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“Economic Downturn: Labour Raises Alarm Over Job Security as Manufacturing Sector Struggles”

Ademola Damilola by Ademola Damilola
August 27, 2024
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“Economic Downturn: Labour Raises Alarm Over Job Security as Manufacturing Sector Struggles”
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At the 32nd annual Industrial Relations Seminar of the National Union of Chemical, Footwear, Rubber, Leather, and Non-Metallic Products Employees (NUCFRLANMPE) held in Ilorin, Kwara State, labor leaders voiced deep concerns over the job security of their members amid Nigeria’s ongoing economic challenges. The union emphasized the urgent need for government intervention to address the dire situation in the manufacturing sector.

Comrade Goke Olatunji, President of NUCFRLANMPE, highlighted the critical role manufacturing plays in driving Nigeria’s economic growth and ensuring a sustainable future. He lamented the adverse impact of the current socio-economic conditions on businesses, pointing out that manufacturers are struggling with high production costs due to soaring interest rates, expensive electricity, and costly petroleum products needed for alternative power generation.

“The economic environment is hostile to everyone, including businesses. Manufacturers are daily overwhelmed by the high cost of production, poor infrastructure, and excessive taxation. This has led to a precarious situation for workers, who are facing job losses, redundancy, and poor working conditions,” Olatunji stated.

He also noted that the economic downturn has severely affected workers, with many losing their jobs due to factory closures and relocations. The inflation and exchange rates have further eroded the real value of the naira, making the recently signed minimum wage of N70,000 less impactful compared to when it was N18,000.

Olatunji expressed gratitude to employers in the sector for agreeing to a minimum wage of N87,000 in 2023, but he stressed the need to shift the focus from minimum wage to a living wage that reflects the real cost of living.

Speaking on the theme, “Building Human Resources Capacity for Effective Industrial Relations in an Era of Economic Crisis,” Olatunji said the seminar aimed to educate union members on the workings of the national economy, thereby preparing them for meaningful discussions with employers.

The keynote speaker, Mr. Femi Oke, Executive Secretary of the Chemical and Non-Metallic Products Employers’ Federation (CAMPEF), emphasized the importance of human resources in navigating economic challenges. Despite advances in technology, he noted that human resources remain the most adaptive and strategic asset of any organization, capable of making discretionary decisions that provide a competitive edge.

The seminar underscored the importance of understanding the economic realities facing the manufacturing sector to foster industrial peace and harmony between employers and employees.

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