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Tag: minimum wage

  • New minimum wage: Labour insists on September deadline

    The organised labour is set to do battle with the federal government in its quest to actualise the proposed new minimum wage The Nation can authoritatively report.

    Giving this indication at the weekend was Comrade Ayuba Wabba, President of the Nigeria Labour Congress (NLC).

    Speaking with our correspondent on the sidelines of the International Labour Conference, in Geneva, Switzerland, Wabba said the organised labour will ensure that the timeline set by the Tripartite Committee on the Implementation of the National Minimum Wage is not altered.

    While commenting on the readiness of the new minimum wage by September, Wabba said the date was achievable. “Certainly, if all members of the tripartite committee are committed to doing what is right and working within the timeline that the committee has already set for itself. I’m of the firm belief that it is something that can be achieved.”

    He was however quick to add that labour will not hesitate to wield its big stick should the federal government renege on its plan.

    “I don’t want to keep repeating myself. I have told you that at the tripartite committee, we all commit to a timetable and timeline which is known and everybody is aware of it. So the organised labour represented by NLC and TUC are committed to following that timetable and timeline. We made that very clear from the beginning after the inauguration of the committee because the first thing they did was to look at the scope of the work and the time it will take for us to deliver, to complete the tripartite negotiation and make sure that we are able to deliver a comprehensive report. Given the process of give and take, with the commitment we have also received from the National Assembly, I don’t think that the centrality of the issue require any delay. So as organised labour, we are committed to the timeline that the committee has set for itself.”

    The organised labour, the NLC boss noted, is determined to actualise its mandate as far as the new minimum wage is concerned.

    “We have many ways of responding to issues and as we progress in the process, we will consult our organs and constituents and will be able to push the process through any other means that is legitimately allowed by law.”

    Echoing similar sentiments, Comrade Peters Adeyemi, Deputy President, NLC, who spoke with our correspondent at the weekend expressed dismay with the sudden volte-face by the federal government. “The issue of the national minimum wage where there was an understanding among the tripartite that everything be concluded by September. We were shock to read the Minister saying that September is no longer feasible. That is clearly unacceptable because Nigeria workers need the minimum wage. We know the efforts we put in even before government decided to set up the committee.”

    It would be recalled that the Labour Minister, Chris Ngige had noted that the new National Minimum wage is expected to conclude its work by the end of September and present its report to the government for deliberation and approval.

    President Muhammadu Buhari had last November inaugurated a 30-man Tripartite National Minimum Wage Committee headed by a former Head of Service of the Federation, Ms. Ama Pepple, urging the members to come up with a fair and decent wage for Nigerian workers.

     

  • Minimum wage war looms

    The debate over the new minimum wage is still festering with probable outcome not clearly defined. But members of the organised labour have vowed to take the battle headlong without caring whose ox is gored. Ibrahim Apekhade Yusuf and Tony Akowe examine the issues

    Expectations have remained high since the debate over the new minimum wage began. But hope appeared dampened when the  Minister of Labour and Employment, Senator Chris Ngige last week hinted that the new national minimum wage will not materialise  by the end of September as envisaged much to the chagrin of the organised labour.

    Contrary to widespread expectation, the September date was just a date to conclude negotiation on minimum wage, Ngige said while speaking with journalists in Abuja.

    According to him, “The committee on the new National Minimum wage is expected to conclude its work by the end of September and present its report to the government for deliberation and approval.”

    He also said it would be tabled the National Council of State before an executive bill is sent to the National Assembly on the issue.

    He said it was for this reason that the committee embarked on zonal public hearing across the country in order to get the input of all those concerned including state governments and the organised private sector.

    Justification for new minimum wage

    In October 2017, members of the House called for a review of the current national minimum wage of N18,000 to N30,000. , but lawmakers said no Nigerian worker could survive on that.

    The motion was moved by a former union leader, Mr. Peter Akpatason, a member of the All Progressives Congress from Edo State.

    Akpatason had informed the House how the government appeared unwilling to push the wage review plans.

    For instance, he said an agreement by the government and labour unions to begin the process was not being implemented.

    During the October debate, lawmakers agreed that the N18,000 minimum wage was no longer realistic, suggesting at least N30,000 as the new minimum.

    The current minimum wage of N18,000 came into effect in 2011 which the lawmakers said was no longer tenable.

    Early this month, the federal government had said it would prepare a supplementary budget to take care of workers’ demand for increase in salaries when the new minimum wage proposal was eventually approved.

    It is also instructive to note that the interface and discussion session across the states led to different submissions and suggestions of minimum wage from N22, 000 to N58, 000 monthly up from the current monthly wage of N18,000.

    The NLC had made a proposal for N56,000 for the least paid worker to the Federal Government’s committee on the minimum wage.

    It would be recalled that President Muhammadu Buhari had last November inaugurated a 30-manTripartite National Minimum Wage Committee headed by a former Head of Service of the Federation, Ms. Ama Pepple, urging the members to come up with a fair and decent wage for Nigerian workers.

    Buhari had said at the time that re-negotiation of a new national minimum wage had become imperative because the existing minimum wage instrument had since expired.

    But the Director-General, Budget Office of the Federation, Ben Akabueze, had stated that the fact that there was no provision yet in the 2018 budget proposals currently before the National Assembly to cater for the planned increase did not, in any way, suggest that the government was not willing to increase the workers’ salaries.

    NLC ready for war

    Expectedly, the organised labour has warned the federal government against missing the timeline for the implementation of the new national minimum wage for workers.

    The NLC President, Ayuba Wabba, handed down the warning while speaking with our correspondent on the sidelines of the International Labour Conference, in Geneva, Switzerland.

    Wabba said, “The organised labour will ensure that the timeline set by the Tripartite Committee on the Implementation of the National Minimum Wage is not altered.”

    He added, “Workers, who create wealth, must also be well taken care of as we are not unmindful of the situation of the Nigerian workers, particularly with the increasing inflation in the land.”

    While commenting on the readiness of the new minimum wage by September, Wabba said the date was achievable. “Certainly, if all members of the tripartite committee are committed to doing what is right and working within the timeline that the committee has already set for itself. I’m of the firm belief that it is something that can be achieved.”

