The Nation Newspaper

Tag: minimum wage

  • Minimum wage, maximum trouble

    How did organised labour fare in the outgoing year? Its leaders feel labour was shortchanged, citing the rise in the unemployed from 3.3million – from 17.6million in quarter three of last year to 20.9million during the same period this year. There is also the unresolved minimum wage crisis. TOBA AGBOOLA writes.

    Labour leaders  are not happy. Reason: Workers’ experience in the last 12 months has been harrowing.

    They lamented that workers were made to suffer for the failings of the political elites.

    Although they acknowledged measures taken by President Muhammadu Buhari to rebuild the economy, they are unhappy that not much has been achieved.

    Below is the chronicle of the minimum wage.

     

    National Minimum Wage

    Early this year, workers were  optimistic that the Federal Government would give them a living wage.

    President Buhari in November 2017 approved a 30-member tripartite National Minimum Wage Committee to negotiate a new national minimum wage.

    The committee was made up of  public sector (Federal and state governments) and the private sector. They include the Nigeria Employers’ Consultative Association (NECA).

    Others were the Manufacturers Association of Nigeria (MAN), Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Nigerian Association of Small and Medium Enterprises (NASME).

    The committee started work last March with unveiling of a new national minimum wage  slated for last  August.

    • On September 12, Nigeria Labour Congress (NLC) warned that would start a nationwide strike on September 26, 2018, if the Federal Government refused to pay a new minimum wage of N56,000.
    • Governors wondered how they could pay N56,000 when they were finding it difficult to pay N18,000?
    • With organised labour threatening to shut the economy, Minister of Labour Chris Ngige promised that the tripartite committee set up to review the minimum wage, would reconvene on October 4 and continue negotiations.
    • NLC declared that the governors who were opposed to the new minimum wage would lose the February 2019 elections as workers would be mobilised against them.

    “Majority of governors that fail to implement the minimum wage may not come back for their second term. Instead they will be voted out of office, because of lack of political will,” said Adamu Garba, NLC vice chairman in Gombe.

    • On September 27, NLC warning strike began. It succeed in several states; business activities were paralysed.
    • The Federal Government called for an emergency meeting with labour to resolve minimum wage brouhaha.
    • On September 30, NLC called off the strike.
    • October 8, 2018, NLC President Ayuba Wabba said the Federal Government would soon announce a new minimum wage.

    “I want to assure workers that all has been concluded and will be passed for signing within the week.

    “I also want to appreciate the Organised Private Sector, Manufacturers Association of Nigeria and Nigeria Employers Consultative Association (NECA) for their resolve to pay the new minimum wage when it is signed into law,” Wabba said.

    • Federal Government declared that new minimum wage would be N24,000, on October 10.

    “The state governments’ figure last time was N20,000; the Federal Government had a figure of N24,000 and that was where we all stood.

    “These negotiations took into account these irreducible offers from the different governments but we could not arrive at a consensus,” Ngige said.

    • Labour urged the Federal Government to accelerate implementation of new minimum wage.
    • With everyone going quiet again, labour called for crucial meeting.
    • On October 18, Chairman of the Nigeria Governors Forum (NGF), Governor Abdulaziz Yari of Zamfara State said governors could not pay a new minimum wage.

    “But, the problem of states is the capacity to pay what is agreed. As we are talking, we are struggling with N18,000. Some of the states are paying 35 per cent, some 50 per cent and still some states have salary arrears.

    “So, it is not about only reviewing it, but how we are going to get the resources to cater for it?”Yari asked.

    • Labour threatens another strike.
    • The Federal Government pleaded with labour to accept N24,000 as the new minimum wage. Labour said it’s either N30,000 or not.
    • On October 19, NLC threatens Federal Government with strike.
    • The Federal Government threatens workers with “no work, no pay” policy, if strike holds.
    • Labour gets angry, says the “no work, no pay” policy is madness. “The threat of “no work, no pay” will not deter us from embarking on strike, when necessary”, labour fires back.
    • Ogun State Governor Ibikunle Amosun said governors were not magicians, couldn’t pay a new minimum wage.

    “With N18,000 minimum wage, only seven or eight governors are able to pay full salaries.

    “We are not magicians or miracle workers that will turn things around. We only make do with what we have, nobody has the money,” Amosun says.

    • With labour re-iterating that it’s going on strike on November 6, 2018, Ngige briefs President Buhari and Vice President Yemi Osinbajo on the steps taken to avert strike.
    • Meanwhile, labour asked Nigerians to stockpile food because the looming strike would be total.
    • On October 30, governors said they would hold an emergency meeting on the new minimum wage.
    • Benue State Governor Samuel Ortom promised to pay the state workers any amount agreed upon as new minimum wage. “I am known for championing improved welfare for workers,” Ortom assured.
    • Governors agree to pay N22,500 as minimum wage. “It is in this sense that we feel strongly that our acceptable minimum wage must be done in such a way that total personnel cost does not exceed 50 per cent of the revenue available to each state.

    “Governors therefore agreed to pay a national minimum wage of N22,500,” Yari says.

    • Labour insists it’s N30,000 or nothing. Threatens government with election loss if it doesn’t pay up.
    • Ngige comes out to say labour doesn’t agree with N22,500 agreed by governors.

