Tag: minimum wage

  • Minimum wage must consider productive capacity of the economy, says ILO DG

    The Director General of the International Labour Organisation (ILO), Guy Ryder, recently visited Nigeria, the first by any ILO leader since the first visit in 1959. Ryder had series of meetings with stakeholders in the labour sector during the visit and attended the Global Youth Employment Forum, which was held outside Geneva, Switzerland, for the first time. In this interview with TONY AKOWE, he speaks on his engagements while in Nigeria, the world of work and lots more.

    ONE issue that has been in contention between the Nigerian government and organised labour is the absence of the Labour Advisory Council. Labour believes that government is deliberately sabotaging the council which has not existed for the past ten years. What is ILO’s view on the existence of the council?

    Yes, this is one the issues that came up in all my discussions, especially with organised labour and I ask the question, why do you think that it has not been active in recent years? I think that there are two things responsible: One is the simple commitment to make the council operate in an effective way. But also, I have heard that this is a question of political will and the desire of government to interact with employers and workers. I think that the desire now is that when we have a new Minister in place, is to try and do this. The ILO is an organisation that consists of government, employers and workers. We are the international house of social dialogue and tripartisim. So, where ever I go, I always try to promote the tripartite cooperation and I see no reason why I should do any less than that in Nigeria than any other country. If one can detect lack of confidence in the different partners, I think the best way to improve that confidence is to give more positive space to issues of social dialogue. I hope that by moving in this direction and reactivating whatever needs to be reactivated, we can boost the confidence.

    We are aware that the first ILO office in Africa was established in Nigeria. Since then, what has been the relationship between the ILO and Nigeria?

    Over the years, there has been good cooperation between the ILO and the Nigerian government and we have put in place a lot of plans with the government. There is the employment plan, the international migration plan, plan on health and safety; there is a draft plan on youth employment; among others. The important thing now is not to draw up new plans, but to seek implementation of these plans and I think this requires the political attention of Ministry and government and to a certain degree, the investment such as political and financial investment in making these plans a reality. I hope that as we draw up a new country programme with our Nigerian colleagues, implementation of the old ones will be top and rather than draw up new ones, there should be people focused programmes.

    President Muhammadu Buhari requested for the upgrading of the ILO office in Abuja and the placement of more Nigerians in the ILO headquarters in Geneva. How would you respond to this request?

    The question about upgrading the ILO office in Abuja has been put to me. You may be surprised to hear that when I travel, one of the issues that often come up is improving the ILO offices in the countries we go to. My organisation has a budget which is not increasing. That means that if I invest more in the office in Abuja, I will have to invest less in another country. You will understand that these are subjects of concrete and difficult political negotiations in my organisation. I would have to convince my governing body on the wisdom of making more resources available. I have been approached by all parties  government, workers and employers  on the need to invest more in upgrading the office here. It’s a good thing because I think that meant that our partners in Nigeria value the work of the ILO and they want us to do more. If our work was not valued, I will not be receiving these requests. But I am not in a position right now to say when these requests will be acted upon because it depends on my governing body. But the message has been well received.

    At the Global Youth Employment Forum, different economies were advocated. Which of these economies would you recommend?

    Read Also: Minimum wage: no worker should be cheated, says Wabba

    At the Forum, there were five working groups looking at different aspects of the future of work. There is the green economy, then the blue economy which is the oceanic economy where many states rely heavily on ocean resources. The Orange economy is a new one for me. This is the creative economy that relies on sculpture and arts and Nigeria has a comparative advantage in this area, the purple economy which is the care economy. The professionalisation of the care that we give to all the people and our children and lastly, the silver economy which is the digital economy. When you ask which of all these is the right one, I will say all of them. There is job creation potential in all of these areas, but it won’t happen automatically. I don’t think anybody should sit back and wait for any of the economies to grow. Like we have said in this centenary celebration of the ILO, the future of work depend on all of us, whether it is determined by technology or robot or artificial intelligence, it won’t even be decided by the market. It will be decided by the joint efforts of government, employers and workers in our society. So, the future is in our own hands.

    One of the major problems facing job creation in Nigeria is the issue of infrastructural deficit. What would you recommend for Nigeria, considering your experience in dealing with other countries?

    I heard from all sides that there is a major deficit in infrastructure in Nigeria. From the employers’ community, they referred to the physical infrastructure of communication, energy infrastructure, digital infrastructure and they felt that these constraints are having on the business community.  I think that it is quite telling that Nigeria was recent in its ratification of the Africa Continental Free Trade agreement. Beside that there was the feeling that there was a disadvantage resulting from deficit in infrastructure which places the country at a disadvantage. I think it is important that these infrastructural problems are dealt with. There is no short cut to this and it is not the ILO that has the answer in its pocket. It is a very simple reality which is the fact that infrastructural facilities need to be invested in. There are international institutions that can assist Nigeria on this like the World Bank and other Development Banks. We are not the people who bring the big money to Nigeria.

