The Director General of the Nigerian Employers Consultative Association (NECA), Adewale Oyerinde, on Tuesday warned that any approval of a new national minimum wage of above N62,000 would lead to an industrial crisis with a high risk of job losses.
Oyerinde issued the warning when he spoke to Journalists on the sidelines of the Third Nigerian Entrepreneurs Summit on ‘Economic Renaissance Leveraging Government Reform and Private Sector Agility’ in Abuja.
He emphasized that the upward review carried out by President Bola Tinubu could result in non-compliance by employers which could lead to a series of industrial actions by aggrieved workers.
NECA emphasized that members of the private sector swallowed the bitter pill in accepting the N62,000 proposal put forward by the tripartite committee and this was based on the premise of certain concessions from the government, inter alia, to suspend the implementation of electricity tariffs.
He added that the government must consider the financial capabilities of its members to avoid a total shutdown of the sector.
Oyerinde said: “Now, for us, and we have said it and we will say it again publicly, the N62,000 proposed by the employer, the N62,000 is based on several premises. It was really painful to concede that we conceded. And it is based on a certain premise. And one of them, or two, or three of them is a new electricity tariff, so the government has to postpone it. That is one. That there should be an embargo on new taxes.
“And this was conveyed to the National Assembly as we spoke. I heard the speaker’s representative say he would declare an open public hearing on CSR (corporate social responsibility). That’s not part of the problem we’re having. The DPR wants to make a law on CSR so that it is mandatory. For God’s sake, this is corporate social responsibility.
“It’s the prerogative of the corporate world to say this is what I want to do. So you don’t make laws. This is another tax that we would also argue against.
“So, that was part of the conditions that we put in place to agree on a minimum wage of N62,000. Now, if it goes above N62,000, you have created two or three different dynamics. First, you have set the tone for non-compliance.
“That’s one of them. Because if I can’t pay, I can’t pay. Now, you’ve created a problem for the judiciary because all disgruntled employees have the right, under the law, to go to the National Industrial Relations Court.
“Now imagine 1,000, 2,000 employees, or 5,000 employees across the country will be taken to the National Industrial Relations Court. How long does it take for the Industrial Relations Court to resolve nearly 5,000 cases? That is one.
“Secondly, you have also established other dangerous patterns in the process. We already have business taking off now. We were all not interrogated, where do our brothers work in those companies? Where are they? So, amounts that exceed the capabilities of the private sector can also result in job losses.
“Now, we complain about insecurity. So, we have to combine all of that. And the most basic, final thing for me, in this minimum wage issue, the fundamental element in setting a national minimum wage that cannot be eliminated is the ability to pay.
READ ALSO: Governors hold emergency meeting to resolve minimum wage impasse
“If you eliminate the ability to pay, then you have just entered the crisis stage.”
“There is no waiting game and I think we have to put all this in context. And all this misinformation, I think, we’re just creating unnecessary tension. There is a process and it seems like we don’t agree. There is a process where a tripartite committee sits to recommend a national minimum wage.
“And that process, once the minimum wage, the figures are recommended, we submit it to the president, we have done that. And the president is the ruler. They have to vote on the committee’s recommendation, should I accept it or not?
“The president remains sovereign. The position is not up for grabs. Businessmen cannot oppose it. The Labor Party cannot oppose it. It is the ruler who must choose a figure, and then forward it to the National Assembly to go through the legislative process. We can only advocate for that process to be accelerated.
“We can’t put a gun to someone’s head and say, look, you have to do this, tomorrow, you have to do that. It can’t be done like that.
“While we appreciate these efforts and recognize their important role in attracting investment, increasing productivity and driving sustainable economic growth, it is important to note that the true measure of these reforms lies in their effective implementation and the tangible benefits they bring to businesses and society.
“The private sector, with its inherent dynamism and innovation, is the foundation of economic development. Our agility allows us to respond quickly to market changes, adopt new technologies and create value.
“It is this spirit of innovation and resilience that we must harness to complement government reforms. By fostering a symbiotic relationship between the public sector regulatory framework and the dynamism and value creation of the private sector, our country can achieve sustainable and inclusive economic growth,” he added.
The post MINIMUM WAGE: Anything above N62,000 will create a crisis, NECA boss warns workers appeared first on Latest Nigeria News | Top News from Ripples Nigeria.
