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Tag: minimum wage

  • Negotiate minimum wage that won’t lead to mass sacks, FG tells Labour

    Negotiate minimum wage that won’t lead to mass sacks, FG tells Labour

    The Federal Government has urged the labour unions to negotiate a new minimum wage that would not lead to mass retrenchment of workers, or jeopardise the welfare of about 200 million Nigerians

    The Minister of Information and National Orientation, Mohammed Idris, while speaking at the opening of the 2024 Synod of the Charismatic Bishops Conference of Nigeria in Abuja on Wednesday, noted that the ₦250,000 minimum wage demanded by labour, could undermine the economy.

    However, the labour unions refuted President Bola Tinubu’s claims during his Democracy Day broadcast on Wednesday that an agreement had been reached on the new national minimum wage.

    Acting President of the Nigeria Labour Congress, Prince Adewale Adeyanju,  while attending an International Labour Organisation conference in Geneva, Switzerland, said as of the time negotiations ended on June 7,  no agreement had been reached by the Tripartite Committee on the National Minimum Wage.

    “The NLC would have expected that the advisers of the President would have told him that we neither reached any agreement with the federal government and the employers on the base figure for a National Minimum Wage nor on its other components,” the NLC said in a statement by Adewale Adeyanju standing in for Joe Ajaero who is in Geneva, Switzerland, for the ILO Conference.

    “Our demand still remains ₦250,000 (two hundred and fifty thousand Naira) only and we have not been given any compelling reasons to change this position which we consider a great concession by Nigerian workers during the tripartite negotiation process.”

    The NLC said it had not reached any agreement with the Federal Government on a new minimum wage.

    Read Also: FG urges Labour to settle for realistic minimum wage

    According to the union, it had not received a copy of the document on a new minimum wage submitted to Tinubu.

    “We are therefore surprised at the submission of Mr. President over a supposed agreement. We believe that he may have been misled into believing that there was an agreement with the NLC and TUC,” he said.

    “There was none and it is important that we let the President, Nigerians, and other national stakeholders understand this immediately to avoid a mix-up in the ongoing conversation around the national minimum wage. We have also not seen a copy of the document submitted to him and will not accept any doctored document.”

    The NLC maintained its stance on not accepting “any national minimum wage figure that approximates to a starvation wage”.

    “We cannot be working and yet remain in abject poverty. We seek justice, equity, and fairness for all Nigerians and this we hope would also drive the actions of Mr. President who promised a Living Wage to Nigerian workers. This is an opportunity to show that he listens to Nigerians as he promised!” NLC’s statement read.

    But speaking at the opening of the 2024 Synod of the Charismatic Bishops Conference of Nigeria in Abuja on Wednesday, the information Minister emphasised the imperative of a realistic wage system that safeguards against mass retrenchment while addressing workers’ needs.

    Idris restated the government’s dedication to reassessing the minimum wage but cautioned against demands that could disrupt the economy.

    He stated: “As I have repeatedly said, the Federal Government is not opposed to the increase of wages for Nigerian workers but we keep on advocating for a realistic and sustainable wage system for the workers – a wage system that will not undermine the economy, lead to mass retrenchment of workers and jeopardise the welfare of about 200 million Nigerians.

    “We want the labour unions to understand that the relief that Nigerians are expecting, and that they fully deserve, will not come only in the form of an increase in wages.”

    “It will also come as efforts to reduce the cost of living and to ensure that more money stays in the pockets of Nigerians. And this is where programs like the Presidential CNG initiative come in. That program alone, by replacing or complementing petrol usage with CNG, will cut transportation costs by as much as 50 per cent.”

  • We’ll approve affordable minimum wage, says President

    We’ll approve affordable minimum wage, says President

    President Bola Ahmed Tinubu hinted last night that only a sustainable minimum wage will be recommended for legislative action by the National Assembly.

    Following the conclusion of negotiations, the Tripartite Committee recommended N62,000 minimum wage as agreed upon by the federal/state governments and Organised Private Sector (OPS).

    But Labour insisted on N250,000.

    The recommendation has been submitted to Secretary to Government of the Federation (SGF) George Akume.

    The President is now being looked upon to send his approved recommendation as a Bill to the National Assembly.

    At the dinner to mark Democracy Day, the President said: “Senate President, Deputy Senate President, you’ll get a notice if I’ve changed my mind on minimum wage.

    “We’re going to do it; what Nigeria can afford, what you can afford, what I can afford. They ask you to cut your coat according to your size if you have size at all.”

    Pro-democracy activists and top government officials across the three arms were at the event, including Dr. Olisa Agbakoba, Senator Shehu Sani and George Mba.

    Read Also; FG urges Labour to settle for realistic minimum wage

    Adding colour to the evening, Vice President Kashim Shettima, pro-democracy icons, including Prof Bolaji Akiyemi, Chief Segun Osoba, Senator Sani, Minister of Solid Minerals, Mr. Dele Alake, took the stage to recall President Tinubu’s role in the struggle that eventually crystallized into democratic rule.

    At the event were: Senate President Godswill Akpabio; Deputy Senate President Jibrin Barau; House of Representatives Speaker Tajudeen Abbas; Deputy Speaker Benjamin Kalu; Chief Justice of Nigeria (CJN), Justice Olukayode Ariwoola and Secretary to the Government of the Federation (SGF), George Akume.

    Others were: National Security Adviser (NSA) Nuhu Ribadu; Chief of Staff to the President Femi Gbajabiamila; and the wife of the Vice President, Nana Shettima; Babagana Kingibe; Chief Pius Akinyelure; Chief Bisi Akande; Senator Abu Ibrahim.