    Daily, there is the discussion about decent job. A woman selling by the road side is believed to have a job, same with the person sweeping the roads. From the view point of the ILO, what actually is a job?

    It is a very difficult question to answer. We are talking about the future of work and somebody sweeping the road out there is working. But we need to organise the world of work in such a way that people have access to decent activity, a decent job. That is why the ILO insists very strongly that it is not good enough that because we have lots of people without work, therefore any work that makes you earn a few naira notes is good enough. We should set the bar higher for society to be aiming at offering people decent work, which means a job where you earn enough money to give yourself a decent living, where you have social protection, where your basic rights as a worker are protected and where issues affecting you are not done through unilateral decisions but by social dialogue. This is our concept of what a job should be.

    While addressing the Global Youth Employment Forum, you said that about 255 million youths across the globe were either not employed or are not in any form of education. You also talked about another 135 million youths working, but live in poverty. This is an alarming figure. What is the way out of this?

    The statistics are quite disturbing. The whole question of education and training and the provision of training access to young people through education and training is of fundamental importance. Anybody who has worked in the labour market and in the world of work knows how connected labour system and education system are. The world of work is a knowledge based economy where competitive advantage relies on the acquisition and use of appropriate knowledge. But I think there is a link between employment and education and jobs become more evident. There are two or three points I need to make. One, is despite the changes in technology, the need to acquire digital skills is quite often talked about. The most important thing for any child is to acquire from an early age is to acquire basic skills. These are social skills that in future will enable the child to deal with people in a way that the labour market demands. I think that those foundation skills are sometimes not given the enough attention. I think that Nigeria, just like any country in the world should give top priority to universal access to basic quality education. If there are hindrances in that, this will automatically stall the future of the labour market because you will be generating people who do not have the fundamental skill of employability. After that, I think there needs to be greater inter action alignment of primary, secondary, university education with the private sector on the need to revive the sector. Those countries which do best in terms of youth employment and skills are those countries which have a very tight system of cooperation between the government and the private sector in skill formation. The very best skill formation systems are those that combine on the job training and class room training. That might sound like some distant reality, but the point I am making is that the private sector employers also have a role to play, not only in financing education, but also doing it in accordance with what they need. We do work with private industries around the world in giving skills to young people. I interacted with the Abuja Enterprise Industry and there is the hope that they will assist a lot of young people to get their businesses started. The flip side of this can be child labour. There is one thing that provoke child labour more than anything else and that is the non availability of school education. Young people do frequently fall into child labour when they don’t have the chance to go school. We have to make efforts to get them to school if that school is available. Yes, there are issues of poverty, there are issues of supporting families and we can understand that. But it seems to me that the real issue is that of giving opportunity to children to be in school.

    You gave a lot of accolade to Nigerians as very intelligent people. Does that mean you are considering request of the President to accommodate more Nigerians at the ILO headquarters?

    I have confirmed that. Whether I am here in Nigeria interacting with your country men and women, whether in my country or in other countries of the world, you can’t but the impressed with the vibrancy and energy that Nigerians give out. Nigeria needs to take advantage of that and so is the ILO. Like I will say everywhere, the ILO has the interest in acquiring the skills and contributions of Nigerians in our secretariat. It is not by coincidence that my Director for Africa is a Nigerian. That is a message that we don’t just understand, but we have acted upon. Recruitment into the ILO is through a competitive process. When good candidates are presented to us from Nigeria, they will certainly receive good attention from me and my colleagues. So, you can take that assurance as my response.

    After all said and done, how would you rate Nigeria?

    It is very difficult for me to give a rating to Nigeria. If I do that around the world, I am going to make some people very angry. What I would say is that Nigeria is very present in the International Labour Organisation. The government of Nigeria is a member of our governing body, the NLC has always been represented in international labour system and its workers representative on our board as its President is a member of our governing board and the employers are also represented. So, Nigeria is very present and has always been very present and is a strong contributor to our organisation. Without giving you rating, I am extremely grateful that Nigeria is ever present in our organisation.

    The issue of new minimum wage and its implementation is the current issue between labour and the Nigerian government. What is your advice to them on this issue?

    I am very pleased to hear that there has been agreement on the basic level after an energetic process of negotiation. I also understand there are ongoing discussions about consequential adjustment. I have not been involved in that discussion neither is the ILO involved. It is for Nigerians to resolve. But what I would say is that the ILO often gives advice on minimum wage. We believe that minimum wage should take into account to a lot of things. It should full account of the basic needs of working people and their families, what will allow for basic existence. It should also take into account the real productive capacity of the economy. If you pay beyond what production really permits, you will realise that you will not make any progress because it will be artificial. I really hope that the minimum wage process will take these into account.

