CHAPTER ONE

1.1 BACKGROUND TO THE STUDY
Fringe benefits, according to Anugwom (2007:396) refer to indirect financial and non-financial compensations that are given to an employee as entitlement in addition to the basic pay as a result of his work relationship with his employer or for being member of the organization in a given status level.
Historically fringe benefits constitute one of the oldest forms of indirect financial and non-financial incentives. This type of wage payment has been in existence for thousands of years and was still used particularly in the needle trades, foundries and other specific industries.
The modern concept of fringe benefits was initiated in the late 19th century as an attempt by Victorian patriarchs to retain staff and refute the often-made suggestion that industry exploited the working classes without providing any financial or social security. With the introduction of some monetization policy in 2005 by president OlusegunObasanjo, these fringe benefits are how monetized and paid in addition to workers basic salary.
In AkanuIbiam Federal Polytechnic, Unwana, civil servants received some fringe benefits all allowances paid other than basic salary. They are now monetized and consolidated in workers monthly salary in AkanuIbiam Federal Polytechnic, Unwana.
AkanuIbiam Federal Polytechnic, Unwanawas located in the Eastern part of Nigeria, was established by decree No. 33 of 1979. It started to exist as a federal institution on May 1982. The Polytechnic is made up of five schools with over 23 departments. Workers under its employ are over 4,000 persons.
1.2 STATEMENT OF THE RESEARCH PROBLEM
Among the problem facing workers in Nigeria particularly in AkanuIbiam Federal Polytechnic, Unwana are backlog of unpaid allowances which have resulted in industrial action by the labour unions in the institution, thereby crippling academic activities in AkanuIbiam Federal Polytechnic, Unwana, inefficiency, low morale by workers and inequality in the payment of monetized fringe benefits among academic and non academic staff, which have brought about low performance among workers in AkanuIbiam Federal Polytechnic, Unwana. This researcher, therefore seeks to examine whether regular and equitable payment of monetized fringe benefits will address the above problems.
1.3 OBJECTIVES OF THE STUDY
i. To determine whether fringe benefits package motivates workers in AkanuIbiam Federal Polytechnic, Unwana.
ii. To determine the extent workers enjoy fringe benefits in AkanuIbiam Federal Polytechnic, Unwana.
iii. To find out how fringe benefits are been paid to workers in AkanuIbiam Federal Polytechnic, Unwana