Labour

September 19, 2024

How to free workers from economic crisis — NASU

How to free workers from economic crisis — NASU

By Victor Ahiuma-Young 

As the economic crisis confronting Nigeria worsens, the Non-Academic Staff Union of Educational and Associated Institutions, NASU, has given insight into how workers can be liberated for the quagmire.

According to NASU, skill development and education, entrepreneurship, participation in the informal economy, advocacy and unionisation, and government interventions and are important rescue measure for workers    

NASU’s General Secretary, Prince Peters  Adeyemi, who gave the hints while delivering a paper on “Challenges of an Emerging Economy: Survival Options for Workers at the Labour Writers’ of Nigeria, LAWAN,  2024 Workshop  Lagos, posited that workers in economies often face unstable employment, low wages, and poor working conditions.

 Postulating among others that in emerging economies like Nigeria, a substantial portion of the workforce is employed in sectors characterised by low wages and inadequate working conditions, Prince Adeyemi contended that many of these sectors fall within the informal economy, which includes jobs that are not regulated by the government and often lack basic legal protections and benefits for workers.

 Skill Development

Giving details of the survival option, the General Secretary who was represented by the Union former President, Ivor Takor, said “Access to education and skill development programmes is a crucial factor in enhancing workers’ employability and enabling them to transition to higher-paying sectors. As global economies continue to evolve with advancements in technology and shifts in industry demands, the ability of workers to adapt and acquire new skills has become increasingly important. 

“Vocational training programmes are particularly effective in bridging this gap. Vocational training is often more accessible and shorter in duration than traditional higher education, making it a practical option for workers looking to upskill or reskill while balancing other responsibilities.

 Entrepreneurship

“Encouraging entrepreneurship is a powerful strategy for providing workers with alternative employment opportunities and fostering economic growth, especially in emerging economies. By empowering individuals to start and grow their businesses, entrepreneurship not only creates jobs but also drives innovation, diversifies the economy, and reduces poverty. To effectively promote entrepreneurship, it is essential to support microfinance initiatives, establish business incubators, and implement supportive policies that address the unique challenges faced by aspiring entrepreneurs.

“In supporting microfinance initiatives, establishing business incubators, and implementing supportive policies, governments and private organisations can provide workers with the tools and opportunities they need to start and grow their businesses. This not only enhances individual livelihoods but also contributes to the broader economic and social development of communities and nations.

Informal economy  

“The informal economy plays a crucial role in providing a safety net for millions of workers, particularly in regions where formal employment opportunities are scarce. While the informal sector often lacks the legal protections and benefits associated with formal employment, it offers a source of income and survival for those who might otherwise be left without work. To improve the livelihoods of informal workers, it is essential to develop policies that provide them with access to credit, legal recognition, and other forms of support, thereby enhancing their economic security and opportunities.

“The informal economy encompasses a wide range of activities, including street vending, small-scale manufacturing, domestic work, and informal services. These jobs are often characterised by a lack of formal contracts, job security, and social protections such as health insurance, pensions, or unemployment benefits. Despite these challenges, the informal economy is a vital part of many economies, providing income to those who are excluded from the formal labour market due to various barriers, such as lack of education, skills, or discrimination.

“Furthermore, legal recognition can also facilitate the inclusion of informal workers in social protection schemes. For instance, once recognised, informal workers could gain access to contributory social security programmes, health insurance, and other benefits typically reserved for formal employees. By integrating informal workers into these systems, governments can provide a more comprehensive safety net, reducing their vulnerability to economic shocks, health crises, and other risks.

Unionisation

“Strengthening labour unions and advocating for workers’ rights are critical strategies for improving working conditions and wages, particularly in emerging economies where labour protections are often weak or inconsistently enforced. Through collective bargaining and social dialogue, workers can negotiate for fairer treatment, safer workplaces, and better pay, contributing to more equitable and sustainable economic development.

“Labour unions play a fundamental role in representing workers’ interests. In many emerging economies, where informal employment is widespread and labour regulations may be poorly enforced, unions provide a collective voice for workers who might otherwise be marginalised. By organising workers and advocating on their behalf, unions can push for improved labour standards, such as higher Minimum Wages, safer working conditions, and access to social protections like health care and pensions. These improvements are essential for enhancing the quality of life for workers and their families, as well as for reducing income inequality.

“Collective bargaining is one of the most powerful tools that labor unions have at their disposal. Through collective bargaining, unions negotiate with employers on behalf of workers to secure better wages, benefits, and working conditions. This process allows workers to leverage their collective strength to achieve outcomes that would be difficult to attain individually. For example, collective bargaining agreements can establish wage floors that protect workers from exploitation, set limits on working hours to prevent overwork, and ensure that workers have access to necessary safety equipment and training. 

“Moreover, strong labour unions and effective social dialogues involving workers, employers and governments are essential for ensuring that economic growth is inclusive and benefits all members of society. In the absence of these mechanisms, the gains from economic development may be disproportionately captured by a small elite, while the majority of workers see little improvement in their living standards. By advocating for fair wages and decent working conditions, unions contribute to a more equitable distribution of wealth and help to build a more just society.

Government intervention

“Government policies that prioritise economic diversification, social protection programmes, and infrastructure development are essential for creating a more stable and inclusive job market. These strategies not only contribute to long-term economic growth but also ensure that the benefits of this growth are widely shared across society. By investing in healthcare, education, and social welfare, governments can provide a robust safety net for workers, helping to reduce poverty, enhance job security, and improve overall quality of life.

“Economic diversification is a critical component of building a resilient job market. In many emerging economies, dependence on a narrow range of industries such as agriculture, mining, or low-wage manufacturing and in the case of Nigeria, oil, can leave workers vulnerable to economic shocks. These shocks might be triggered by global market fluctuations, technological changes, or environmental factors, leading to job losses and economic instability. By diversifying the economy, governments can reduce this vulnerability, creating new opportunities in sectors such as technology, renewable energy, services, and advanced manufacturing.

“Social protection programmes are essential for providing a safety net for workers, particularly in times of economic uncertainty or personal hardship. These programmes include unemployment benefits, health insurance, pensions, and other forms of social assistance that help individuals maintain a basic standard of living when faced with job loss, illness, or other life events. In many emerging economies, where informal employment is prevalent, expanding access to social protection is crucial for reducing poverty and vulnerability.

“Governments can strengthen social protection systems by ensuring they are inclusive, adequately funded, and effectively managed. This may involve extending coverage to informal workers, improving the efficiency of social services, and integrating social protection into broader economic policies. For example, linking social protection to employment initiatives can help workers transition from informal to formal employment, providing them with greater job security and access to benefits.

In this regard, the National Pension Commission (PenCom), has extended the Contributory Pension Scheme to workers in the informal sector, through the Micro Pension Plan.

“Infrastructure development is another key driver of job market stability and inclusivity. Reliable infrastructure, such as transportation networks, energy supply, digital connectivity, and clean water systems, is fundamental to economic activity and job creation. It not only facilitates business operations but also enhances access to markets, education, and healthcare, all of which are vital for a productive workforce.

“Investing in infrastructure creates immediate job opportunities in construction and related industries, while also laying the foundation for long-term economic growth. Improved infrastructure attracts investment, supports the growth of new industries, and enables workers to commute more easily to job centres. Furthermore, infrastructure development can help bridge the urban-rural divide, ensuring that economic opportunities and public services are more evenly distributed across regions.

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