    He was however quick to add that labour will not hesitate to wield its big stick should the federal government renege on its plan.

    “I don’t want to keep repeating myself. I have told you that at the tripartite committee, we all commit to a timetable and timeline which is known and everybody is aware of it. So the organised labour represented by NLC and TUC are committed to following that timetable and timeline. We made that very clear from the beginning after the inauguration of the committee because the first thing they did was to look at the scope of the work and the time it will take for us to deliver, to complete the tripartite negotiation and make sure that we are able to deliver a comprehensive report. Given the process of give and take, with the commitment we have also received from the National Assembly, I don’t think that the centrality of the issue require any delay. So as organised labour, we are committed to the timeline that the committee has set for itself.”

    The organised labour, the NLC boss noted, is determined to actualise its mandate as far as the new minimum wage is concerned.

    “We have many ways of responding to issues and as we progress in the process, we will consult our organs and constituents and will be able to push the process through any other means that is legitimately allowed by law.”

    Echoing similar sentiments, Comrade Peters Adeyemi, Deputy President, NLC, who spoke with our correspondent at the weekend expressed dismay with the sudden volte-face by the federal government. “The issue of the national minimum wage where there was an understanding among the tripartite that everything be concluded by September. We were shock to read the Minister saying that September is no longer feasible. That is clearly unacceptable because Nigeria workers need the minimum wage. We know the efforts we put in even before government decided to set up the committee.”

    Adeyemi who also doubles as General Secretary, Non Academic Staff Union, recalled that, the committee had an agreement on the September date. “We also had an agreement in the committee that we will no longer talk to the media about anything, but do our job because it is the outcome that Nigerians are expecting and not the noise we make when the process is ongoing.”

    Rallying support for organised labour

    Thankfully, the organised labour has gotten an imprimatur of support from the upper and lower legislative quarters.

    Speaking with our correspondent at the weekend, Senator Mao Ohuabunwa, representing Abia North, Deputy Chairman Senate Committee on Labour, assured that the lawmakers hope to look at the matter expeditiously once it comes to the hallowed chamber.

    “What we had promised and we still stand on it is that once that bill comes to us definitely we are going to give it accelerated hearing, we are going to fast track the bill for accelerated passage and that is what the Senate President had said. It is unfortunate that both the ministry and the executive have been going back and front. We thought that by now that would have been resolved.

    “So we are looking forward to that bill because it is going to come out as an executive bill, we are looking forward to rounding off or concluding that bill before we go on our annual break but the way it is, it is like we are going to wait. You know it is little or nothing we can do because it is an executive responsibility, they have to make the payment. Ours is that we have supported and agreed that there is very urgent need to review the minimum wage especially looking out at the situation of things and economic et cetera now.”

    The need to review the minimum wage is sacrosanct but we cannot go ahead as a Parliament to legislate on that without the executive coming up with a bill, we are waiting for them to do that.

    On the issue of labour to be on the exclusive list, the lawmaker said, “The National Assembly has taken a resolution on that but personally and since I am one of the advocate of devolution, I still believe that the issue of labour should now go into concurrent list because there are States who can decide to negotiate with labour and pay within their limits.

    “You cannot compare somebody working in Abuja with somebody working in Zamfara. They can look at the rate of transport, accommodation, feeding and all that. They are not the same, you cannot compare Abuja level to Zamfara or Bayelsa. So you should allow the States some liberty to negotiate and decide and have their own pay. The only thing the federal sovernment can do is that we can decide what the minimum wage would be but anything out of that you allow the States the liberty and freedom to negotiate with labour.

    “What I am saying is that the minimum wage can be established at the national level, the minimum wage is a foundation, you have officers at different levels so we can decentralize that and allow the officers at the States to decide. So if you now make it a unified thing for all the States of the country, that is we are having problems, some states can pay, some cannot pay and you can see the level of wage debt now, most states cannot pay so we can allow some freedom. It is just like the oil companies they don’t pay the same rates, construction companies don’t pay the same rate even in Nigeria if you are working in the ministry you don’t earn the same pay with a person working in Central Bank or in NNPC.”

    Private employers ever willing

    Interestingly, one of the leading lights in the private sector, Segun Osinowo who sits atop as the Director General of the Nigeria Employers’ Consultative Association (NECA), an umbrella organisation for all employers in Nigeria has assured that the employers are ever ready to implement whatever wage agreement reached.

    Employers, Osinowo observed: “Have been the good boy over the years as far as minimum wage is concern. What we are doing now is to give expression to the issue if social dialogue in the context of negotiation. The private sector in Nigeria has been one firm believer in collective bargaining. In fact, we have been able to adhere to the principles and value of collective bargaining more than the government. We have demonstrated good faith in the outcome of collective bargaining by implementing the outcome of such collective bargaining from time to time.

    “So, the whole idea of discussing the national minimum wage is not strange to us because we have taken part in it in time past and employers in Nigeria have been very faithful to the outcome of past national minimum wage. I can assure you that just as we have done in time last, our employers will still keep that good reputation which they have as law keepers as soon as the national minimum wage is legislated into law. So, we all look forward to the conclusion of the negotiations which I think should be sooner than later. “But one thing that we as employers are quite sure of is that before the end of the year, we should be able to finish the entire process of discussing the national minimum wage.”

  • ‘Minimum wage won’t be ready by Sept.’

    WORKERS’ expectations of getting a new national minimum wage by the end of September would not materialise, Minister of Labour and Employment Chris Ngige said yesterday.

    He explained that the September date is just for conclusion of negotiation on the issue of the minimum wage.

    Ngige, in an interview with reporters yesterday at his home in Abuja, said the committee on the new minimum wage is expected to conclude its work by the end of September and its report will be thereafter presented for deliberation.

    This, he added, will be followed by an approval before an Executive Bill will be presented to the National Assembly on the issue.

    He noted that the issue of availability of funds to pay the new wage would be paramount in the deliberations.

    Ngige said the committee embarked on zonal public hearing across the country to get the input of those concerned, including state governments and the organised private sector.

