The House of Representatives on Tuesday called on Federal Government to initiate a policy action aimed at reducing the socio-economic impact of the pandemic through the establishment of a job retention scheme for COVID-19 pandemic where governments commit to saving jobs by ensuring that workers are not laid off, as obtainable in other climes.
Tribune Online reports that the resolution was passed sequel to the adoption of a motion titled: “Urgent need to protect Nigerian workers from compulsory leave and massive job losses,” sponsored by Hon. Henry Nwawuba.
In his lead debate, Hon. Nwawuba observed that the COVID-19 pandemic which is significantly challenging the stability of corporate organisations and governments and ravaging the world and has no doubt distorted global socio-economic ecosystems.
“The House notes that protection and support for the organised and informal private-sector workers under this unfortunate lockdown is very necessary for both continued economic and social development of Nigeria.
“The House is aware that a large number of Nigerian workers are being employed by both the organised private sector and big corporate organisations as well as the informal sector and medium scale industries with little or no job security and those workers have no other benefits like the regular civil servants, as provided in the Labour Act.
“The House is also aware that most of the workers have been working from home since the lockdown without asking for extra pay or gratuity, however some banks and institutions have started asking their staff to proceed on compulsory leave.”
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The lawmaker expressed concern that there are indications that most employers of labour, after the coronavirus crisis, may not be willing or able when it comes to taking the decision not to terminate a large number of their employees judging by perception from economic and corporate data, largely due to the unforeseen and unexpected COVID-19 outbreak.
He further expressed concern that “by the unusual circumstance of the negative threat of mass sack of workers which definitely will be devastating to citizens; and this will be consequent on several weeks of economic and business paralysis occasioned by the lockdown which has stretched the Organizations and corporate businesses.”
Hon. Nwawuba noted that the organisations are beginning to buckle under the weight of the wage burden they may be carrying without corresponding productivity and necessary support from the government.
According to him, if the needful is not done as quickly as possible to bolster key sectors through Federal Government economic packages in terms of income support, tax credits or tax deferrals, short-term work schemes, wage subsidies and tax moratoriums on loan payments for those organisations, unimaginable mass job losses loom in the country, and this could lead to a great distortion in the economic growth graph of the nation.
He also expressed concern that policy actions are yet to be taken to reduce the socio-economic impact of the pandemic through the establishment of a Job Retention Scheme for COVID-19 pandemic where governments commit to saving jobs by ensuring that workers are not laid off, as obtainable in other climes.
To this end, the House mandated its Committee on Labour, Employment and Productivity and Ad-hoc Committee on COVID-19 to investigate, monitor and liaise with corporate institutions with a view to possible interventions to reduce the wage burden on such organisations.