    Some of the governors in attendance were Hope Uzodinma (Imo); Umo Eno (Akwa Ibom); Lucky Aiyedatiwa (Ondo); Usman Ododo (Kogi); Sheriff Oborevwori (Delta); Uba Sani (Kaduna); Caleb Mutfwang (Plateau); Alex Otti (Abia) and Siminalayi Fubara (Rivers)

    The ministers included: Lateef Fagbemi (SAN), (Justice and Attorney-General of the Federation); Wale Edun (Finance and Coordinating Minister of the Economy); Mohammed Idris (Information and National Orientation); Bayo Adelabu (Power); Atiku Bagudu (Budget and National Planning) and Abubakar Kyari (Agriculture and Rural Development).

  • Minimum wage: FG urges Labour to settle for realistic pay

    Minimum wage: FG urges Labour to settle for realistic pay

    Minister of Information and National Orientation, Mohammed Idris on Wednesday, June 12, urged labour to settle for a national minimum wage that will not undermine the national economy and lead to mass retrenchment of workers. 

    Idris appealed while declaring open the 2024 Synod of the Charismatic Bishops Conference of Nigeria in Abuja.

     Idris pleaded with labour to seek a realistic and sustainable wage regime that is realistic and will not rock the country’s economy. 

    Idris also highlighted the government’s efforts towards reducing the cost of living and increasing Nigerians’ purchasing power through programs like the Presidential CNG initiative, which aims to cut transportation costs by 50%.

    He said: “As I have repeatedly said, the Federal Government is not opposed to the increase of wages for Nigerian Workers but we keep on advocating for a realistic and sustainable wage system for the workers – a wage system that will not undermine the economy, lead to mass retrenchment of workers and jeopardize the welfare of about 200 million Nigerians.  

    “We want the Labour Unions to understand that the relief that Nigerians are expecting, and that they fully deserve, will not come only in the form of an increase in wages. 

    “It will also come as efforts to reduce the cost of living and to ensure that more money stays in the pockets of Nigerians. And this is where programs like the Presidential CNG initiative come in. By replacing or complementing petrol usage with CNG that program alone will cut transportation costs by as much as 50 percent.”

    The minister appealed to the clergy to support President Bola Ahmed Tinubu’s vision for Nigeria’s renaissance and to pray for wisdom and guidance as the country navigates its current challenges.

    “Indeed, the Church, throughout our nation’s history, has been a steadfast partner to the government in championing social causes and the provision of essential social services such as hospitals and schools, as well as the inculcation of values in our citizens.

    “Even as we go through the temporary but necessary hardship, the President is not resting on his oars. He is determined to ensure that as many relief and palliative measures as possible are rolled out for the benefit of every segment of the Nigerian population.

    “Now, this is where you, as Clergy, as deeply respected religious leaders and influential voices, come in. As a Government, we need your support, your advice, and your feedback. 

    “Very importantly also we need you to be aware of the efforts being made, and the challenges being faced, so that you can help us communicate these to your congregations and the general public.”

    Noting that President Tinubu stepped into power at the most challenging time for Nigeria, Idris said that the president is working assiduously to ensure sustainable development across the country. 

    He said: “There is no doubt in anyone’s mind that Mr. President stepped up with a great sense of courage and responsibility. In the last year he has been implementing crucial and comprehensive reforms aimed at steering our country back onto the path of growth, prosperity, and sustainable development.

    “President Tinubu has never shied away from acknowledging the reality of these pains. In his Democracy Day address delivered to the nation just this morning, President Tinubu summed it up very aptly: “The reforms we have initiated are intended to create a stronger, better foundation for future growth. 

    “There is no doubt the reforms have occasioned hardship. Yet, they are necessary repairs required to fix the economy over the long run so that everyone has access to economic opportunity, fair pay, and compensation for his endeavour and labour.”

    “Indeed, as a nation, we are enduring short-term sacrifice, for long-term benefits. We are inspired by the bigger picture of a Nigeria where no one is left behind.”

    He hinted that his Ministry would collaborate with the clergymen in the implementation of the national orientation programme, the National Values Charter. 

    “Let me, therefore, say that the Federal Ministry of Information and National Orientation will very enthusiastically collaborate with the Charismatic Bishops Conference as we implement our flagship national orientation programme, the National Values Charter, which seeks to ingrain enduring values and morals in the hearts and minds of our citizens”, he said.

    He stressed that President Tinubu has availed himself creditably in the implementation of the goals of his Renewed Hope Agenda as Nigerians have continued to witness incremental successes in the various sectors of our economy.

    “The President has worked very hard to stabilize the economy through the withdrawal of an unsustainable fuel subsidy and the unification of the Foreign Exchange market, as pivotal steps towards redirecting funds to critical sectors like healthcare, education, and infrastructure”, he said.

    Earlier, the National President of the Charismatic Bishop Conference, Arch-Bishop Leonard Bature Kawas, pledged unalloyed loyalty and support to the administration of President Tinubu, stressing that they would continue to partner with the government to achieve its vision for Nigeria.

    He clarified that they invited the Minister, who is a Muslim, to declare their conference open, because they see in him a detribalized Nigerian who harbours no religious differences.

    Arch-Bishop Kawas said the conference is being attended by bishops from the 36 states of the federation and 21 countries.

  • JUST IN: We have not reached any agreement with FG on minimum wage – Labour

    JUST IN: We have not reached any agreement with FG on minimum wage – Labour

    Organised Labour has denied claims that it reached an agreement with the federal government on minumum wage.

    President Tinubu has said in his Democracy Day speech that an executive bill with an agreed minimum wage would soon be taken to the National Assembly for formalisation.