    The minister said in the course of the zonal public hearings, many state governments made different submissions ranging from N22,000 monthly minimum wage to N58,000.

    The minister added that the governors were also of the opinion that for the new minimum wage to become effective, the present revenue allocation formula would have to be reviewed in favour of the states and local governments.

    He said some other states submitted that the minimum wage should be maintained at the present N18,000 in view of the inability of some states to pay the wages.

    Ngige said when the minimum wage committee concludes its report, it would be submitted to the National Council of State and the Federal Executive Council for approval before a bill is sent to the National Assembly to legalise the committee’s work.

    He said even though it was not an easy task, the committee was making progress in its assigned responsibility and noted that it was in order to carry everybody, including the states and private sector, that six governors were elected to be members of the committee as well as representatives of the organised private sector.

    On the threat by non-teaching staff of universities to resume their suspended strike as a result of alleged government’s failure to honour the terms of their agreement, the minister said government was sourcing the N6 billion needed to pay them their earned allowances as contained in the agreement.

    He said from his experience as Minister of Labour, majority of about 95 per cent of agreements presently being paraded by trade unions were signed before the Buhari administration came into office in 2015.

    Most of such agreements, he explained, had no timeline for implementation.

    He said many of the agreements signed by the last government were not implementable because of the amount involved.

    The principles of the International Labour Organisation (ILO), Ngige said, allowed employers to renegotiate agreements, which they feel they cannot implement.

    The minister appealed to striking health workers to return to work while negotiations continue on their demands.

    Ngige noted that the delay in the implementation of their signed agreement was as a result of failure of the National Salaries, Wages and Income Commission to defend the two different figures presented to a government high-powered committee.

    He said the committee has directed the commission and the Federal Ministry of Health to go back and recompile the figures for onward submission to the committee for deliberation.

     

     

  • New wage: Fresh demands may threaten early execution

    The Federal Government’s promise to implement the new minimum wage in the third quarter of the year may face further hurdles as labour introduces a fresh angle into the process, writes TOBA AGBOOLA.

    The excitement over the likely implementation of the new minimum wage in September may wear out in the next few weeks as labour moves to review the process to align with economic realities.

    Organised labour said it was presenting fresh demands to the Federal Government Tripartite Committee using economic indices.

    Labour is demanding N66,500 as the new minimum wage.

    Nigeria Labour Congress (NLC) General Secretary Dr Peter Ozo-Eson said: “We have taken a position when we made the initial demand on the government, which is almost two years back.

    “But then, when we got to the tripartite committee and the committee called on all stakeholders to submit memorandum.

    “In response to the request for a memorandum, we then use current economic indices to make a fresh demand. So, what we place and what we demand is an outcome of analysis we carried out.’’

    He noted that the fresh demand was a joint memorandum by the NLC and the Trade Union Congress (TUC).

    From labour’s position, it is obvious that the third quarter of implementation of the new wage may not be feasible if the committee decides to look into the new recommendation.There are fears that it is also likely to provide room for the government to further delay the new wage, which it has reluctantly approved.

    Although the new wage is yet to be announced, a member of the committee disclosed during an interaction that the committee was not likely to pick either of the wages put forward by labour.

    According to the Minister of Labour and Employment, Dr. Chris Ngige, “Minimum wage is a national matter and only the Federal Government can legislate on it. Labour matter and the issue of national minimum wage are in the Exclusive List. President Buhari is monitoring it strictly, and I am monitoring it too.’’

    Apart from the anticipated hitches from fresh demands, there are also fears that the delay in the passage of 2018 budget by the National Assembly might delay the process and possibly push it further into 2019’s.

    The apprehension stems from the fact that while inaugurating the committee, Buhari said after the completion of the work of the committee, an executive bill would be sent to the National Assembly “to undergo scrutiny before being passed into law”.

    Medical and Health Workers Union President, Mr Biobelemoye Joshua, said the organisation would not allow the government to use the minimum wage issue to score political point.

    He said if the government employed delay tactics for any reason, labor would waste no time in reacting. Having expressed satisfaction over the government’s position, the Pres1ident of NLC, Comrade Ayuba Wabba, believes that the implementation of the process would go a long way in filling the gaps workers had lost in the past.

    Wabba said the inauguration of the new minimum wage committee was overdue, stressing that the committee should cover the times that had been lost.

    “This is something that workers have long anticipated and our expectation is that we want a speedy process now that the facts of the issues are very obvious.

    United Labour Congress (ULC) President, Comrade  Joe Ajaero reiterated the need to increase the National Minimum wage for workers for them to cater for their family welfare.

    Ajaero, however, pointed out that the wage increase should not be delayed because there was no provision in the 2018 budget.

    Ajaero urged the government to expedite action so that the report of the committee can be submitted for passage into law.

    “Nigerian workers have suffered enormously and we hope that the wage floor eventually agreed will lift Nigerians out of poverty and make the life better.The government should not play politics with this.

    “However, ULC calls all Nigerians to be vigilant as we negotiate this process. We did not get to this level by charity, but by struggle. We can only conclude it favourably by being ready at all times to defeat the forces of wickedness that would not want workers to earn decent wages,” Ajaero added.

     

  • NLC to Fed Govt: stop allocations of states, councils refusing to pay minimum wage

    THE new national minimum wage yesterday dominated the May Day celebration at the Eagle square in Abuja with Nigeria Labour Congress (NLC) President Ayuba Wabba insisting the Federal Government should ensure that allocation is not released to any state or local council, which fails to implement the new pay.

    Wabba, who spoke while addressing workers, also asked the Independent National Electoral Commission (INEC) to conduct a thorough voter register audit to weed out names of double registrants and under-age voters.

    This, he said, would help boost the confidence of voters and stakeholders in our electoral system.

    Wabba said the organised labour was battle ready against any public and private organisation that would refuse to conform to the new minimum wage. He said: “At our disposal is the power of our votes! We shall ensure that governments that refuse to pay the new minimum wage will not receive the support of the working class, pensioners and their families.”

    He said the ongoing negotiation for a new national minimum wage was a clear indication that an increase in the minimum wage would pull many workers out of poverty.

