BACKGROUND OF THE STUDY

        The management of remuneration policies is faced with economic problems in which created a lot of problems in management labour relation in most situations, the unions are being asked to make choice between two desirable alternatives either to accept or reduce workforce in the local government. The economic has reduce the bargaining power of unions and this has made the union leaders to spend substantial amount of time and effort in persuading employers to maintain their working conditions. The idea of choosing between the two alternatives or more appropriately on trade off is a phenomenon which is referred to as a concession bargaining. Basically the union and its members are made to agree to either to allow wage increase or even reducing existing level and adjust other working conditions.

        According to Lawrence (1985) “Remuneration is defined as the cost of employing people which include salaries and wages, taxes, insurance, pension, the cost of department whose work is largely concerned with personnel. Remuneration is of utmost important to both the management of a local government employer and employees. Also the method of payment should be affair and afford the maximum possible satisfaction to employees and employers of local government. The nature of the organization work or relative work of job will go a long way in determining her remuneration. If the employees are not well remunerated, it might led to high turnover and also employees will not put in their best in the organization. Employer or individual has to be provided with an opportunity to realize his or her own potential. Hence, the effectiveness of an organization is ultimately determined by the degrees to which it helps its members to achieve their individual objectives. It is therefore obvious that he major problem facing a local government in Nigeria today is how they remunerate their employees towards high performance. This has created a lot of problems in the management of human resources in diverse local governments in Nigeria. As a result of poor remuneration , employees in the public sectors and the local government have developed several unethical behaviour which have adverse effects on their productivity in the organization and the local government.