    However, Prince Adewale Adeyanju, the acting vice president of the Nigeria Labour Congress, stated in a statement on Wednesday, June 12, that at the time negotiations finished on Friday, June 7, the Tripartite Committee on the National Minimum Wage had not reached an agreement.

    The statement reads: “The NLC would have expected that the advisers of the President would have told him that we neither reached any agreement with the federal government and the employers on the base figure for a National Minimum Wage nor on its other components.

    “Our demand still remains N250,000, (two hundred and fifty thousand Naira) only and we have not been given any compelling reasons to change this position which we consider a great concession by Nigerian workers during the tripartite negotiation process.

    “We are therefore surprised at the submission of Mr. President over a supposed agreement. We believe that he may have been misled into believing that there was an agreement with the NLC and TUC. 

    “There was none and it is important that we let the President, Nigerians and other national stakeholders understand this immediately to avoid a mix-up in the ongoing conversation around the national minimum wage.”

    Details shortly…

  • Navigating the minimum wage debate for prosperity and social equity

    Navigating the minimum wage debate for prosperity and social equity

    In Nigeria, the debate over the appropriate minimum wage for workers has been a long-standing and complex issue. As the country grapples with economic challenges, regional disparities, and the need for social justice, finding a balance between fair compensation for workers and economic sustainability has become a pressing concern. This discussion has raised questions about the impact of increasing the minimum wage, the role of government in supporting workers, and the need for accountability and transparency in policymaking. In this context, both workers and the government need to explore innovative solutions and collaborative approaches to address these challenges and promote economic development for all citizens.

    The debate around the appropriate minimum wage for Nigeria’s workers is a complex and contentious issue that has been ongoing for many years. On one hand, some argue that a higher minimum wage is necessary to provide workers with a decent standard of living and to reduce poverty. They argue that a higher minimum wage will stimulate consumer spending, boost demand for goods and services, and ultimately strengthen economic development.

    On the other hand, some argue that a higher minimum wage could have negative effects on businesses, leading to job losses, reduced hours, and increased prices for consumers. They argue that a higher minimum wage could also lead to increased inflation, which could further harm the economy.

    In the context of democracy, a higher minimum wage is seen as a way to promote social justice and reduce income inequality, which are important pillars of a democratic society. By ensuring that workers are paid a fair wage for their work, a higher minimum wage can help to ensure that all citizens have the opportunity to participate fully in the economic and social life of the country.

    Ultimately, the appropriate minimum wage for workers is a balancing act between the need to provide workers with a decent standard of living and the need to ensure that businesses can remain competitive and create jobs. It is important that all stakeholders, including government, employers, and workers, come together to find a solution that works for everyone and promotes economic development and democracy.

    Let’s excavate! As Nigeria grapples with the pressing issue of determining an appropriate minimum wage, whether it be N60,000, N62,000, or a higher amount, it is vital to consider the implications for both workers and the government. The imperative for striking a balance between economic viability and social equity has sparked intense debate and scrutiny. In this context, it is crucial to delve into the underlying factors and potential solutions that can ensure a fair and sustainable wage structure for all stakeholders involved.

    It is difficult to determine a specific amount that would be appropriate as the minimum wage for Nigeria’s workers, as it depends on various factors such as the cost of living, productivity levels, and economic conditions. However, considering the current economic situation in Nigeria, a minimum wage of N60,000 or N62,000 could be considered appropriate for several reasons.

    Firstly, the current minimum wage in Nigeria is N30,000, which is one of the lowest in Africa. Increasing the minimum wage to N60,000 or N62,000 would help to address the issue of low wages and provide workers with a more decent standard of living. This would also help to reduce poverty and inequality, which are key challenges facing the country.

    Secondly, a higher minimum wage would stimulate consumer spending, as workers would have more disposable income to spend on goods and services. This would in turn boost demand for products, leading to increased production and economic growth.

    Additionally, a higher minimum wage would contribute to social justice and promote democracy by ensuring that workers are fairly compensated for their work. This would help to enhance the overall well-being of workers, improve their quality of life, and empower them to participate more fully in the economic and social life of the country.

    However, it is important to consider the potential impact of a higher minimum wage on businesses, particularly small and medium-sized enterprises. Adequate measures should be put in place to support businesses in adjusting to the increase in labour costs, such as providing tax incentives or subsidies.

    Surmising, while a minimum wage of N60,000 or N62,000 could be considered appropriate at this time to improve the standard of living for Nigerian workers, further analysis and stakeholder consultations are necessary to determine the most suitable and sustainable minimum wage level for the country.

    However, the prospect of raising the minimum wage to N90,000, N100,000, or even higher figures brings to the fore a crucial question: are there any inherent risks or dangers in such a significant increase? While a higher minimum wage may appear to be a solution to addressing income inequality and improving living standards, the potential consequences must be carefully considered. The potential impact on inflation, job creation, and overall economic stability cannot be overlooked. Furthermore, the sustainability of such a substantial increase and its long-term effects on the economy requires thorough analysis and foresight. It is essential to weigh the benefits against the potential drawbacks of a drastic wage hike to ensure a balanced and realistic approach to wage policy in Nigeria.

    Functionally, while increasing the minimum wage to N90,000, N100,000, or even higher may seem beneficial in terms of providing workers with higher incomes, some potential dangers and challenges need to be considered. Some of these potential risks include:

    Inflation: A sudden and significant increase in the minimum wage could lead to inflationary pressures, as businesses may pass on the higher labour costs to consumers through price hikes. This could erode the purchasing power of consumers and negate the intended benefits of the wage increase.

