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The research  is aimed at studying the management of fringe benefits on workers performance in a manufacturing company, using Ughelli cement Ughelli Delta State as a case study, for this purpose, relevant literature were reviewed from textbooks, the different types of fringe benefit were discussed; its formation, aims and objective and finance. In the collection of data structural questionnaires and personal interview guide were analyzed. The result of the analysis of data collected led to many findings and important conclusions were drawn from them. one of such conclusions, is those fringe benefits have great impact on the employees as they motivate them to work and thereby increasing the productivity of the organization. On the basis of the findings and conclusions, a recommendation is that the company should have a reasonable degree of performance and it should have much fringe benefits for the show workers as well as the fast workers.






 Background of the study

The genesis of the cement industry in Nigeria can be traced to the 1950s with the establishment of the first cement factory in Nigeria about 11956 at Nkalagu with an installed capacity of 489000 metric tons per annual. With the increasing demand for cement in the economy, there were growth of the construction industry coupled with the oil boon of the post war period which brought about improvements in the standard of living of the masses, there led to an increase in the demands for cement. To achieve Nigeria national objectives of self-reliance in the supply of industrial products and that of import substitute with this product locally, public and private sector organizations stepped up their operations geared towards increasing cement production.

In view of ever-increasing demand, cement in the early phase of development in Nigeria primarily due to the growth of construction industry. A large quantity of cement was still being imported. The commissioning of about a (Nine) cement companies between 1956 and 978 was a deliberate effort by successive government to sustain the tempo of growth in the construction and building industry, as well as conserving hard earned foreign exchange expanded on massive cement Importation. It was against this background that the delta cement company limited Ughelli, was established to take advantage of the unsatisfied demand for cement. Between 1950-1962 the geological survey department of Nigeria conducted a geographical survey in the Aladja division of Delta province, they discovered two marble and limestone deposit in Ughelli area.

These mineral deposits were estimated at 10.23 million tones. Detailed chemical analysis showed that the marble and limestone deposit, which extended to a depth of 606m, was suitable for the manufacturing of cement it appropriately blended with clay and literate.

Further survey shows that suitable clay and literate were equally around these locally. Attempts were not made by the western region to exports these mineral deposits but shortly after creation of mind-west region in 1964 the government became anxious to develop the region now delta state which sponsored the Ughelli cement company limited incorporated on 18th of June 1964 as a private limited liability company with an equity share capacity of 2.2 million. This share was increased to N20 million following the expansion of the capacity of 50,000 tons per annum to 950,000 tons per annum. The company factory is located at km 154 delta Eruemekowtiarun Road, Ughelli in Ughelli local government area Delta state, and has its requested office at No.6 reservation road press center building G.R.A Delta State. Delta Cement Company limited is owned in partner by three investors and the percentage stock holding of partners are as follows:

  1. Delta State Government 7 8-9%
  2. Edewor and Co- Limited 20%
  3. Onanife Caro and co- 1.1%

The cement plan was installed ready for operation by 1966 but could not be commission, because of difficulty in getting electricity installed for the supply of power. As this become clear the state government directed the ministry of transport and work to assist in providing the factory its own power generators and this was made available which later set the commissioning in motion in 1969.The Nigeria civil war perhaps made it impossible to employ the services of their required expatriate technical personnel to take on the management which further two years without operation.

Early 1970. Immediately after the civil war messes Jarpur Udyog an Indian firm was the factory management agent. The management agent commenced operation in March 1972.



1.2     Statement Of The Research Problem Fringe benefits are non-pay benefit received by workers such as housing transportation, pensions, subsidized meals and discounts on company products. They are usually provided as a package of items. There benefits are extra income to the worker and often satisfy the needs and wants that were not satisfied by salaries or wages. This goes a long way in enhancing employee’s morale. Most benefits plans do not allow the workers to make choice of his or her preferred range of benefits. Generally benefits are offered on a take-it or- leave it basis with the exception of pension schemes, which is mandatory.

Fringe benefits were introduced by employers of labour on the sincere beliefs that employees where entitled to share in the prosperity of their organizations. It grew up as the result of the economic situation in the country. In a country where the government is unable to cater for the welfare of its people, some organizations assume some of the responsibilities which otherwise should have been the duty of the government which is the essence of this study.


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