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Tag: minimum wage

  • Minimum wage: Govt counters NLC’s accusation

    Minimum wage: Govt counters NLC’s accusation

    The Federal Government yesterday dismissed as untrue allegation of foot-dragging leveled at it by  the Nigeria Labour Congress (NLC) in  constituting a  tripartite committee to deliberate on the proposed N56, 000 minimum wage for workers in the country.

    Labour and Employment Minister Chris Ngige said that contrary to the NLC allegation government  has remained committed  to its policy of  improving the welfare of the Nigerian workforce by holding series of meetings with stakeholders on the subject matter.

    Ngige in a statement through the Deputy Director of Press in the ministry ,Mr. Samuel Olowookere said there was no time government stalled the process of constituting the  tripartite committee.

    He said:”The final meeting of the technical committee on new minimum wage was slated for 23rd February, 2017 but could not hold as scheduled.

    “The Nigerian Labour Congress and its Trade Union Congress counterpart requested for a postponement of the meeting.

    “This was in order to attend the delegate conference of National Union of Civil Engineering Construction/ Furniture and Wood Workers (NUCECFWW), at Asaba Delta State.”

    He said that in demonstration of the Federal Government’s commitment, a new date for the meeting of the technical committee on minimum wage has been scheduled for March 14 by 2:00pm at the Office of the Secretary to the Government of the Federation (OSGF).

    The minister said that the new date had been communicated to both the government and worker’s representatives of the technical committee.

    Ngige, therefore, said the allegation as ascribed to the NLC President, Mr Ayuba Wabba, was “mischievous and unfounded.”

    “The NLC President is fully aware of the rescheduled meeting and the reason for the postponement of the earlier meeting which was at the instance of labour unions,” he added.

  • ILO seeks Fed Govt, Labour dialogue on minimum wage

    ILO seeks Fed Govt, Labour dialogue on minimum wage

    The International Labour Organisation (ILO) has advised the Federal Government and Labour to use social dialogue in negotiating a new minimum wage for its workers.

    Its Country Director for Nigeria, Mr Dennis Zulu, gave the advice in Abuja.

    The ILO Convention stipulates that a minimum wage review is  every four years.

    He said: “Discussion on the minimum wage for instance, this social dialogue mechanism can be used to achieve an optimum solution and optimum win-win results agreeable to all the parties or the tripartite partners in Nigeria.

    “Social dialogue is a critical component to maintaining industrial harmony in the workplace and therefore we want to encourage that the three parties, the private sector, worker organisations and government.

    “Always use this mechanism as a way of reaching agreements on this contentious issue and have the necessary information to put in place an appropriate argument to back their demands,’’ he said.

    Zulu said Nigeria has a social dialogue mechanism within which all the three parties meet and should not relent in using such platform.

    He added that ILO would want to see more of these meetings, especially as a way of finding solutions to agreements on some issues that arises in workplaces.

    “Basically, each of the three partners has equal right to all discussion around the work place through the mechanism called the social dialogue.

    “We encourage the three partners to engage in discussions, consultations on all issues that will affect the welfare of workers in the workplace.

    “Because we believed that it is only through reaching consensus through social dialogue that we can get the industrial harmony that is needed for the workplace to be functional,’’ he added.

  • Labour confident of minimum wage review

    Labour confident of minimum wage review

    Labour yesterday expressed optimism of a minimum wage raise by the government.

    Nigeria Labour Congress (NLC) President Ayuba Wabba said the Federal Government and the organised Labour movement had reached a consensus to review the National Minimum Wage.

    Wabba, according to the News Agency of Nigeria (NAN), said the consensus was reached during the sitting of the Technical Committee on Palliatives.

    He said the committee was meant to look into the framework to ameliorate the suffering of Nigerians and cushion the effect of the increase in the price of fuel.

    He also noted that the report of the committee, which was also meant to discuss the minimum wage, was ready for submission.

    “I think there is a consensus on the fact that nobody has said that the minimum wage should not be reviewed.

    “The palliative report is ready and it would be submitted before the end of the month.

    “At the last palliative meeting, labour leaders requested that they needed to look at the main report of the committee before submission.

    “So, the technical committee will have to submit its report to Mr President and not to the Minister of Labour and Employment,‘’ he said.

    Wabba said after the submission, the Presidency would then set up the tripartite committee that would involve the government, private and public sector.

    The NLC President said Labour was hopeful that the minimum wage committee would be constituted soon.

    He said Labour had also received positive response from the National Assembly, saying that the Senate had promised to pass the bill.

    The labour unions had submitted a proposal to the government demanding N56, 000 as minimum wage.

  • Uncertainty as Labour sets 56,000 minimum wage target

    Uncertainty as Labour sets 56,000 minimum wage target

    The workers’ umbrella body, the Nigeria Labour Congress (NLC), opened the New Year with a demand for an upward review of the national minimum wage from N18, 000 to at least N56, 000 by employers of labour. TOBA AGBOOLA reports that labour is justifying its demand on the grounds that a minimum wage review is overdue.