    Unemployment: Higher minimum wages could lead to job losses, especially for small and medium-sized enterprises that may struggle to absorb the increased labour costs. This could result in higher unemployment rates, particularly among low-skilled workers who are most likely to be affected by minimum wage increases.

    Informal Economy: A drastic increase in the minimum wage could incentivize more businesses to operate in the informal economy to avoid complying with labour regulations. This could undermine efforts to formalize the economy and ensure decent working conditions for all workers.

    Business Viability: Small businesses, in particular, may struggle to remain viable if they are forced to pay significantly higher minimum wages. This could lead to closures, reduced investment, and a slowdown in economic growth.

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    Regional Disparities: A uniform minimum wage increase across the country may not take into account regional differences in economic conditions and cost of living. It could exacerbate disparities between regions and hinder economic development in less affluent areas.

    The question then arises: Are there any analytical recommendations in light of issues, thought processes, and solutions to this prevailing matter for both the workers and government? This must entail all political appointees also cutting down on their excessive and above-the-board living style so that they allow their citizens to experience economic prosperity and enjoy the dividends of democracy at this time.

    In light of the challenges, the following recommendations and solutions could be considered by both workers and the government:

    Phased and Incremental Increases: Instead of a sudden and drastic increase in the minimum wage, a phased and incremental approach could be adopted. This would allow businesses to adjust gradually to higher labour costs and mitigate the risks of inflation and job losses.

    Regional Wage Disparities: Consideration should be given to regional differences in economic conditions and cost of living when setting minimum wage levels. This could help address disparities between regions and ensure that workers are adequately compensated based on local conditions.

    Support for Small Businesses: The government could provide support and incentives for small and medium-sized enterprises to help them cope with higher labour costs. This could include tax breaks, access to credit, and skills training programs to improve productivity and competitiveness.

    Social Safety Nets: To protect vulnerable workers and mitigate the impact of job losses, social safety nets such as unemployment benefits and job training programs could be expanded. This would help workers transition to new employment opportunities and support those most affected by minimum wage increases.

    Transparency and Accountability: Both workers and the government should advocate for transparency and accountability in the implementation of minimum wage policies. This includes ensuring that minimum wage laws are enforced, monitoring compliance by businesses, and holding policymakers accountable for their decisions.

    Tackle Corruption and Excessive Spending: Addressing corruption and reducing excessive spending by political appointees could free up resources that could be redirected towards supporting workers and promoting economic development. This would require political will, institutional reforms, and effective anti-corruption measures.

    Dialogue and Collaboration: Workers, government officials, employers, and other stakeholders should engage in constructive dialogue and collaboration to find common solutions to the challenges surrounding the minimum wage. This could involve labour unions, business associations, civil society organizations, and policymakers working together to address concerns and finding sustainable solutions.

  • Benefits of increased minimum wage

    Benefits of increased minimum wage

    Sir: Increasing the national minimum wage should be viewed as a strategic decision with numerous benefits. Given the widespread issue of underpayment of workers, a thoughtful raise in the minimum wage would bring about extensive positive benefits that outweigh any potential drawbacks.  It also reinforces a fundamental principle: the right of workers to receive fair wages. Embracing this perspective highlights economic wisdom and demonstrates a commitment to fairness and societal progress.

    A key benefit of increasing the minimum wage is the potential boost in employee motivation and productivity. Reasonable wages motivate employees, enhancing their commitment to their jobs and increasing their productivity and innovativeness. Higher wages reduce employee turnover, lowering recruitment and training costs, and fostering a more experienced and skilled workforce. This increase in productivity can contribute significantly to the nation’s Gross Domestic Product (GDP) in the long run.

    One of the major issues facing Nigerian workers today is low purchasing power, which has led to a decrease in demand for goods and services. This demand reduction negatively impacts the turnover and profitability of many companies. If this trend continues, some companies might be forced to close down or lay off staff to stay afloat. An increased minimum wage would enhance the purchasing power of employees, leading to higher demand for products and services a basic item like sachet water, which costs N50, has seen reduced demand as people choose to boil and filter their tap water. Better wages will stimulate economic activity thereby boosting sales and profitability for businesses.

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    An increased minimum wage will contribute to reducing insecurity and fraud in Nigeria. The fraud triangle theory identifies pressure as one of the main factors driving people to commit fraudulent activities. Workers who earn insufficient wages may be pressured into criminal behaviour to make ends meet. Similarly, children from financially strained families might be forced to fend for themselves at an early age, increasing their risk of engaging in criminal activities. With a reasonable minimum wage, the pressure on families would be alleviated, reducing the incentive to engage in crime. Furthermore, as businesses thrive with increased consumer spending, business owners will have more resources to support their families, further contributing to social stability.

    Better wages improve workers’ standard of living, thereby enhancing life expectancy.  Additionally, poorly paid individuals are less likely to afford proper healthcare. In Nigeria, many lack health insurance, and even among the insured, dissatisfaction with service delivery is common. With higher wages, individuals can better afford healthcare services, resulting in improved health outcomes and prolonged life expectancy

    The government stands to benefit from an increased minimum wage through higher tax revenues generated by increased economic activity. As businesses expand and profitability improves, tax contributions from corporate income tax, value-added tax, and personal income tax are likely to rise. Additionally, a healthier and more financially stable workforce can reduce the government’s expenditure on social welfare programs.

    Some argue that increasing the minimum wage could lead to wage-push or cost-push inflation, resulting in higher prices for goods and services. However, it is important to note that due to industrialization and technological advancements, labour costs often constitute a relatively small fraction of the cost of goods and services in many companies. Moreover, the improvement in workers’ productivity resulting from higher wages will lead to greater labour efficiency; which will offset some of the increased costs. Therefore, the inflationary impact may be less significant than feared.