    Again, privatisation of government enterprises has often created conflict between government and labour in Nigeria. What is your suggestion on this?

    The issue of privatisation is a controversial issue around the world. I am yet to encounter a trade union movement anywhere that welcomes privatisation. Generally, they are reluctant to accept privatisation for a number of reasons. One, they often believe that the process of privatisation will threaten the jobs of workers they represent; jobs will be lost in the process of privatisation. In a more general way, they feel that certain services in the industries should be in public possession because they are of strategic importance to the people and should not be allowed for market forces to direct. We have seen many discussions on privatisation around the world. You could argue the merits of those processes, but what is important is that when privatisation is pursued, it should be on the basis of an objective business belief rather than an ideological belief that privatisation is more appropriate in a public enterprise.

    At the 2019 International Labour Conference, the rise of new technology and the threat it posed to jobs was topmost on the agenda. How do you think this issue can best be addressed, especially in third world countries?

    Of all the challenges that Nigeria faces today, I will not put the job displacing effect of robotics or artificial intelligence at the top level of the problem. I think that Nigeria has much more interest in and has advantage to gain in embracing competitive advantage in new technology which render the economy efficient and produce the kind of competitive advantage which I think outweigh the job displacement system which exist. There is a belief out there that technology will displace jobs on a massive scale and throw up a period of unemployment. That is not the position I will subscribe to. I think that technology will lead to changes in the world of work, but it will not be to the disadvantage of jobs. I think we should look for ways of managing the system for the benefit of society in general.

    With the growing number of young people being unemployed, how should the issue of unemployment be tackled?

    When young people don’t have access to acquiring skills, the risk is that when they arrive the labour market, they will be unemployable and that leaves them with a small prospect of employability. This is not something that is unique to Nigeria, neither is Nigeria dispensed of this problem. I do think that investment in ensuring universal access to education and quality of basic education is a global challenge and is so recognised in the UN 2030 Sustainable Development agenda

    What is your suggestion to Nigeria on the issue of social dialogue and industrial harmony?

    In all the meetings that I was able to have with government, employers and labour, we spoke very frankly. I think there is a very frank and honest recognition of the challenges. I read the speech of President Buhari on democracy day when he said that Nigerian population is projected to double by mid century to become the third most populous country in the world. It is quite obvious that the government understands very clearly the job creation challenge ahead. Also, I think the government has taken this into consideration in the discussions that led to the ratification of the African Continental Free Trade Agreement and the challenges ahead. The real challenge however remain to translate these understanding of issues into practical, well resourced concrete policy responses. I hope the ILO can give assistance towards that endeavour.

  • ‘Fed Govt will paying N30,000 minimum wage’

    Organised labour unions have dismissed the insinuation in some quarters that the Federal Government will not implement the newly approved N30,000 minimum wage.

    The President-General of the Trade Union Congress (TUC) Comrade Bobboi Kaigama said this in Akure, the Ondo State capital, at the fifth triennial delegates’ conference of the state chapter of the union.

    At the conference, Helen Odofin was eloected State Chairman with other new officers, including Clement Fatuase (Vice Chairman); Soladoye Ekundayo (Ex-officio); Dayo Adebiyi (State Secretary) and Tope Akinsola (Assistant Secretary), among others.

    Kaigama, who was represented by TUC’s Secretary-General Musa Lawal, noted that a presidential technical committee on new salaries templates had been set up and was expected to submit its report next week.

    The TUC president assured organised labour unions were following developments in the committee to ensure workers were not short-changed with new minimum wage table.

    Read also: Sanwo-Olu promises ‘swift action’ on minimum wage

    He said: “We are not sleeping. The battle for the minimum wage is very straight and we are not sleeping on it. What we are currently doing is to create a template and that is why we are trying to appeal to those that are receiving more than N30,000 that it is not something you do by magic; it’s technical. That is why we (government and labour) set up a (presidential) technical committee to look into the matter.

    “We don’t believe government can scam the workers because I believe in the welfarism of everybody and I don’t have a doubt in President Muhammadu Buhari’s administration either to scam or not.”

    “Nigeria workers have suffered a lot; they need to be encouraged, happy. Government needs to do something on it quickly.”

  • Minimum Wage: ‘Fed Govt can’t cheat workers’

    The organised labour has dismissed insinuations that the Federal Government was not sincere enough to implement the N30,000 new minimum wage.

    The President-General of the Trade Union Congress (TUC),  Bobboi Kaigama, said this in Akure during the fifth Triennial Delegates’ Conference of the Ondo State chapter of the union.

    Kaigama insisted that the new minimum wage as approved by President Muhammadu Buhari was not a scam, adding that labour unions and their leaders were not sleeping.

