Criminalising Casualisation, Job Outsourcing

The fact about the alarming data released by the organised private sector unions indicating that over 70 per cent of Nigeria’s workforce in the private sector is casualised is no longer news. Casualisation is the practice of employing temporary staff for short periods rather than make them permanent staff. Unfortunately, this phenomenon, aimed at saving costs, is gradually creeping into the public sector.
Under the arrangement, the worker is not entitled to any perks such as transportation, leave, medical allowances or special benefits package. Besides, the worker’s take-home pay is so miserable that it can hardly take him/her home. To make matters worse, the typical casual worker gets a miserable N500 per day.
But then, casualisation is thriving because of the high rate of unemployment, even though it contravenes Section 7 (1) of the Labour Act, Cap 198, Laws of the Federal Republic of Nigeria, 1990. The Act provides that, “Not later than three months after the beginning of a worker\’s period of employment with an employer, the employer shall give to the worker a written statement specifying the terms and conditions of employment, which include the nature of the employment and if the contract is for a fixed term, the date when the contract expires.”
As if to boost the Labour Act, Section 17(a) of the 1999 Constitution condemns casualisation because it is at variance with its provisions, which guarantees equal pay for equal work. Furthermore, Convention 153 of the International Labour Organisation (ILO), which Nigeria is a signatory, does not support any form of discrimination in the workplace.
In fact, the section holds that casualisation is out of tune with 21st Century best practices. Hence, the discrimination in pay between permanent and casual employees should not exist. Besides, the section frowns against discrimination on account of sex or any grounds whatsoever.
But casualisation is growing at a worrisome rate as available statistics show that preponderance of casual workers is in the telecommunications, oil and gas, banking, insurance, mining and steel sectors. To put it in proper perspective, available statistics shows that about 70 per cent of workers in most of these companies are on casual fringes. Sadly, outsourcing is also used interchangeably with casualisation in all these sectors as a ploy to avoid regularising their employment.
More disturbing is that expatriate companies, mainly those owned by Chinese and Indians, are the worst culprits. Nigeria is a haven for their illicit and inhuman ventures.   But can they succeed without connivance with unpatriotic, highly-placed Nigerians? The answer is no.
There is no gain emphasising the fact that Nigerian workers, through the Nigeria Labour Congress (NLC), have been battling unrelentingly to eradicate casualisation, but the desired result is yet to be achieved. Therefore, a legislation to end casualisation becomes necessary and urgent.
It is against this backdrop that The Tide welcomes the recent move by the House of Representatives to criminalise employing workers on casual contracts beyond six months and the prohibition of outsourcing of jobs to third parties, while any casual workers sacked by an employer after six months will be entitled to the benefits of full-time workers for six months, being proposed in the Labour Act (Amendment) Bill 2019 awaiting second reading by the House.
According to the proposals, the amendment to Section 8 of the Principal Act would now read, “(1) Every worker in Nigeria engaged or employed by and has remained in such employment for a period of not less than six months shall have his employment or engagement regularised by the employer as a full and permanent worker of such employer with all its accompanying entitlements.”
The new Section 9 of the principal Act will now read, “(1) Notwithstanding Section 25 of this Act, an employer, who has obtained the Minister’s licence, employment outsourcing by such employers within its core aims and objectives of operation is hereby prohibited. It is an offence for an employer to pay another person, whether corporate or natural person, for services rendered to it by its worker.”
Recently, the Campaign for Democratic and Workers’ Rights in Nigeria, a non-governmental organisation, heightened fears that the situation would worsen as employers prefer to outsource staff.
We, therefore, see the proposed law which states that failure by any employer to comply with Subsections 1 and 2 will constitute an offence, which will attract a two-year sentence, N2 million fine or both as concrete efforts towards protecting workers in the country.
Although the rapid increase in both the casualisation and outsourcing trends is attributed to the global economic and employment crises that have continued to threaten the future of developing economies such as Nigeria, its continuing practice remains a serious challenge to the nation.
We are not oblivious of the characteristics of casualisation in concrete terms; the act forbids the employment of workers beyond three months without employment letter detailing the conditions of service, among other provisions of the act. But in all sectors of the Nigerian economy, this law is only obeyed in the breach by employers with impunity and without qualms. In both public and private sectors, what is known as precarious or casual worker is the trend.
While we also appreciate move by the Senate to stem the tide, we believe that the situation requires a more desperate intervention. Casualisation is a modern-day slavery. To associate our economy with it will continue to diminish high profile rating that Nigeria expects among the comity of nations. Therefore, nothing less than speedy passage of the amendment bill is expected.