SITUATION COUNTRY REPORT: NIGERIA AS EMPIRICAL STUDY. Introduction: Overview of Nigeria Economy Nigeria is the most populous country in Africa, with a population of over 130 million people. Nigeria operates a dual economy with a major segment dependent on oil earnings, overlaid by a traditional agricultural and trading economy. But currently, the oil sector is of overwhelming importance to Nigerian economy to the point of over-dependence as it account for 95% of foreign exchange earnings, and about 80% of budgetary revenues. The recent statistical data released by the National Bureau of Statistics (NBS) indicated that agriculture remained the largest contributor to the Gross Domestic Product (GDP) at 41.49 percent, while wholesale and retail trade account for 16.75 percent. The crude petroleum and natural gas contributed 14.84 percent and manufacturing contributed 3.91 percent. Paradoxically, the oil sector which continues to dominate the public finances and foreign exchange resources of Nigeria is just in reality, an enclave economy employing less that 100,000 Nigerians directly in production. The services sector is an emergent and a dynamic sector whose importance has continued to rise in most economies and particularly in Nigeria with the successful institutional reform in the sector. Services currently represent 35.2 % of Nigerian GDP and engage about 20% of labour force. Labour market and unemployment With an estimated 32.5million Nigerians unemployed at the end of 2011, unemployment is one of the country s most pressing problems because the strong growth of the Nigerian economy has not translated into job creation, the latest data by National Bureau of Statistics (NBS) shows that about of the 32.5million unemployed Nigerians, 49% reside in the urban area while 39.7% are in the rural area. The State of the Trade Unions In the context of Nigeria, the meaning of a trade union is specified by the Trade Union Act, 1973. It is states that a trade union is a combination of workers and employers, whether temporary or permanent, the purpose of which is to regulate the terms and conditions of employment of workers, whether the combination in question would or would not, apart from the Act, be an unlawful combination by reason of any of its purposes do or do not include the provision of benefits for its members. A major implication of the position of the Nigerian law is that it confines the purpose of organizing to regulation of the terms and conditions of employment. Also, it embeds employer - associations under the category of trade unions.. Trade Union Formation/Existence and Nigerian Statutes The rationale for the existence of trade unions in Nigeria is predicated primarily, on the provisions of the Trade Union Act of 1973 and other amendments to the Act (1978, 1979, 1990, 1996 and 2005). The Trade Union Act stipulates a process of registration with the Registrar of Trade Unions, leading to formal recognition of trade unions. The Minister of Labour and Productivity is required to approve this in order to finalize the process. 50 members for workers and 2 members for employers is minimum number required to be eligible for registration. The law recognizes 3 types unions (the schedule did not change even with the last amendment) i.e. unions for junior workers, senior workers, and employers. The 2005
amendment provides for a multiple labour centre (Nigeria Labour Congress (NLC) and Trade Union Congress of Nigeria (TUCN), which ended a largely corporatist single-centre arrangement that had existed for nearly 30 years. Persons under 16 years of age cannot belong to trade unions, while individuals who are less than 21 and those with criminal records cannot become officials of unions. The last amend of the Trade Union Act provides for voluntarism in terms of membership of trade union in addition to stating that the check off from the income of the worker for subscription to the union must be expressly mandated by the worker involved. Although the law makes it obligatory for the employer to recognize trade unions, the employer is permitted to deal with a collegiate of trade unions within his organization in terms of negotiations rather than compulsorily negotiating with all individual unions operating in firm. The registrar of trade unions reserves the power to request explanation on the status of unions accounts. Formal recognition/registration of trade unions also comes with some benefits, including tax waivers and legal capacity. Nigeria Labour Congress has forty-two affiliates and a membership of fifty three million, which consists of thirty one million male and eleven million female, while Trade Union Congress has twenty-five affiliates. Opportunities of the Trade Union Movement The democratisation process in Nigeria has enabled trade unions evolved into a robust, intellectual, vibrant, militant, national liberator movement. Indeed, trade unions in Nigeria today have gone beyond their traditional role of championing the cause of workers to wielding much political and social influence and acting as vigilant watchdogs for the people Iyayi (2008). The trade union movement in Nigeria by virtue of provisions of Labour Acts (Labour Act Cap 198 LFN 1990) and Trade Union Act (Trade Unions Act, Cap 437 LFN 1990) have the opportunity to organise, unionise and collective bargain in line with ILO convention 98. This opportunity for organising and collectivity has strengthened the trade union movement: To advocate for good governance from successive military and civilian administration and make demand on such issues as the minimum wage, the Structural Adjustment Programme (SAP), electoral reforms, political party issues, education-related issues, fuel price hikes, negotiated conditions of service of workers, external debt, cost of living, corruption and globalization. To mount activities through which workers right are defended and even the right of the society at large. The efforts of the union has most of the time paved way for the gradual increase in wage earnings, improvement in the employment conditions of workers, change in draconian government policies, election of popular political representatives and installation of popular mandates and the adjustment of harsh economic policies, like the recent fuel subsidy withdrawal, making such policies more humane and supportive of the lives and economic interests of the generality of the citizens. To secure and enhance the general living conditions of workers and the economic well-being of their members.