    A new minimum wage, he added, would put the country in positive light globally as it would ensure compliance with the International Labour Organisation (ILO) standards and raise the levels of productivity and enhance the purchasing power of workers.

    Beside the demand of N66,500 as the national minimum wage, he said the organised Labour has proposed that the Minimum Wage Act should be amended to guarantee review every five years as contained in the recommendation of the 2011 Belgore-led Tripartite Committee.

    According to Wabba, the nationwide minimum wage public hearings have unmasked the enemies of Nigerian workers.

    “We insist that once the Minimum Wage Act is signed into law, all employers in public and private sectors must pay at once. We shall stand with those willing to pay more than the minimum. We shall resist any move to renegotiate the minimum wage at any level,” he said.

    He frowned at a situation where employers’ unlawfully and illegally withheld contributory pension deductions from workers’ salaries and not remitting same to their Pension Fund Administrators (PFAs).

    The NLC leader added that situations where workers retire from public service and were forced to wait for several months for their pension benefits to be processed still persist.

    Wabba said the lethargic payment and non-payment for those who were already pensioners, especially by state governments keep militating against the smooth operation of pension administration.

    He called on employers of labour and the three tiers of government to promptly remit contributory pension deductions to workers’ PFAs.

    Wabba stressed that workers, pensioners and their allies condemned and rejected the report of the Mallam Nasir El-Rufai’s All Progressive Congress (APC) committee on restructuring.

    He particularly mentioned its recommendation that local government system be removed from the constitution and labour matters, including trade unions, labour relations, occupational safety, minimum wage and industrial arbitrations should be moved from the Exclusive Legislative List to the Concurrent List.

    “The education that Mallam El-Rufai and his committee members need is that first; the removal of labour issues from the Exclusive List to the Concurrent list is not in conformity with global best practice. Second is that member countries of International Labour Organisation (ILO) are responsible for implementing labour standards not sub national governments,” the labour leader said.

    On the 2019 general election, Wabba said: “As we progress towards the 2019 general elections, we call on the political class and Nigerians to always put the interest of Nigeria above any other interests. We must all respect democratic values, imbibe political tolerance and shun all tendencies of politics of ‘do or die’.

    “INEC must work assiduously to ensure free, fair and transparent elections. INEC should provide a level-playing ground for all political actors. There are still very positive aspects of the Report of the Justice Uwais-led Electoral Reform Committee that should be implemented, especially the establishment of Electoral Offences Commission.

    “We also advise that INEC should prioritize early preparations for the forthcoming elections. INEC should also improve the delivery of Permanent Voters Cards (PVCs). A situation where Nigerians are forced to wait for too long or travel long distances to collect their PVCs induces voter apathy and constitutes a strong source of disenfranchisement.”

    Trade Union Congress of Nigeria President Bobboi Kaigama expressed the hope that the tripartite committee on the new national minimum wage would conclude its work by August and make its recommendation to government for implementation.

     

  • Reps ready to pass minimum wage bill – Dogara

    The Speaker of the House of Representatives, Yakubu Dogara, said on Tuesday the House is ready to pass the minimum wage bill as National Assembly awaits the executive to forward the bill for upward review.

    Dogara, in a statement to mark 2018 Worker’s Day celebration and signed by his Special Adviser on Media and Public Affairs, Mr. Turaki Hassan, reiterated the desire of the House to provide a better life for workers.

    The Speaker said he was not unmindful of the struggles and hardship faced by Nigerian workers in their daily lives.

    He said this is why the National Assembly is committed to putting more resources in the hands of workers.

    He expressed optimism that the Federal Government Committee on Minimum Wage currently conducting public hearings across the six geo-political zones in the country would soon conclude its assignment.

    He said a new national minimum wage bill would be transmitted to the parliament by the President.

    “On behalf of the entire members of the House of Representatives, I want to use this occasion to, once again, underscore the importance of workers to the growth and prosperity of our dear nation, Nigeria.

    “We see the struggles you go through to survive on wages that can barely last through the first week of the month. We see your dedication to doing your bit in ensuring that Nigeria continues to run effectively despite unfavourable conditions.

    “We commend your courage, your commitment to service and nation building and urge you to continue supporting government policies and agenda.

    “I assure you, on this occasion, that the National Assembly will give expeditious passage to the Minimum Wage Bill whenever it is transmitted by the executive and any other initiative that will promote the welfare of the Nigerian worker.

    “We will support it wholeheartedly,” the Speaker said

  • Uniform minimum wage unrealistic –Wike

    THE governor of Rivers State, Nyesom Wike, has stated that a uniform minimum wage is unrealistic in Nigeria, because states vary in their financial capacity. He noted that Nigerian workers would be better off when states were allowed to fix their separate minimum wages, in line with their financial capacity to pay. Wike, a chieftain of the Peoples Democratic Party (PDP), spoke yesterday in Port Harcourt at a public hearing on the new national minimum wage for Nigerian workers for the South South geo-political zone. He said: “The single national minimum wage system is yet another lie that betrays the distortions in our federation and the structured dislocation of the states in the power equation between the Federal Government and the federating states. “It is our view that the country and its workers would be better of, if states are allowed to fix and pay their own minimum wages, indexed to the prevailing cost of living and ability to pay. “When this happens, it is possible that some states may go beyond the minimum threshold to pay a living wage, which is what our workers truly need.” Wike also stated that the previous review exercise failed to give maximum weight to the existing disparity in economic potential and capabilities among the 36 states of the federation, stressing that it had been difficult for most of the states in Nigeria to implement the existing N18,000 minimum wage. He noted that majority of the states were within the fringes of financial viability and unable to meet their salary obligations to civil servant, without bailouts from the Federal Government. Wike insisted that enhanced wages could only be possible when the Federal Government was able to improve the economy of the federation. He said: “Here in Rivers State, we value our workers. We invest in their welfare in different ways and we want them to earn living wages that can keep them and their families as comfortable as possible. “The Rivers State government therefore supports the ongoing consultations by the Tripartite Committee on National Minimum Wage for arriving at a new national minimum wage floor for the country.” The Minister of Labour and Productivity, Dr. Chris Ngige, in his opening remarks, reiterated that the exercise had been held across the six geo-political zones to ascertain the needs of Nigerian workers and employers, to reach an acceptable and implementable minimum wage. He said: “It is hoped that at the end of the exercise, we will be able to have women and men who will be engaged in productive work in equable conditions of freedom to associate and bargain collectively with equality and human dignity.” Ngige, who is also the chairman of tripartite committee on national minimum wage, pointed out that the aim of the exercise was to ensure that the nation adopted a national minimum wage that would assure the attainment of social protection floor for Nigerian citizens. Presenting the position of Nigeria Labour Congress (NLC) in the Southsouth, Comrade Beatrice Itubo, who is the Rivers Chairman of NLC, called for a living minimum wage for workers. The representative of Trade Union Congress of Nigeria (TUC) in the Southsouth, Comrade Austin Jonathan, in his remarks, pleaded that pensioners should be considered in the new minimum wage regime. The public hearing attracted the representatives of the governors of Bayelsa, Cross River, Akwa Ibom, Edo and Delta states. Also present at the meeting were labour leaders from the six states of the geo-political zone.