    “The governors have not even done enough. I told them that this N22,500 was even rejected by the Federal Government.

    “The national minimum wage is a national legislation being driven by the Federal Government in pursuance to item 34 of the exclusive legislative list. But you don’t go and make a law which people will disobey at the initial,” the minister says.

    • Osinbajo held a meeting with the Economic Management Team on the minimum wage.
    • Meanwhile, labour doubles down on strike. “We wish to reiterate our position adopted at our National Executive Council (NEC) meeting on October 23 that any figure below N30, 000 will not be accepted by us.

    “We call on our members to continue to mobilise in preparation for the commencement of an indefinite strike on November 6, if by then necessary steps are not taken to adopt the recommendation of the tripartite committee,” Wabba said.

    • November 6. After a meeting with the Federal Government, which lasted for about 10 hours, the Organised labour called off its strike.
    • December 19. President Buhari, during the presentation of the 2019 budget to the joint National Assembly, announced plans to set up a high- power technical committee to look into the implementation of the minimum wage.
    • December 21. The organised labour rejected the committee, saying the government’s plan was diversionary and a delay tactic.

    Wabba said: “As far as we are concerned, all the issue has been addressed by the tripartite committee. This one is a delay tactic by the Federal Government and it will not work.”

    ULC President Joe Ajaero said it was not the duty of the Federal Government to know how the states or private sector would implement the minimum wage.

    “The Federal Government should allow the labour union in each state to discuss with their respective state government on how to start the implementation,” Ajaero said.

    They, however, said if the government failed to transmit the bill to the National Assembly for implementation on or before December 31, labour would re-open the suspended strike.

     

    Other events

     

    Unpaid salaries and pensions/retrenchments

    The union tackled some state governments over the non-payment of outstanding wages and pension of workers and pensioners.

    Union leaders said one of the legacies of the misrule of the preceding years was the  irregular and non-payment  of retired civil servants, which he said amounted to 12 months’ arrears in many states.

     

     Unemployed rises  from 17.6m to 20.9m

    The number of unemployed Nigerians rose by 3.3 million to 20.9 million in the third quarter of the year, a report from the National Bureau of Statistics (NBS) has shown.

    According to NBS, unemployment and underemployment report for Q3’18, indicated that year-on-year (YoY) the rate of unemployment rose by 3.3 million or 19 percent to 20.9 million in Q3’18 from 17.6 million in Q3’17, while on quarterly basis, it rose by three percent from 20.3 million in Q2’18.

    The report showed that unemployed and under-employed female population far outpaced that of the men folk.

  • FG to NLC: drop ultimatum on minimum wage

    The Federal Government pleaded yesterday with the Nigeria Labour Congress (NLC) to drop its threat of industrial action at the end of the month over the proposed N30,000 national minimum wage.

    Reacting to the 10-day ultimatum issued on Thursday by the labour leadership to the federal authorities to transmit the minimum wage bill to the National Assembly for consideration immediately, Information and Culture Minister Lai Mohammed advocated ‘continuous engagement’ between the two sides with a view to resolving their differences.

    “Continuous engagement, I think, is the key. We will continue to engage them and I think they do also fully understand what the challenges are, and both parties are determined to ensure that a common ground is arrived at, which will be comfortable for all,” Mohammed told reporters after a meeting with President Muhammadu Buhari at the Presidential Villa, Abuja.

    But the Nigeria Labour Congress (NLC) claimed that the delay by the federal government in forwarding the minimum wage bill to the National Assembly was a demonstration of acute insensitivity to the plight of Nigerian workers, their families and ordinary citizens.

    The NLC also condemned what it described as sustained deployment of brute force by political office holders to harass, hound and victimise workers and labour leaders, vowing that such actions would no longer be acceptable to workers in the country.

    The Information Minister described the NLC as “a very patriotic union”, and expressed confidence that it would do nothing capable of embarrassing the government or Nigerians.

    His words: “The Nigeria Labour Congress is a very patriotic union and I am very confident that they will not do anything that will embarrass the government or do anything that is going to worsen the situation.

    Labour accuses FG of insensitivity, vows to mobilise workers against govs

    The National Executive Council of the NLC also met in Abuja yesterday to review the minimum wage issue, branding federal government’s handling of the matter as a demonstration of acute insensitivity to the plight of Nigerian workers, their families and ordinary citizens.

    The NLC NEC also condemned alleged sustained deployment of brute force by political office holders to harass, hound and victimize workers and labour leaders.

    It vowed that such harassments would no longer be tolerated.

    It spoke of plan to embark on a national sensitization of workers from January 8, 2019, especially against state governors who have formed the habit of not paying workers’ salaries.

    In a communique signed by NLC President Wabba and the General Secretary, Dr. Peter Ozo-Eson, the congress said: “The continued delay by the Federal Government to transmit the Bill of the new national minimum wage to the National Assembly for enactment into law is unacceptable.

    “This leisurely conduct of serious state affairs is even after the National Assembly had passed a resolution urging the President and the executive branch of government to transmit the new national minimum wage amendment bill to it for consideration and passage into law.

