Impact Assessment of Industrial Actions on Labour Productivity and Economic Growth in Nigeria

Abstract

Eneji Mathias Agri and Bitrus Anthony Emmanuel

This study assessd the impact of industrial actions on labour productivity and economic growth in Nigeria, using annual time series data on man day loss, inflation rate, income inequality, wage employment and real gross domestic product (RGDP). Empirical findings from the ECM indicated that strikes have negative multiplier effects on labor productivity, economic growth and development; the coefficient of wage employment (WGE) has a positive and non-significant (p > 0.05) relationship with economic growth within the period under review. In addition, man day loss revealed a negative and significant relationship with economic growth (p > 0.05). Inflation rate (INFLR) was found negative and have a significant impact on industrial actions and economic growth in Nigeria (p > 0.05). It was also found that income inequality proxied by GINI coefficient index was negative but significant (p > 0.05) in bringing about changes in the growth. There was a significant causal relationship between economic growth (RGDP) and inflation rate (INFLR), wage employment (WGE) and man day loss (MDL), wage employment (WGE) and economic growth (RGDP). The major recommendations are that strikes are harmful and must be avoided, the Ministry of Labour and Productivity should device alternative means of speedy resolution of disputes. Government should always respect and implement agreements reached with labor unions to prevent face-off with the unions. An adequate and effective system of consultation between management and some workers should be adopted in all industrial establishments. Finally, the public sector should continue to take the issue of human resource development programs seriously as a way of improving competency and efficiency of workers and to improve productivity.

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