The aim of this study is to find out the effect of retrenchment on the morale of workers. To do this data I collected from primary and secondary sources. The main instrument for data collection is the questionnaire.
The data I presented in tables as frequency distribution and analyzed in percentages. The sample size was got using the Yaro Yamani formular and the hypothesis I tested. Having analyzed the data, the following findings I made:
1. The organization is said to be overstaffed presently due to necessary favoritism of their actions by members of the management.
2. Retrenchment exercise increases out put and performance of the workers.
3. All categories of workers can be affected. They include corrupt, fraudulent and performance of the workers.
Based on the above appropriate recommendations and conclusions I drawn.
1.1 BACKGROUND OF THE STUDY
In recent times, workers have been undergoing the dilemma of retrenchment exercise. Currently, in Vogue in Nigeria, which poses economic and social problems.
Retrenchment started in Nigeria as a result of economic recession in the early 80s. The whole worlds have been going through a recession. But the Nigeria case has been a very peculiar situation. It can be seen in editorial “agony of retrenchment” from the Personnel Office of the Ministry of Education, Enugu State.
The Ministry, before the last retrenchment was having a population of about 350 workers and out of that number, 40 percent was retrenched. But after a panel sitting which constituted the State Congress, 20 percent were called back leaving the other 20 percent workers disengaged.
With this, there have been growing concerns by researchers authors and workers over retrenchment of workers and its effects on the morale of workers. To this end, authors have come up with alternatives to retrenchment.
1.2 PROBLEMS ASSOCIATED WITH THE
The problems of retrenchment of workers include –
1. Retrenchment of workers promotes the level of poverty in the country, which is contrary to poverty alleviation programme introduced by the government.
2. Throwing thousands of workers into the congested labour market will exacerbate constitution and multiply the crime rate in the country.
3. It increases unemployment and unfavourable balance of payment.
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