THE EFFECTS OF RETRENCHMENT ON THE MORALE OF WORKERS: A STUDY OF ENUGU STATE CIVIL SERVICES. CHAPTER ONE INTRODUCTION

1.1            BACKGROUND OF THE STUDY

A change in government can initiate and bring in political that might effect the economy and standard of living of any state or nation. This can lead to reorganization, reform and restructuring within the tiers of the government. It is not uncommon for job loss to result, and in some cases may create an avenue for the government to move forward and thrive. A range of factors may cause loss of employment from stringent politics, reform, and technological change to privatization, and to total displacement, retrenchment or disengagement.

No single concise definition or universally used terminology exist to categorize such job losses. Terms used can include; Retrenchment, Redundancy, disengagement, downsizing or lay-off. The term “retrenchment”, which covers a wide range of dismissal that do not relates to the conduct or capability of the workers and include;

    Job losses arising from reduction in staffing requirements due to inefficiency gains or demand for the services

    Job losses arising from downsizing in operation or restructuring of the workforce following for example, privatization.

Retrenchment is a government-initiated policy, ministry-wise to cut down the number of employees and subsequently, reduce costs incurred (Hansen and Twaddle, 2002:78). This policy is what the then Enugu State Governor in 1999 implemented in the Civil Service as a reform programs by disengaging more than 4,500 civil servants in the state, but it created problems as low salary pay, no motivation, no benefits ands allowances in time, poor management, nut instead the government sees it as dysfunctional and high number of inadequate personnel redundancy, poor public service attitude and massive bureaucratic red type.

In 1988, the then President and Commander-in-Chief of the Armed Forces of Nigeria, General Ibriahim Badomasi Babagida carried our some fundamental change in the Civil Service, which is the major structural Civil service Reform in the country. This Civil Service Reform had specific objectives, which included to improve the general services delivery to the government and public, improve financial viability in the short and medium term, strengthen capacity and reverse the progressive decline in public service efficiency and effectiveness (Vanguard, 1988:21). In motion to attain these objective, some organization set several strategies in motion, such as disengagement/retrenchment or downsizing. The main objection of this retrenchment was to reduce the size of the workers and thereby cut down the emolument costs. This supposes to be in anticipation to improve salaries and allowance, increasing motivation and morale of workers, and improve quality of work life and performance of workers.

1.2            STATEMENT OF THE PROBLEM

The persistent economic depression in the world which increasingly bewildering Nigeria for some years now has compelled citizens, industries, banks and other business contemporaries, big and small to take extensive far reaching measures in the struggle for survival by cutting costs. The Nigerian civil service (Federal, State and Unified Local Government Service) forms the machinery through which the government carries its basis objectives. In accordance with the Civil Service General Order (G.O.), rules and regulations (1978:17) guiding it in the pursuit of its goal and objective are basically applied to sustain continuity of existence, permanence, professionalism and impartiality.   The Civil Service is one of the means through which Government in power tries to legitimate itself and command allegiance from the society. It is also a channel through which the Government fulfills its budget promises, policies and proposals to its citizens. Therefore the society sees the civil service as a continuous and indispensable machinery of Government and as such demands from it. As the society grows, so also the burden of Government and in turn the civil service but unfortunately, the successive retrenchment exercises in the country especially in the public service and banking industries poses economic and social threats. According to (Webster’s Ninth New Collegiate Dictionary, 2000;1001), retrenchment is the act of cutting down expenses, live more cheaply, to reduce amount of, curtail expenses in order to economize. It could also be seen as the act of terminating the services of workers; when the job ceases to exist; usually as a result of technological, political or economic changes. Retrenchment, which is, a recent phenomenon in the Nigerian Civil Service started in 1970s by the Military Head of State as a result of recession after the civil war. According to (Adebayo, 1999:32), there was services in which, though the intention was laudable, the execution left much to be desired, the active servants were thrown out with the inactive ones, an unfortunate situation, many lost their jobs.   This could be seen in an editorial, “Agony of Retrenchment” (Agbese, 2001:11), where some public servants were laid off.

Such exercise is carried out in Enugu State Civil Service where more than 4,500 workers were disengaged, in most of this instances of retrenchment, the major reasons given are:

i.                   Low productivity

ii.                 Due year of services (retiring age of 60 and 35 years of service)

iii.              Inefficiency

iv.              Redundancy

v.                 Gross Misconduct (fraud, disloyalty, dishonesty, etc)

vi.              Corruption and embezzlement

vii.            Poor health condition

viii.         Over staffing and absenteeism

ix.              Misappropriation

x.                 Ethnicity and red tapism.

The objective of this research work is to find out if the above claimed reasons for retrenchment of civil servants were the genuine and true reasons for the exercise or not, or a combination of them. The work will also be interested in finding out the effects of this exercise on the morale and perception of workers both the retrenchment and those retrained. It will also look into the alternatives in relation to this exercise.