To guarantee individual and collective job security against all possible threats occasioned by market fluctuation, technological changes or organisational policies. To influence policies reached by the government on issues pertaining to the workers, through lobbying and their relationship with politicians and the elites in society. To relate with labour unions at the international levels. To continually guarantee freedom of association and the recognition of trade union rights on all unionised workers. Challenges Facing the Trade Union Movement Continuous job loss through reforms inform of merger, acquisition, privatization and commercialization leading to loss of membership Unemployment and under-employment Inadequate income and extreme poverty Poor quality and unproductive jobs Unsafe work and insecure income Rights are being denied due to undue government interference and restriction of rights of workers strike Interference of law enforcement agent (police) in industrial dispute Gender gap and inequality Lack of representation and voice Inadequate protection and solidarity Forced and child labour. The Economic, Social and Labour dimensions of the global Economic crises In Nigeria the economic crises has caused distortion in the system. Nigeria with a population of over 130 million people and over 33 million are unemployed. Unemployment has been the major economy challenge facing the country. Unemployment has been linked to poverty, therefore to put Nigerians to work the Labour movement is finding a solution in the reinvention of the nature and purpose of government by meeting with its affiliates and engaging the federal government to re-capitalized and finance the production industries that has been shut down due to lack of social infrastructures and basic amenities and in order to create employment for the unemployed, and by also making sure that states and local councils of the country becomes centres of productivity in order to raise the national competitive index and by making the country productive, efficient and competitive. However, since two decades employment situation has been fluctuating because there have been records of factories closure and job losses. The informal economy which is also referred to as private sectors has (60%) of the total economy while the formal economy which is public sector has forty percentage (40%). Some of the direct implications of the global economic crisis to Nigeria include but not limited to the followings:
Institutionalization of debasing work practices Massive job loss through downsizing of employee Blatant disregard of contract of employment by employers Decline or refusal in implementing collective agreements Denial of rights at work Unfair labour practices and compensation policy Decimation of workers throughout sourcing of labour, casualization, etc. and other strange work pattern occasioned by technological innovation and automation. Failure of organisation to comply with labour laws and standard. The informal economy is most faced with challenge of precarious and forced labour which is illegal and outside the purview of Nigeria law. Child labour is rife in the informal economy, children are often in the most hidden and hazardous form of work and treatment whether in terms of access to education or training. Precarious employment is a relatively new term that is used to describe a whole range of employment conditions that are not standard or regular employments arrangements. Precarious employment practices that are sometimes described as irregular and they are fast becoming standard and typical. Precarious employments are employment that is low quality and that encompasses a range of factors that put workers at risk of injury, illness and poverty. These are some of the types of precarious employment in Nigeria: Casualization Outsourced workers Contract Workers Child labour Problems Facing Precarious Workers Occupational health and safety hazards. Job insecurity Poor remuneration Work task or function can be change at will by the employers Limited or no opportunity to acquire and retain skills through education and training. Short duration or instability of contracts. The four top priority areas for future trade union actions in the protection of workers fundamental right are; Organising campaigns.
Building International trade union organisation and network within transnational companies. Combating abuses of members and workers right in the broadest term. Supporting the effort of affiliates to organize new members and increase unions density in general and in targeted transnational companies. Promotional activities aimed at the ratification of ILO labour standard Organising campaigns Advocacy work. By building technical capacities of union representatives on collective bargaining By ensuring there is decent work and equal pay for the workers By demonstrating the understanding of the policies of the management. By improving the living standards of the workers by getting the company s financial facts and figures of data and ensuring the workers get a fair share of the wealth they toil to create. Decent Work: Nigerian Experience Decent work is the work that gives individual dignity in the workplace, community and society. It entails work that attracts fair compensation, safe environment, right to freedom of association that meets all the need of life and comfortable retirement plan. Key Decent Work Challenges for Trade Union Movement Breach of Labour Act due to government (as the largest employer of labour) and employers in the private sector refusal to abide by the provisions of the act Illegal sacking and non-payment of benefits to affected workers resulting from the reform programme Lack of respect for collective agreement implementation Harassment and in some cases summary dismissal of trade union activists Denial of rights to protest and demonstrate by deploying law enforcement agents and military to combat protesting workers Outsourcing of work and banning outsourced, casual worker from organising, unionising and collective bargaining Private sector hostility to unionisation, for instance in the banking, telecommunication industry Unfair labour practices and violation of rights to freedom of association