The Nation Newspaper

Tag: NECA

  • NECA to members: stay away from NLC, TUC strike

    NECA to members: stay away from NLC, TUC strike

    The Nigeria Employers’ Consultative Association (NECA), has expressed its support for the deregulation of the downstream oil sector by the Federal Government.

    It said deregulation was long overdue, urging that workers should not support the strike being called by the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC).

    Speaking in Lagos, its Director-General, Olusegun Oshinowo, praised the Federal Government for the courage it has demonstrated, saying past administrations  shied away from it by embracing policy options that would have ushered in a regime of significant reform in the downstream oil sector that would have impacted positively on the economy both in the short and long runs.

    “As a key actor in the economy and participant at various committees of the government in the past on the subject at stake, NECA deplored the usual resort of organised labour to threat of strike to impose its position even when such would be to the long term detriment of the economy as we have seen over the years with the subsidy regime.

    “One stakeholder’s interest should not loom larger than several other stakeholders’ and should not be pushed through an illegal strike on an issue outside the primary mandate of the custodian of its interest,” Oshinowo warned.

    He said government’s policy on oil and gas is not an employment and labour issue, and should not be a basis for a national strike, adding that organised labour should instead focus on how to improve the welfare of its members through wage discussion and related matters.

    “Employees in the private sector should ignore any directive from NLC/ TUC and should go about their normal duties,” Oshinowo said,

    “We want to remind workers to understand that it is in the interest of both the employer and employees to ensure and sustain business survival, as their wages are not dependent on government’s budgetary appropriation or monthly allocation as any involvement in such a strike, will certainly imperil their job and income security, particularly at a very difficult time like this.”Beyond applying the law of No-work No-pay, employers will take strong exception at any employee that fails to report for work as from Wednesday.”

    Oshinowo appealed to the Federal Government and heads of the various security agencies to ensure that adequate security is put in place for workers to commute between their homes and different places of work.

    “We once again appeal to the generality of Nigerians to shun any call by organised labour to shut down our economy. This is one strike we can least afford,” he said.

    Meanwhile, the  Kano Civil Society Forum yesterday supported labour on the planned strike to protest the new fuel price regime.

    Rising from its state emergency congress, the civil society group, an umbrella body of over 100 Kano based human right organisations, insisted they would not hesitate to spearhead the total shut down of activities in Kano even if the labour movement backs out of the struggle.

    Its General-Secretary, Dr. Musa Bashir who condemned the increase in the pump price of petrol from N86.50 to N145, accused the Federal Government of not considering the hard economic conditions Nigerians are currently experiencing.

     

  • Budget impasse an indictment on Nigerians, says NECA

    Budget impasse an indictment on Nigerians, says NECA

    Nigeria Employers Consultative Association (NECA) Director-General Segun Oshinowo has said the impasse over the 2016 Appropriation Bill is an indictment on Nigerians.

    Speaking when the acting Managing Director of the Nigeria Social Insurance Trust Fund (NSITF), Ismail Agaka visited him, Oshinowo said it was a shame that the budget was still not out four months into the year.

    He said: “The inability of the National Assembly and executive to produce the 2016 budget is saying something silently loud about our country. I think it is shameful that there is no budget four months into the year. What kind of image are we painting of our country outside?

    We need to urgently address our mind to a situation where our budget for the current year is unusually delayed. What stops us from getting our budget to be passed before the commencement of the budget year and then address those issues that have served as encumbrance to passing the budget annually?”

    Speaking on the Employees Compensation Scheme, Oshinowo expressed satisfaction over the decision of the NSITF to adopt social dialogue in the implementation of the Scheme, saying: “I am happy that NSITF is relying on social dialogue approach rather than on the law that establishes Employees Compensation Scheme to collect remittances.

    “There are so many things that officialdom may lack the capacity to resolve. We can always meet outside of official capacities to share information, strategize and plan on what is to be done to resolve thorny issues for the benefit of the country.

    “This strategy has gone a long way in helping the NSITF over the last few years. I want to assure NSITF that we have not changed, we remain of who are and are ready to cooperate with NSITF to ensure success of its programmes.”

