers are employed on a project basis, with no insurance against periods of unemployment or sickness, insecurity of employment and lack of social protection (Mitullah & Wachira, 2003). Such workers are frequently drawn from a pool of unregulated freelance operative who constitute what may be loosely referred to as informal sector.

Most construction sectors around the world have a high percentage of output being produced informally. In developing countries informal construction activities can account for as much as 80% of employment (Farrell, 2004). In general, the informal sector equates to a significant percentage of country’s Gross domestic product (GDP) – 40% in developing countries and 18% in the high-income countries (Schneider, 2002). The informal sector in construction is not well understood and difficult to measure and is thriving both in the developed and developing world. Construction industries are made up of a large number of small firms and a small number of large firms. Many small firms are less likely to be able (or to want to) afford the bureaucratic demands of a nation’s fiscal and legal system. This evasion means a reduction in tax income for the government, and also leads to inaccurate estimates of the true value of construction output. Some national statistical agencies factor in an estimate of the size of the informal sector, but without effective measurement, there is no guarantee that the estimate is a fair one. We need to understand the sector and recognize its effect on construction.

Bamidele (2010) asserts that labour exploitation is pervasive across many parts of West Africa, where he identifies this as a real concern in Nigeria which manifests itself in poor salaries, wages and salaries arrears system, training, promotion, motivation, sense of belonging, job satisfaction and dehumanization of work and workers. The inherent problems of the informal sector are precipitated by the exploitative culture of employers who take no interest whatsoever in the health and safety or welfare of these workers and make little or no provision for such requirements as personal protective equipment, insurance or workmen compensation, and termination/redundancy and retirement packages (Mitullah & Wachira, 2003). It is in this light that the research will look into the effect of Labour relation on construction craftsmen productivity in Gombe metropolis with the view of bridging the gap.

The research is poised to answer the following questions

1. What are the factors that could enhance construction craftsmen-employer cordial relationship in Gombe, Nigeria?
2. What are the drivers for construction craftsmen-employer cordial relationship in Gombe, Nigeria?
3. Is there any relationship between construction craftsmen-employer and construction craftsmen productivity in Gombe, Nigeria.

1.3       Aims and Objectives

The research aim is to investigate the effect of labour relations on construction craftsmen productivity in Gombe, Nigeria, with a view to improving on construction craftsmen productivity. To achieve this, aim the research outlined the following objectives:

1. To assess factors that could enhance construction craftsmen-employer cordial relationship in Gombe, Nigeria.
2. To examine the drivers for construction craftsmen-employer cordial relationship in Gombe, Nigeria.
3. To establish the relationship between construction craftsmen-employer and construction craftsmen productivity in Gombe, Nigeria.

1.4       Scope of the Study

The scope of the study is on the effect of labour relation on construction craftsmen-employer cordial relationship on productivity in Gombe Metropolis. The study is descriptive through questionnaire survey. The respondents are construction professionals working in public and private sectors of the economy in Gombe. These professionals specialized in: architecture, building technology, civil engineering, and quantity surveying.

1.5       Significance of the Study

The research work if successfully completed could immensely contributes to the followings: add to the body of knowledge on labour relations in the construction industry, ensures better construction project performance through productivity enhancements, and guide policy making on labour relations in the industry. The study findings stand to benefits: construction industry, academia, and the government. The outcome of the research will be disseminated through seminars, publications and as a resource in the library.

Project – Effect of labour relations on construction craftsmen productivity in Gombe metropolis