    The TUC president assured that organised labour was following developments at the committee to ensure workers were not short -changed with the new minimum wage table.

    “No no no, we are not sleeping, the battle for the minimum wage is very straight and we are not sleeping on it, what we are currently doing is to create a template.

    “And that is why we are trying to appeal to those that are receiving more than N30,000, it’s not something you do by magic, it’s technical and that is why we (government and labour) set-up (Presidential) Technical Committee to look into the matter.

    “We don’t believe government can scam the workers because I believe in the welfarism of everybody and I don’t have doubt in President Muhammadu Buhari’s administration to honour the deal,” he said.

    At the swearing-in of its new officers, Kaigama who was represented by the Secretary-General of TUC, Musa Lawal, noted that a presidential technical committee to work out new salary templates was set up and it is expected to submit its report next week.

    Helen Odofin emerged the new State Chairman. Other newly elected officers included Clement Fatuase – Vice Chairman; Soladoye Ekundayo – Ex-officio; Dayo Adebiyi -State Secretary; Tope Akinsola – Asst Sec; Taimiyu Olufemi – Treasurer;

    Others are; Ikechukwu Nneke – Fin Sec; Femi Owolabi -PRO; Olusegun Akinbolasere -Auditor I; Makinde Ayesoro – Chairman.

    The outgone State Chairman of TUC, Mr Soladoye Ekundayo, advised the new executive members to make a judicious use of their time and energies by attending to issues that affect workers.

    Odofin, the new TUC chairman, in her acceptance speech said: “The congress and its teeming members have at this time asked me to take lead in the struggle for workers welfare and I have accepted.”

    The Ondo state Chairman of the Nigeria labour Congress (NLC),  Sunday Adeleye, said labour unions in the state would start negotiations on the new minimum wage as soon as the Federal Government comes up with an acceptable template.

    Gov. Oluwarotimi Akeredolu reiterated his administration’s determination to improve on the welfare of workers.

  • Ngige to states: do not delay minimum wage payment

    Labour and Employment Minister Chris Ngige yesterday urged state governments and other employers of labour to start the implementation of the N30, 000 minimum wage.

    He said the immediate implementation of new salary regime remained the only way to avoid a huge backlog of arrears that will likely create labour unrest for them.

    Ngige also advised the states to avoid the mistake they made in 2011 when they carried out percentage increase across board for workers, thereby placing them in a position of not being able to pay wages, adding that “any state that does percentage increase will put itself in a disadvantaged position as it will not be able to pay.”

    The minister told reporters that no state governor can refuse to implement the minimum wage being a national law, adding that the earlier they start the implementation, the better it will be for them.

    Ngige said with the signing of the new minimum wage bill into law by the President, the new wage now takes effect from April 18, 2019, adding that “any employer of labour that has not commenced the payment is already owing workers arrears of the new wage.”

    The former senator said: “The minimum wage was one of the products of the technical committee that worked on the palliatives as a result of the increase in pump price of PMS.

    Read Also: Minimum wage: NYSC allowance rises to N30,000

    “We were the anchor ministry and I led the government delegation comprising about seven ministers, the National Salaries and Wages Commission and the state government.”

    Reminded that state governors were complaining of inability to pay the new wage, Ngige said: “it is a national law and no governor can say he will not pay. Issue of national minimum wage is item 34 on the exclusive legislative list in the third schedule of the Nigerian constitution. Issue of labour is also there and not on the concurrent list. If it is on the concurrent list, then they can make their own state Assembly laws on that.

    “Any state government that has not started implementation of the new minimum wage is now owing workers’ especially if they have not started paying N30, 000. They are owing workers effective from 18th of April, the new minimum wage.

    “We are now in a committee working out a new template with which we will adjust the consequential adjustment upstairs for those already earning above N30, 000.”

  • Ngige advises states not to delay minimum wage payment

    Labour and Employment Minister Chris Ngige yesterday urged state governments and other employers of labour to start the implementation of the N30, 000 minimum wage.

    He said the immediate implementation of new salary regime remained the only way avoid a huge backlog of arrears that will likely create labour unrest for them.

    Ngige also advised the states to avoid the mistake they made in 2011 when they carried out percentage increase across board for workers, thereby placing them in a position of not being able to pay wages, adding that “any state that does percentage increase will put itself in a disadvantaged position as it will not be able to pay.”

    The minister told reporters that no state governor can refuse to implement the minimum wage being a national law, adding that the earlier they start the implementation, the better it will be for them.

    Ngige said with the signing of the new minimum wage bill into law by the President, the new wage now takes effect from the April 18, 2019, adding that “any employer of labour that has not commenced the payment is already owing workers arrears of the new wage.”

    The former senator said: “The minimum wage was one of the products of the technical committee that worked on the palliatives as a result of the increase in pump price of PMS.