    He expressed the support of the organised private sector for the institutionalisation of corporate governance by the Acting-managing director into the operations of the NSITF and called for early convocation of the interactive aspect of the Safe Workplace Intervention Programme (SWIP) to enable employers who have complaints about the implementation of the ECA to put them forward for speedy resolution.

    He said: “I think it is better to have the interactive session around July because delaying in order to have the whole SWIP will deny employers that want to ventilate their complaints.

    “Since the interactive session addresses the quality of service that is rendered, if NSITF is unable to address the contributors, that might affect inflow of contribution. Meeting the Lagos group because a lot is happening there that will be interesting to the operations of the ECA.”

    In his remarks, the Acting Managing Director of NSITF, Ismail Agaka said the fund was institutionalizing corporate governance structures to boost its operations and expressed confidence that corporate governance would, clearly spells out procedures and processes of NSITF.

    According to him, “Corporate governance is a system, methods, processes and procedures that governs organizational businesses. Where there is a breakdown in the procedure, there would be negative impact not only on the organisation, but also on other stakeholders who relate with the organisation.

    “It is no secret that not only NSITF, but also the public sector over the years has witnessed this dysfunctional corporate governance. What we are therefore doing at the NSITF is in tandem with the change mantra of the present administration.”

  • Stop slave labour, TUC tells NECA

    Stop slave labour, TUC tells NECA

    labour has accused the Nigeria Employers Consultative Association (NECA) of being ‘’anti-worker”.

    The Trade Union Congress (TUC) alleged that NECA is running a primitive policy that encourages slave labour.

    TUC President, Comrade Bobboi Kaigama  said in Abuja that NECA has the worst record of enslaving workers in the private sector.

    NECA, TUC alleged, does not  provide a conducive working environment,encourags casualisation and pays peanuts. These, he Kaigama said, had led to picketing of many NECA members by trade unions.

    Kaigama was reacting to a statement by NECA Director-General, Mr. Olusegun Oshinowo,  that the Ministry of Labour and Employment is ineffective because it allows trade unions to collect check-off dues and go on strike.

    The TUC chief stressed the need for NECA’s top hierarchy to familiarise itself with the historical development of trade union movement in Nigeria and the evolution of automatic check-off dues.

    He recalled that the 1978 re-structuring of the trade unions was to make them formidable and financially viable in line with the recommendation of Michael Abiodun Committee.

    “Prior to the restructuring, the trade unions in Nigeria depended largely on donations from foreign labour centres and political parties in the country and these posed grave national security challenges.

    “It was to check this threat and ensure the trade unions are financially independent that the then military regime of Gen. Olusegun Obasanjo accepted the recommendation of Michael Abiodun Panel that the trade unions should be granted automatic check-off dues,” he said.

    According to Kaigama, since the enactment of Decree 22 of 1978 that gave effect to the present trade unions, including NECA, there had been a great deal of stability in trade union movement with its positive impact on the economy.

    “At any rate, if Oshinowo and his fellow travellers in NECA have engaged in international labour best practices by paying living wage, providing conducive working environment, stop casualisation of workers, among others, the trade unions in the private sector will not be embarking on strikes.

    “Besides, the NECA chieftain should realise that Nigeria is governed by laws and regulations, therefore, his campaign along the line of stoppage of automatic check-off dues will be resisted by the trade unions,” he stressed.

    Kaigama said the spate of strike in the country would have been worse but for the professional manner the labour ministry has been handling issues of labour relations in the country.

    ”Moreover, the labour centre pointed out that Section 5(3) of the Labour Act stipulates clearly that: ‘upon the registration and recognition of any of the trade unions specified in part A of Schedule 3 of the Trade Unions Act, the employer shall make deduction from the wages of all workers eligible to be members of the union for the purpose of paying contributions to the trade union so recognised,” he emphasised

    Kaigama said the Nigerian labour laws recognise the trade unions, the NECA and the government both as an employer and a regulator as equal partners in the industrial relations arena as enunciated by the International Labour Organisation (ILO).

    The TUC leader, therefore, advised  NECA and its chief to refrain from campaigning against automatic check-off dues for trade unions and concentrate on curbing the uncivilised practices of its members.

  • NECA advises firms to negotiate with banks over charges

    NECA advises firms to negotiate with banks over charges

    The Nigeria Employers’ Consultative Association (NECA) has advised firms to negotiate current account maintenance fees with their  banks.