    Indeed, while acknowledging the inevitable rise in operating costs for businesses, it’s essential to recognize that the impact will be more pronounced on smaller enterprises unable to capitalize fully on economies of scale. Initially, such an increase may precipitate job losses as businesses strive to adapt to the change. However, in the long run, as productivity escalates and consumer spending surges from the augmented purchasing power stemming from higher wages, businesses may be compelled to expand their workforce to meet escalating demand. This cyclical effect has the potential to stimulate job creation and fuel economic growth, underscoring the transformative power of strategic wage adjustments.

    •Kenechukwu Aguolu FCA, Abuja.

  • SGF set to submit National Minimum Wage report to Tinubu

    SGF set to submit National Minimum Wage report to Tinubu

    The Secretary to the Government of the Federation (SGF) George Akume is set to submit the report of the Tripartite Committee on National Minimum Wage to President Bola Tinubu, paving the way for a new national minimum wage for workers.

    The Bukar Goni Aji-led 37-member Tripartite Committee, inaugurated by President Tinubu in January, concluded its assignment and submitted its report to the SGF on Monday, June 10, 2024.

    According to a statement on Monday by Director of Information and Public Relations in the Office of the Secretary to the Government of the Federation (OSGF), Segun Imohiosen, a formal presentation of the report will be made to President Tinubu upon the return of the leadership of Organised Labour, government, and Organised Private Sector (OPS) representatives from the ongoing International Labour Organisation (ILO) Conference in Geneva, Switzerland.

    “His Excellency, Bola Ahmed Tinubu, GCFR, President, Commander-in-Chief of the Armed Forces, Federal Republic of Nigeria inaugurated a 37-Member Tripartite Committee on National Minimum Wage, on Tuesday 30th January, 2024, in accordance with the provisions of the Minimum Wage Act, 2019.

    “The Committee was tasked with the responsibility of recommending a new national minimum wage for Nigerian workers in public and private sectors.

    “The Tripartite Committee on National Minimum Wage has concluded its assignment and submitted Report to the Secretary to the Government of the Federation on Monday, 10th June, 2024.

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    “A formal presentation of the Report will be made to Mr. President for appropriate action, when the leadership of the Organised Labour as well as representatives of Government and Organised Private Sector, who are presently in Geneva, Switzerland for the ongoing International Labour Organisation (ILO) Conference, return to the country.

    “The SGF thanked the Chairman of the Committee, Alh. Bukar Goni Aji and members for their commitment and sacrifices,” the statement reads.

    The submission of the report is a crucial step towards implementing a new national minimum wage, which is expected to impact the lives of millions of Nigerian workers.

    Tinubu is expected to review the report and take appropriate action, potentially leading to a significant change in the country’s minimum wage landscape.

  • Labour may resume strike Tuesday, rejects N62,000 proposed minimum wage

    Labour may resume strike Tuesday, rejects N62,000 proposed minimum wage

    The Organised Labour has said it will not accept any N62,000 or N100,000 “starvation wage” as the minimum wage for workers.

    The union insisted on N250,000, being its latest demand at the last meeting of the Tripartite Committee on Minimum Wage on Friday, as the living wage for an average Nigerian worker.

    This was made known by Chris Onyeka, Assistant General Secretary of the Nigeria Labour Congress, NLC, while fielding questions on Channels Television’s The Morning Brief show on Monday.

    Onyeka said the one week to the Federal Government last Tuesday would expire by the midnight of Tuesday, June 11, 2024.

    According to him, should the Federal Government and National Assembly fail to act on the demands of workers by tomorrow (Tuesday), the organs of the NLC and the Trade Union Congress, TUC, would meet to decide on the resumption of the nationwide industrial action.

    Read Also: Labour may resume strike Tuesday, rejects N62,000 proposed minimum wage

    “Our position is very clear. We have never considered accepting N62,000 or any other wage that we know is below what we know is able to take Nigerian workers home. We will not negotiate a starvation wage.

    “We have never contemplated N100,000 let alone N62,000. We are still at N250,000, that is where we are, and that is what we considered enough concession to the government and the other social partners in this particular situation. We are not just driven by frivolities but the realities of the market place; realities of things we buy every day, bag of rice, yam, garri, and all of that.

    “The Federal Government and the National Assembly have the call now. It is not our call. Our demand is there for them (the government) to look at and send an Executive Bill to the National Assembly, and for the National Assembly to look at what we have demanded, the various facts of the law, and then come up with a National Minimum Act that meets our demands.”

    He continued: “If that does not meet our demand, we have given the Federal Government a one-week notice to look at the issues and that one week expires tomorrow (Tuesday). If after tomorrow, we have not seen any tangible response from the government, the organs of the Organised Labour will meet to decide on what next.

    “It was clear what we said. We said we are relaxing a nationwide indefinite strike. It’s like putting a pause on it.

    “So, if you put a pause on something and the organs that govern us as trade unions decide that we should remove that pause, it means that we go back to what was in existence before.”

  • High minimum wage contradiction

    High minimum wage contradiction

    Before this article is published, the federal government and organised labour may have reached consensus on a national minimum wage. But before then, it bears stating that the logjam over the appropriate national minimum wage which culminated in the just suspended nationwide industrial strike is a product of contradiction.

    It is a dialectical situation thrown up by the policies of the federal government and reactions to them by organised labour. The initial demand for an outrageous minimum wage of N1million from the current N30,000 by organised labour and government’s rejection of it as unrealistic and unsustainable, further underscores the dynamics of this contradiction. What are the issues?

