With the effects of the COVID-19 pandemic on work with the attendant socio-economic crisis, stakeholders in the labour sector at a seminar have charted a way out for an inclusive and sustainable recovery, TOBA AGBOOLA reports.
To build a sustainable and resilient economy, there is the need to organise and regulate work in ways that guarantee rights and promote the well-being of workers and social justice.
This was the submission of experts at the 29th Annual Nationwide Industrial Relations seminar of the National Union of Chemical, Footwear, Rubber, Leather and Non-Metallic Products Employees (NUCFRLANMPE ), with the theme ‘Socio-economic crises and COVID-19 pandemic: Issues, challenges and way forward’
The experts, drawn from across every subsector of labour, said there was the need to promote sustainable harmonious industrial relations in economy.
They noted that Nigeria is passing through tough times. Relying on statistics, the stakeholders said the economic performance index is not encouraging. The worst affected is the manufacturing sector, which is expected to be the economic hub.
Statistics have shown that the nation’s Gross Domestic Product (GDP) is negative even though the population continues to grow faster than output – meaning more people are getting poorer.
Devaluation of the naira with exchange rate of N430-N440 to the dollar has become a investors as this has resulted in the scarcity of forex for manufacturers to import raw materials for production.
They said inflation,, which stood between 12 and 14 per cent, has resulted in an increase in the cost of distribution, with a spiral effect on companies’profit.
They recalled that over 21 million Nigerians are unemployed, a figure which represents the population of Burkina Faso.
Also, they said the purchasing power of the average worker has fallen, thereby adversely affecting sales of consumer products.
The challenges are worsened by the security challenges.
The President, NUCFRLANMPE, Comrade Goke Olatunji, said the inflation rate stood at double digit, which is a discouraging factor to investment, thereby constituting a clog in the wheel of manufacturing sector’s development.
He said to purchase raw materials had become a difficult task due to the restriction in accessing forex while the exchange rate is unfavourable to naira.
He said: “Insecurity is another causal factor to dis-investment in Nigeria. No economic activity can thrive in the face of crisis and insecurity. Banditry, kidnapping, Boko-Haram, #ENDSARS protest and other social unrest like herdsmen invasion, secessionist tendency, etc are hydra-head monsters mitigating against economic activities in Nigeria.
“Another major challenge is inadequate infrastructure to support manufacturing. Power supply is at its lowest ebb. At present, the total power supply in Nigeria stands at 4,000megawatts for about 200 million population while South Africa with 50 million population boasts of about 58,000 megawatts. Industrialisation cannot take place in the absence of power. Poor Road network is another major constraint in this respect. Roads from the source of raw materials and to the market areas are fast becoming dilapidated and unmotorable.
“As if the above were not enough. COVID-19 pandemic also came with its devastating effects that brought global economic activities to a stand still for a better part of 2020. The over nine months’ lockdown strategy as a means of curbing the spread of COVID-19 did not go unnoticed.The effects are still staring at us in the face till now.”
According to Olatunji, the challenges stated above are having negative effects on industrial relations as the evolving strange practices constitute huge threat for peaceful co-existence between the employers and employees.
He said the effects of the crises and the pandemic on industrial relations were numerous.
One of these effects, according to him, is the job losses arising from redundancy and factory closures.
“Another effect is that of slash in salary and other welfare packages of workers. Some management in a bid to maximise profits have devised practices that are strange to normal industrial relation best practices. For instance, workers are made to work beyond normal eight hours per day without over-time payment while in some cases, outrageous targets are set for them.
“Furthermore, to cut costs, some management are converting regular and permanent employment status to casual in the forms of outsourcing or contract staffing, thereby subjecting workers to conditions of work inferior to what they used to enjoy. This practice is anti-labour and as such, the union will not treat it with kids’ gloves. I wish to state clearly that irrespective of dichotomy: a worker is a worker whether regular, outsource or contract worker. They all have equal right to form and or join trade union.
“The International Labour Organisation (ILO) convention 87and 98 ratified by the Federal Government lend support to the above.
“As we strive to sustain the partners-in-progress mantra through inculcating good work ethics in our members towards increasing productivity, we equally request the Management to support the Union by increasing our membership,” Olatunji said.
On the way forward, the Executive Secretary, Chemical and Non- Metallic Products Employers Federation (CANMPEF), Mr. Femi Oke said the government needs to sustain the campaign to ensure the citizens adhere to the pandemic protocols of adherence to social distance, use of face masks and washing or sanitising the hands. He advise that government should procure more vaccines to ensure that more people are vaccinated.
He said the government at various levels needed to rise to the occasion by making manufacturing sector thrive in Nigeria by giving attention to factors that promote industrialisation.
Infrastructural amenities like good road and power must be provided adequately while the government must ensure adequate security of lives and property. Multiple taxation, rents and charges must be regulated to allow manufacturing companies survive and thus promoting GDP.
Speaking further on the economic front with the global recession and dwindling income from the crude oil sales, he said the government should prioritise sales of forex to the manufacturing organisations.
“They should make efforts to curtail the rising inflation in the country, reduce the port congestion issues, stop multiplicity of levies from the agencies from the local, state and Federal Government, prioritise infrastructural development and maintenance, and efforts should be made to improve the security situation in the country,” Oke said.
He said employers should cut waste and ensure optimum production of goods and services.
“Regular communication of state of affairs – challenges, steps and progress as a feedback mechanism to employees, conduct more frequent engagement surveys to understand changing areas of employee concern, devise reward policy that promote result oriented remote working; be more responsive to mental health needs for employees; deploy technology to enhance productivity.
To employees, he said: Collaborate with management to ensure the survival of the organisation.
He said they should improve skills to enhance their productivity.
Registrar, Trade Union, Mr Amos Falonipe said in the post-COVID-19 economy, employers and unions are faced with challenges.
He said the need has arisen for labour and management to move away from their adversarial roles towards cooperation, collaboration and commitment to find solutions to problems of industry.
“Labour and management should be committed to improve productivity, innovation through team work and greater flexibility in the management of human resources and achieving the goal of economic recovery,” he said.
Special Adviser on Labour matter to the Oyo State Government Bayo who represented the governor, urged the employees to be open to change in technology and new ways of work.
He said the should be more willing to communicate and promote involvement in the going concern.
He urged them to be willing to make sacrifices at this critical time.
