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NECA urges Labour and Governors to stop Fueling Agitation

POSTED ON May 7, 2024 •   Uncategorized      BY Abiodun Saheed Omodara
NECA Logo l Credit:NECA l Source: neca.org.ng

NECA has urged both organized labor and state governors to put aside their differences and allow the Tripartite Committee on the National Minimum Wage to complete its work.

The Director-General, Adewale-Smatt Oyerinde, expressed concern over the ongoing dispute between organized labor and some governors regarding the National Minimum Wage, describing the accusations and counter-accusations as unfortunate.

"It is important to recognize that the Tripartite Committee, established to negotiate the National Minimum Wage, has not yet completed its task. 

Engaging in a public battle or negotiation through the media could be detrimental to all parties involved.

This apparent war of attrition on an issue that is meant to be handled through respectful negotiation and consensus is not only unnecessary but also shows a lack of respect for the entire Technical Committee."

While expressing concerns about the slow progress of the "National Minimum Wage negotiation,"

The Director-General of NECA noted that the Committee meeting, adjourned in the first week of April 2024, has not reconvened yet.

 This prolonged delay has the potential to fuel agitation and breed mistrust among stakeholders. The government is urged to reconvene the Tripartite Committee promptly so that it can resume its work as soon as possible.

Adewale-Smatt Oyerinde, representing the Organized Private Sector of Nigeria, emphasized that employers fully support a new National Minimum Wage, as higher wages could also boost economic activities, encourage spending, and improve businesses' capacity utilization.

However, any wage increase must consider the parameters outlined in the ILO Minimum Wage Fixing Convention 131 of 1970, which includes the needs of workers and their families and economic factors.

It is crucial to strike a balance between these considerations to ensure that minimum wages are tailored to the national context and that they effectively protect workers, consider productivity levels, consider employers' ability to pay, and contribute to the development of sustainable enterprises.

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