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FG’s Labour Law Review, Salary Cut May Forestall Mass Sack In 2021 – Stakeholders

There are indications that the Federal Government review of Labour Law and workers’ salary cut by employers of labour may forestall the looming mass sack of workers as well as overcome the current fractured nation’s economic landscape, and address the challenges posed by the second wave of Corona Virus (COVID-19) pandemic in 2021, stakeholders have said.

Speaking to Daily Independent in separate interviews, some financial and industry experts said the COVID-19 pandemic tested the country’s resilience in 2020 and impacted major sectors but that recent labour laws reform by the government to support vulnerable industries and workers would create jobs to sustain growth into 2021.

Senator Chris Ngige, Minister of Labour and Employment, last week disclosed that the Federal Government has commenced plans to review the labour laws to make them contemporaneous with what obtains globally and in line with the conventions of the International Labour Organisation (ILO).

Ngige, who dropped the hints while receiving the Deputy Chief Mission of the United States in Nigeria, Kathleen FitzGbbon, and Labour Attaché, Carolyn Parker, in his office in Abuja, said the reviewed labour laws would be sent to the National Assembly for consideration and enactment.

He said, “We are amending our laws to become contemporaneous with what obtains globally. We have done a labour law review. We will send it to the parliament. ILO is assisting us. But we are doing what we can with our own small resources.

“We have Occupational Safety and Health Department in this Ministry. The department engages in labour inspections to make sure that the working places are okay, and conform to decent work standards.

“We also have two types of insurance for workers. We have insurance against death, which is called the Group Life Insurance. We also have Employee Compensation Act, by which a worker is insured against any accident, injuries and death that may occur in the course of work. An agency of this ministry, the Nigeria Social Insurance Trust Fund (NSITF) is managing it.”

Ngige said a steering committee had been set up for elimination of child trafficking and slave labour, with the secretariat domiciled in the Federal Ministry of Labour and Employment.

On the issue of Child labour, Ngige said Nigeria has a Child Labour Policy while efforts were being made to bring on board a new Action Plan to replace the Action Plan that expired in 2017 before COVID-19 interfered.

“So, we are hoping that by next year we shall launch it. We will do so after the validation. We also have the National Steering Committee on Elimination of Child Labour and in the various 36 states. We have the state committees. You already know the Child Labour problems and the type of child labour issues that we have here in Nigeria.

“A lot of families depend on the number of children they have to be able to go to the farm. So it becomes difficult because of culture. Apart from farming, you have people hawking on the streets. You also have miners. In the farming areas, such as in the cash crop areas, cocoa, coffee and palm trees, palm products and even planting of sorghum and the rest of them,” he said.

The minister, however, said the Federal Government has gone into campaigns to let parents know that there is an age for work.

Dr. Timothy Olawale, Director General of Nigeria Employers’ Consultative Association (NECA), in an interview with Daily Independent on the proposed reviewed of labour laws and how salary cuts by employers would save mass sack in the second of COVID-19 in 2021, said the challenges have consequential effects on organised businesses in the country.

He said: “It is no gainsaying that the Nigerian economy has been battered by the twin challenge of Covid-19 and falling oil prices. These challenges have consequential effects on organised businesses as witnessed in recent time.

“The recession has further alienated organised businesses as the challenges compound.

“To surmount this and ensure business continuity, competitiveness for proactive, critical long and short term actions. and protect jobs, there will be need

“While the long term action for business competitiveness and job protection depends on Government macro and micro economic decisions, short term actions might include salary adjustments where necessary and other mutually agreed steps by both the employer and the employees. It is imperative to state that cost minimization and operational optimization will be fundamental to the survival and competitiveness of enterprises.

He specifically said: “The implementation of the African Free Trade Continental Agreement from 2021 will also pose it’s challenges to local businesses. Thus, all efforts to protect businesses and jobs should be welcomed.

“The Nigerian Labour law has witnessed a wholesale review in the past two years with the the last one coordinated by the Minister of State for Labour and Employment. While the review and eventual passage into law by the National Assembly will be a welcome development, the Law will only enhance workplace relationships and deepen the framework for peaceful industrial relation.

“It is hoped that concerted effort will be made by Stakeholders to ensure continued sustainance of enterprises as this is a panacea to the rising unemployment in the country”.

Dr. Muda Yusuf, Director General of the Lagos Chamber of Commerce and Industry (LCCI), in an exclusive interview with Daily Independent on the proposed reviewed of labour laws and how salary cuts by employers would save mass sack in the second of COVID-19 come next year called for caution to save the economy.

He said, “I believe the worst is over for the Nigerian economy. We had one of the worst contractions in second quarter of this year which was negative GDP growth of 6.1 percent. The contraction was better in third quarter at 3.62 percent.

“The situation should continue to progressively get better, barring any major shocks to the economy. It is better to explore the options of moral suasion and collective bargaining.

“It is difficult to compel a business that is collapsing to continue to retain staff. In matters of this nature, the perspective of the employer also matters.”

Oyinkan Olasanoye, President of the Association of Senior Staff of Banks, Insurance and other Financial Institutions (ASSBIFI), in an exclusive interview with Daily Independent also spoke on the proposed review of labour laws and salary cuts by employers to save mass sack in the second of COVID-19 come next year.

“We appreciate our employers on their agreement with NECA that no worker would be laid off on effect of COVID-19. That was the palliative we asked for when the Trade Union Congress of Nigeria (TUC) met with Vice President Yemi Osinbajo that no layoffs and the recapitalisation of the banks and insurance companies be suspended.

“So, because of that no worker had been laid off as at now as a result of the effect of COVID-19. However, our fear is this, before now, people were laid off after performance.”

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