    “The NEC expressed total dissatisfaction with the consequential delay and unacceptable lethargy in the process of regularising and implementing the new national minimum wage of N30,000. “The calculated inaction of the Federal Government is a demonstration of acute insensitivity to the plight of Nigerian workers, their families and ordinary citizens”

    It took strong exception to alleged unrelenting attitude of the Ogun State Government to frustrate efforts to peacefully reinstate the NLC chairman in Ogun State, Comrade Akeem Ambali, who was sacked by the state government in the middle of a 2016 strike action to protest injustice against Ogun State workers.

    The NLC said: “The Comrade has been made to suffer unfair treatment for nearly two years on account of the performance of his legitimate duties. This ugly situation has persisted despite repeated emissaries sent to the Ogun State governor to reconsider his unsupportable position on the issue.

    “The entrenched insensitivity by some state governments and other political office holders to the plight of workers and pensioners, especially in the states owing several months of salary arrears, unpaid pension and gratuity of retired workers.

    “It is most unfortunate that many of the governors diverted a significant part of the bailout funds and the Paris Club Refund initiatives meant to offset salaries, pension and gratuity owed workers and pensioners for purposes of personal aggrandizement and to fund non-impactful frivolous programmes and projects.

    “The NEC demanded a full investigation by the EFCC of the disbursement of all bailout, Paris Club refund and budget support releases to the states.”

    Besides, it condemned “the trampling upon the fundamental human rights and freedom of association by the Ogun State Governor especially pertaining to the irresponsible purported proscription of trade union rights in Tai Solarin College of Education, Omu-Ijebu Ode, Ogun State.

    “The NEC also denounced the continued refusal to pay the salaries of workers in the College of Education for nearly three years.

    “The NEC expressed grief for the needless loss of lives and unbearable suffering by workers of the Tai Solarin College of Education, Omu-Ijebu Ode, as a result of Governor Ibikunle Amosun’s flagrant disrespect of the rights of workers of the Tai Solarin College of Education, Omu-Ijebu Ode, Ogun State, to their wages and salaries;

    “To further engage the Ogun State Government, for the final time, for a peaceful resolution of the issues already highlighted and the reinstatement of the Chairman of the Ogun State Council, Comrade Akeem Ambali. Thereafter, in the spirit of “injury to one is an injury to all”, the NLC may be left with no option than to mobilize workers all over Nigeria for sustained industrial action in Ogun State;

    “That all state governments still owing workers arrears of salaries, pension and gratuity must settle all their wage liabilities before the 2019 general election. The NEC reiterates its earlier directives to workers all over the country not only to vote out State Governors and other political office holders owing workers but also, to mobilize their families and friends to ensure that all elected public office holders who are not worker-friendly are voted out of office in the forthcoming 2019 general elections.

    “Nigerian workers are also directed to support in full force the re-election bid of all state governors and political office holders who are worker-friendly and up to date in the payment of workers’ salaries and gratuity cum pension for retired workers.”

    The NLC also protested what it called the un-abating neglect of the education sector by both the Federal and State governments.

    It said: “This utter abandonment of the development of the human capital of our country has been chiefly exemplified by the refusal of government to respect the agreement it freely entered with ASUU, especially the Memorandum of Action of November 2017.”

    On its planned nationwide mobilization of workers on the delay by the Federal Government in transmitting, enacting and implementing the new national minimum wage of N30,000,it said the protests should “hold in all State capitals and the Federal Capital Territory Abuja on 8th January, 2019. The NEC mandates all industrial unions and state councils to fully mobilise workers and coordinate with other labour unions for this mother-of-all protest.”

    It asked the Federal Government to honour its 2017 Memorandum of Action (MoA) Agreement with ASUU in order to restore sanity and raise the quality of the products of our public universities.

  • Minimum wage: FG pleads with NLC over ultimatum

    The Federal Government on Friday urged the Nigeria Labour Congress ( NLC ) to discard the Dec. 31 ultimatum issued over lingering disagreement between organised labour and state governments on the proposed N30,000 national minimum wage.

    The Minister of Information, Lai Mohammed, made the appeal while speaking with State House correspondents after a closed door meeting with President Muhammadu Buhari at the Presidential Villa, Abuja.

    The organised labour had on Thursday gave the ultimatum following President Muhammadu Buhari’s statement that a “high powered technical committee” would be set up to device ways to ensure that implementation of new minimum wage would not lead to an increase in the level of borrowing.

    The president stated this on Wednesday when he presented the 2019 Appropriation Bill of N8.83trillion at the joint session of the National Assembly.

    However, the President of the NLC, Mr Ayuba Wabba, who addressed newsmen on Thursday, expressed organized labour’s reservation over President Buhari’s position, saying that setting up a technical committee could not be a condition for passing the minimum wage report to the National Assembly.

    “We reject in its entirety the plan to set up another `high powered technical committee’ on the minimum wage. It is diversionary and a delay tactics.” he had stated

    But Lai, who described the NLC as “a very patriotic union”, said he was confident the organized labour would not do anything that would embarrass the government or Nigerians.

    He said: “The Nigeria Labour Congress is a very patriotic union and I am very confident that they will not do anything that will embarrass the government or do anything that is going to worsen the situation.