    NECA expressed concern about the likelihood of some organised businesses losing revenue to commercial banks through what it called “unnegotiated” current account maintenance fee, in contravention of the directive of the Central Bank of Nigeria (CBN) on maintenance fee.

    According to NECA, the CBN had released a Revised Guide to Bank Charges on March 27, 2013 in which it expressed resolve to gradually phase out Commission on Turnover (COT) until it achieves a zero charge this year.

    However, NECA explained that in a sudden twist to the policy thrust, the CBN granted a negotiable current account maintenance fee not exceeding N1 to the banks on January 29, this year

    Speaking in Lagos, the NECA Director-General, Mr. Olusegun Oshinowo said: “We have noted that many companies are yet to explore the window of negotiating the current account maintenance fee with their banks. The maximum rate of N1 is the ceiling and it is expected that clients would negotiate with their banks acceptable rates below the ceiling.”

    He urged companies to approach their banks and insist on negotiating the rate downward from one naira (N1), adding that, “this is in line with the guideline of the CBN.”

  • NECA disagrees with Ngige on retrenchment

    NECA disagrees with Ngige on retrenchment

    The Nigeria Employers’ Consultative Association (NECA) has disagreed with  the Minister of Labour and Employment, Dr. Chris Ngige, that private sector employers, especially the oil and gas companies, should not sack workers  and falling oil prices.

    Speaking in Lagos, NECA Director-General Mr. Olusegun Oshinowo said: “We have noted the recent meetings of the minister with employers’ representatives in some sectors of the economy and his directive not to retrench. The minister seems not to have shown an understanding of the fundamentals of managing a business in an economy bedevilled by a drastic fall in the price of crude oil, scarcity of foreign exchange and gross erosion of purchasing power.

    “The truth is that retrenchment is not a palatable option for any business. No employer will take pleasure in declaring redundant employees, which it has invested in developing over the years.”

    Speaking further, he said job security cannot be decreed by ministerial pronouncements, but can only be encouraged and promoted through strong macro- economic fundamentals and an enabling environment. He said it is part of the inalienable right of an employer to determine the optimal staff level it will need to sustain its operations.

    “Where an employer has found it necessary to carry out retrenchments, it would respect the laws of the land and 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 that will ensure business sustainability, competitiveness and job creation,” Oshinowo said.

    The NECA chief pointed out that the Ministry of Labour and Employment runs on the principle of tri-partism, which entails regular interactions with trade unions as represented by Nigeria Labour Congress (NLC), Trade Union Congress (TUC), the employer as represented by NECA, and government as represented by the Federal Ministry of Labour, and respect for their rights and interests on issues that relate to labour and industrial relations.

    Mr. Oshinowo particularly deplored a situation where the Minister will invite a key constituent for an important meeting and keep the party waiting endlessly.

    He said: “This has not been the practice of the Federal Ministry of Labour. We appealed to the minister to show respect to the social partners by being timely and punctual at meetings which he has called.”

    In a related development, the minister met with the Nigeria Union of Petroleum, Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) in Abuja,  to get an update on the challenges in the oil and gas sector.

    At the meeting, Ngige said: “The oil sector is the backbone of the economy and as long as we are in charge of labour issues in this country, we will do all we can to avoid crises in the sector. We want to assure you that workers in the oil sector will be protected and nobody or company can bribe when it concerns workers.”

    PENGASSAN President, Mr. Johnson Olabode, called for urgent passage of the Petroleum Industry Bill (PIB) in the National Assembly, noting that it would address most of the challenges in the oil and gas sector. He noted that there were a lot of issues affecting workers that the ministry needed to address urgently.

    NUPENG President, Mr. Achese Igwe, said some of the challenges faced by members of the union included job outsourcing to expatriates, downsizing, restructuring, re-engineering, among others.

    He said workers in the sector had been enslaved for a long time by the foreign employers. “I am sure that they have not been able to tell you that there are permanent jobs that are outsourced as contract staff job and those workers are operators and engineers, among other professions,” he said.

