Causes and Effects of Industrial Crisis in Nigeria: Some Empirical Clarifications

A harmonious workplace that guarantees satisfaction of workers’ and employers’ aspirations is very essential for enhanced productivity. But when the interest of either or both of the parties involved in industrial relations is unsatisfied, industrial crisis becomes imminent. Using asymmetric information and pluralistic industrial relations theoretical framework, the study established that unions’ intensity, inflation rate and unemployment rate had direct influence on industrial crisis, while wage and measure of trade liberalization had inverse impact on it. The results of the econometric analysis also revealed that industrial crisis exerts negative effects on the level of economic activities in Nigeria, denoting that industrial crisis portends great cost to the economy as a result of reduction in productive hours. Some recommendations such as improvement of minimum wage policy of the government, reduction in inflation and unemployment rates that will help ameliorate the level of industrial crisis, were suggested