INFLUENCE OF TRADE UNIONS ON HUMAN CAPITAL RESOURCING PRACTICES IN THE NIGERIAN FOOD, BEVERAGE AND TOBACCO (FOBTOB) INDUSTRY

Abstract

The authors examined the influence of trade unions on human capital resourcing practices in the Nigerian Food, Beverage, and Tobacco Industry. Some writers view unions as pathological and a threat to the economic system, while others view unions as a benign influence, meaning that unions are harmless and not inimical to organisational functioning. Trade unions as interest groups within organisations have considerable influence on human capital resourcing function. Empirical findings show that trade unions have a substantial influence on human capital resourcing practices especially on hiring, promotion, and in some cases of unfair dismissal and lay-offs. Union’s most obvious effect on human capital resourcing decisions is embodied in a collective bargaining agreement that stipulates hiring for certain jobs through the union. Most large firms are unionised which necessitates the need for the use of formal human capital resourcing practices than non-unionised organisations which in most cases are smaller in size. Applicants compare employment offers in union firms and non-union firms. Applicants’ comparison of work conditions in a unionised versus non-unionised environment may influence their choices. From the foregoing, it is recommended that unions should be perceived as a benign influence as management will have greater success in achieving its objectives by working with trade unions. Management should encourage unionisation of workers and their participation in union affairs. Management should change their hostile posture towards trade unionism as neither of both parties would benefit from a climate of hostility and constant confrontation.