1.3               OBJECTIVES OF THE STUDY

Retrenchment of workers is the major cog in the wheel of economic progress through out the nation because it causes a rapid growth in the rate of unemployment. It reached a height during the Military era and now the politicians in their course for self-aggrandizement, selfish interest and to enmasse wealth.

The objectives of this study are:

1.       Assess the effects of retrenchment on morals of workers.

2.           Identifies alternative to retrenchment.

3.       To find out the reasons for retrenchment of workers.

4.                     To ascertain ways retrenchment can be implemented.

5.           Identifies the advantages and disadvantages of retrenchment.

1.4            RESEARCH QUESTIONS

In order to properly find out the effects of retrenchment on the morale of

Workers in Enugu State Civil Service the following questions help to guide the researcher in the quest:

1.     What are the effects of retrenchment on the morale of workers?

2.     What alternative action would have been taken preferred than retrenchment?

3.     What are the major reasons for the retrenchment exercise?

4.     What is the workers perception regarding retrenchment?

5.     Does retrenchment show feeling of job insecurity to employees?

1.5                   RESEARCH HYPOTHESIS:

Ho: Retrenchment does not show any feelings of job insecurity to employees.

H1: Retrenchment shows feelings of job insecurity to employees.

Ho: The workers have a negative perception regarding retrenchment.

H1:The workers have a positive perception regarding retrenchment.

1.6                    SIGNIFICANCE OF THE STUDY

Government policies on retrenchment of workers are like a mad dog barking at the owner because of the increasing rate of unemployment in the country. The government is to provide for the citizens not the other way round. The motive and rationale behind this study is to create a solid bas for the Nigerian Labor Congress (NLC) to help fight unnecessary retrenchment of workers in recent times and for the government both Federal, State and Local governments to see the need for creating employment through recruitment than result in laying off workers and make like unbearable for the affected and their dependants. A good recruitment exercise enhances productivity and also reduced cost and labor turnover rate and employee dissatisfaction (Nwachukwu, 2002:38).

The findings and recommendations of this research work will help the government, Federal and State Civil Service Commission, banks, other agencies and authorities of the nation especially developing countries to see the effects on morale of workers. The study will b significant to the Society, the general public, human resources managers and business practitioners as it relates to management of work force, workers and their dependants. Academicians and students especially those in the field of Public and Human Resources Management will benefit from this study since it will serve as an additional source of information.

1.7            SCOPE AND LIMITATION OF TH STUDY

The scope of the study encompasses effects of retrenchment on the morale of workers on Enugu State Civil Service. Some Ministries and Extra-ministerial departments in Enugu State Civil Service Secretariat were selected for the study especially those mostly effected in the exercise, as follows:

         State Ministry of Works and Transport

         State Ministry of Agriculture and Natural Resources

      State Ministry of Commerce, Industry and Technology

      State Ministry of Lands and Housing

         State Civil Service Commission

         Office of the Head of State Civil Service Commission

      Stat Ministry of Justice

         State Ministry of Finance and Economic Development

      State Ministry of Information and Culture and Tourism

      State Ministry of Health

The selected ministries and extra-ministerial departments are a good representative of the Enugu State Civil Service. The research will also apply descriptive analysis of findings and this will be based empirically on two sources, the primary sources of questionnaire and interview administration to workers while the secondary sources of data include, making use of the National, State and school libraries, internets, textbooks, magazines, newspapers, consulting official documents in offices/ministries’ libraries/archives and reference works.

The limitation of this research work is constrained to few ministries and extra-ministerial departments in the State Civil Service. The major impediments that restricted the scope where text books, journals, magazines, and other relevant materials that would provide or aid the researcher with needed information which where not available. Others include finance, which is the major set back due to the present economic recession, time available to research for this work is very short and does not give room for thorough job and understanding of works toward the research especially those affected in 1999 and had been recalled to work by the new State Government, their felling is that it might be another measure to carry out another exercise, some workers attitude was appalling because they saw it as a waste of time and the findings cannot be implemented.

1.8            DEFINITION OF TERMS RETRENCHMENT

Retrenchment is a government initiated, ministry-wide exercise of cutting down the numbers of employees aimed at cost reduction. This cutback of the employees is determined by various reasons and is aimed, in the long run at improving the quality of services delivered. (Hansen and Twaddle, 2002:78).

MORALE

This is the mental and emotional condition of an individual or group with regards to their functions or tasks at hand. Morale is a feeling, some what related to spirit de corps, enthusiasm … (Olewe, 2001:15).

CIVIL SERVICE

It is being defined by the civil service handbook (1978:15) as a body or an organ of government, which enjoys continuity of existence.

INEFFICIENCY

This is state of being wasteful, (of person) wasting time, energy etc in their work or duties, not producing adequate result.