The Nigeria Employers’ Consultative Association (NECA), a member of the Organised Private Sector (OPS), has insisted on the recognised tripartite arrangement and adherence to the International Labour Organisation’s (ILO) standards in national minimum wage negotiations.

The tripartism principle entails the involvement of the three recognised social partners, which include the government, organised labour, and employers. NECA represents the last of the partners listed above.

The principle is rooted in relevant 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 consultation and participation of the most representative employers’ body (NECA) and the most representative workers’ organisation (NLC) in minimum wage determination.

Adewale-Smatt Oyerinde, the Director-General of NECA, speaking on Thursday, in light of the ongoing engagements between the government and the organised labour, said such engagements were tantamount to failing to respect the globally recognised principle.

According to Oyerinde, while NECA recognises the legitimate concerns regarding workers’ welfare, rising cost of living and declining purchasing power, and respects the right of government and labour to hold bilateral discussions, the rules in determining a national minimum wage are fundamental. This entails 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,” Oyerinde insisted.

He noted that the organised private-sector employers could not be deemed parties to, or contractually bound by, agreements reached without their participation and concurrence, adding, however, that “This does not 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 cost of funds and other operational challenges,” he noted.

NECA also expressed concern over threats of industrial disruption arising from the ongoing wage-related discussions, saying that at a time when businesses are striving to recover from significant economic challenges and a semblance of stability at the macro-economic level, avoidable disruptions to productive activities could threaten enterprise survival, employment security, investor confidence and frustrate the ongoing economic recovery of organised businesses, especially the teeming SME/MSMEs.

“We therefore call for constructive social dialogue, mutual respect and the use of established lawful dispute-resolution mechanisms to preserve industrial harmony,” Oyerinde added.