    “Continuous engagement I think is the key, we will continue to engage them and I think they do also fully understand what the challenges are, and both parties are determined to ensure that a common ground is arriving at which will be comfortable for all.” he said

    The minister, who briefed President Buhari on the activities of his ministry on Friday, said he made a portrait of the President in five major Nigerian attires, “one is in Yoruba, Hausa, Igbo, Efik and one in suit.

    “It is reminiscent of the portrait we use during this campaign.’’

    On Senate President Bukola Saraki’s comment on 2019 budget proposal which was presented by President Buhari at a joint session of the National Assembly on Wednesday, the minister said it was not the practice of the executive to be exchanging words with other arms of government.

    “It is not the practice of the executive to be exchanging words with the legislative arm of government, they are independent, we are independent but to the best of our knowledge, we presented a budget given the circumstances of our resources this year.

    Read Also: Labour rejects proposed technical committee on minimum wage

    $We feel that is the best we can. It is left for the National Assembly to consider it,’’ he said.

    Saraki had on Thursday asked Nigerians not to expect much from the 2019 Appropriation Bill, describing the budget proposal as hopeless.

    The minister also noted that the Buhari administration had delivered on its promises to Nigerians.

    “We are happy that we have been able to meet all our promises, all our obligations to Nigerians.

    “And as the year rolls out, we are more determined to even to deliver more to Nigerians.

    “I wish to use this opportunity to wish everybody Merry Christmas and a happy New Year.’’ he added.

  • Labour rejects proposed technical committee on minimum wage

    •Govt gets 10 days ultimatum to pass report to National Assembly

    Labour leaders have rejected Federal Government’s plan to set up another high-powered technical committee on the new national minimum wage.

    The leaders of the union, comprising the Nigeria Labour Congress (NLC), Trade Union Congress (TUC) and the United Labour Congress (ULC), stated this in a communiqué jointly signed and issued at the end of national leadership meeting of organised labour in Nigeria held in Lagos yesterday. According to the labour leaders, the government’s plan is diversionary and a delay tactics.

    They said almost two months after the submission of the report by the national minimum wage tripartite committee, which included a draft bill, no bill has been submitted to the National Assembly for passage into law.

    Read also: Navy jails three ratings for theft

    NLC President Ayuba Wabba said: “As far as we are concerned, all the issue has been addressed by the tripartite committee. This one is a delay tactic by the Federal Government and it will not work.”                                           ULC President Joe Ajaero said it was not the duty of the Federal Government to know how the states or private sector would implement the minimum wage.

    “Federal Government should allow the labour union in each state to discuss with their respective state government on how to start the implementation”, Ajaero said.

    The labour leaders explained that Federal Government is expected to transmit the new national minimum wage bill to the National Assembly on or before December 31, 2018.

    They noted that the Federal Government is planning to set up a high-powered technical committee, which is alien to the tripartite process and International Labor Organisation (ILO) convention on national minimum wage mechanism.

    They urged workers to be vigilant and prepared to campaign and vote against candidates and political parties, who were not supportive of the implementations of the new minimum wage.

    As for the TUC President, Bobboi Kaigama, he said if government fails to transmit the bill to the National Assembly for implementation on or before December 31, labour will re-open the suspended strike.

    “Organised Labour will not guarantee industrial peace and harmony, if after December 31 2018, the draft bill is not transmitted to the National Assembly,” he said.

  • Buhari to present minimum wage bill to NASS

    President Muhammadu Buhari says a bill on implementation of the New Minimum Wage would soon be sent to the National Assembly for passage.

    Buhari made this known while presenting the 2019 Budget before the joint session of the National Assembly on Wednesday.

    He assured the house that he was committed to addressing the minimum wage issue, saying he had directed the setting up of a technical committee to look at mode of implementation.

    “To avoid a system crisis on the Federal Government and states, it is important to device ways to ensure that its implementation does not lead to an increase in the level of borrowing.

    “I am accordingly setting up a high powered technical committee to advice on ways of funding an increase in the minimum wage and attendant wage adjustments without having to resort to additional borrowing.

    “The work of the committee will be the basis of finance bill which will be submitted to the national assembly alongside the minimum wage bill.

    Read More: Presidency: Controversy over minimum wage unnecessary

    Buhari, said the committee would recommend modalities for the implementation of the new minimum wage.
    According to him, the move is to minimize inflationary impact as well as ensure that its introduction does not lead to job losses.

    The Nation recalls that the Amal Pepple Tripartite Committee on the Review of National Minimum Wage, had on Nov. 6, submitted its report to Buhari.

    The committee recommended N30, 000 as the new national minimum wage.

  • Oshiomhole: why governors must pay living wage

    All Progressives Congress (APC) National Chairman Adams Oshiomhole has pitched his tenth with workers on the new minimum wage, reports TONY AKOWE.

    All  Progressives Congress (APC) National Chairman Adams Oshiomhole has said there is no basis for governors not to pay living wage to their workers.

    He said he would always stand by Nigerian workers on a new national minimum wage.

    He said refusal to pay a living wage amounted to creating a poverty cycle and a chain of Nigerians who cannot afford goods and services.

    Oshiomhole said it was only by paying living wages and improving the purchasing powers of the worker that production could be encouraged and employment opportunity created.

    He spoke at a reception for Nigeria Labour Congress (NLC) President Ayuba Wabba on his election as President of the International Trade Union Confederation (ITUC). The reception also honoured the Financial Secretary of Congress, Comrade Safiyanu Mohammed, who is now the Africa regional secretary of the International Transport Federation.