  • Why uniform minimum wage is unrealistic in Nigeria – Wike

    The Governor of Rivers State, Nyesom Wike, said on Friday a uniform minimum wage is unrealistic in Nigeria because states vary in their financial capacity.

    He noted that Nigerian workers would be better off when states are allowed to fix their separate minimum wages in line with their financial capacity.

    Wike, a chieftain of the Peoples Democratic Party (PDP), spoke in Port Harcourt at a  public hearing on the new national minimum wage for Nigerian workers.

    He said: “The single national minimum wage system is yet another lie that betrays the distortions in our federation and the structured dislocation of the states in the power equation between the Federal Government and the federating states.

    “It is our view that the country and its workers would be better off, if states are allowed to fix and pay their own minimum wages, indexed to the prevailing cost of living and ability to pay.

    “When this happens, it is possible that some states may go beyond the minimum threshold to pay a living wage, which is what our workers truly need.”

    The Rivers governor also said the previous review exercise failed to give maximum weight to the existing disparity in economic potential and capabilities among the 36 states of the federation, stressing that it had been difficult for most of the states in Nigeria to implement the existing N18,000 minimum wage.

    He noted that majority of the states were within the fringes of financial viability and unable to meet their salary obligations to civil servant without bailouts from the federal government.

     

     

  • Minimum wage: Labour seeks living wage for workers

    • Aregbesola, Ambode, others caution

    Organised Labour laid its fresh demand for N66, 500 minimum wage before the 30-member Ms. Ama Pepple-led tripartite committee on new minimum wage yesterday. TONY AKOWE, TOBA AGBOOLA and ABDULGAFAR ALABELEWE report that the workers’ unions spoke with one voice in their request for a living wage.

    IT was the same tune at the public hearings on National Minimum Wage for Nigerian Workers staged in eight city centres across the country yesterday. The workers demanded for a living wage of N66, 500 minimum wage.

    The hearings, organised by the Tripartite Committee of the National Minimum Wage, were staged in Abuja, Lagos and the six geo-political zones.

    The government and employers of labour did not make their offers known yesterday’s public hearings, but the workers’ umbrella unions – the Nigerian Lagbour Congress (NLC) and the Trade Union Congress (TUC), explained why they united on the demand for N66, 500 as monthly salary for the minimum paid worker. The minimum wage is N18, 000.

    Some state governors, however, urged stakeholders to apply caution in fixing a minimum wage.

    Osun State Governor Rauf Aregbesola, who doubles as the Chairman, Tripartite Committee on the National Minimum Wage, Northcentral Sub-committee, urged all parties to settle for a fair, just and implementable minimum wage.

    His Lagos counterpart, Akinwunmi Ambode, said the revenue profile of each state must be taken into consideration as a major determinant of what can reasonably be afforded in terms of wages.

    Ambode said that workers’ salaries should not be allowed to jeopardize the government ability to fund social services that are critical to the well-being of the entire citizens.

    President Muhammadu Buhari has promised to implement the recommendation of the 30-member tripartite committee, which he inaugurated on November 27, last year.

    At the Southwest hearing, which held at the Adeyemi Bero Secretariat Auditorium, Alausa, in Ikeja, Lagos, the organised Labour demanded a new minimum wage for all workers in the country.

    Presenting the memoranda of the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC), the Political Committee Chairman of the local chapter of the NLC in Lagos, Agnes Sessi, said that N18, 000 was no longer sustainable as minimum wage.

    According to her, the two labour union unions agreed on the urgent need to review upward the minimum wage to meet the prevailing economic realities; lift a pool of working class out of the poverty trap; and to conform with the International Labour Organisation (ILO) standards on minimum wage fixing to meet the needs of workers and their families.

    In her submission, Mrs. Sessi said:  “Based on the current realities, the two labour centres demand for a new monthly national minimum wage of N66, 500, which is approximately the average of the implied minimum wages derived under three approaches.”

    She listed the approaches as:

    • Comparative analysis based on minimum wages in some African countries;
    • An estimate of the monthly minimum cost of providing basic needs to a family of six and two dependants and analysis based on rising cost of living over time.

    Mrs. Sessi added that both union seek the amendment of the Minimum Wage Act to provide its review every five years, or whenever there was a general wage review, adding that the recommended best international practice was that the minimum wage law should apply to all workers and not to establishments with 50 workers and above, as contained in the present Act as amended in 2011.

    She said the review of the minimum wage would boost aggregate demand which would further provide a boost to the economy coming out of recession, adding that an enhanced minimum wage, financed by increased taxation on the rich and luxury goods, would promote equity and growth in the economy.

    Also speaking, the Association of Senior Civil Servants of Nigeria (ASCSN), Lagos branch, aligned with the NLC and TUC in demanding for N66, 500 new minimum wage.

    The ASCSN spokesman, Akeem Kazeem, said the upward review was overdue because the pay structure in the country had become unrealistic and inadequate, such that workers could no longer meet their basic needs, a scenario, he said that is impacting negatively on their morale.