    “We were the anchor ministry and I led the government delegation comprising about seven ministers, the National Salaries and Wages Commission and the state government.”

    Reminded that state governors were complaining of inability to pay the new wage, Ngige said: “it is a national law and no governor can say he will not pay. Issue of national minimum wage is item 34 on the exclusive legislative list in the third schedule of the Nigerian constitution. Issue of labour is also there and not on the concurrent list. If it is on the concurrent list, then they can make their own state Assembly laws on that.

    “Any state government that has not started implementation of the new minimum wage is now owing workers’ especially if they have not started paying N30, 000. They are owing workers effective from 18th of April, the new minimum wage.

    “We are now in a committee working out a new template with which we will adjust the consequential adjustment upstairs for those already earning above N30, 000.”

  • ‘With financial discipline, all states can pay new minimum wage’

    Rt Rev. Akinpelu Johnson, the Diocesan Bishop of the Diocese of Lagos Mainland, (Anglican Communion), has commended the Federal Government for granting the new minimum wage, and called for introduction of more policies and measures aimed at cushioning the economic hardship of Nigerians.

    Johnson spoke at the 1st Session of the 5th Synod of the diocese with theme: “Who is on the Lord’s Side? Let Him Come to Me”, at the All Saints Church, Yaba, on Friday.

    The cleric said that though some state governments had said they would not be able to pay the new minimum wage, they should actually be able to do so if they curb wasteful spending and have financial discipline.

    “Although some state governments have announced their inability to pay the new wage, we think they can, if they have both the political will and financial discipline to curb wasteful spending.

    Read Also: Ngige to states: do not delay minimum wage payment

    “With a little more prudence in the management of their financial resources, every state of the federation can pay the new minimum wage.

    “Once the public sector leads in their direction, the private sector employers, including the non-profit organisations such as the church, must take a cue by doing same,” he said.

    Johnson also urged employees to commit to higher productivity in the overall interest of their employers and the nation.

    He appealed to the Federal Government to invest hugely in the education sector to improve the quality of education in Nigeria.

    According to him, the prosperity of any country is based on the quality of education it offers its citizens at all levels.

    “The prosperity of any country is based on the quality of education it offers its citizens at all levels, but perhaps most importantly at the foundational stage of people’s lives.

    “No country can flourish without a solid foundational system; our educational system is at its lowest ebb and public education for the average Nigerian child is nothing to write home about.

    “We implore the various agencies of government responsible for the sector to do more to raise the standard of education in the country by increasing investment in infrastructure and manpower.

    “The endless strike in our institutions of higher learning can only be detrimental to the future of this country,” he said.

    The cleric urged the federal government to encourage the private sector to join the public sector in funding  research grants for universities.

    Speaking on the security situation of the country, the cleric urged the federal government to put measures in place to restore confidence in Nigerians and bring peace to troubled areas.

    ”The issue of insecurity has continued with even greater intensity; Boko Haram and Fulani herdsmen problems have continued unabated, claiming lot of lives and properties.

    “Kidnapping has become a veritable source of income for many youths,” the Bishop said.

    He urged the government to be more vigorous in tackling the insecurity problems.(NAN)

  • Minimum wage battle is not over, says Wabba

    Comrade Ayuba Wabba is the President of the Nigeria Labour Congress (NLC). In this interview with Victor Oluwasegun and Tony Akowe, he speaks on the new minimum wage, unionizing the Police and other paramilitary agencies, and issues concerning the Nigerian workers and the country as a whole. Excepts

    MAY 1 is considered as a day for workers. What has been the progress made so far and the challenges?

    Symbolically, May 1 is to celebrate workers. It is a day set aside to look at the conditions of workers around the world. We have also used the opportunity of the May Day to canvass policy options that will bring about social justice in our system that will be able to address the challenges of workers. There has been some progress and challenges and progressively, most of the gains that workers have been able to achieve. It is given that when a worker works, he deserves his pay and so, the issue of his monthly pay should not be an issue. But recently, you have seen that in some states and local government and even in some private entities, the issue of workers’ wages is taken for granted. Regular payment of salaries is becoming a challenge because our political elites no longer prioritise the welfare of workers as it used to be. Therefore, it has become a continuous struggle between capital and labour. So, we have continued to make sure that policies are not made in such a way that it will put labour at a very disadvantaged position. Global wealth in the last two decades has more than tripled, but what is the condition of workers around the

    world, especially here in Nigeria. If you look at the previous years and what we have now, you will discover that we have not made progress and the little progress we have made are being eroded. If you look at the issue of the minimum wage, as far back as 1981, the N120 minimum wage was equivalent to $2,440. In 2011, the N18,000 minimum wage was hovering around 140 dollars. But today, we are even discussing to increase the minimum wage of N30,000 which is less than $100 and people are finding it difficult to pay that. Today, you have seen that there are lots of challenges, workers no longer have decent living, many workers cannot send their children to school, many of them cannot have three meals per day and many others cannot pay their bills.

