IMPACT OF WAGE DIFFERENTIALS ON PRODUCTIVITY OF CONSTRUCTION COMPANIES IN ABUJA

Abstract

Wages constitute a significant part of the overall cost of operations. In some organizations, wages and salaries constitute over 50% of the operating costs. The 1973 Decree provides that the Ministry of labour and productivity may by Order; direct that an Industrial Wages Board be established. The availability of craftsmen is considered as one of the most critical factors for the effectiveness of the construction industry. Productivity depends significantly on craftsmen but cases of craftsmen turnover is becoming a big challenge to the construction industry. This study aimed at evaluating the impact of labour wages differentials on productivity of medium-sized construction companies in Abuja with a view to suggesting ways of reducing the rate of the differences in the wage of craftsmen in medium size construction companies. Through a survey, a total number of 41 structured questionnaires were administered amongst medium size construction workers and FG craftsmen (carpenter, painter and mason). Descriptive analysis was used to determine the factors responsible for labour- wage differentials in medium size construction companies, using percentages, mean and standard deviation. The findings also revealed that it can be seen that with M.I.S of 4.8 is ranked specialty, technicality, hours of work, success and performance are ranked 2nd 3rd 4th and 5th .Job description responsibilities, credentials, industry or employer, Nature of employment,10,11,12,13,14,and15 are ranked 6th,7threspectively16,17,18 20 are ranked 16t and 17th respectively. Therefore, the study recommends that experience and skills are the most important factors responsible for wage differential and they should be emphasized upon before employment. Training and re-training should be done often to improve on skills and specialty, adequate awareness on the benefit should also be emphasized upon. The need for other factors responsible for carpenter mason increased output should be researched into, the wages of tradesmen in the FG should be improved upon.