Dr. Nlemaa Aleelo Agabe

Abstract

The study examined the relationship between fair compensation packages and industrial peace of oil servicing firms in Rivers State, Nigeria. The research specifically investigated the connections between fair bonuses and mutual trust, and between fair incentives and stable labour relations. A correlational survey research design was adopted, and a census of 17 registered oil servicing firms was studied. Data were collected from 102 managers and supervisors using a validated questionnaire, and the responses were analysed using Spearman’s Rank Order Correlation Coefficient. The results revealed a moderate, positive, and statistically significant relationship between fair bonuses and mutual trust (ρ = .348, p = .000). Furthermore, a strong, positive, and statistically significant relationship was found between fair incentives and stable labour relations (ρ = .549, p = .000). Consequently, both null hypotheses were rejected. The study concluded that fair compensation packages, characterized by equitable and transparent bonuses and incentives, are crucial for fostering mutual trust and stable labour relations. These elements were identified as fundamental pillars for building and sustaining industrial peace in the high-risk and capital-intensive environment of oil servicing firms. It was recommended that management institutionalize transparent bonus systems and implement structured incentive programs to strengthen trust, encourage collaboration, and minimize industrial conflicts.