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NAME:
IMHONGIRIE TESSY THERESA



COURSE:
LABOUR AND HUMAN RESOURCE ECONOMICS



DEPT:
INDUSTRIAL RELATIONS & PERSONNEL MANAGEMENT (IRPM)



LEVEL:
300L



MATRIC NO:
08/07/8/4/2/0/079



QUESTION:
WHAT IS THE IMPACT OF LABOUR UNION ACTIVITIES ON THE
ECONOMIC LIFE OF MEMBER IN NIGERIA



2011
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A labour union is an organization of wage earners or salary workers established for
the purpose of protecting their collective interests when dealing with employers.

The central trade union in the country was the Nigerian Labour Congress (NLC),
which was formed in 1975 as the umbrella trade union and recognized by Decree
Number 44 of 1976 as the sole representative of all trade unions in the country.

The NLC had a national executive and secretariat, as well as state councils in all
states. It had more than 100 affiliated unions. Although most labor matters were
channeled through the NLC, the affiliate unions had engaged individually in union
activities, such as strikes and lockouts. In the 1980s, the NLC was torn apart by
leadership struggles, ideological differences, and ethno-regional conflicts.

The NLC nearly broke up in 1988 after disagreements over elections of its
leadership, resulting in the federal government's appointing an administrator for
several months. The NLC organized a nationwide workers' strike in 1986 to demand
the retention of government subsidies on petroleum products and continued to
articulate workers' demands on matters such as minimum wages and improved
welfare conditions. Several other trade unions were also active. A few, such as the
Academic Staff Union of Universities, were proscribed for alleged antigovernment
activities.
What is Economy?
Economy is the way in which people use the resources available and their labour to
produce what they need in their daily life such as food, clothing, housing and other
products. Economies are crated by human beings and involve production,
distribution and consumption. The most important part of any economy is that
concerned with production.
There are different modes of production. These determine economic
models. What constitutes the model of production in any economy?
There are forces of production which drive the economy. These comprise: raw
materials or natural resources used to produce what people need or want; labour
which is creator of wealth by turning raw materials into products, the means of
production, which are the implements used by labour to transform raw materials
into products. In the process of these forces interacting human beings enter into
relations i.e. economic relations as social groups, known as classes. What defines
the different classes is their relationship to the means of production. The basic
questions are:

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Who owns the means of producing social wealth?
Who controls them?
Who is enslaved by them?
In modern industrial society which is a capitalist society, the major means of
production is capital i.e. factories, machinery/equipment.
The economy is always changing based on improvements in the forces of
production, including means of production and the way labour is organized to use
these means in producing wealth.
These changes initially strengthen the economic relations in society until the modes
of production as a whole is changed due to fundamental restructuring of the
relations. For example there have been four major modes of production after the
primitive beginnings of the human race. The first was based on ownership of
slave. When the primitive hoes and cutlasses which the slaves used to produce
food, clothings, etc were highly developed, the economic relations between slave-
owner and slaves could not continue and a new society known as feudalism was
born based on the primary importance of land. Under feudalism the lords who
owned the land dominated the poor peasant farmers known as serfs who paid
homage to them by submitting proceeds from their tilling the soil to the lords for
their consumption. With the development of productive forces, the feudal
economic relations could not longer move society forward leading to the capitalist
relations between capitalists as owners of industry and the workers who sell their
labour power to the capitalists to be able to earn wages and live.

History of the Nigerian Economy
Traditional West African Economy
Prior to the domination of the economy of West Africa, the people engaged in
farming, fishing, blacksmithing, craftsmanship etc. They produced what they
needed to live. They traded their surplus with other people for goods that they did
not produce.

In this economy land was the fundamental means of production. In most of the
kingdoms, city states and republics in different parts of what become Nigeria,
access to land was not different even for the poor while in a few settlements land
was communally owned.

In most cases there were inequalities in this economy. For example the chiefs and
his court received more of the wealth produced and were therefore more
powerful. Men were more powerful and therefore women received less of
everything produced and had less time for rest and recreation.
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However, compared to society today, this inequality was not extreme. There was
no mass poverty among the people as the gap between the rich and the poor was
not as wide as it is today.

