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•Employers demand inclusive negotiations, warn against imposing wage agreements without their participation
The Nigeria Employers’ Consultative Association (NECA) has called on the Federal Government and organised labour to respect the principle of tripartism in determining the National Minimum Wage, insisting that employers must have a seat at the negotiation table to ensure a fair, sustainable and legally acceptable outcome.
The association, which is the voice of organised business in Nigeria, said the ongoing engagements between the Federal Government and organised labour must not undermine the statutory role of employers as equal social partners in minimum wage negotiations.
In a statement signed by its Director-General and Chief Executive, Adewale-Smatt Oyerinde, NECA acknowledged the legitimate concerns of Nigerian workers over rising living costs, declining purchasing power and worsening economic pressures, but warned that any wage determination that ignores the realities confronting businesses could threaten jobs and enterprise survival.
NECA stressed that the determination of the National Minimum Wage is fundamentally a tripartite process involving government, employers and workers, adding that bilateral discussions between government and labour cannot replace the established statutory and international framework for consultation.
According to the association, relevant International Labour Organisation (ILO) instruments, particularly Convention No. 131, Recommendation No. 135 and Convention No. 26, clearly underscore the need for meaningful consultation and participation of representative employers’ and workers’ organisations in minimum wage fixing.
“Organised private-sector employers cannot be deemed parties to, or contractually bound by, agreements reached without their participation and concurrence,” NECA declared, while acknowledging that employers remain obligated to comply with any National Minimum Wage validly established under the National Minimum Wage Act.
The association, however, clarified that it was not opposed to the negotiation or review of the national wage floor, but insisted that the process must be inclusive, transparent, evidence-based and consistent with relevant ILO conventions and recommendations.
NECA maintained that a sustainable minimum wage must strike a balance between workers’ welfare and the economic realities of employers, including productivity, enterprise sustainability, ability to pay, employment generation and retention, as well as prevailing national economic conditions.
It specifically identified high energy costs, inflation, expensive access to funds and other operational challenges as major constraints confronting Nigerian businesses, warning that these factors must not be overlooked in arriving at a new wage agreement.
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The employers’ body also cautioned against interpreting the National Minimum Wage as an automatic general salary increase across all categories of employees, explaining that the statutory wage is a legally prescribed minimum compensation for workers covered by the law.
“The National Minimum Wage is a statutory floor for worker protection and should not be misconstrued as an automatic, across-the-board salary increase for all categories of employees,” the association stated.
It further explained that consequential salary adjustments, wage relativity and general salary increases are separate remuneration issues that should be handled through collective bargaining, contractual arrangements and enterprise-level negotiations.
Expressing concern over threats of industrial disruption arising from the ongoing wage discussions, NECA warned that strikes and other avoidable disruptions could undermine business recovery, weaken investor confidence and threaten employment security, particularly among small and medium-sized enterprises.
The association urged government and organised labour to embrace constructive social dialogue, mutual respect and established lawful dispute-resolution mechanisms, stressing that industrial harmony was essential to protecting productive activities and sustaining economic recovery.
Looking ahead to the formal commencement of National Minimum Wage negotiations, NECA called on all stakeholders to uphold the principles of tripartism and ensure that the outcome reflects workers’ welfare, productivity, business sustainability and the country’s broader economic realities.
Reaffirming its commitment to decent work, fair remuneration, sustainable enterprises and productive employment, the association declared that the welfare of workers and the survival of businesses should not be treated as competing interests.
“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,” Oyerinde said.