    He said that if governors  can be made to receive the same salaries irrespective of their revenue base, there was no reason why wages of workers should not be the same across the country.

    He said “I am sure you must have read some of my comments on the minimum wage. I have told people that even I was to become the Secretary General of the United Nations I am a creation of Labour and I will never, publicly or privately do anything that will undermine or do anything that is designed to possibly affect the welfare of Nigeria workers.

    “I am a believer that Nigeria needs to have a National minimum wage. I do not belong to those who say, because we are in a Federation, we should have different wages. I join in amplifying that we cannot apply the principles of federalism separately.

    “If we have the National Salaries and Wages Commission that makes it possible for me as governor of Edo State presiding over about 4.3 million population to earn the same salary as the governor of Kano and Lagos state who are presiding over 15 million people, that argument cannot change when it comes to fixing a national minimum wage.

    “The primary purpose of government is the welfare of the people. The most portent asset of the people that protects you from the oppressor. What the military were able to live with and what reactionary governments were able to live with, this President is not about to put that asunder no matter the pressure from any section of governors or state.

    “I believe that we have to work together not only to get wages fixed, but to ensure also that they are paid. When the President makes public statements like the ones he has made, he has challenged you to take advantage and make sure that when he provides those resources as he has done almost four times, you ensure that they are used for the purpose for which he provided the money. If you don’t, I don’t think you have some one else to blame.

    “To change this country, it cannot be done with placards. Placards can generate the heat, win temporary concession, but it will not fundamentally alter the direction of state. You have to be in it an do it from within.”

    He went on:  “Minimum wage is not about party, but about Nigeria. To be honest, don’t ask partisan question, but one that has to do with governance in Nigeria because this is an issue that all governors, regardless of party platform are united on. So, it is incorrect to put it as an issue that affects particular sets of governors.

    “When I was a member of the governors forum, I did publicly advise my colleagues then that when it comes to the issue of minimum wage, I am not with them. Not only secretly, but publicly too, I am going to dissociate myself.

    “I believe that we need a national minimum wage. I believe that Nigeria is capable of paying a national minimum wage. I believe that the primary purpose of government is the welfare of the people and that payment of wages is not a process of prosperity.

    “If Nigeria was to wake up tomorrow and there is no one liter of oil and you must employ a worker, you are oblige to pay. Wages is a consequence of work. He who must employ, must pay and even the Bible says a laborer is entitled to his wages. I believe this view and I have canvassed them. I had an extensive interview on this and I spoke extensively on it.

    “If you are hiring Julius Berger to construct a road for you! You don’t ask them to charge you according to the income accruing to your state. What it cost you to buy a bag of cement in Zamfara is the same price in Benin. So, if contractors are not charging you according to your level of income, and they are providing service while we run a market economy, the price of Labour cannot be static if other prices are changing.

    “Otherwise, workers face double squeezes of rising prices and stagnant wages. This creates a vicious cycle. When you lack purchasing power in an economy, how do you stimulate the economy to bring goods and services and create jobs? So, you create a vicious cycle of people who are too poor to buy anything and so, those who produce cannot sell and because they can’t sell, they are closing shops and more people are being thrown out of work. We should be more bold and courageous .

    “Those who are more inward looking in their consumption pattern are the working people because they are the ones that buy garri, yam, tomatoes and eat local food. They are not going to import any food or buy Toyota jeeps. They are the ones who go to the local park to patronise local taxis driven by Nigerians.

    “So, their pattern of spending is such that their money circulates. So, when you deny him wages, you trigger a vicious cycle of poverty. So, I am clear about it. Whether I am Chairman of the ruling party or not, my views are not corrupted by the seeming privilege position that I occupy.

    “What is constant in my life is my life is my background which is Labour. I don’t deny it, I don’t hide it and I have always been clear that NLC, Working with TUC have a right to demand a reasonable,e living wage and when I was governor, I made the point and increased the minimum wage to N25,000 three years ago. I paid it till I left office and my successor is paying it.”

    He said further: “Sometimes, when I meet people and they ask me, now that you are on the other side and I tell them that I am and will always be in one side and that is the side of the working people. I feel proud to say that I am the chairman of the governing party because the President is as committed to the welfare of the ordinary worker like any trade union leader.

    “He is the only president to my recollection since 1999 that can publicly lament, question and interrogate the hearts of people in government and ask them how do you sleep when you have not paid your workers for six months.

    “He goes beyond lamentation and says, ‘take this bailout and make sure they are paid, take this money that was over deducted by my predecessor and pay those who are dying for non payment of wages and pensions’.

    “I can’t be Chairman of the other party if they were to be in government. I am privileged to be Chairman of a party that cares for the welfare of the ordinary Nigerian whether in the organised private sector or the forgotten majority in our rural settings.”

    Turning to Nigerian workers, the former NLC President said: “It is nice to celebrate, but you also have new challenges that you are going to confront around the world. I don’t know what is going on now, but I know that we still have countries where union leaders are murdered for daring to belong to trade unions and question the practices of private sector employers.

    “We still have countries where the right to organise is still being threatened. They will bring those issues to ITUC and expect you to travel to travel to meet their government to impress on them that they have the right to organise. So, you do have huge challenges, particularly at this time.