Economics, Politics and Working Class Struggle
The poor, who are usually the labourers, cannot advance their interest in the
economy as individuals since they do not have the power of wealth. This is why
they come together and use the power of unity to influence and change the
economy.

They do this by direct action in the place of work using the power of their
labour. They also do this indirectly by influencing the rules to make policies that
would benefit the poor and not the rich. They form Workers Union.

Thus workers organize to protect their interest in the economy. An important
problem here is that the rich and the rulers always try to buy off the leaders of the
poor as a way to break their struggle. We will talk about how we build strong
organizations in the next section.

Labour:-
In 1999 the labor force totalled 49.1 million, up from 30 million in 1980. Women
made up 36 percent of the force, men 64 percent. An estimated 43 percent of all
workers were in agriculture, down from 54 percent in 1980; 50 percent were in the
service sector; and 7 percent were in industry, including mining, manufacturing,
and construction. Most Nigerians earn their living in more than one field.

In 1985 Nigeria's central labor union, the Nigerian Labor Congress (NLC), founded in
1978, totalled 3.5 million workers belonging to 42 industrial and professional
unions. In the mid-1990s the largest memberships belonged to the Nigerian Union
of Teachers; the National Union of Banks, Insurance, and Financial Institutions
Employees; and the Nigerian Textile, Garment, and Tailoring Workers Union.
Among the most active unions are those representing petroleum workers and
university teachers, which have challenged the government not just on salary and
economic issues but also on abuses of human rights and autocratic rule.

Agriculture:-
Many Nigerians are rural farmers who live in small farming communities.
Agriculture, including farming and herding, accounts for about two-fifths of
Nigerias GDP and engages 43 percent of the economically active population.
Agriculture contributed more than 75 percent of export earnings before 1970. By
the mid-1990s, agricultures share of exports had declined to less than 5 percent,
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most of which was contributed by cacao. Nigerias major crops of the mid-1990s
included palm oil (of which Nigeria was the worlds leading producer until 1971),
peanut oil, rubber, and cotton, all of which were once exported but are now sold
mostly locally. Also grown are sorghum, millet, maize (corn), yams, and cassava, all
formerly used as food for growers but now widely sold for cash.

The great majority of Nigerias farm production comes from small holders who use
hoes and similar basic tools. In less crowded areas, crops are typically planted in
rotations that let soil lie fallow and recharge. In more crowded areas, for example
near large Hausa cities and in the Igbo heartland, cropland is typically under
constant cultivation. With the notable exception of Hausaland, women play a
prominent role in farming in Nigeria.

In the last two decades the government has increased farm output through major
irrigation projects, massive investments in rural infrastructure, and introduction of
modern seed varieties and chemicals. In the mid-1980s, in an attempt to stop the
import of food and raw materials that could be grown locally, the government
encouraged large-scale, mechanized farming by local entrepreneurs and
international corporations. Although large-scale, machine-based farming has
increased substantially, it accounts for only a fraction of total production.

The livestock sector is dominated by Fulani pastoralists, who use mostly traditional
forms of production. State and federal governments have tried periodically to
encourage the Fulani to form large-scale cattle ranches, but with little success. In
1983 cattle rearing was devastated by a highly contagious virus known as
rinderpest, but by the mid-1990s had mostly recovered. Modern poultry farming,
geared to meeting urban demand for eggs and chicken, has increased substantially
since 1980.

Services:-
Services are a vast part of the Nigerian economy that include most informal and
many formal enterprises. In all, services account for about one-third of the GDP. In
rural areas, the informal service sector is made of small-scale enterprises that rely
on family labor. This sector includes traders, hairdressers, entertainers, porters,
tailors, auto mechanics, and traditional healers. In larger cities, many of the same
services are provided by formal-sector entrepreneurs, who often rely on non-family
labor. Other businesses, including law offices, banks, and travel agencies, fall
exclusively within the formal sector. Tourism in Nigeria is a small part of the service
economy; in 1998 the country received 640,000 tourist visits.