    We have also used the May Day to make progress. The struggle for the first May Day was to ensure workers get eight hours of work per day. Before then, workers worked like slaves. If you fall ill, you’re replaced and business continues. It was through the agitation of workers that we were able to get the eight hours a day, forty hours per week, maternity leave, leave allowance, leave days among others. All these were not achieved on a platter of gold, but through our collective struggle as working class. Therefore, these have been some of the achievements and there are some challenges that are on ground.

    For Nigeria as a member nation of the International Labour Organisation (ILO), what have been the gains after 60 years as a member?

    Substantially, let me say that Nigeria has keyed into the adoption and ratification of the eight conventions. Nigeria is the first country in Africa to do so. Precisely, we did that in October 1960 under a democratic progressive government where the eight conventions were ratified by Nigeria. That is the foundation because you can’t put something on nothing. That is the foundation of the progress we have made. Despite operating under a military regime that didn’t want freedom of workers to be respected, but because those conventions were put in place, they found it difficult to either use force or try to undermine those conventions. Each time those conventions were undermined; ILO has

    come down hard on Nigeria. If you remember, on two occasions, the NLC was dissolved, but it was still recognised internationally as the trade union body representing the interest of Nigerian workers and within that period, the President of the NLC, Comrade Ali Ciroma continued to serve on the governing board of the ILO. So, without standards, the rules will not be respected and the rules have so far been respected in Nigeria and where there are infractions, we have avenue to lodge complaints and they will be looked into and addressed. So, progressively, Nigeria has been able to achieve a lot within the umbrella of the ILO. You will recall that we are the first country in Africa to host the field office of the ILO as far back as 1959 and Nigeria is the first country to host the regional conference of ILO.

    The issue of the minimum wage has practically been laid to rest with the signing of the law ad we are now going into the implementation stage. How do you intend to drive the process to ensure that it is implemented without any hitch particularly within the state and private sector level?

    I will say that it has not been finally laid to rest because it has three legs. We have been able to pass the first two huddles. The first huddle is agreeing on a figure and you will recall that it was an issue that went forward and backward. But because we were able to inform all those concerned that when you agree on a collective bargaining table, you take all issues into considerations, including the ability to pay as well as the interest of the organised private sector and the informal sector. That was how the NLC was able to negotiate and ensure that we have an increase. That is the rationale behind accept

    ing the N30,000. You could recall that our demand was actually N66,500. Even that was just to bring back the value of N18,000 minimum wage which was about 140 dollars. That is actually the logic in that argument. But on the negotiating table, there is always the process of give and take and that was how we agreed on the N30,000 which is not something that should be argued about.  But you saw how some people tried to twist the information, including trying to bend the truth. The beauty of it is that you can bend the truth, but truth will always remain and will surface at the end of the day. We presented the fact at the public hearing saying negotiations are like consent judgments. Once you concede to an issue, you can’t go back to court and say, no, I did not agree. We told them that this was like a consent judgment because all agreed on the N30,000. I want to thank NECA for their efforts. Despite the fact that they are in business for profits, they have not let us down. They are people that have remained very honourable and told the public hearing that the N30,000 was mutually agreed and that they stand by that. That was how we passed the first huddle with the two chambers of the National Assembly passing the bill. We must put on record, our appreciation to the House of Representatives because they assured us that once the bill is introduced to parliament, they will pass it into law within three days and they did just that in a celebrated manner. The bill was also signed by Mr. President and with that, N30,000 has come to stay. It is now legal and everybody that does not pay is infringing on our laws.

    Does that include the private companies?

    Yes. In fact, I don’t think the private companies have issues because most of them are very passionate and some of them are paying higher than that and they are ready to pay higher. Clearly, the issue is with the local government and states that are not ready to utilise the resources that abound in their domains, but rely on monthly handouts from the centre.

    But there is a law that says you can’t mine the resources within your domain.

    We are not talking about mining, but internally generated revenue. Every state can use their ingenuity to generate more revenue and augment whatever comes from the federal allocation. There is no state in Nigeria that does not have revenue, but the problem is accounting for the revenue. In fact, in most cases, the revenue has become pocket money for the boys and not accounted for. So, we want the internally generated revenue to be accounted for. We have also progressively put some recommendations in place on how the federal government can generate revenue and one is the issue of tax. We have looked at our tax to GDP and discovered that we are the lowest in Africa because it is only workers that pay correct tax. Our rich men don’t pay tax. We have many billionaires who only declare profit, but not what they pay as tax. We need to make sure that our tax to income is something that is progressively expanded to cover everybody. If we do this, there will be more than enough. In fact, most countries of the world rely so much on tax to develop their economies. In our own case, it is only workers that pay the tax. Second, is managing our God given resources. For example in the oil and gas sector, Nigeria has no basis importing refined product and exporting crude oil. Countries like Singapore that does not have oil, have a refinery. We now take our crude oil, transport it, pay taxes and levies to go and refine it and import the refined products does not make economic sense. That is why we have had tremendous wastage in the oil and gas. That is

