EFFECT OF CASUALISATION OF WORK ON EMPLOYEES’ JOB SATISFACTION IN THE NIGERIAN MANUFACTURING INDUSTRY

ABSTRACT

The study explored the relationship between Casualisation of Work and Employees’ Job Satisfaction in the Nigerian Manufacturing Industry. Descriptive Survey Design was adopted in the study. A total number of one hundred and twenty (120) copies of questionnaire were administered to respondents during the study while one hundred (100) copies were properly filled and returned for the data analysis. Inferential statistics of T-test was used to test the stated hypotheses with the aid of the Statistical Package for Social Sciences (SPSS 20.0).Data analysis was carried out at 5% level of significance. Three (3) hypotheses were tested and the result of the findings revealed that casualization has a significant negative influence on employee job satisfaction in Nestle Nigeria. The study recommended that while there may sometimes be need for casual employees for services that are not considered core to the main business of an organization, their remuneration should be fair and comparable to that of permanent workers. This is obviously unfair and violates the principle of equal pay for equal work without discrimination on any ground whatsoever.

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

The changing nature of work has taken a new dimension with the adoption of flexible work arrangements by many firms globally (ILO, 2004). Casualization in the Nigerian labour market is a subject of great concern. Increase casual employees are filling positions that are permanent in nature; in line with employee vulnerability in Nigeria is the high level of unemployment and accompanying poverty (Anugwon, 2007). The world economic meltdown has led to a dangerous work environment where many desperate job seekers in the labour force are willing to take any job for survival purposes rather than dignity.

The issue of labour exploitation is pervasive in many organizations in Nigeria (Kazeem, 2004). This manifests itself in one form or the other including poor salary, wages and salary arrears system, training, promotion, motivation, sense of belonging, job dissatisfaction and dehumanization of work and workers. Casualization is the other name for a temporary employment, which is manifested in industries, whether in transnational, multinational, public or private and in the informal sector.

In an attempt to maximize profit and keep up with competition, some work organizations have resorted to unethical business practices like casualization of workers thereby hurting workers interest and violating some fundamental labour laws (Okafor, 2007). Casualization is therefore, part of a new era of the management of labour. It is an era which fits many workers into the needs of production and service provision by offering only very limited choices to workers. Shorter hours are usually associated with lower pay and lower skilled work. It is primarily undertaken by those with other commitments  or with no other choice (Buchanan, 2004).

The issue of casualisation of work in Nigeria has become so pervasive in recent times, that the government who ought to stand against this trend is now hiring casual workers for its enterprises (Animashaun, 2007). Hence, this study intends to empirically examine the Effect of Casualisation of Work on Employees’ Job Satisfaction in the Nigerian Manufacturing Industry.

1.2 Statement of the Problem:

Casualization of employment is seen as an appropriate strategy for cost reduction. Casualization may on the periphery seem to be justifiable since reduced cost means higher profit which is the ultimate goal of every organisation.

However casualization ultimately presents lots of challenges for the employees and organizations alike. Also behind this issue of casualization in Nigeria is the high level of unemployment and accompanying poverty. These two issues have bred a dangerous work environment and have given much aid to the prevalence of employment casualization, as many desperate job seekers in the labour force are willing to take any job no matter how dirty or degrading it is. Casual workers occupy a precarious position in the workplace and society, and are effectively a new set of “slaves” and “underclass” in the modern capitalist economy.

The strategy to casualize work is growing at an alarming rate and now, more and more workers in permanent employment are losing their jobs and are being re-employed as or replaced by casual or contract workers. Casual work which is supposed to be a form of temporary employment has acquired the status of permanent employment in many organizations in Nigeria without the statutory benefits associated with permanent employment status. Casual workers are subject to lower pay, barred from their right to join a union, and thereby denied medical and other benefits. Hence, the undertaking of this research study will examine the effect of Casualisation of Work and Employees’ Job Satisfaction in the Nigerian Manufacturing Industry with special reference to Nestle Nig.PLC.

1.3 Objectives of the Study:

The major objective of this study is to investigate the effect of casualisation of work and employees’ job satisfaction in the Nigerian manufacturing industry. While other specific objectives of study are:

1. To investigate the relationship between casualisation and employees’ areer development.
2. To examine the relationship between Casualization and employee’s job satisfaction.
3. To examine the relationship between casualisation and employees’ wage.
4. To establish the relationship between casualisation and employees fringe benefit.

1.4 Research Questions:

The undertaking of this research project will beam a searchlight on the following research questions;

1. What is the relationship between casualisation and employees’ career development?
2. Is there any significant relationship between Casualization and employee’s job satisfaction?
3. Does casualisation has any relationship with employee wage?
4. How does casualisation affect employee fringe benefits?

1.5 Research Hypotheses:

The researcher intends to test the following hypotheses at 0.05 level of significance:

Hypothesis One:

Ho: There is no significant relationship between casualisation and employee career development.

HI: There is a significant relationship between casualisation and employee career development.

Hypothesis Two:

Ho: There is no relationship between Casualization and Employee’s job          satisfaction

HI: There is a relationship between Casualization and Employee’s job   satisfaction

Hypothesis Three:

Ho: There is no significant relationship between casualisation and employee wage.

HI: There is a significant relationship between casualisation and employee wage.

Hypothesis Four:

Ho: There is no significant relationship between casualisation and employee fringe benefit.

HI: There is a significant relationship between casualisation and employee fringe benefit.

1.7 Scope/Limitation of the Study

The study explored the relationship between Casualisation of Work and Employees’ Job Satisfaction in the Nigerian Manufacturing Industry. There were limitations encountered in the process of undertaking this study which include; Financial Constraint whereby Insufficient funds trends to impede the efficiency of the research in sourcing for the relevant materials, literature or information and in the process of data collection (Internet, questionnaires and interviewer). Another factor is time Constraint in which the researcher will simultaneously engage in this study with other academics devoted for the research work

1.8 Definition of Operational Terms

i Precarious Life: this is a phenomenon which describe people (workers) leaving a life of social and economic uncertainty often coupled with extreme debt. This anxious class of people living such uncertain life is referred to as the “precariat”.

ii Casualisation: It is the corporate trend of hiring and keeping workers on temporary employment rather than permanent employment, even for years, as a cost reduction measure. Casualization is a term used in Nigeria to describe work arrangements that are characterized by bad work conditions like job insecurity, low wages, and lack of employment benefits that accrue to regular employees as well as the right to organize and collectively bargain.

iii Casualization Model: This is a process whereby employers ignore workplace standards and workers’ social needs and create a strong barrier against workplace organizing.

iv Formal Workers: They are also called regular company employees; they are hired directly by the company. They receive contracts that explain work conditions, wages, hours and benefits.

v Casual Worker: these are employees often employed by third-party contractors, under various types of part time and (or) short-term work arrangements. They are not part of any union structure. They earn lower wages than the regular workers, receive fewer benefits and can be fired at will.

vi Direct Labour Contract: this is an employment arrangement whereby an individual is hired as an independent contractor.

vii Service Contract: This is an employment arrangement which is not an individual contract, but an arrangement between a bank and a smaller company that provides specific technical expertise.

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