    Kazeem said: “The sum of N18, 000 which is currently being paid as the minimum salary in the civil service is grossly inadequate. An officer at that level will, however, require about N66, 500 a month to survive. We are in total support of the demand for the sum of N66, 500 for a salary of GL. 01 Step 1 officer as requested by the organised labout.”

    Speaking through the Head of Service (Hos) Mrs. Folasade Adesoye, Governor Akinwunmi Ambode said there was a consensus of opinion on the need for workers to be reasonably remunerated and compensated in line with current economic realities.

    He said that was why a provision was made in the law for periodic review of the national minimum wage, admitting that every worker deserved a wage that guarantees decent standard of living.

    Ambode said: “The issue, however, which I believe is more peculiar to the public sector, is striking a balance between what goes into recurrent expenditure of which salaries and allowances is a major component and the ability of government to fulfill its obligations to the larger society.

    “In this instance, the revenue profile of each state becomes a major determinant of what can reasonably be afforded in terms of wages, without jeopardizing the ability of the government to fund social services that are critical to the well-being of the entire citizens.”

    The governor stated that at N18,000 minimum wage, the state’s monthly wage bill was in excess of N10 billion for a workforce of 103,000, asides retirement benefits obligations.

    He said that despite Lagos being the highest revenue generating state internally, it must also be recognised that due to the growing population, “we also shoulder the highest responsibility in terms of the resources that must be expended on social and physical infrastructure renewal and development.”

    Ambode charged stakeholders to be open-minded and flexible in their demands in the overall interest of all.

    In his opening remark, the Chairman of the Tripartite Committee on the National Minimum Wage for the zone and Governor of Kebbi State, Atiku Bagudu, who was represented by his deputy governor, Col. Samaila Dabai, said the national minimum wage was first fixed in 1981 and subsequently reviewed in 1991, 2000 and 2011.

    He said: “It therefore means that hitherto, there appeared to be an unwritten cycle of 10 years between reviews.

    “This onerous task cannot be adequately carried out without the wide consultations, which this public hearing provides.”

    At the Abuja hearing, the Federal Capital Territory (FCT) Minister Mohammed Bello demanded a living wage for workers, describing them as the birds that lay the golden eggs.

    “Those who create the wealth of the nation deserve to be treated well and their welfare adequately taken care of,” the minister said.

    NLC President Ayuba Wabba told state governors canvassing for what they described as true federalism that there was nothing like true federalism anywhere in the world.

    He said federalism has a provision to protect the weak and vulnerable in the society.

    On their part, pensioners, under the auspices of Nigeria Union of Pensioners  (NUP) demanded a minimum pension of N40,000, arguing that a situation where some state pensioners still collect as little as N2000 monthly was unacceptable.

    The FCT minister, who was represented by the Director, Human Resource Management, Hajia Amina Bello, said while the minimum wage review was in tandem with ILO Convention, it should be juxtaposed with government revenue profile to make whatever is arrived at will be implementable.

    Bello said: “The planned review and proposal of a new national minimum wage is laudable, bearing in mind the current economic realities, in lauding the cost of living, particularly as it affect the middle and low income earners. That the review should be juxtaposed with the government revenue profile to ensure hitch free implementation upon approval.

    “This is because it may be counter-productive to arbitrarily consider an upward review without taking into cognizance the cost of funding the revised wage by government and private organisations.”

    The minister frowned at salary disparity among government workers, saying “there is the need for the committee to consider recommending the implementation of salary structure relativity among all federal establishments.

    “A situation where some government parastatals operate enhanced salary structure and allowances for its workforce, while others especially core ministries operate regular salary structure is to say the least somehow demoralising.

    “Investigation to this effect indicates that junior officers in some of these juicy parastatals earn more than directors in the core ministries and department.

    “While not canvassing for a downward review of this salary and allowances of this category of workers, considerable review and introduction of some allowances should be contemplated to mitigate this disparity.

    “There is the need to take into account the peculiar nature of the FCT and the high cost of living, housing, transportation among others.”

    The minister also proposed a special allowance for workers living within the FCT saying, “a comparative analysis of the cost of living in nation’s capitals indicate a wide gap in relation to the states across the countries. Hence there is the need to consider special allowance for workers in the FCT.

    “In view of the other core responsibility of the government and the cost of providing social amenities, the proposed review should be fair and considerate.”

    In his presentation, Wabba said the demand for a national minimum wage was in line with ILO Conventions, which prescribe minimum wage so that we can protect the most vulnerable workers from exploitation.

    He said: “The idea is to protect the most vulnerable worker which cut across both the public and private sector. That is the context which we must look.

    “I have heard the argument that the call for minimum wage is trying to bring about an equal wage across the states of the federation. That is not true. When we signed the minimum wage in 2011, some states offered to pay more than N18, 000. What we are saying is that you need to have a minimum, while across the country, you can pay higher. This also applies to the private sector.”

    On the governors who are using the issue of true federalism to demand that they be allowed to fix their own salaries, he said: “I have heard people talk about true federalism and I have checked and discovered that there is nothing like true federalism.

    “I have checked all the vocabulary in political science and discovered that what you have is federalism and not true federalism. What the United States of America (USA) practice is federalism and in federalism, you need to protect the most vulnerable group from exploitation.

    “If you say states should fix their own salaries, what about the private sector? What that means is that there will be exploitation. What we are saying is fix the minimum and not the maximum. We must protect the most vulnerable group in our society.

    “Also, the minimum wage review is evidence based anywhere in the world. So, it is not arbitrarily fixed. ILO says it should be evidence based with empirical data. In some countries like Ghana, they look at inflation.

    “The workers create the wealth and should benefit from the wealth they create. The issue of ability to pay has always come up. We have said that there are several responsibilities that the federal government is handling that they should not be handling.

    “We have agreed in principle that we should take a look at how to distribute our resources, while we work towards increasing internally generated revenue. If all these and more are considered, the will to pay will be there and the way will also be there.”

    In his argument, Aregbesola said the constitution vested in the Federal Government the right to fix minimum wage for all segments of the society. He, however, cautioned that in discussing the minimum wage, it should be done side by side with the issue of productivity.