    “Out of millions of Nigerian workers, you decided to elect Comrade Wabba and as you can see, what you picked among yourself has been recognised around the world as a material that capable of presiding over the affairs of the workers of the world.

    “So, I also congratulate you for achieving this. But this must force us to do serious reflections. If we are going to preside over the workers of the world, what do we do to,deal with the distractions at home when we still have some of our brothers and comrades who still think that at this time, we can make sense out of a divided Labour movement.

    “The slogan that united we stand, divided we fall will always be valid. I hope that the spirit of your election will touch the hearts of those who seem to be confused. There can be no question that united we stand, divided we fall.

    “There is only one Organised Labour and I am happy that President Muhammadu Buhari, speaking through the lips of the Vice President, has reassured Nigeria Labour Movement that his government will not provide a platform for anyone to factionalise Organised Labour.

    “You are not under the kind of threat that we faced when I was President of NLC when the former President sent a law to the National Assembly. Not only to deregister the NLC, but also to make it possible for any three or four unions to form a Labour Centre.

    “The President believes that we need more national institutions and that organised Labour is a potent unity bridge that must be sustained. So, you have that comfort. People can try anything, but under this government, there will be no registration of another Labour Centre. We need to be fired by the spirit of our people to work together and deal with all the issues that are bedeviling our country.”

     

  • Oshiomhole: I stand with workers on minimum wage

    National Chairman of the All Progressives Congress (APC) Comrade Adams Oshiomhole has backed workers on demands for a new minimum wage.

    He said paying refusal to pay a living wage amounts to creating a circle of poverty for the masses.

    The former Edo State governor said improving the purchasing powers of workers cannot be overemphasised because when people cannot afford good and services, manufacturers are forced to close shops, leading to loss of jobs.

    He said there was no basis for governors to insist on not paying what he described as living wage to workers.

    He assured workers President Muhammadu Buhari will not do anything that will undermine their welfare.

    Oshiomhole spoke at a reception for President of the Nigeria Labour Congress (NLC) Comrade Ayuba Wabba on his election as President of the International Trade Union Confederation (ITUC) and Financial Secretary of NLC, Comrade Safiyanu Mohammed, who was appointed as the Africa regional secretary of the International Transport Federation.

    He said if governors of the 36 states receive the same salaries irrespective of their revenue bases, there was no reason why wages of workers should not be the same across the country.

    Read Also: Dogara congratulates Saraki on 56th birthday

    The former NLC President said: “I am sure you must have read some of my comments on the minimum wage. I have told people that even I was to become the Secretary General of the United Nations I am a creation of Labour and I will never, publicly or privately, do anything that will undermine or do anything that is designed to possibly affect the welfare of Nigeria workers.

    “I am a believer Nigeria needs to have a National minimum wage. I do not belong to those who say because we are in a Federation, we should have different wages.

    “I join in amplifying that we cannot apply the principles of federalism separately.

    “If we have the National Salaries and Wages Commission that makes it possible for me as governor of Edo State presiding over about 4.3 million population to earn the same salary as the governor of Kano and Lagos state who are presiding over 15 million, that argument cannot change when it comes to fixing a National minimum wage.

    “The primary purpose of government is the welfare of the people. The most portent asset of the people is the state that protects you from the oppressor.

    “This President is not about to put that asunder no matter the pressure from any section of governors or state.

    “I believe that we have to work together not only to get wages fixed, but to ensure also that they are paid. When the President makes public statements like the ones he has made, he has challenged you to take advantage and make sure that when he provide those resources as he has done almost four times, you ensure that they are used for the purpose for which he provided the money. If you don’t, I don’t think you have someone else to blame.

    On the position of governors that they cannot pay the N30, 000 demanded by labour as minimum wage, Oshiomhole: “Minimum wage is not about party but about Nigeria.

    “When I was a member of the governors’ forum, I did publicly advise my colleagues then that when it comes to the issue of minimum wage, I am not with them. Not only secretly but publicly too, I am going to dissociate myself.

    “I believe that we need a National minimum wage. I believe that Nigeria is capable of paying a National minimum wage.

    “I believe the primary purpose of government is the welfare of the people and that payment of wages is not a process of prosperity.

    “If Nigeria was to wake up tomorrow and there is no one liter of oil and you must employ a worker, you are obliged to pay.

    “Wages is a consequence of work. He who must employ must pay and even the Bible says a laborer is entitled to his wages.

    “I believe this view and I have canvassed them. I had an extensive interview on this and I spoke extensively on it.”

  • N30,000 minimum wage is fair, says NECA

    •Association urgesnew pay take offnext month

    THE Nigeria Employers’ Consultative Association (NECA)has said the N30,000 minimum wage for workers is fair, adding that the Federal Government should begin the implementation by January, 2019.

    NECA PresidentDr. Mohammed Yinusa,who stated this at a news conference in Lagos,  said  while the claim of inability to pay could be real, the expectation, however, was for each and every employer, including the government, to focus inward on its business or system and effect the necessary wholesale restructuring and financial re-engineering that will enable it comply with the laws.

    He said if the issue of ability to payis to be the sole determinant of the National Minimum Wage, the country should as well do away completely with the notion and practice of setting a National Minimum Wage.

