By Muhammad Mamman
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged the Federal Government and organised labour to prioritise Collective Bargaining Agreements (CBAs) in wage reviews, warning that reliance on the national minimum wage alone is insufficient to cushion workers against rising inflation.
The association said the persistent increase in the cost of living has eroded the real value of wages, leaving many workers struggling to meet basic needs despite periodic adjustments to the minimum wage. It argued that CBAs provide a more flexible and realistic framework for wage determination, as they take into account sector-specific conditions, productivity and prevailing economic realities.
PENGASSAN noted that inflationary pressures, driven by fuel price adjustments, exchange rate volatility and higher food and transportation costs, have outpaced wage growth across most sectors of the economy. According to the union, a one-size-fits-all minimum wage framework cannot adequately address these challenges.
The association called on the government to create an enabling environment that strengthens collective bargaining, while urging employers and labour unions to engage constructively in negotiations that reflect current economic conditions. It stressed that well-structured CBAs would help protect workers’ purchasing power and promote industrial harmony.
PENGASSAN also advised organised labour to complement minimum wage advocacy with sustained engagement on CBAs, saying this approach would ensure more regular and responsive wage reviews.
The union maintained that without robust collective bargaining mechanisms, wage adjustments would continue to lag behind inflation, deepening financial strain on workers and undermining morale across the workforce.