    President Bola Tinubu had immediately after his swearing-in last year, announced the elimination of subsidy on petrol. The measure immediately saw the pump price of the product rising well above N550 per litre in some areas. Before then, the product sold below N200 per litre. 

    Fuel subsidy removal was quickly followed by the floating of the Naira in the foreign exchange market. This saw the local currency exchanging for about N1, 400 against the dollar in the parallel market. The exchange rate was about N450 against the US dollar before the floating of the local currency. The effects of these measures on hyperinflationary trend were quite spontaneous with the prices of essentials hitting the rooftops.

    The centrality of petrol to daily businesses and economic activities made the impact of the policies heavily felt in all households. The government was to explain that the interventions were necessary to save the national economy from collapse even as it urged the citizens for patience as the eventual outcome will lead to public good.

    The ensuing inflation brought untold hardship as the prices of essential commodities including food items went beyond the reach of the average citizen.  But the salaries and wages of the working class remained the same despite federal government’s award of N35, 000 to be paid workers for a few months. The reality was that many state governments were unable to pay that sum to their workers. In the face of this, the average worker was left to lick the wounds inflicted on him by the excruciating economic circumstances that are logical outcomes of government’s policies.

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    Attempts by organised labour to get the government reverse these policies including poorly coordinated strike actions failed to achieve any meaningful result. Organised labour subsequently began to mount pressure on the government for a wage increase such that will enable workers cope with the rising cost of living.

    Negotiations have been on for quite some time without any agreement. Expectations that the tripartite negotiation committee would have concluded their assignment well on time for the federal government to unveil the new national minimum wage during the last workers day, failed to materialise.

    Feelers on the inconclusiveness of the negotiations emerged when the President of the Trade Union Congress TUC, Festus Osifo announced that the new national minimum wage would not be announced on May Day. He had also said the only way that announcement could be possible was if the government accepted the N615, 000 demand presented to it by organised labour.

    The implication was that organised labour had come down from its initial minimum wage demand to the new figure. But it was still on the high side. It seemed inconceivable how the government could accede to such a humongous amount given the parlous state of the national economy.

    Osifo got the reading right. No new national minimum wage was pronounced on the May Day. But President Tinubu, apparently dissatisfied with the inconclusiveness of the negotiations by the tripartite committee, promised workers better working and living conditions buoyed by fair wage.

    “This shall be resolved soon and I assure you that your days of worrying are over. Indeed the government is open to the committee’s suggestion of not just a minimum wage but a living wage”, he assured workers on May Day.

    Even with the assurances from the president, negotiations failed to resume until organised labour went on industrial action last week paralysing activities with heavy losses to the national economy. Negotiations resumed following the suspension of the strike action for five days. Organised labour returned to the negotiation table with a minimum wage demand of N494,000. The government considers this still unrealistic and unsustainable. The president’s task to the Minister of Finance, Wale Edun to furnish him with the cost implications of the new minimum wage has been complied with amidst speculations.

    For now, it remains a matter of conjecture what the final outcome of the negotiations will be. But one thing that seems clear is that with the intervention of the president, some consensus will soon be reached irrespective of whether it properly aligns with the inflationary trend triggered off by government policies.

    Yes, N494,000 and the higher figures earlier demanded as minimum wage are unrealistic and unsustainable. The government and the private sector cannot possibly afford to pay such without dire consequences. But as unrealistic and unsustainable as the figure appear, they illustrate most poignantly the contradiction in the inability of the government to factor in the material conditions of our people as they went about floating inflation influencing policies.

    It was obvious from all economic and social indices that the economy was not strong enough to absorb the dislocations bound to arise from those liberalization policies. Not only is the populace contending with low per capita income, the poverty rate is so high that the policies will end up reducing the people to the poorest of the poor. Incremental and guarded responses would have made better economic sense.

    Organised labour seeks high minimum wage to enable workers cope with the hyperinflation unleashed by these policy measures. They have a point. But high minimum wage could also turn out counterproductive. It has the prospects of spiralling another round of inflation that could bring the economy on its knees.

    The contradiction arose first, from the hyperinflationary trend unleashed by the removal of fuel subsidy and the floating of the national currency.  To cope with escalating prices of general goods and services, labour mounted pressure on the government to grant workers high salaries and allowances.

    If the government accedes to the high wage demand, it could in turn unleash another round of inflation with consequences more devastating than what we currently experience. That is the uncanny dialectics at play.

    Even as workers deserve a better/living wage, extreme caution should be exercised to ensure another round of inflation is not about to be triggered off by whatever is finally agreed as the new national minimum wage. It is for this reason that suggestions have been made that it would have made better sense for organised labour to demand for a reduction in the price of petrol and some form of control on the value of the Naira in the foreign exchange market.

    Such measures will bring down inflation, shore up real income. They also promise more beneficial to a greater majority of the citizenry than wage increases that target only those in gainful employment.

     Organised labour also embarked on the suspended strike to press home their demand for the reduction of the cost of electricity following government’s elimination of subsidy for categories of consumers in that sector. The government had a few months back, raised the unit price of electricity for categories of consumers by over 250 per cent.

    Apart from this figure being very prohibitive and unaffordable, the lot of consumers is compounded by the unavailability of pre-paid meters. Households without pre-paid metres in the so-called Band A areas are now made to pay estimated bills of N185,000 per month. This is as unrealistic as it is prohibitive. Matters are compounded by the inability of the Discos to make pre-paid metres available to customer willing to pay for them.

