This study reviewed the nature of the relationship that exists between the government of Enugu State and the organized labour in the state. We raised and explore the following questions: does inadequate fund prevent the government of Enugu State from meeting up with the workers demand and does internal leadership crisis impede the government of Enugu State from entering into a peaceful dialogue with the labour union in Enugu State. We adopted Marxist theory of the state to analyze how the relationship between the government and the workers goes. Based on the research problem we raised,we hypothesized as follows: inadequate fund does not prevent the government of Enugu State from meeting up with the demands of the workers in Enugu State and that internal leadership crisis in the Enugu State labour congress impedes the labour from entering into a peaceful dialogue with the government. Our method of data collection in this study is qualitative method. The major findings of this study are as follows: that the government of Enugu State has sufficient fund that is more than enough to meet up with the financial demands of the workers and that frequent internal squabble in the labour union prevents them to dialogue with the government. We recommended among other things that the government has to respect any collective, bargaining entered with the labour union and that the leadership of the labour union has to do every thing possible to avoid internal conflict and leadership tussles.