ABSTRACT
This work on econometric investigation on the impact of strike disruption (action) on labour productivity in Nigeria specifically looked at the following objectives such to ascertain the relationship between work disruptions (strike actions) and labour productivity; to evaluate the extent to which work disruptions affect labour productivity and to determine the factors that influence work disruptions on labour in Nigeria as such, this work used the econometric method approach for the research. There is no doubt that the method will facilitate the model specification, parameter estimation and appropriate econometric tests. Therefore, the use of time series is based using secondary data sources because of the attitudes and perceptions about work disruption as it affects labour productivity. In order to capture the impact of industrial crisis, measured by man days lost (D)the Cobb-Douglas production function was employed while the real capital stock-K, derived by dividing gross fixed capital formation by consumer price index-(CPI), and labour force (L).Result shows that Strike action has no significant impact on labour productivity. Having employed all necessary statistical and diagnostic tests, the hypothesis was evaluated with ECM result which was used to tested the hypothesis two of this study, we observed that the coefficient of ECM is stood at -9% which denotes that it will take about 9 years Speed of adjustment for Real Gross Domestic Product (RGDP) to attain to equilibrium from the short-run dynamics resulted from the occurrence in industrial strike action proxied by the independent variables (Real capital stock on service sector (K), Labour force on service sector (L) and Hours loss in service (D) in Nigeria. In other words; “Strike action has significant impact on labour productivity during the chosen period of observation” .Nigeria has experience series of industrial strike action, and they must have some level and rate of impact on the gross domestic product of the nation. The study therefore recommends that Government should ensure that capital expenditure and recurrent expenditure should be managed in a manner that it will ensure control of the occurrences of industrial strike action thus, focus on how to raise the nation’s production capacity.