Employers’ body says wage review must reflect economic realities, workers’ welfare and businesses’ ability to pay, warns against agreements reached without private-sector participation……
The Nigeria Employers’ Consultative Association (NECA) has warned that any agreement on a new National Minimum Wage must involve employers, insisting that negotiations between the Federal Government and organised labour cannot replace the legally recognised tripartite process.
The association maintained that employers must have a seat at the negotiating table, arguing that decisions reached without their participation and agreement cannot automatically bind the organised private sector.
NECA made its position known on Thursday in a statement signed by its Director-General and Chief Executive, Adewale Oyerinde, who is also a member of the Governing Body of the International Labour Organisation.
The employers’ body acknowledged the ongoing discussions between the Federal Government and organised labour over a possible review of the minimum wage, noting that workers had legitimate concerns over rising living costs and the steady decline in their purchasing power.
However, it stressed that determining an appropriate wage requires balancing workers’ welfare with productivity, business sustainability, employers’ capacity to pay and the prevailing economic situation.
According to NECA, the minimum wage negotiation must be treated as a tripartite exercise involving the government, employers and workers as equal social partners.
“The determination of the National Minimum Wage is fundamentally a Tripartite process that must involve Government, Employers and Workers as equal Social Partners,” the association stated.
It explained that the principle was recognised in several International Labour Organisation instruments, including the Minimum Wage Fixing Convention, 1970 (No. 131), its accompanying Recommendation No. 135, and the Minimum Wage-Fixing Machinery Convention, 1928 (No. 26).
NECA said the international instruments emphasised the need for meaningful consultations with representative employers’ and workers’ organisations, particularly NECA and the Nigeria Labour Congress.
While acknowledging the right of the Federal Government and organised labour to engage in bilateral discussions, the association argued that such negotiations must not be used as a substitute for the established tripartite framework.
“Organised private-sector employers cannot be deemed parties to, or contractually bound by, agreements reached without their participation and concurrence,” it said.
The association, however, clarified that its position did not absolve employers of their responsibility to comply with any minimum wage law validly established under the National Minimum Wage Act.
NECA also dismissed any suggestion that it was opposed to a review of workers’ wages, saying it supported negotiations provided they were inclusive, transparent, evidence-based and consistent with relevant ILO standards.
Citing Article 3 of ILO Convention No. 131, the employers’ body said wage determination must consider workers’ needs alongside economic factors, including productivity and the capacity of businesses to sustain employment.
It noted that these considerations were particularly important as Nigerian businesses continued to contend with rising energy costs, inflation, expensive borrowing and other operational difficulties.
The association further cautioned against treating the National Minimum Wage as an automatic salary adjustment for every category of worker.
It explained that the statutory minimum wage represented the lowest legally prescribed remuneration employers covered by the law were required to pay, rather than a blanket increase applicable to all employees.
NECA added that consequential salary adjustments, wage relativity and general pay increases were separate issues that should be addressed through collective bargaining, employment agreements and negotiations at the enterprise level.
The employers’ body also raised concerns over threats of industrial action linked to the ongoing wage discussions, warning that disruptions could undermine business operations, threaten existing jobs and weaken investor confidence.
It said prolonged industrial disputes could further complicate the economic recovery of businesses, particularly small and medium-sized enterprises already struggling with difficult operating conditions.
“We therefore call for constructive social dialogue, mutual respect and the use of established lawful dispute-resolution mechanisms to preserve industrial harmony,” NECA stated.
The association said it expected the formal National Minimum Wage negotiation process to commence with full participation from all relevant social partners and strict adherence to the principles of tripartism.
It maintained that improving workers’ living standards and protecting businesses from unsustainable financial pressures should not be treated as competing interests.
According to NECA, a sustainable wage agreement must simultaneously protect workers, preserve employment, support enterprise growth and contribute to the country’s economic development.
“A fair National Minimum Wage must protect workers, preserve jobs, sustain enterprises and support national economic growth. Tripartism is not merely desirable; it is indispensable to achieving this objective,” the association added.