    He said: “The assembly here this morning is an indication of our commitment to keep faith with our constitution and the national minimum wage is a constitutional one. Item 34 of the exclusive list empower the Federal Government to deal with the issue of Labour, in losing proscribing the national minimum wage for the federation.

    “This committee comprises of government, both at the federal and state levels, organised labour and the organised private sector in accordance with ILO Conventions.

    “Its task cannot be adequately carried out without the dill consultation which this public hearing provides. I therefore urge you all to make your input dispassionately.

    “We have all along been concentrating on cost of living which is also important. However, in your contribution, let us also look at productivity index, so as to get the best for the economy. By so doing, we will be enriching the outcome of this debate and making it less controversial and more amenable to implementation.”

    NUP Deputy President Aminu Ayuba said the Nigerian laws stipulate that pension should be reviewed every five years or whenever salaries are being reviewed.

    He said that prescribing a minimum pension remained the only way to review the low pensions being paid by all tiers of government.

    At the Southeast centre in Enugu, stakeholders urged the federal and state governments, as well as private employers, to facilitate payment of the new minimum wage to reduce the suffering of workers.

    Speaking for the local chapter of the NLC in the Southeast, Virginus Nwobodo said that the new minimum wage review and implementation had been overdue.

    Nwobodo, who doubles as the NLC Chairman in Enugu State, said that N66, 500 should be the takeoff point as a minimum wage, arguing that it has become difficult for workers to live on N18, 000 with families and dependants to take care of.

    He said: “It is long overdue and we are asking for nothing less than N66, 500 to meet the current socio-economic realities.’’

    Chukwuma Igbokwe, who spoke for the TUC in the region,  called on the Federal Government to conduct a public hearing on political office holders’ wages, so that it would be reviewed.

    Igbokwe said that the huge amount being collected by politicians across board was inimical to the purchasing power of workers, since both patronised the same market.

    NUP zonal chair, Chukwuma Udesi, called on the government to inaugurate a Committee for the National Minimum Wage for Pensioners.

    He said that by so doing, pensioners would start enjoying increment like other workers.

    Udesi said: “NUP is demanding a minimum of N40,000 to meet the basic needs of a pensioner and reduce their sufferings.’’

    He urged Abia and Imo state’s governors to pay the backlog of pension arrears in their state.

    In his remarks, Anambra State Governor Willie Obiano said that the state would remain labour-friendly and implement any fair agreement reached and concluded by the tripartite committee. He was represented by his Senior Special Adviser on Labour Matters Godwin Igbokwe.

    He noted that the government had assured the state workers of increment in their salaries.

    His words: “The state government is ready to implement the increase but wants to wait for the tripartite committee to conclude their assignment. Hopefully in July this year, I assure you that Anambra will be the first to implement.”

     

    Purpose of hearings

     

    The Chairman of the Tripartite Committee on National Minimum Wage, Ms. Ama Pepple, said that the public hearings, simultaneously on-going in eight centres, was meant to collate the aggregate views of the people, especially organised labour, employers and groups.

    Ms. Pepple said that the exercise would enrich the outcome and make the implementation of the new minimum wage easier, since everybody would be taken into account.

     

     

     

    She said: “We have assembled here this morning to collectively exchange ideas in the ongoing efforts by government aimed at establishing a new National Minimum Wage for Nigerian workers. As it is the practice the world over, a minimum wage, once established, is reviewed from time to time in accordance with economic realities.”

    The demand was not different at the Northwest zonal hearing in Kaduna.

    Defending the 40, 000 payment for retirees, NUP President, Dr. Abel Afolayan, argued that the N18, 000 can no longer sustain the standard of living of an average worker, who must meet up with the basic needs of life.

    Afolayan said: “Nigerian pensioners are also confronted with the above enumerated social problems in addition to their age-related health challenges.”

    Represented by his vice, Sani Muhammad, the NUP chief said: “The agitation for minimum pension alongside minimum wage has been going on since the of our union in 1978.

    “This is to correct the ugly situation whereby some pensioners particularly at the state level, earn as low as N2, 000 per month.”

    The TUC faulted the rise in price of food stuff, transport fare, which it said have gun up by 80 per cent, while only the cost of labour remains stagnant.

    Awwalu Mudi Yakasai, who represented the local chapter of the TUC/NLC in Kano State chapter, called for reasonable improvement of the minimum wage, considering the hardship faced by workers whom have families to cater for.

    The TUC chairman in Kaduna State, Shehu Muhammad, told reporters his views on the anticipated minimum wage.

    He said the decision to setup a tripartite committee was a calculated move to strike a balance among all stakeholders.

    Muhammad said: “We are not expecting any resistance from any government in Nigeria, because there interest is well represented in the meeting.

    “We have taken that as a mistake from our own part. That is why this time around the committee is tripartite in nature. We have the representative of governors, Federal Government and the labour organisations.

    “So, whatever decision reached at the end of the committee submission is going to be all encompassing, and include the decision and agreement of the state governors, Federal Government and the labour.

    Gombe State Governor and the chairman of the National minimum wage from the Northwest, Ibrahim Dankwanbo assured that the interest of the labour union will be deliberated upon and a minimum wage figure will be released on a tripartite agreement.

    Dakwambo said: “It is a matter of relying on the indices, inflationary trends of the country, the devaluation of the Naira, our own living standards and a host of other indices we have taken into consideration.”

    He was represented by the TUC National President, Boboye Bala Kaigama.

    Dakwambo said: “The state governments will make their own decision, while the organized private sector will do the same. At the end of the day, we will collate them, and I assure you that with the sprite of tripartism, we will come up with a national minimum wage figure that will be acceptable to all.”

     

  • Minimum wage: Labour pushes for N66, 500

    There is a twist in the ongoing negotiation for a new minimum wage. The organised labour has raised its demand from N56,000 to N66,500, reports TONY AKOWE.

    EIGHT zonal public hearings are to be staged across the country by the tripartite committee on the new national minimum wage. The hearing will allow stakeholders to make their inputs into organised labour’s fresh demand for N66, 500 monthly salary for the least paid worker.

