Minimum Wage: Time to Align Reward System with Productivity, Says NECA


Chris Uba

Following the conclusion of negotiation between the federal government and organised labour on the percentage increase in public sector workers’ salaries as a result of the new minimum wage, the Nigeria Employers’ Consultative Association (NECA) has commended the government and labour for allowing social dialogue to hold sway in resolving the matter.

Speaking in Osogbo, Osun State recently, the Director General of NECA, Mr. Timothy Olawale, said, “the fact that federal government and organised labour embraced social dialogue in resolving the issue of consequential adjustment in the public sector, rather than labour embarking on a strike action was commendable.” 

He said that, “it was a veritable learning point for our industrial relations system and good precedent to build upon in future.”

Olawale, appreciated the agreement reached by the parties and urged government to abide by its contents , pointing to the fact that the new National Minimum Wage was signed into law in April 2019 by the President. 

He stated the implementation of the consequential adjustment would definitely improve the purchasing powers of Nigerian workers. He also called on organised labour to roll up their sleeves for improved productivity as the nation needed all hands to be on deck to come out of the present economic challenges. 

“The time is ripe to ensure and align reward system with productivity in the workplace, and this should be applicable in both the private and public sectors in the country,” he said.

Speaking further, Olawale urged Nigerians to note that, “the national minimum wage mechanism is not for a general salary review but a process to fix an amount below which no employer should pay its least paid workers. 

“There are mechanisms in the private sector, which allow for salary review on periodic bases and this has stabilized the sector, as employers in the private sector are not paying below the N30,000 national minimum wage.”

He called on all parties in industrial relations process to maximise the provisions of the law, especially the conflict resolution machineries rather than industrial actions.