Amid insecurity across the country, increased poverty trap, free fall of the naira, rising inflation and energy crisis, among others, experts on labour matters have advised that wages be adjusted according to the rising costs of living to help workers survive the trying times.
They also advised that the frequency of social dialogue and collective bargaining should be accelerated during inflationary period.
According to them, workers have remained resilient in the provision of essential services during economic crisis and its anticipated shocks now and in future.
To address the challenges workers face in these tough times, the immediate past National President of the Association of Senior Staff of Banks, Insurance and other Financial Institutions (ASSBIFI) Oyinkan Olasanoye, while speaking on ‘Building a Resilient Economy: The Role of the Trade Union’, admonished employers to ensure workers be equipped enough to remain relevant in their various sectors and be able to stand tall to prevent an outright collapse of the economy.
Olasanoye, who spoke at the union’s 11th Triennial National Delegates Conference in Ogere Remo, Ogun State, recently, focused on the challenges bedevilling the financial sector, especially on mergers, acquisitions, sale and bail out of institutions, raising the alarm that brain drain has just begun.
Following the recent sale of Polaris and Union Bank, she asked that an extensive and comprehensive investigation and interrogation should be conducted, while the status and validity of such institutions be made public.
Speaking on the financial sector, particularly, the insurance industry, she said it has been taken over by indigenous and foreign money bags that are not committed to the welfare of workers.
According to her, investors lack the experience and skills to sustain, develop and grow the sector in the way of evolving global trends, adding that brain drain will continue for sometime.
She urged the Central Bank of Nigeria (CBN), National Insurance Commission (NAICOM) and other supervisory bodies to conduct more in-depth analysis on the consequential suffering and exploitation occasioned by unfair labour practices being perpetuated by new investors.
Olasanoye said this had become worrisome, considering the increasing number of job losses occasioned by deliberate breaches, violation of national and international labour standards, as well as best practices by the new investors.
She said: “We cannot continue sending our best hands into the labour market just because we want to replace them with cheap labour. We request that at mergers, acquisitions or sale or bail out of institutions, extensive and comprehensive investigations and interrogation should be conducted, while the status and validity of such institutions be made public.
“Today, we all know that our best hands in the industry have relocated to Europe and America, while those left behind are either getting prepared to leave or are working under unfair labour conditions.”
Already, the N30,000 minimum wage, which is not accompanied by other support measures, has become insufficient to keep many households running. In fact, most workers have lost nearly a year’s salary due to rising inflation, as some of them told The Guardian how the economic situation is affecting them.
Chukwu
The Managing Director and Chief Executive Officer, Cowry Asset Management Limited, Johnson Chukwu, at an event recently, took on a snapshot of the Nigerian economy in the past 10 years, where he spoke on the theme, ‘Workers’ Struggle for Economic Justice in a Declining Economy – The Nigerian Perspective.’
With Nigeria having about 32 per cent of its population living in extreme poverty, Chukwu, who compared it with other countries, hinted on how countries could achieve reduced poverty and arrest economic decline.
According to him, Nigeria must improve food security through the improvement of agricultural productivity.
He said there is a need for improved transport systems, energy supply communications and infrastructure.
He called for access to quality healthcare, education, clean water and sanitation.
The economist said there was need for broad-based economic growth with job creation opportunities and targeted support to the most vulnerable in the society, through subsidised houses, skills acquisition, free basic education and conditional cash transfer, and others.
For citizens to navigate the difficult economic periods, Chukwu advised families to have multiple streams of income and there must also be secondary means of income.
He advised that families should prioritise expenditure and also control birth rate.
According to him, with the current economy, having a smaller family size is the way to go.
Lastly, he advised families to have an investment income that would grow with interests, dividends and capital gains.
An economic expert, Pan-Atlantic University, Prof. Olalekan Aworinde, said Nigeria’s inflation was increasing at an aggressive rate, a reality that spelt tougher times for working-class Nigerians, many of whom lived on a fixed income.
He said Nigeria’s worsening inflation crisis would lead to a high cost of living, low standard of living, weakened production and more job losses.
He said: “People are not able to meet up with the standard of living in the economy, which will leave them in abject poverty and that is what we are experiencing in Nigeria. You will discover that people are not able to meet up with the necessities of life.
“Those employing individuals will not be able to produce up to the maximum capacity and the implication is that they will sack some workers, which means there will be a loss of jobs. With the economy now, there will be an increase in the government expenditure and tendency of accumulating debts.”
Discussion about this post