The Director General of the Nigerian Employers’ Consultative Association, Wale Oyerinde, has said that contrary to the parameters obtainable in the public sector, salary reviews in the private sector follow institutional structures based on the results of performance appraisal.
Oyerinde was reacting to questions that bordered on whether the private sector would emulate the federal government in reviewing workers’ compensation within its system.
talking exclusively with the punchOyerinde pointed out that, in view of the recent economic challenges that have significantly reduced the purchasing power of workers, the Federal Government’s plan to adjust the salary of civil servants was a positive development.
According to him, it should be noted that the rising inflation rate, rising cost of energy, depreciating value of the naira and many other factors have conspired to worsen the situation of the average worker.
He said: “While salary increases or adjustments are not made annually in the public sector, the private sector has institutional structures that allow for annual salary reviews through performance appraisal results. In addition, many private sector organizations participate in collective bargaining with the Union. A process that enables social dialogue and the fair distribution of wealth.
“We urge that while it is desirable to increase or adjust salary, it should be done based on acceptable parameters, such as productivity and actual contribution to the growth of the business or organization.”
The Federal Government had said that it would soon announce salary increases for civil servants and civil servants due to the constant increase in consumer goods.
Labor and Employment Minister Chris Ngige reportedly said this after a closed-door meeting with the president, Major General Muhammadu Buhari (ret.). He added that the presidential salary committee was reviewing salaries with a plan to announce his decision in early 2023.
However, in a rebuttal statement, Ngige denied saying that the Federal Government was reviewing the salaries of public and civil servants.
Ngige said that the increase he alluded to with the House of Representatives correspondents in Abuja concerned the remuneration and emoluments of the affected workers, especially civil servants.
The minister’s denial was contained in a statement signed by the Ministry’s Head of Public Relations, Mr. Olajide Oshundun.
The statement read in part: “The attention of the Minister of Labor and Employment, Senator Chris Ngige, has been drawn to the news that the FG is reviewing the salaries of civil servants and civil servants, which was a consequence of their interaction with the correspondents of the House of Representatives after his recent hearing with Mr. President.
The minister wishes to clarify that the increase he spoke of was about the salaries and emoluments of the affected workers, especially public servants.