Imperativeness of Trade Unionism to Employee Engagement: Evidence from Manufacturing Companies in Nigeria

Abstract

The trade union movement all over the world has always served as platform to support decent work and check managerial rascality there by making labour partners in progress and not just dispensable tools. In spite of the presence of labour organization employees are still faced with threat, opposition, unjustifiable dismissal, denial of statutory rights, alienation and executive excesses. Hence, the need to examine the imperativeness of trade unionism to employee engagement. The study seeks to establish a connection between trade unionism and employee engagement in a unionized organization by determining the veracity of employee contract at ensuring production-stimulated work environment. The study used six hundred and four (604) participants drawn from the total population of two thousand six hundred and eighty (2,680) employees through stratified random sampling techniques. Primary data was collected from the respondents using Likert format questionnaire and data analyzed using Linear regression analysis. The reliability of the measuring instruments was determined by means of Cronbach Alpha Coefficients, and the validity was confirmed using Confirmatory Factor Analysis through Structural Equation Modelling. The Kaiser Mayer Oklin was used as a prerequisite for conducting Confirmatory Factor Analysis. The results showed that there were positive (r>0.5) correlations between trade union participation, employee welfare, employee contract and employee engagement. Furthermore, the results showed that there were strong (r>0.5) positive correlations between employee engagement, communication and work environment. Findings from the study revealed that trade unionism enhances employee engagement and ensure production-stimulated work environment because labour organization always pressured organization to do the right thing; but collective bargaining is losing its potency as employers of labour always most time have reasons to renege on their promise for better welfare package mostly in developing world due to weak contract enforcement mechanism. The study concluded that trade union leaders need to do more and be more assertive in ensuring that agreements bargained is executed. Based on the conclusion, the study recommended that the management must do everything within its power to manage labour movement in the organization through employee engagement, ensuring employee welfare, working conditions and timely compensation and other benefits so that trade unionism does not turn to be a menace to organizational stability.

Keywords: Trade union, employee engagement, collective bargaining, employment contract, welfare package