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Mining:-
During the early and mid-1990s mining contributed an average of about 25 percent
of the GDP, depending on the price of petroleum. Discovered in 1956, petroleum
was produced at a rate of 780 million barrels in 1999 from more than 150 oil fields,
mostly in the Niger Delta. About one-fifth of the oil fields are offshore. Although
Nigeria's petroleum is expensive to produce, it commands a high price because of
its low sulfur content. Half of all exports go to the United States, most of the other
half to Europe.

Nigeria has Africa's largest reserves of natural gas, most of which coincide with the
oil fields. Despite efforts to develop markets for natural gas, including investment in
gas-fired electrical installations, a liquefied natural gas (LNG) plant, and fertilizer
and chemical ventures, almost three-quarters of production is still burnt off.

Production of coal has declined to about 63,503 metric tons, far less than the late
1950s production, largely because the Enugu coalfields are almost exhausted. The
government is attempting to boost production by developing new fields at Lafia
and Obi in Benue State. Also in sharp decline are production of tin (200 metric tons
per year) and columbite, which have been mined from alluvial gravels on the Jos
Plateau since 1905 but which now yield about 1 percent of their late 1960s levels.
Other major mining operations include iron ore, which is exploited for the steel
industry, and limestone, used to manufacture cement. Gypsum, barite, and kaolin
mines have also been established recently.

Manufacturing:-
In 1998, manufacturing accounted for 5 percent of the GDP. Pre-independence
Nigeria, its large population notwithstanding, had very little industrial
development a few tanneries and oil-crushing mills that processed raw materials
for export. During the 1950s and 1960s a few factories, including the first textile
mills and food processing plants, opened to serve Nigerians. During the 1970s and
early 1980s industrial production increased rapidly, principally in Lagos, Kaduna,
Kano, and Port Harcourt. Factories also appeared in smaller, peripheral cities such
as Calabar, Bauchi, Katsina, Akure, and Jebba, due largely to government policies
encouraging decentralization.

The largest industrial sectors, in number of establishments, are food and
beverages; textiles and clothing; wood and wood products; fabricated metal
products and machinery; paper products; and chemical, petroleum, coal, rubber,
and plastic products. While many of the businesses in these sectors are large,
others are small and labor-intensive, such as enterprises for weaving, leather-
making, pottery making, and woodcarving. The smaller industries are often
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organized in craft guilds involving particular families, who pass skills from
generation to generation.

In an attempt to broaden Nigerias industrial base, the government has invested
heavily in joint ventures with private companies. The largest such project is the
integrated steel complex at Ajaokuta, built at a cost of $4 billion. The government
has also invested heavily in petroleum refining, petrochemicals, fertilizers, and
implements for assembling automobiles and farm equipment. In the mid-1990s the
government introduced a series of reforms, including an allowance for greater
foreign ownership in Nigerian industries, a loosening of controls on foreign
exchange, and the establishment of an export-processing zone at Calabar.

Forestry and Fishing:-
The bulk of Nigeria's forest production is fuelwood, consumed either as wood or as
charcoal. In 1999 fuelwood production was 89 million cubic meters (3.1 billion
cubic feet), harvested mostly near dense urban areas. By contrast, annual lumber
production (mostly hardwoods such as mahogany, Iroko, and Obeche) averaged 2
million cubic meters (71 million cubic feet), almost all from the tropical forest zone.

Nigeria's 1997 fish catch was 383,400 metric tons live. Slightly less than half the
catch was from inland waters, mainly Lake Chad, the Niger Delta, and Kainji Lake.
Various species of catfishes, tilapias, and Nile perch, among others, are harvested
using small-scale and traditional methods. Sardinellas, bonga shad, and shrimp are
harvested from the Atlantic Ocean. In 1975 the government established the
Nigerian National Fish Company to enter into joint fishing ventures with foreign
companies. Most of Nigeria's 296 vessels larger than 100 gross registered tons are
concentrated inshore; deep-sea fishing is still dominated by foreign boats.

