The Nigeria Employers’ Consultative Association (NECA) 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 signed by the association’s Director-General, Mr Olusegun Oshinowo, and made available to the News Agency of Nigeria (NAN).
“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 U.S. 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. (NAN)
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