    He said: “We believe the issue of ability to pay may not be as worrisome as often presented, if there is efficiency, effectiveness and prudence in the administration of the governance structure.

    “We believe that the N30, 000 recommended is a fair wage that could lift workers purchasing power, increase total demand and ultimately stimulate economic activities.

    Read also: Minimum wage talks at Villa today

    “While we note the need for the implementation of the recommended N30, 000, our national conversation should now be focused on how to broaden the nation’s revenue base, ensure the viability of the states of the federation, curb or eliminate wastages and rent seeking in all spheres of national life and increase our national aggregate output, which has consistently been hampered by inadequacy in our existing infrastructures and structures.”

    Yinusa said the present political structure could be likened to the existence of one large National Distribution Centre (NDC) with only one major supply point and seemingly endless collection outlets that are either not enhancing inflow into the NDC or making negligible input.

    “This model is certainly not sustainable,”

    “We need to loosen the current political structure to allow emergence of several production centres in all nooks and cranny of the country to serve as feeder posts to the NDC. States that cannot sustain themselves should be encouraged to merge and emerge as a healthy productive centre, rather than the existing over-reliance on the centre.

     

     

     

  • Minimum wage talks at Villa today

    GOVERNORS are meeting President Muhammadu Buhari today.

    The minimum wage will be on the agenda, it was learnt last night.

    The governors met in Abuja yesterday but refused to brief reporters on what they discussed.

    They are billed also to attend an extended National Economic Council (NEC) meeting scheduled for the Old Banquet Hall, State House. Vice President Yemi Osinbajo will chair the meeting.

    A statement by the Office of the Vice President said that the extended NEC was in line with the Buhari administration’s Economic Recovery and Growth Plan (ERGP) for inclusive growth and human capital development.

    The governors had argued that the states lack the required resources to pay the N30, 000 being demanded by Labour as minimum wage.

    The governors maintained that the only condition available to them, if they must meet the Labour demand, is retrenchment, an alternative the workers have kicked against.

    Read also: Zamfara workers still earn N6,000 as minimum wage, says NULGE

    It was learnt the governors used their meeting yesterday to articulate their position ahead of today’s meeting with the President.

    They had proposed N22, 500 as what they can pay as minimum wage. The Federal Government proposed 24, 000. But Labour is insisting on N30, 000.

    NGF chairman and Zamfara State Governor Abdulaziz Yari did not brief reporters at the end of the meeting.

    However, NGF Head of Media & Public Affairs Abdulrazaque Bello-Barkindo, told reporters that “the governors looked into the issue of the minimum wage as it will be part of discussion when they meet with the president today (Friday)”.

    He also said the governors will use the opportunity to thank the president on his handling of the economy.

    The meeting, he said also welcomed Osun State Governor Gboyega Oyetola.

    Oyetola had earlier praised the NGF meeting, describing it as a platform for members to peer review one another and also share best practices.

    The statement from the Vice President’s Office said: “The extended NEC comprising governors of all the states of the federation and Governor of the Central Bank of Nigeria (CBN), will focus on the human capital development programme of this administration hinged on investment in the people.

    “The human capital development programme is focused on three main thematic areas– Health and Nutrition, Education and Labour Force Participation.

    “The programme has identified seven outcome areas and a considerable number of interventions designed to drive change nationwide.”

  • Minimum wage in face of falling oil prices

    The tripartite committee on minimum wage headed by former Head of Service Ama Pepple has since submitted its report to President Muhammadu Buhari. The committee proposed N30,000 as minimum wage, which many governors have said they cannot pay. What becomes of this proposal in the face of falling oil prices? OKWY IROEGBU-CHIKEZIE and TOBA AGBOOLA report.

    THE falling oil prices seem to have added a twist to the proposed N30,000 minimum wage.  There are fears that the sharp fall in crude prices from $88 per barrel a month ago to $59.96 per barrel as at November 29 may impinge on negotiations.

    The development poses a major risk to the Federal Government’s economic projections for 2019 and it may also hurt labour’s agitations.  Many governors have been citing the nation’s fragile fiscal position for inability to pay the proposed wage. According to the governors, their states won’t be able to meet other obligations, including provision of infrastructure and healthcare, if they agree to pay N30, 000. To them, the way out is either to review the revenue sharing formula or sack workers.

    But, the governors’ position has not gone down well with the organised labour, which is  threatening  to shut down any state that refuses to pay. The workers insist that there will  only be industrial harmony when the states accept the proposed wage. They wonder why President Muhammadu Buhari has not sent a bill to the National Assembly after receiving the report on the minimum wage from the tripartite committee headed by former Head of Service Ama Pepple.

    Nigeria Labour Congress (NLC) President  Ayuba Wabba said workers would use  all they have to fight for their due. He called on them to vote out any governor who is not ready to pay the proposed wage. He said the options being advanced by the governors were no options at all.  He implored the governors to reduce their spending, noting that the consequences of  retrenchment are too grievous for any political office holder truly elected by the people to contemplate.

    Wabba said : “We hereby reiterate our directive to Nigerian workers to vote out any politician or political party that refuses to pay the proposed national minimum wage of N30, 000. They are not doing us any favour; it is our right with the backing of the law. If they say they don’t have money, they should reduce the cost of governance. They should stop the trillions of naira they are stealing.”