Energy:-
Petroleum, natural gas, and hydroelectricity are Nigeria's major sources of
commercial energy; they are slightly outpaced by the largely non-commercial
consumption of fuelwood and charcoal. The major thermal electrical installations
are at Igbin, Afam, and Sapele. Hydro-electricity is generated at Kainji Dam and in
lesser quantities at Shiroro Gorge on the Kaduna River, at Jebba, and at several
smaller sites. Only 5 percent of the countrys potential hydroelectric capacity has
been developed.

Transportation:-
Nigeria has 194,394 km of roads. Most Nigerians travel by bus or taxi both between
and within cities. During the 1970s and 1980s federal and state governments built
and upgraded numerous expressways and trans-regional trunk roads. State
governments also upgraded smaller roads, which helped open rural areas to
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development.

Nigeria has 3,505 km (2,178 mi) of operated railway track. The main line,
completed in 1911, links Lagos to Kano, with extensions from Kano to Nguru, from
Zaria to Kaura Namoda, and from Minna to Baro. The use of railways, both for
passenger and freight traffic, has declined due to competition from the road
network.

Nigerias largest ocean ports are at Lagos (Apapa and Tin Can Island), Port Harcourt,
Calabar, Sapele, and Warri. The main petroleum-exporting facilities are at Bonny
and Burutu. Transportation along inland waterways, especially the Niger and Benue
rivers, was very important during the colonial era. In the late 1980s the government
upgraded river ports at Onitsha, Ajaokuta, Lokoja, Baro, Jebba, and Yelwa. Locks
have been constructed at Kainji Dam to facilitate navigation. River transport is used
mainly for shipping goods.

Nigeria has two major international airports, one in the Lagos suburb of Ikeja and
the other in Kano. Internal flights serve the majority of state capitals, of which
Kaduna, Port Harcourt, and Enugu are the busiest. Nigeria Airways, the national
carrier, offers both domestic and international flights. Several small regional
carriers also compete for domestic traffic.

Communications:-
The first newspaper was founded in Lagos in the 1830s. In 1996 Nigeria had about
two dozen daily newspapers in English, plus one each in Hausa and Yoruba. The
largest are the Daily Times (Lagos), Nigerian Tribune (Ibadan), New Nigerian
(Kaduna), and Nigerian Observer (Benin City). Despite sporadic censorship and
partial government ownership of some newspapers, the press has remained
relatively free and has often been outspoken in its criticism of the government.

The national government began broadcasting in 1957, when it established a chain
of radio stations. As of the mid-1990s, there were more than 70 stations
broadcasting in English and in several Nigerian languages. The countrys
international service, Voice of Nigeria, broadcasts in several languages, while the
government-owned Nigerian Television Authority operates from more than 20
television stations.

Trade:-
Nigeria depends on foreign trade to meet many of its needs, although in recent
years it has achieved a healthy trade surplus. Petroleum accounts for virtually all
exports; cacao, rubber, and shrimp together contribute about 2 percent. About 90
percent of Nigerias exports go to the United States and Europe (mostly Spain, Italy,
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Germany, The Netherlands, and France) in almost equal measure. Major imports, in
order of importance, are base metal manufactures, including motor vehicles and
industrial machinery; basic manufactures, including iron, steel, paper, and cement;
chemicals and related products; and food and live animals. More than 60 percent
of imports come from Europe (half of which come from Britain), and another nearly
20 percent come from the United States and Japan. China, Brazil, and India make
up most of the rest. Only 5.2 percent of Nigerian exports and 0.8 percent of its
imports are traded with other African countries.

Currency and Banking:-
The national currency of Nigeria is the naira, which is divided into 100 kobo (112.24
naira equal U.S.$1; 2002 average). Exchange rates have been allowed to fluctuate
since 1995, when the government abandoned a short-lived attempt to fix the rate
at 22 naira per dollar. Currency and banking are supervised by the Central Bank of
Nigeria, founded in 1958 and located in Abuja. In 1995 more than 150 banks
operated throughout Nigeria, although many were experiencing financial difficulty.
Several foreign banks have branches in Nigeria; since 1976, all have been required
to have at least 60 percent Nigerian ownership. The Nigerian Stock Exchange,
founded in 1960, is located in Lagos and is supervised by the Nigerian Securities and
Exchange Commission.