  • NECA urges Nigerians to brace for more hardship

    NECA urges Nigerians to brace for more hardship

    The Director-General (DG), Nigeria Employers’ Consultative Association (NECA), Mr. Olusegun Oshinowo, has urged Nigerians to brace for more economic challenges, adding that the challenges should be seen as a  sacrifice to move the nation forward.

    Oshinowo, who spoke in Lagos, said the current situation required sacrifices. He said the falling oil prices was not a good omen for the country, noting that it will lead to inflation.

    He, however, said government ought to explain the implications of the fall in oil prices to Nigerians and how it hopes to mitigate its negative impacts. The country, he warned, is prone to serious economic crisis if there are no concrete plans to deal with the situation.

    He said the Federal Government should not return to the regime of paying fuel subsidies to petroleum marketers, saying subsidy is no longer sustainable.

    Oshinowo also urged the government to embrace the privatisation policy to strengthen the the economy. According to him, the government should go ahead with the sale of ailing refineries, having recorded successes with the power and telecoms sectors privatisation.

    The government, he advised, should refrain from making policies that will further constrain the ease of doing business in the country, emphasising long-term and well thought out policies that will give hope to the citizens.

    He specifically advocated policies that would ensure that the private sector has unhindered access to the foreign exchange market.

    He said: “We are looking for policy options that will ensure unfettered access to foreign exchange by the private sector, not policies that will further constrain the narrow fiscal space.

    “After assessing government’s current policy options, one can conclude that we are not on the right track. Given the situation of things, we can’t expect tangible and meaningful outcomes now, but we should be able to have hope in terms of policy options such that if there is no respite in the short-term, we can long for respite in the medium-term and long-term.”

    He added that concrete plans to show economic diversification from the over-dependence on crude oil revenue are essential.

    “We want policy options that will show clearly that in the next two years, we will start seeing improvement in our infrastructure, in our road and rail networks.

    “We are looking for policy options that will be consistent and ensure that government means business in terms of diversification of this economy away from outright dependence on revenue from the sale of crude oil,” he said.

  • NECA seeks reversal of CBN’s directives on N50 stamp duty

    NECA seeks reversal of CBN’s directives on N50 stamp duty

    The Nigeria Employers’ Consultative Association (NECA) has expressed ‘grave concern’ over the directive of the Central Bank of Nigeria (CBN) to Deposit Money Banks (DMBs) to charge N50 per eligible transaction in accordance with the provisions of the Stamp Duties Act and Federal Government Financial Regulations (2009).

    NECA recalled that organised businesses had opposed attempts by the Nigeria Postal Service (NIPOST) to compel companies to affix a N50 postal stamp on receipts, invoices and documents of transactions in excess of N1,000.

    The Director-General of NECA, Olusegun Oshinowo, in a press statement, said there was a pending case at the Court of Appeal on the matter between Kasmal International Services Limited and Access Bank & 23 others.

    He said: “NIPOST is aware of this development and all parties, as law abiding citizens, are expected to await the pronouncement of the court.

    “The power to administer the Stamp Duties Act is within the purview of the Commissioner for Stamps as provided for in Section six of the Act, and not NIPOST or CBN, and that the Act did not make the affixing of postage stamp mandatory, neither did it specify the value to be a N50 postage stamp”.

    The NECA chief urged the Buhari administration not to introduce policies that will increase the burden on the citizens and firms within the economy. He advised Nigeria to take a cue from other climes where, according to him, stamp duty’s applicability is limited to purchases involving large sums like a house purchase or importation of goods, as against the position of applying N50 postage stamp to “all receipts given by any bank (or financial institution) in acknowledgement of services rendered in respect of electronic transfer and teller deposits”.

    On the stand of Organised Private Sector (OPS), Oshinowo said: “President Buhari will do well by ignoring the call by the CBN to boost the revenue base of the Federal Government through this means, which will increase the burden on citizens and kill struggling businesses.”

  • NECA praises Fed Govt on fuel price modulation

    NECA praises Fed Govt on fuel price modulation

    Employers under the aegis of Nigeria Employers’ Consultative Association (NECA) has praised the Federal Government for the new fuel price modulation.