    why the issue of subsidy is still there; that is why the issue of transparency has become a challenge in the management of those resources. As far back as 2008, NLC had a well-documented position on the so called subsidy or deregulation or whatever name you call it. We sat with government and they pleaded for a four year moratorium to fix our refineries and end the regime of importation. That has not taken place till now, nothing has happened and the situation has continued under different regimes. Therefore, that is the centrality of our problem. Our entire economic challenge is tied to this particular issue. It is an area where we have comparative advantage. There is no OPEC country today that does not refine crude oil for domestic use. The existing refineries can actually meet our domestic consumption need. Refineries can be upgraded. We brought one of the best Nigerians from Texas who consults for many countries including OPEC to give us a position paper on how to fix our oil and gas and he gave us a very good paper. We are trying to dust that paper now and write a white paper to government that this thing can be done. He told us how to ensure the security of the pipelines, how to ensure that our refineries are upgraded and are working optimally; what can be done to care for the entire West African market as well as the resources that will accrue to Nigeria and the jobs that will be created.

    There is also the issue of casualisation especially with the foreign companies. What is the NLC going to do to ensure they benefit?

    The law is very explicit. Once you are employing 25 workers and above, you should implement the minimum wage. We are aware that people actually under declare, but we’re going to make sure that implementation is enforced. Even if they are casual staff or the services are outsourced, that does not exclude them from the minimum wage. The exclusion from the minimum wage is very explicit. So, those categories of workers will still benefit from the minimum wage.

    Don’t you think that the wage increase will trigger inflation?

    I am yet to have an empirical date

    to link minimum wage to the issue of inflation in Nigeria. When the 2011 minimum wage was implemented, our inflation rate dropped and for two years, the inflation rate actually dropped and you can confirm that from the National Bureau of Statistics. There are many things responsible for inflation and not essentially minimum wage. If today the exchange rate is stabilised and we are able to get exchange rate of about N200 to the dollar, cost of goods and services will also come down. The issue is that most of the things we use in Nigeria are imported and they are tied to the exchange rate. At every point the exchange rate fluctuates, the cost is transferred to the consumer. So, there is no direct empirical data that links the issue of minimum wage to the hyper inflation that we have had. When the last minimum wage was implemented, the exchange rate was less than N200 and there are several reasons why the rate of inflation has gone up. So, I don’t expect that there will be inflation that will be out of proportion as a result of the minimum wage.

    The country is using the dual exchange regime whereby at CBN official rate and the parallel market rates are causing dislocations in the economy.  What is your take?

    Yes! We have dual exchange rates, one in the open market, and the one being sold by the CBN. I think the CBN rate is around N306 which, if you’re travelling, will be given a limited amount you can use. This regime has continued for quite some time. I think it has also assisted in stabilizing the exchange rate because the time the exchange rate was even going as far as N500 to the dollar. So it has assisted but it has not addressed the problem permanently because the fact that demand and supply are still regulating the system because the demand seems to be higher and the supply from Central Bank seems to be lower. In this case: the price will continue to fluctuate. That is why despite the fact that the official rate is N306, we have not been able to reflect that in the parallel market because the gap is still very huge from N306 to about N360 or N358. Therefore I think the way forward is to try to see how this gap can be eliminated. If the

    exchange rate can be brought down to 306, in the official level and parallel market level, then the cost of goods and services will also come down.

    Technology is taking over the jobs of humans. This is a big challenge for workers across the globe. At the level of ITUC, what do you think needs to be done?

    ITUC has prioritized three issues: democracy, workers’ rights, and the issue of peace. And the three are inter-related and the level of ITUC we are campaigning for a just transition. Just transition means that even as we progress into the digital world, the issue of workers’ rights must continue to receive the attention it deserves and that workers must continue to have better conditions of service. We’ve looked at the issue of also the new forms of work particularly the digital economy. I’ve seen clearly four companies around the world whose GDP is more than the GDP of the entire African continent, this includes Amazon. The GDP is over $20 trillion which is the GDP of the entire African continent. So clearly, going into the future it’s actually the digital platform that will control the entire world economy. Whereas the average growth in the entire African continent is between 3.5 to 5%.

    During the May Day you talked about unionising the Police, how do you hope to achieve that?

