THE IMPACT OF SALARY INCREASE AND FRINGE BENEFITS AMONG NIGERIAN WORKERS

Code No: 555922

₦5,000.00

ABSTRACT

This project works was examined from all its ramification, what could be the possible effect of salary increase and fringe benefits among Nigerian workers. It is believed that when salaries and fringe benefits are increased, the aim is to alleviate the sufferings of workers in regards to increasing their purchasing power and meeting the high cost of living. But, the consequence which will come quickly to mind is that many job will be lost and very little created. Employers will pay higher wages, but will do so at the cost of retraction in their labour force. Those who have been desperate for job will sink further into desperation and more would join them through retrenchment. In analyzing the affect on workers, the researchers carried out a research work at the Nigeria Railway Cooperation Enugu, where opinion of some workers are sampled. By so doing, questionnaire and personal interview were used. We equally examined the more dynamic aspect of wage and salary administration, showing the emergency of wage employment, salary structure, the responsibility for wage and salary and the method of fixed salaries and fringe benefits. The project also highlight the method for salary increase by workers and the probable side effects such as inflation, increase in price of commodities etc. Recommendations as to how the government could come to the aid of workers in minimizing the increase in prices of goods and services when salaries are increased are also discussed.

CHAPTER 1

CHAPTER ONE
INTRODUCTION
1.1       BACKGROUND TO THE STUDY
In any establishment either private or public, the impact of salary increase and fringe benefits cannot be over-emphasized. To Nigeria Railway Corporation Enugu, satisfaction of the public and standard of living have been their major concern.
The main objective has been the development and utilization of local raw material (coal) and mobilization of fund for the purpose of satisfaction of the Nigerians.
In the bid to actualize this, the corporation finds it difficult and almost impossible to pay its workers the exact salary and pension at the appropriate time. This as a result, leads to inefficiency since the workers are not motivated to carry out their functions effectively. Facilities provided by the government are not being used and when it is used, they are not maintained properly, and the situation hinders development process.
The whole society is affected negatively by the poor performance of the railway corporation. A business which involves bulky goods are slowed down because of the inadequate facilities used by the corporation in their operation. This as a result may lead to scarcity of some important goods.
The carriage of bulky goods by trailer is now move preferable than the use of train, since the railway corporation is inefficient. Goods that are supposed to be carried by trains are now being carried by vehicles, which thereby creates obstruction in our roads.
Presently, the corporation is not generating accurate revenue for the society, because the people who make use of the railway transportation are few.
This discussion so far, means that the Railway Corporation is unable to achieve its objectives.
1.2       STATEMENT OF THE PROBLEM
It is well known fact that workers attempt to increase their salaries and wages directly by negotiating through a trade union, whereby the trade union threatens their employers to go on strike if they refuse to increase their salaries and fringe benefits.
This economic impact of salary increase and fringe benefits on workers effects many workers both in the public and private sectors, and it can lead to increase in the rate of unemployment and thus, inflation.
1.3       PURPOSE OF THE STUDY
It is expected for any research work to provide answer to a particular problem. In view of this, this project tends:
i.             To examine the effect of salary increase and fringe benefits among Nigerian workers.
ii.            To highlight the problems that are inherent in increasing the salaries of workers who work in the public sector.
iii.          To identify and correct the environmental factor that affects the salary increase and fringe benefits of workers.
1.4       SIGNIFICANCE OF THE STUDY
This study is of great importance in the following ways:-
By virtue of this study, it is needed most. Income and expenditure of an industrial sector would be determined, hence, the number of workers will also be accounted for. This tells whether more workers are to be employed or deployed.