By Victor Ahiuma-Young

The Nigeria Employers’ Consultative Association (NECA) has warned that organised private-sector employers cannot be bound by minimum wage agreements reached between the Federal Government and organised labour without their participation and concurrence, insisting that employers must have an equal voice in the negotiation process.

NECA, the voice of organised business in Nigeria, acknowledged the ongoing engagements between the Federal Government and organised labour on the National Minimum Wage (NMW), but stressed that wage determination must follow a tripartite process involving government, employers and workers as equal social partners.

The association recognised workers’ legitimate concerns over welfare, the rising cost of living and declining purchasing power, but maintained that bilateral discussions between government and labour cannot replace the established tripartite framework.

A statement by its Director-General, Adewale-Smatt Oyerinde, faulted strike threats by organised labour, warning that further disruptions could hurt businesses and lead to massive layoffs.

The statement reads: “The Nigeria Employers’ Consultative Association (NECA), the Voice of Organised Business in Nigeria, acknowledges and commends the ongoing engagements between the Federal Government and Organised Labour on the National Minimum Wage (NMW). The Association recognises the legitimate concerns regarding workers’ welfare, rising cost of living and declining purchasing power. “However, NECA strongly emphasises that the determination of the National Minimum Wage is fundamentally a Tripartite process that must involve Government, Employers and Workers as equal Social Partners. The broader principles of social dialogue are further reinforced by ILO Convention No. 144 and Recommendation No. 113.

“The principle of Tripartism is firmly established in relevant International Labour Organisation (ILO) instruments, particularly the Minimum Wage Fixing Convention, 1970 (No. 131), Minimum Wage Fixing Recommendation, 1970 (No. 135), and Minimum Wage-Fixing Machinery Convention, 1928 (No. 26). These instruments underscore the importance of meaningful consultation and participation of the most representative employers’ body (NECA) and the most representative workers’ organisation (NLC) in minimum wage determination.

“While NECA respects the right of Government and Organised Labour to hold bilateral discussions, such engagements cannot substitute for the statutory tripartite process. Organised private-sector employers cannot be deemed parties to, or contractually bound by, agreements reached without their participation and concurrence. This does not, however, diminish employers’ obligation to comply with any National Minimum Wage validly established under the National Minimum Wage Act.

“For the avoidance of doubt, NECA is not opposed to the negotiation or review of the National Minimum Wage. Rather, the Association insists that the process must be inclusive, transparent, evidence-based and consistent with relevant ILO Conventions and Recommendations. A sustainable outcome must balance the legitimate needs of workers with the economic realities confronting employers.

“In particular, Article 3 of ILO Convention No. 131 requires consideration of both workers’ needs and relevant economic factors. Consequently, any credible minimum wage determination must take into account the cost of living, workers’ welfare, productivity, enterprise sustainability and ability to pay, employment generation and retention, and the prevailing national economic conditions. These considerations are especially critical at a time when Nigerian businesses continue to grapple with high energy costs, inflation, high costs of funds and other operational challenges.

“NECA also considers it imperative to clearly distinguish between the National Minimum Wage and a general wage increase. The National Minimum Wage is the legally prescribed minimum compensation that employers covered by the law must pay workers. It serves as a statutory floor for worker protection and should not be misconstrued as an automatic, across-the-board salary increase for all categories of employees.

“Consequential salary adjustments, wage relativity and general wage increases are distinct remuneration matters that should be addressed through established collective bargaining mechanisms, contractual arrangements and enterprise-level negotiations, rather than being conflated with the determination of the statutory wage floor.

“We further express concern over threats of industrial disruption arising from the ongoing wage-related discussions. At a time when businesses are striving to recover from significant economic challenges and a semblance of stability has returned at the macroeconomic level, avoidable disruptions to productive activities could threaten enterprise survival, employment security and investor confidence, and frustrate the ongoing economic recovery of organised businesses, especially the teeming SMEs and MSMEs. We therefore call for constructive social dialogue, mutual respect and the use of established lawful dispute-resolution mechanisms to preserve industrial harmony.

“As we look forward to the commencement of the formal National Minimum Wage negotiation process, NECA trusts that the Federal Government and all social partners will ensure full respect for Tripartism and the fundamental principles of the relevant ILO Conventions and Recommendations. The outcome must reflect a careful balance between workers’ needs, productivity, enterprise sustainability, employment considerations and the general economic conditions of the country.

“We firmly believe that the welfare of workers and the survival of businesses are complementary objectives that must be pursued concurrently in the interest of national development. NECA remains committed to decent work, fair remuneration, sustainable enterprises and productive employment.

“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.”