    As the government considers a minimum wage that will not jolt the system further, it has to be more circumspect rolling out policies that will further erode the purchasing power of the ordinary people. The elimination of subsidy on electricity is one of such policies that has to be tinkered with. Else, it will make nonsense of whatever is finally approved as the national minimum wage with no end to the cycle of inflation already in active motion.

  • Minimum wage: FG, OPS agree on N62,000

    Minimum wage: FG, OPS agree on N62,000

    • Labour disagrees, pushes for N250,000        
    • Govs: We can’t pay N60,000
    • Tripartite Committee sends recommendations to President
    • NLC attacks SGF over treasonable felony comment

    The Federal Government and the Organised Private Sector (OPS) last night reached an agreement to pay N62,000 to their least paid worker, an increase of N2000 on the N60,000 rejected last week by labour.

    But the states said they cannot afford to pay even N60,000 while the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) disagreed with government and the OPS, saying the minimum they would accept is N250,000, which is N244,000 less than the N494,000 they had demanded.

    The N62,000 was agreed on yesterday a few hours after the Nigeria Governors’ Forum (NGF) declared that the N60,000 tabled last week at a meeting with organised labour was too high and unsustainable.

    The sum was rejected outright by the NLC) and TUC, with both subsequently calling a strike on Monday that paralysed the nation.

    They however suspended the strike on Tuesday for one week following a pledge by the Federal Government to up its offer.

    The new figure of N62,000 was confirmed  by Imo State Governor  Hope Uzodinma and TUC President Festus Osifo at the end of last night’s meeting.

    Uzodinma said the Tripartite Committee would send its recommendation to President Bola Tinubu for his approval.

    He said the President would in turn forward an executive bill on a final figure as minimum wage to the National Assembly.

    Uzodinma said: “We are almost there because we are just about to sign and there will be a complete closure. Every other thing will follow.

    “The committee has worked so hard and the committee has reached an agreement. The Tripartite Committee is made up of three parties – the government, the Organised Private Sector (OPS) and Organised Labour.

    “In the wisdom of the committee, it has put together a recommendation that will be forwarded to Mr. President for further action

    “The Organised Private Sector and the Federal Government have agreed on N62,000 while Organised Labour is asking for N250,000.

    “At the end of the day, what is important is that we are talking. There is no hostility anymore. And the national anxiety is going to be relaxed as soon as this is made public.

    “That is the beauty of the conversation and I am very happy we have been able to manage this temptation that has befallen our nation so that government can face its business and Nigerians will also go about their businesses without any further embarrassment.

    President of TUC, Osifo, said: “The OPS and Federal Government have recommended N62,000 as the minimum wage but for us (labour) we felt that with the current economic hardship and the difficulty in the land, the sum of N250,000 should be what will be okay as the minimum wage.

    “We are going to sign a report and forward this position to Mr. President. This committee is to make recommendation to Mr. President so we will forward it to Mr. President and he will forward it to the National Assembly.

    “We will keep pushing to ensure that we have a wage that stands the test of time in Nigeria.”

    Also speaking, Chairman of the Tripartite Committee on National Minimum Wage, Bukar Aji said: “The recommendation that we have just had is as a result of a very deep dialogue and consensus reached at the tripartite level. The situation that we are recommending to Mr. President somehow is repeating itself because it happened in the 2018 exercise.

    “In 2018, it was the other way round. The Organised Private Sector and the Organised Labour recommended N30,000 as minimum wage while the government side recommended N24,000.

    “Two figures were recommended to the then President for his consideration and onward transmission to the National Assembly for it to become a law. That is exactly where we are.

    “The mandate of the Tripartite Committee is to recommend. It has no powers to approve but to recommend and the recommendation today came as a result of deeper understanding and studies of all the economic indices and current inflation, state of the economy, affordability, ability, capability and sustainability had been displayed so that a figure that will further throw the country into confusion is not announced.

    “This is because if any party goes into an agreement of the figures it knows from its sources it cannot afford then it is going to create another problem.

    “But I thank God that all wisdom came together and that the recommendation to Mr. President is going along the direction that you have just heard from the Governor of Imo State who played a very critical role in mediating this process with his colleague, the Governor of Kwara State.

    On her part, Minister of State for Labour and Employment, Nkeiruka Onyejeocha said: We have done our job and thank God we have come to the conclusion of a process that started months ago. 

    “It is the issue of three people negotiating and you don’t expect them to come in one day and just agree. There are certain indices we had to take into consideration and certain things we had to look at. Having come to this end, we have to move forward.”

    The meeting was attended by Minister of Budget and Economic Planning, Atiku Bagudu; Minister of Finance and Coordinating Minister for the Economy, Wale Edun; Governor of Kwara State, Abdulrahman Abdulrasaq and labour leaders. 

    The Nation gathered that it took a lot of efforts by the Tripartite Committee to have the OPS on its side on the new minimum wage.

    But the states remained adamant and sources said some had accused the federal government of caving under the labour’s pressure without critically looking at the feasibility of new figure.

    “For example, a governor from the south who is a member of the opposition lamented how he would take such huge amounts to pay less than 200,000 civil servants in the state, which does not constitute more than 5 per cent of the population,” a source said.

    A Lagos based manufacturer was quoted as saying: “The FG has literally shaved our heads in our absence. Though we had nominal representations, they were not allowed to come back to us for proper consultation.”

    A member of the FG negotiation team said: “Actually, FG’s position is that we can pay as much as 65,000 because the President believes in quick and amicable solution.”

    When contacted, Information Minister Mohammed Idris reiterated the Federal Government’s position to pay above 60,000 as minimum wage subject to its ability to sustain the final minimum wage the tripartite committee finally comes up with.