    He reiterated that by law, every worker is entitled to salary or wage increment after a certain period of time so, the governors are not doing workers any favour. Some people are saying  the wage will lead to inflation.

    “When those in government are stealing trillions of naira, nobody talks about inflation. It is now that we are talking of just N30, 000 that they are talking about inflation. It is not an excuse and there is no going back”.

    He went on: “Few political office holders are bent on enslaving Nigerian workers with peanuts mislabelled as salaries. We urge such elected public officials to subject their humongous salaries and allowances, reputed to be among the highest in the world, to public perusal pro rata with the minimum wage they want to force down the throats of Nigerian workers.”

    United Labour Congress (ULC) President Joe Ajaero said the governors and National Assembly members have no reason, whatsoever, to delay the implementation of the proposed wage. He wondered how the lawmakers would oppose the wage when a senator earns  almost N14 million monthly. Ajaero said labour would seek explanation on the millions of naira the governors get as security votes, while their salaries would be scrutinised. “It is like half of the job has been done with the level of consciousness and the explanation we gave.We have given enough explanation to the masses and unanimously, nobody has denied that N30, 000 is even enough. So, I am not expecting the National Assembly to act to the contrary. We will engage the states at the point of implementation. I think the kind of cooperation we showed in achieving this N30, 000 should be shown in the states.

    “The national unions and centres should not leave the battle in the states to the state councils. It would be necessary without exception for all the unions and centres to descend on any state that will want to enslave workers through the payment of a minimum wage less than N30, 000,” Ajaero said.

    A twist to the tale Despite these tough talks, developments in the international oil market, which are outside the control of the governors and labour may have added a new dimension to the controversy.

    Oil prices, which recently started its gradual rebound, hitting an all-time high of $88 per barrel about a month ago, suddenly started a downward trend. According to the Organisation of Petroleum Exporting Countries (OPEC), oil prices trended down at $59.96 per barrel on November 29,  with analysts describing the slump as the equivalent of a tax hike and  cut in oil exporting and importing economics.

    To Lagos Chamber of Commerce & Industry (LCCI) Director-General (DG) Muda Yusuf, the price slump is bad news for the economy, which remains fragile with a gross domestic product (GDP) growth of less than two per cent.

    Yusuf said noted that the figure is below the 2019-2021 Medium-Term Expenditure Framework (MTEF) benchmark of $60 per barrel.

    He said the declining  oil price poses a major risk to the  government’s economic projections for 2019, adding that it will  impact adversely on the MTEF if the trend continues.

    The DG, in a statement obtained by The Nation,  said: “GDP in most of the Gulf economies and a slowdown of 1.5-2 per cent of GDP in Russia and Nigeria on an annualised basis is not good news for Nigerian economy, which remains fragile with GDP growth of less than two per cent.

    “The domestic foreign exchange (forex) market is already responding to the recent sharp fall in oil prices. For instance, the local currency has dropped to N370 per dollar in the parallel market, from N363 per dollar that it traded for a better part of 2018. There are fears that the sharp fall in oil prices, if sustained, could lead to a shortage of the US$”.

    Yusuf said as capital flow reversals intensify, as oil price weakens, and as foreign reserves come under pressure, there are worries that the capacity of the Central Bank of Nigeria (CBN) to sustain the current levels of intervention in the foreign exchange market will be tested, as reserves currently stand at $42 billion, down from $48 billion five months ago.

    Giving more insights on the implications of the downward trend, the He said the improvement in liquidity and relative stability in the forex market witnessed by businesses in 2018 would come under threats due to declining receipts from oil.

    This, he said, would have profound impact on the prices of imported goods and services leading to likely increase in the rate of inflation, which will adversely affect fiscal operations and further threaten the ongoing discussion around the minimum wage.

    According to Yusuf, despite sustained efforts by government to improve the business environment, foreign direct investment (FDI) inflows remain stagnated. The capital account faces significant uncertainty, as external portfolio investors exercise further caution due to developments in the global financial markets and the forthcoming general elections.

    Given these challenging economic conditions, he said, key policy reforms would be imperative to support and sustain the stability of the macro-economic environment.

    These are, among others, a foreign exchange management framework that reflects the market fundamentals, the acceleration of the economic diversification agenda, normalisation of Lagos ports environment,  oil and gas sector reform, especially the Petroleum Industry Bill (PIB).

    He called for a better debt management strategy to ease the burden of debt service, reduction in the cost of governance at all levels; improvements in the domestic revenue to reduce volatilities in government revenues.

    To labour, the proposed wage will not have any negative impact on the economy. Quoting the CBN,  Wabba said the implementation of the wage would stabilise the economy.

    According to him, the CBN Governor Godwin Emefiele had noted that other countries, such as South Africa, recently approved a new minimum wage for its citizens despite the recession in that country.

    “The CBN recently made us to understand that the implementation of N30, 000 minimum wage will strengthen the economy by empowering and putting resources in the hands of the working class,” Wabba said.

    He said the workers were getting impatient, stressing that they expected government to communicate to them and at least, give them a timeline by now. But, in the face of the falling oil prices, how will labour now marshal its argument?