    It’s about our law because in South Africa the police is unionised, in Britain, our colonial master, the Police is unionised, but there was a law that was put in place, if you remember, during Babangida where they said that the paramilitary, including Police…remember we had a union for Customs and Immigrations Service, and even in the report of ILO, that proscription is still being challenged, and ILO has given a verdict that those workers have a right to be unionised.  In a country where even where without a union, the Police has gone on strike, it’s better to organise and unionise them to take their rights and interest.  We’re working on some laws that will allow those categories of workers to be unionised. We can only sleep with our eyes closed if those people are working and progressing. We need to know what are the challenges of insecurity.

    You’re recently re-elected. What would you say this office and the struggled have cost you?

    For us the struggle is our life and NLC is an organization that has a set of rules, a set of standards, and an ideology for a just society and that has been how our leaders have been elected. You must have politics, voters must also have some confidence in you. I’m happy that they have appreciated the little effort we have been making, working under difficult conditions in the past four years. We have done our best to make sure the plight of workers is heard and their issues raised. We have also been on the streets in various platforms to make sure that the workers issue is being given desired attention and that they are partners in progress. I think these are some of the things that the union has seen that made them return me back unopposed.

    Do you subscribe to the idea of part-time legislators?

    Certainly. Politics should not be an occupation. It is a service. Every politician should have something to do, a business. You must be a tested professional in many other jurisdictions. That is how you will understand legality and the importance of the office you have been elected into. But when someone has nothing to do, if elected, they will not be able to understand the importance of that office.

     

     

     

  • Health workers seek minimum wage implementation

    Medical and Health Workers Union (MHWU) in Lagos State have called for the implementation of the minimum wage, seeking its reflection in their salary structure.

    The call was made at the union’s celebration of Workers Day at the Lagos University Teaching Hospital (LUTH), Idi Araba, Lagos State,

    MHWU Chairman, Federal Area Council, Lagos, Comrade Attah Isah said: “Since the President has signed the minimum wage passed by the National Assembly, we, as a union, want to know when it will be implemented and when it will reflect in the salary structure. We want to see the template of the minimum wage that has been approved.”

    He appealed that the money owed health workers be paid, urging President Muhammadu Buhari to appoint an administrator as the next Minister of Health, noting that such personnel is what is needed to attend to the affairs of the sector.

    “We have had enough troubles in the Ministry of Health. It is time we had peace and when there is peace there will be progress. Health workers need better and improved working conditions, as the health sector in the country is nothing to write home about,” he said.

    Former MHWU Chairman, Federal Medical Centre, Ebenezer Akande, thanked the President for the minimum wage. He, however, lamented on how health workers are treated in the country. “Health workers deserve better, the government takes care of the doctors as if they are the only ones that matters in the health sector, but the doctors cannot work without us. Doctors’ salary upward review has been approved twice, but ours not even once. How do they expect us to be happy doing the job and we have the larger percentage in the health sector. We want to be happy doing our job. The government has not been good to us, we want them to increase our salary too as they have done  for the doctors,” he said.

    MHWU National Auditor, Comrade Siwoku Olusegun, said the minimum wage approval is a call for celebration for all workers.

    He appealed to the Federal Government to come to their aid and pay their unpaid salary.

  • Cut cost to implement N30,000 minimum wage, Makinde advised

    OYO State Governor-elect Seyi Makinde has been advised to cut the cost of governance to enable him to implement the N30,000 minimum wage for the state government’s workers.

    The advice was given by the Oyo State chapter of the Justice Must Prevail Party (JMPP) in a statement by its chairman, Oluseye Smith, yesterday.

    Stressing that Oyo State workers deserve the new wages, which their counterparts in other states would receive, the party advised the incoming governor to embark on a number of cost-cutting measures to free funds for the new wages.

    The measures suggested include the reduction of the number of political appointees, plugging of leakages in the finances of the government and introduction of radical reforms.

    According to the JMPP, Makinde’s administration should also bring innovation to governance and embrace technology to drive governance structure to improve ease of doing business to attract investors.

    The party explained that the economy of the state revolves around the purchasing power of workers, hence the minimum wage’s strategic importance.

    It read in part: “The JMPP hereby reminds the Governor-elect Makinde that to whom much is given, much is expected. The massive votes he got during the last gubernatorial election were largely due to votes from workers in the state. The micro-economy of the state revolves around the purchasing power of the workers. The minimum wage, if implemented, will have a multiplier effect and will go a long way in alleviating poverty and hardship being experienced by the people in the state.”

    The party noted that “re-enforcement of the same failed old policies of the past (relying on federal allocation) must be downgraded while the mechanism is should be put in place to shore up Internally Generated Revenue (IGR) in the state.”

    Makinde had criticised the fixing of the new minimum wage, saying states should have been allowed to fix its own wages based on individual strength. He promised to set up a committee that will dialogue with the workers immediately after his swearing-in.