    Governors: Why N60,000 is unsustainable

    Earlier yesterday, the Nigeria Governors’ Forum (NGF) in a statement through its Acting Director, Media Affairs and Public Affairs Hajiya Halimah Salihu Ahmed, said although the governors were “in agreement that a new minimum wage is due,” all parties should consider the implications for the various interest groups.

    All parties, the NGF said, should note that the new minimum wage negotiations “also involve consequential adjustments across all cadres, including pensioners.”

    Continuing, it said: “The NGF cautions parties in this important discussion to look beyond just signing a document for the sake of it; any agreement to be signed should be sustainable and realistic.

    “All things considered, the NGF holds that the N60,000 minimum wage proposal is not sustainable and cannot fly.

    “It will simply mean that many states will spend all their FAAC allocations on just paying salaries with nothing left for development purposes.

     “In fact, a few states will end up borrowing to pay workers every month.

    Read Also: Court orders permanent forfeiture of private university, other assets to Fed Govt

    “We do not think this will be in the collective interest of the country, including workers.

    “We appeal that all parties involved, especially the labour unions, consider all the socioeconomic variables and settle for an agreement that is sustainable, durable, and fair to all other segments of the society who have legitimate claim to public resources.”

    Labour Veterans fault NLC, TUC on shutting down of national grid

     The decision of organised labour to shut down the national grid during the last strike has not gone down well with Labour Veterans and Trade Unionists Assembly which branded the action uncalled for and treasonable.

    Interim Chairman of the group, Comrade Isa Tijjani, said the grid shut down was not in the best interest of anyone.

    It said: “In particular, we are miffed by the apparent treasonable felony committed by the striking Labour leaders in bringing down the national grid, stopping citizens from going about their legitimate businesses, forceful eviction of law abiding citizens from their offices and employment of force and arm twisting tactics on people to abide by the strike. All these should be investigated and appropriate actions taken.

    “Agitation for minimum wage is a legitimate right. However, the means and method used in undertaking the strike were not only unfair but criminal and against ILO conventions, which are aimed at protecting essential service sectors in any given economy from such disruption.

     “The penchant to opt for strike as the first option in settling labour disputes is inimical even to the interest of workers in whose name the strike was embarked upon in the first place.

    “This demonstrates lack of seriousness and deep reflection on the side of congress leadership for always swinging into acting before they think. Such actions are inimical to well know norms and practices of the labor movement and should be stopped forthwith.”

    Tijjani is a former vice president of the NLC.

    Labour rejects treason accusation, says SGF trivialising genuine grievances of workers

    Responding yesterday to a similar accusation by the Secretary to the Government of the Federation (SGF), Senator George Akume, Labour said it was disheartening that a person of SGF’s repute could make such a statement.

    Head, Information and Public Affairs of the  NLC, Comrade Benson Upah, said in Abuja that Akume’s characterization of labour’s  “legitimate and constitutionally protected industrial action as a ‘treasonable felony’ and ‘economic sabotage’ is not only deeply troubling but also undermines the spirit of constructive dialogue necessary for resolving the ongoing issues.”

    He added: “His assertion that he cannot afford to pay each of his four drivers ₦100,000 monthly is a stark reminder of the disconnect between the government and the realities faced by ordinary Nigerians. Such statements do not contribute to the resolution of the issues at hand but rather exacerbate tensions.

    “The demands of the NLC and TUC are clear and just. We seek the conclusion and signing into law of a new national minimum wage that is in sync with the realities of the cost of living, a reversal of the hike in electricity tariff to ₦65/kWh, and an end to the discriminatory classification of electricity consumers into bands. These demands are grounded in the need for economic justice and fairness for all Nigerian workers and citizens.

    “The SGF we are sure clearly knows those whose actions are treasonable and sabotages our economy. Those who loot our treasury around the country, those who divert public resources meant for hospitals and schools; those who are involved in foreign exchange round tripping; padding of budgets and inflating contracts including those who steal trillions of Naira in the name of subsidy are the real economic saboteurs who commit treasonable felony.

    “These people are in costly Agbada and drive in convoys all around the nation occupying the corridors of power and not innocent workers who are not slaves but chose to withdraw their services because of the inhuman treatment meted on them by the Government.

    “We reject completely the unfortunate insinuations around the SGF’s remarks because strikes are not only legal but also a civic duty. We are surprised that the SGF will demonstrate such a glaring sense of unawareness to the understanding of the fact that when workers withdraw their services which is their right, machines cannot operate themselves so, they grind to a halt.

    “The NLC remains committed to advocating for the rights and welfare of all Nigerian workers. We stand firm in our demands and will continue to pursue them through all legitimate means available to us. We will not surrender the trust and confidence Nigerian workers and people have bestowed on us to blackmail by the SGF or any other official. Our commitment is to Nigeria, Nigerian workers and peoples and this will continue driving our engagement.”

    NCPC calls for amicable resolution to avoid retrenchment of workers

    The Executive Secretary Nigerian Christian Pilgrims Commission (NCPC), Bishop Stephen Adegbite, urged the Federal Government, NLC and TUC to consider an amicable way of resolving the minimum wage issue.

     Adegbite advised labour to shun a situation where many workers, especially in the private sector, would be sacked on account of high salary that many employers of labour may not be able to sustain.  

     He gave the advice while briefing reporters in Abuja on Friday on the minimum wage saga and preparations by the commission for this year’s pilgrimage,   

     He hoped all sides in the matter would reach an understanding on a minimum wage structure that will be acceptable to all the parties involved without causing more problems in the system.