The Nigeria Employers' Consultative Association (NECA) on Friday advised the Minister of Labour ànd Productivity to show understanding with private employers intending to sack workers because of the dwindling economic situation.
The Director- General of NECA, Mr Segun Oshinowo, said while answering questions from journalists in Lagos that it was not enough to direct the Oil and Gas companies not to sack their workers.
According to him, the minister should also consider the dwindling prices of oil in the international market and the massive loss of profitability by the companies.
``I disagree with the position of the Minister, Dr Chris Ngige, on his directive to Private Sector employers, especially the Oil and Gas companies, not to sack their workers.
``Even in the face of dwindling oil prices in the international market and massive loss of profitability by the companies,’’ Oshinowo said.
The NECA DG said that the minister should have shown some understanding during a meeting with the employers’ representatives on the challenges faced in managing their businesses, given the scarcity of foreign exchange and reduced purchasing power in the country.
``The reality is that retrenchment is not a palatable option for any business. No employer will take pleasure in declaring redundant employees that it has invested in developing over the years,’’ he said.
The NECA boss said that job security cannot be decreed by ministerial pronouncements, but could only be encouraged and promoted through strong macro-economic fundamentals and an enabling environment.
He said that it was the voice of the right of an employer to determine the optimal staff level he would need to sustain his company’s operations.
Oshinowo said that where an employer has found it necessary to carry out some retrenchment, it would respect the laws of the land and laid down procedures for redundancy.
``Employers' expectation from the Minister of Labour and Productivity is that he will work hand-in-hand with other Government Ministries in the establishment of the desired enabling environment that will ensure business sustainability, competitiveness and job creation,’’ he said.
The NECA director general, therefore, urged the minister to carry his constituents along in the management of workplace issues.
By NAN
By NAN