The ongoing conflict over Nigeria’s new minimum wage and electricity tariff hike is reaching a critical point as the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) near the end of their five-day strike relaxation period. The Nigeria Employers Consultative Association (NECA) has warned its workforce of potential enforcement of the ‘No Work No Pay’ rule if strike action resumes.
NECA Director General, Adewale Smatt-Oyerinde, speaking at the International Labour Conference in Geneva, Switzerland, emphasized that employers are legally supported by the Trade Dispute Act, Section 43, which permits withholding pay for days not worked during strikes. He questioned the practicality of paying employees during a strike when no production occurs, highlighting the financial strain on employers.
Amid heightened tensions, labor unions have issued a five-day ultimatum to the Federal Government to meet their demands for an acceptable new wage and retract the new electricity tariffs. However, the government’s offer of a ₦62,000 minimum wage has not satisfied union leaders, prompting threats of renewed strikes. Smatt-Oyerinde stressed the importance of adhering to legal frameworks, noting that strike rights are currently under review by the International Court of Justice (ICJ) and that all parties must work within the legal framework to avoid anarchy.
Smatt-Oyerinde also highlighted that NECA’s alignment with the Federal Government’s ₦62,000 minimum wage offer was a difficult decision, considering the challenges faced by businesses, especially SMEs. He noted that anything above ₦62,000 could harm the informal economy. The final decision rests with the President, who will make recommendations to the National Assembly. The NECA director general emphasized the need for balanced economic decisions to ensure sustainable job creation and support for the developing economy.