CHAPTER ONE GENERAL INTRODUCTION
Background to the study
Contract of employment is indispensable in economic growth and development of every modern society as it regulates and coordinates the efforts of labour and management (social partners) toward production of goods and services essential to the needs of individuals and the society. In Nigeria, these goods and services constitute an important source from where income is generated to sustain the economy and to enhance the citizen‟s well-being. Central to the existence of a productive employment relation however, is an atmosphere of harmonious co-existence characterized by mutual respect between the parties who appreciate that they need each other as management alone cannot create wealth. However, the emergence of free market economy has brought with it complexities in labour management relationship, which is being fraught with perennial conflicts of interests and mutual suspicion, with each party standing astute to wield its own weapon to protect its perceived interest in the relationship.
This near hostile relationship usually results in trade disputes culminating in strikes, which have almost crippled the economy in the country.1 Industrial actions involve the interruption of economic process in the workplace as a method of inducing pressure collectively by workers on their employers.2 These actions have both costs and benefits to the three social partners (government, labour and management) and the society at large. For instance, most trade disputes aim at changing the bargaining position of the workers. Labour union mandate its members to embark on strike, in the hope that it will pressurize management to take a desired course of action in line with labour demands for improvement in conditions of services, better living standard of workers and their families.3However, it should be noted that the costs of industrial disputes have always outweighed the benefits. Trade disputes as exemplified by strikes, to a large extent, have a great bearing on the smooth and orderly development of the economy and the maintenance of law and order in the society. They sometimes arouse public resentment because they may hurt the public more than the parties involved in the dispute. For instance, strikes have a dramatic effect on the public, particularly in essential industries. The costs of strikes include loss of production or output; disruption in essential services (oil, electricity, education, and banking); capacity under-utilization; scarcity and high costs of essential items; unemployment and manpower contraction amongst others.4 A strike-prone country is not likely to attract foreign investors as this index has become one of the major considerations for foreign industrialists and multinational corporations. However, it may be instructive to state that, whether dispute staged is adjudged to be successful or not, it is obvious that some damage must have been done and parties and the public have to bear the costs.