This project looks at the causes and effect of labour unrest in the Nigeria local government system using Igalamela/Odolu local government as a case study. In order to guide us, some hypotheses were formulated. Based on the hypotheses, questions were generated and administered to some selected population and the data collected were analyzed. From the data analysis, some findings were arrived at among which were the fact that irregular payment of salaries in the local government causes labour unrest, and that labour unrest leads to low productivity and poor service delivery. In order to overcome these problems, some recommendations were made which include the need to pay workers’ salaries regularly and deemphasize political patronage in staff recruitment in the local government.