    Labour presented its memorandum to the tripartite committee, which was inaugurated on November 27, last year by President Muhammadu Buhari at the Council Chamber of the Presidential Villa in Abuja.

    The 30-member tripartite committee is chaired by a former Head of Service and Minister of Housing, Ms. Ama Pepple. Its members are drawn from the government (federal and state), workers’ unions and employers of labour.

    It was learnt yesterday that the zonal hearing would be conducted in the six geopolitical zones as well as in Lagos and Abuja, beginning from April 23.

    The Nigeria Labour Congress (NLC) President, Ayuba Wabba, who confirmed the upward review of the demand and the conduct of the zonal public hearings, was, however, silent on the new figure proposed to the government for consideration.

    Wabba, who said mentioning the figures was of no relevance at the moment, explained that the organised labour considered the prevailing realities including certain variables and current inflation to make an upward review of its demand.

    The fresh demand is N10, 500 higher than the labour’s initial request. Earlier in February, the NLC made a request to the tripartite committee on minimum wage to increase the wage from N18,000 to N56,000 for the least paid worker.

    Wabba told reporters that the new submission from labour was not different from the initial submission, saying “we made a demand almost two years ago and that demand was the beginning of the process.

    “The demand of Labour was based on the agreement we had on the five-year circle, which we believe was due and also considering the level of  inflation, we made a demand of N56,000.

    “At the tripartite level, after the committee was constituted by Mr. President, all state governors and employers of labour, including the private sector and organised labour were requested to resubmit their memorandum to the committee for discussion to commence.

    “Therefore, states have submitted their own memorandum, the Federal Government and the Nigeria Employers Consultative Association (NECA) have submitted theirs. Jointly, labour has resubmitted its own memo. But what we did was to look at the dynamics of the times because the discussion will be evidence based.

    “So, we undertook a study and made a submission. This is the logic and not that we have submitted a new position. It was the same memo that we submitted, but what we did was to look at the indices because a lot have changed between 2015 and 2018.

    “So that cannot be regarded as a change of position because the process of arriving at a minimum wage in line with Convention 121 is evidence based. Everybody submitting memo or document will have to back it up with logic and not just quote figures from the air.

    “If due to inflation, there have been minor changes; we thought that should be done because; we felt that is what the opportunity is meant for. That document has been submitted and not a new document. It is just that we felt that there are new variables which we felt should be strengthened.

    “Every variable that is supposed to be considered for a discussion on the new minimum wage has been considered. We looked at the current realities to present a very robust position especially inflation. They are variables that are outside our control which you must use.

    “Clearly, what I want to inform you about is that we are committed to what we have. Yes, we have changed the variables, but the principles and the logic have not changed. Every other organisation will do same.

    “Even at the tripartite level, every memo is presented by the organisation which will be made public during the public hearing at different location across the country and each state is expected to make their presentation.

    “Some states have made their presentations to us which we felt is reasonable. For now, NECA, labour and states have made their presentations and they are already being considered.

    “The public hearing will begin on the 23rd of April across the six geopolitical zones and states within each zone will converge at the venue and organised labour in the zones will also make presentations.

    “We have given Lagos and Abuja an additional space. We have received notices to tidy up the process of public hearing.”

    The Minister of Labour and Employment, Dr. Chris Ngige, who doubles as the tripartite panel’s vice chairman, has repeatedly assured that a new minimum wage will be implemented from the third quarter of this year.

    The latest of such promise by the minister was on February 27 during the 40th anniversary of the NLC in Abuja.

    Ngige said: “Well, we all know the economic situation of the country as of today. The negotiation committee has members from all the tripartite bodies, which means the government cannot force its way.

    “The committee has received memoranda from all the critical stakeholders and should begin the implementation of a new minimum wage in the third quarter of this year.”

    It was learnt that the NLC and the Trade Union Congress (TUC) submitted a new request for an increase of the national minimum wage above N56, 000 per month to the minimum wage committee.

    The disclosure was made at the 11th Quadrennial Delegates Conference of the Nigeria Civil Service Union (NCSU) by the acting NLC chairman, Kiri Mohammed, on February 8 in Abuja.

    Mohammed said the demand for its upward review was as a result of inflation and other economic realities in the country.

    He said: “We submitted our request, NLC has decided to look at the figure and modify it, we actually modified it, an upward review above N56, 000.

    “We have submitted it to the secretariat of the tripartite committee. The review is in conjunction with the TUC. You can’t do it alone, all of us met and decided to put heads together and look at the realities on the ground.”

    When confronted with reports that indicate that the new minimum wage may not be paid this year as it was not captured in the 2018 budget, Mohammed restated the President’s commitment to the implementation of the outcome of the ongoing negotiations for new wages for workers.

    Explaining why the government would implement the recommendations of the tripartite committee on minimum wage, the acting NLC chief said: “Who made the budget? I believe if they (government) are serious, we can finish this matter towards the middle of this year (June, July).

    “If we can finish at that time, then before the end of the year, certainly the President must send whatever we agreed to the National Assembly for them to look at it and for him to assent to it as a law. But, I know that once we agreed, the government would implement whatever is agreed.”

    The Director-General, Budget Office of the Federation, Ben Akabueze, said that though no provision was made concerning the minimum wage in this year’s budget, the Federal Government would prepare a supplementary budget that would take care of the increase in workers’ pay after the new minimum wage proposal has been approved.

    Wabba, had at the 40th anniversary of the NLC said that labour would resist the schemes of whoever works against the realisation of the new minimum wage within the government.

    The workers had an ally in House of Representatives Speaker Yakubu Dogara, who assured the NLC that lawmakers were prepared to support the payment of living wages to workers in the country.

    He encouraged the NLC to negotiate on living wages for its members.

    In a statement by its media office, the speaker was quoted as saying: “The major challenge facing the organised labour today is to negotiate a meaningful national minimum wage for Nigerian workers.

    “I wish to lend the support of the House of Representatives to the ongoing efforts to secure not only a living wage for the Nigerian worker, but also to ensure that in retirement, workers are sufficiently taken care of. The labour of our heroes past shall never be in vain.”