NECA Insists Banks Will Retrench Where Necessary

NECA flays labour minister over retrenchment in banking sector
Nigeria Employers’ Consultative Association (NECA) has expressed dismay with the position of Chris Ngige, minister of labour and employment, directing banks and financial institutions to suspend further retrenchment of their workers.
NECA at the weekend also directed banks, financial institutions and other employers of labour to ignore the minister’s misplaced directive.
Olusegun Oshinowo, director-general of NECA, speaking against the minister’s directive, said the labour law of the land did not empower the minister to issue such a directive, which he considered “uninformed and populist.”
Oshinowo said the labour laws had envisaged redundancy situation and, therefore, made provisions in Section 20 of the Labour Act to guide the actions of the parties in the event of retrenchment or redundancy.
Oshinowo insisted that “the minister seems not to have shown understanding of the fundamentals of industrial relations and labour laws in Nigeria and thus, has acted ultra vires.”
NECA affirmed that no employer would take pleasure in declaring redundant employees it had invested significant resources in developing over the years. Usually, redundancy exercise is foisted on employers on account of an unhealthy economy and the dynamics of the business, which often demands staff rationalisation.
NECA also reminded the minister that it was part of the inalienable right of an employer to determine the optimal staff level it required to sustain its operations. He noted that employers had rights, which include “the right to hire and fire within the rules governing such employment contract.”
Employers’ rights are “employers’ prerogatives,” which are not subject to ministerial directives,” he said.
He assured the minister that: “Where an employer has found it necessary to carry out retrenchment, it would respect the laws of the land and the laid down procedures for redundancy.
“Employers’ expectation from the minister of labour and employment is that he will work hand in hand with other government ministries in the establishment of the desired enabling environment to ensure business sustainability, competitiveness and job creation.”
The NECA boss advised Ngige to understand that “the ministry of labour and employment runs on the principle of tripartism, which entails regular interactions with trade unions, employers and government.
“The ministry of labour and employment is expected to respect the rights and interests of employers and workers alike on issues that relate to labour and industrial relations.”
Oshinowo particularly deplored the way and manner the minister had been running the affairs of the ministry without respect to the prerogative and rights of enterprise as employers of labour. He recalled an earlier directive of similar nature to the oil and gas sector, with regards to the rights of employers in Nigeria.
According to him, “for a long time, employers have been advocating that the ministry should be headed by a technocrat in order to avoid the kind of disposition being displayed by the minister, which tends towards “populism” and “partisanship” rather than professionalism.”

Source:- businessdayonline