Private sector salary reviews performance-based - NECA

The Director-General of the Nigeria Employers’ Consultative Association, Wale Oyerinde has said that contrary to the parameters obtainable in the public sector, salary reviews in the private sector follows institutional structures based on performance appraisal outcomes.

Oyerinde was reacting to questions bordering on whether the private sector would emulate the Federal Government to review the remuneration of workers within its system.

Speaking exclusively with The PUNCH, Oyerinde noted that in view of recent economic challenges that have significantly reduced the purchasing power of workers, the plan by the Federal Government to adjust civil servants’ pay was a welcome development.

According to him, it should be noted that the spike in the inflation rate, increasing cost of energy, depreciating naira value and many other factors have conspired to render an average worker worse off.

He said, “While salary increases or adjustments are not done annually in the public sector, the private sector has institutional structures that enable annual salary reviews via performance appraisal outcomes. Also, many private sector organisations engage in collective bargaining with the Union. A process that enables social dialogue and 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 business or organisation growth.”

The Federal Government had said it would soon announce salary increments for civil servants and public officials due to the steady increase in consumer goods.

The Minister of Labour and Employment, Chris Ngige, reportedly said this after a closed-door meeting with the President, Major General Muhammadu Buhari (retd.). He added that presidential committee on salaries was currently reviewing salaries with a plan to announce its 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 the increase he alluded to with State House correspondents in Abuja was on the remunerations and emoluments of the affected workers, especially the civil servants.

The minister’s denial was contained in a statement signed by Head, Public Relations at the Ministry, Mr. Olajide Oshundun.

The statement read partly, “The attention of the Minister of Labour and Employment, Senator Chris Ngige, has been drawn to the news item that the FG is reviewing salaries of public and civil servants which was a fallout of his interaction with State House Correspondents after his recent audience with Mr. President.

The minister wishes to clarify that the increase he talked about was on the remunerations and emoluments of the affected workers, especially the civil servants.”