Economic development must be done step by step. It should begin with the
strengthening of our economic foundation, by assuring that the majority of our
population has enough to live on. ... Once reasonable progress has been achieved,
we should then embark on the next steps, by pursuing more advanced levels of
economic development. Here, if one focuses only on rapid economic expansion
without making sure that such plan is appropriate for our people and the condition
of our country, it will inevitably result in various imbalances and eventually end up
as failure or crisis as found in other countries.

The state must absolutely prioritize sustainable employment creation, which
combines economic development with an expansion in decent work. Moreover, the
state must have structures that can drive development through a combination of
discipline and resorting for capital. At the same time, it must ensure broad
participation in policy development, especially by organizations representing
working people.

Our Fiscal policy must become more expansionary. Interest and foreign-exchange
rates must be designed to support increased investment and growth in exports. In
particular, targets for the Central Bank should include the current employment and
growth targets. That generally requires a reduction in real interest rates to levels
comparable or lower than Nigeria's main trading partners.
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Our monetary policy manipulates the supply of money and credit in private hands.
Monetarism holds that the supply of money is the key to the nations economic
health. The main agency for making monetary policy is CBN, whose formal title is
the Board of Governors of the Central Bank Of Nigeria. The CBN uses three
instruments to control the money supply. First, they set discount rates for the
money that banks borrow from the Central Bank. Second, they set reserve
requirements that determine the amount of money that banks must keep in
reserve at all times. Third, they buy and sell government securities in the market,
thereby expanding or contracting the money supply. The amount of money
available, interest rates, inflation, and the availability of jobs are all affected by the
CBN. Presidents try to persuade the CBN to pursue policies in line with the
presidential agenda.

The fact that the previous generation slept through the world of change like Rip
Van Winkle does not mean that we too must also fail posterity. India, Singapore,
Taiwan, South Korea and the rest of the Asian Tigers have been able to use less
than two generation to propel their economies from the quicksand of aid
dependency to the solid rock of economic independent.

Today all over the world we talk about Asia as the centre of international
commerce. It must interest us to note that we all inherited the same economic
condition after independence. The difference is that whilst we in Nigeria were
seriously engaged in military adventurism in our national politics our
contemporaries in Asia were busily embarking on good governance; whilst we as
nation were only consuming finished products from Europe and America they were
manufacturing their own.

If Nigeria is poised to take its rightful place in God s universe, then are some certain
things that we should that will grant us all safe passage into the city of self
actualization. Many years ago a great philosopher by the name John Stuart Mills
said when society requires to be rebuilt there is no use in attempting to rebuild it
on the old plan. The rebuilding of our nation cannot be carried on the wheels of
military adventurism, poor attitude toward work, corruption, ethnic and tribal
tensions and unhealthy political rivalry. The solution to our national problem is
within our reach. No prodigious thunderbolt from heaven will blast away
corruption and economic decline and increase our foreign exchange reserves and
shoot per capita income to say $ 4000. Again and again God will not send marching
armies of angels from heaven to lift us from this present stage.

We the people of Nigeria must commit ourselves to the desired change. National
goal of economic prosperity and Nigeria becoming the gateway of West Africa will
not roll on the wheels of inevitability. For less than forty years Asian countries like
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Japan, Thailand, Indonesia, Singapore and Malaysia have been able to move their
economies clutches of aid dependency.

Taking this way, very soon Nigerians will not be asking our politicians, if the slogans
do reflect in the pockets. To me the slogans are not vision or mission statements,
since those of the later require a lot of work and commitment to arrive at one.
I wish to conclude that, governance, not to even venture into the demands of good
governance, is a serious business. So it is time all politicians live up to the demands
of basic governance. Administering this country and managing the economy
towards a pro-poor development is a challenging task to meet. The performance
indicators on Nigeria are grossly in red and they have found it fashionable just to
play around with slogans. The situation under which the government continues to
think it is in an advertising business and not in governance to administer has is
leading to despair among majority of Nigerians.