NECA backs NASS on removal of minimum wage law

The Nigeria Employers'
Consultative Association on
Monday, said it
supported the National Assembly on the
removal of the national Minimum
Wage Law from the Exclusive List
to Concurrent List.
This is contained in a statement
by the association's Director-
General, Mr Olusegun Oshinowo,
and made available to the News
Agency of Nigeria.
He said, "NECA has followed the
National Assembly's discussion
on the amendment of the
Constitution and commends its
decision to remove the Minimum
Wage from the Exclusive List to
the Concurrent List.
"We are also aware of the
opposition of the labour
movements to take action along
this line which we consider
needless and out of place.
"As the voice of the private
sector employers, we must
consistently remind ourselves
that Nigeria is operating a
federal constitution which
ordinarily should ascribe
significant power and
responsibilities to the federating
states.
"This includes the right and
power of the component units to
define and determine the
minimum wage in their
precincts," the statement said..
"Therefore, we do not see
anything wrong in the intention
of the lawmakers to move
minimum wage to the
concurrent list.
"The ability to pay by employers,
whether as government or as a
private sector enterprise, is a key
factor in employment
relationship and sustenance of
industrial harmony.
"We, therefore, wholly subscribe
to the principle of devolution and
decentralisation of the wage
component of labour matters.
"We commend this bold initiative
by the National Assembly as this
is the right thing to do."
It added that states could still
exercise its right to legislate on
minimum wage subject to the
extant law on National Minimum
Wage.
According to the statement, the
US is a very good example where
various states legislate on their
own minimum wages in
deference to the Federal-
determined National Minimum
Wage.
It, however, urged the National
Assembly to explain how state
governments could be
checkmated and be made to act
within the national minimum
wage law.
NAN reports that Senate's
removal of the minimum wage
law from exclusive list to
concurrent list on Oct. 21 had
generated negative reactions
from labour unions.

Source: Punchng.com