    Speaking with The Nation, the Director-General of NECA, Mr Olusegun Oshinowo, said hopefully, the issue of fuel subsidy and its financing would not surface again in the government’s budget. He said it is pertinent for government to focus on the policy framework as well as incentives that will ensure that Nigeria is self-sufficient in the refining capacity to meet her energy needs.

    Oshinowo, however, noted that the organised private sector is expecting a decisive, unambiguous and explicit policy statement that fuel subsidy regime has ended. He said government should also ensure the privatisation of the four refineries and jointly agree on a timeline and modalities with investors on the utilisation of the licences already issued for the setting-up of private refineries.

    Oshinowo stated that there should be redefinition of the role of the Petroleum Products Pricing Regulatory Agency (PPPRA) as an ombudsman. This, he said, would ensure compliance with products standards and fair competition that would guarantee reasonability of products pricing.

    He urged the government not to delay any in pursuing the points listed by NECA.

  • NECA, firm strike deal on reality TV show

    NECA, firm strike deal on reality TV show

    The Nigeria Employers Consultative Association (NECA) has signed a Memorandum of Understanding (MoU) with Kofsol Group, a branding, marketing and design agency, to collaborate on “Angels Cove,” a business reality television show scheduled to make its debut in Nigeria by the first quarter of 2016.

    Addressing newsmen last weekend, at NECA House, the Managing Director of Kofsol Group, Mrs Kofo Olaosebikan, said Angels Cove was an informed by the company’s passionate commitment to adding value to stakeholders in accordance with its philosophy.

    “Angels Cove has been designed as a platform for bringing together established business achievers as Angels and emerging entrepreneurs, who have financial as well as other needs in their businesses,” said Mrs Olaosebikan.

    The Director, Social, Economic and Labour Relations of NECA, Mr. Timothy Olawale, described the collaboration as an expression of NECA’s commitment to its social responsibility by creating stakeholder value through a platform for private sector employers to interact with the government, labour, communities and other relevant institutions in and outside Nigeria.

    NECA has also expressed its dismay over recent onslaught by some regulatory agencies of government against organised businesses, saying it is not only capable of crippling existing investments, but could also serve as disincentive to government’s drive for foreign investments.

    In a release in Lagos, the Director-General of NECA, Mr. Olusegun Oshinowo noted that some of the recent disturbing trends include the slamming of an ‘Administrative Charge’ of N1 billion on Guinness Nigeria Plc by the National Agency for Food, Drug Administration and Control (NAFDAC) for alleged violation of NAFDAC rules, regulations and enactments over a long period of time, among others.

    “While NECA appreciates the essence of the roles of regulators and would also not support unfair practices by business operators, we are, however averse to high-handedness by way of sanctions that could snuff life out of businesses.

  • NECA urges consistency in auto policy

    NECA urges consistency in auto policy

    The Nigeria Employers’ Consultative Association (NECA) has expressed concern over calls by some individuals on President Muhammadu Buhari to jettison the National Automotive Policy.

    Its Director-General, Mr. Olusegun Oshinowo, said one of the greatest challenges the country has faced, which had stifled its sustainable development is policy inconsistency and lack of continuity.

    He said the time had come for the the government to put economic interest ahead of political considerations.

    “Government should imbibe the culture of adopting well-intentioned policies of past governments. The Automotive Policy is one of such that needs to be sustained,” he said.

    Oshinowo urged Buhari not to pander to the whims and caprices of those calling for policy reversals, adding that it would not be in the interest of the economy.

    He said: “Government should sustain and deepen the policy through its faithful implementation, without any waiver or threat of possible reversal, except for the recognition of certain categories of non-luxury heavy duty vehicles that cannot and will not be assembled in Nigeria.

    “President Buhari will do well by ignoring the clamour to lower import tariff on automobile products, as this will negatively impact on the policy. It will end up promoting importation, which is not in tandem with the contents and spirit of the automotive policy, to promote assembling in the country.”

    Oshinowo reiterated the need for the National Automotive Industry Development Plan to be backed by an Act of the National Assembly to ensure commitment and prevent reversal, thereby promoting backward integration and diversification.

    The National Automotive Industry Development Plan (NAIDP) was hailed as a welcome development when it was initiated. It was designed to stimulate growth in the automotive industry and the economy. It was also designed to be of immense strategic importance to the economy, being a critical employment multiplier.