NECA fumes over delay in implementation of minimum wage

The Nigeria Employers’ Consultative Association (NECA) has described as unacceptable, the delay in the implementation of the new national minimum wage by government.

The association also decried the failure of President Muhammadu Buhari to transmit a bill on the new minimum wage to the National Assembly as promised, saying it is counter productive and disruptive to businesses in the country, as organised labour goes ahead with its January planned industrial action.

The position of NECA was made known by its Director-General, Mr Timothy Olawale, in a statement issued in Lagos on Thursday, expressing concern that seven weeks after the report was submitted by a National Minimum Wage Committee inaugurated by the President, the government was still planning to subject the report to a review by another technical committee.

“Globally, there is a recognised and acceptable process of setting a National Minimum Wage as enshrined in the ILO Convention 131. This process had been adopted in previous National Minimum Wage setting in Nigeria and was meticulously applied by the National Minimum Wage Committee inaugurated by the President in December 2017.

“It was expected that following the submission of the National Minimum Wage Committee’s Report to the President on Tuesday, November 6, 2018, expedited action would be taken in transmitting a bill to the National Assembly as promised by President Muhammadu Buhari. This delay in the completion of the process had led to the proposed strike by labour, which is totally undesirable and should be avoided.

“Businesses are at present encumbered by several challenges and any avoidable labour action at the beginning of the year or any time whatsoever would be counter-productive, disruptive and would not be welcomed,” Olawale said.

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Olawale further noted that it was pointless to drag the economy down further when it was still reeling under the effects of a recent recession.

He also reminded government that the huge loss borne by businesses during the warning strike in September 2018 had yet to be recovered and any further disruption of business activities might sound the death knell for many enterprises.

According to him, with the rate of unemployment as recently released by the National Bureau of Statistics, it is expected that all hands must be on deck to ensure the continued survival of businesses.

As a way out of the proposed threat of industrial action by organised labour, Olawale said “the President should, without delay, transmit an Executive Bill to the National Assembly as promised, to enable it to finalise the process leading to the enactment of a new National Minimum Wage Act. Businesses and the economy at large cannot afford another avoidable strike.”

He further argued that the private sector, expected to be the engine-room of national development, has always been the victim of such strikes.

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