NECA HARPS ON TRIPARTITE WAGE NEGOTIATION, DECRIES UNREALISTIC HIKES

The Nigeria Employers’ Consultative Association (NECA) has emphasised the need for tripartite negotiations involving government, employers and organised labour in determining workers’ wages, warning against unrealistic salary increases that could undermine business sustainability.

NECA said wage decisions must reflect prevailing economic conditions, productivity levels and the financial capacity of employers, rather than being driven by demands that businesses may struggle to meet.

The employers’ body maintained that constructive dialogue among the three parties remained the most effective approach to resolving wage disputes and achieving a balance between workers’ welfare and the survival of businesses.

It warned that excessive wage demands, particularly when introduced without adequate consultation, could increase operating costs, discourage investment and force some companies to reduce their workforce or shut down operations.

The association also acknowledged the economic difficulties facing Nigerian workers, including rising food prices, transportation costs, housing expenses and other essential needs. However, it argued that sustainable wage improvements must be supported by stronger productivity and a more stable business environment.

NECA called on government to create policies that reduce the cost of doing business, improve infrastructure, address electricity challenges and support local production.

It further urged organised labour to engage employers through established negotiation channels to ensure that wage adjustments are realistic and capable of being sustained.

The debate comes amid continuing discussions over workers’ earnings and the impact of inflation on household purchasing power.

NECA maintained that tripartite wage negotiations should remain central to Nigeria’s labour relations framework, stressing that lasting solutions must protect employees while ensuring that businesses remain viable enough to create jobs and contribute to economic growth.