    Governors’ position on workers’ demand

    The 36 state governors have said they could no longer pay the minimum wage of N18, 000. Their reason, given two years ago, was the dwindling allocations from the Federation Account.
    Rising for their meeting under the aegis of the Nigerian Governors’ Forum (NGF) at the Old Banquet Hall of the Presidential Villa in Abuja, they said the falling prices of oil prices at the global market which reduced the revenue accruing to the Federal Government took a debilitating toll on their financial capabilities.
    In a communique read by the NGF chairman and Zamfara State Governor Abdulaziz Yari, the governors said the wage burden became heavier after the price of a barrel of crude oil went below $40.
    Yari said: “We resolved that we must look at ways to enhance revenue generation and at the same time look at ways to cut our overhead costs, more especially, the political office holders’ salaries and other overhead expenses.
    “The situation is no longer the same when we were asked to pay N18, 000 minimum wage, when oil price was $126 (per barrel) and continued paying N18,000 minimum wage when the oil is $41 and the source of government expenditure is from oil, and we have not seen prospects in the oil industry in the near future.
    “We will diversify our economy in the area of agriculture and mining. But, at the same time, we should understand our situation where some of us (states) today are taking N100 million take home (monthly allocation) and then have salaries in particular of over N2 billion to pay.”
    Analysts have cautioned the Federal Government against repeating past mistakes by unilaterally reviewing and fixing a new minimum wage without input from the federating units.
    They said the federal authority erred in 2011 by imposing a minimum wage on the states and local government areas without recourse to their capacities to pay. But, the unions have dismissed the governors’ argument as puerile, claiming that none of the governors who could not afford the minimum wage, offered to slash his salaries, or discontinue with the humongous security votes that are never accounted for.
    Reacting to the NGF position, the NLC urged any governor who could not afford to pay the minimum wage to resign without delay. Speaking through its President, Ayuba Wabba, the NLC warned that any attempt to renege on the payment of the national minimum wage will be tantamount to breaking the law.
    Wabba said: “They have been misinforming the people about the N18, 000 minimum wage. Minimum wage is not fixed. It was negotiated through a tripartite system; 10 state governors represented the governors, the Federal Government and organised private sector were also represented. It was a tripartite process of collective bargaining.
    “We had looked at all the indices of ability to pay. It is a law and anybody that refuses to pay is breaking the law of Nigeria and we advise any such governor to resign.
    “Why is it that the salaries of councillors to the highest political office all over the country remain the same? If there is economic challenge, why should it be the workers that will bear the burden? So, who are they fooling?
    “Can they continue to fool us? When the resources were there, workers were not enjoying. Now that there is a challenge in the system, why should the burden be shifted only to the workers? That is not acceptable to us. This is like a battle for us as we must continue to insist that workers should work in dignity and there must be dignity in labour.”
    To the Minister of Labour & Employment, Senator Chris Ngige, the governors were only playing politics by saying they could not cope with N18, 000 as minimum wage. He advised them to be creative in revenue generation.
    Ngige, who spoke at a meeting with the NLC leadership in Abuja, added that both labour and the governors should be blamed for the state of the workers.
    He said: “When the NLC joined the governors in talking about minimum wage with the governors saying ‘we cannot pay N18, 000 minimum wage and NLC saying it is time for us to ask for increase’, we know that these talks heat up the polity.
    “The NLC knows better that the governors are playing politics. This is one matter that you cannot play politics with because it is a matter of rule of law.

    LABOUR is demanding a new minimum wage for workers beginning from May 1, setting the stage for a clash between the three tiers of government and unions.
    The workers’ unions – Nigeria Labour Congress (NLC), Trade Union Congress of Nigeria (TUC) and United Labour Congress (ULC) – are leading the battle.

    What is a minimum wage?

    The minimum wage is the lowest remuneration that an employer can pay any employee. Equivalently, it is the price floor below which no employee will offer his service.
    Despite the parlous state of the economy, the unions have set May as deadline for an upward review of the minimum wage, which according to them, is overdue.
    Although, the downturn in the economy is adversely affecting workers, but the unions’ New Year demand is coming at a time when no fewer than 26 out of the 36 state governors are finding it difficult to meet their monthly obligations to the workers. They have been unable to pay salaries as at when due. Some owe between two and six months.
    The Federal Government, which gave bailout to the states in 2015, was recentlyforced to reimburse the states with their shares of the Paris Club’s refund before the close of last year. It urged the governors to give priority to workers’ outstanding salaries in the application of the N388 billion it released to the states to cushion the effects of the cash crunch.
    The workers have been at the receiving end of the global economic downturn and Nigeria’s economic challenges, which was compounded by falling oil prices at the international market.
    The declining value of the naira against the dollar and rising prices of goods have compounded the workers’ woes, making the N18, 000 minimum wage inadequate to take them home.
    The National Minimum Wage Act, signed into law by former President Goodluck Jonathan in March 2011, approved N18,000 as the minimum wage for fresh employee on Grade Level 1, Step 1.
    When converted to dollars at the prevailing official and black market rates, N18, 000 is far below $100.
    In the United States (U.S.), the minimum wage per hour is about $8. Impliedly, working eight hours daily and five days weekly, an average worker goes home with $320. The amount is higher than three months’ salary for a junior employee in Nigeria.

    History

    The history of minimum wage in Nigeria is inseparable from that of its public service negotiations and increments, beginning from the colonial era and the setting up of Hunts Commission in 1934.
    The first National Minimum Wage Act, which was enacted in 1981, prescribed a minimum wage of N125 per month. It was contained in the Official Gazette A53-57 of 1981.
    From N125 per month, the minimum wage was reviewed to N250 in 1991. It again reviewed in 2000, taking the minimum wage to N5, 500 per month. The last review was done in 2011, when it was raised to N18, 000.
    In a National Minimum Wage Amendment Bill presented to the National Assembly on July 1, 2010, the Justice Alfa Belgore Committee recommended N18, 000 as the national minimum wage for all establishments in the public and private sectors with 50 workers and above.
    The Belgore report also included an upward review of the sanctions applicable to those not implementing the new national minimum wage. The panel recommended a fine not exceeding N100, 000, or imprisonment for a term not more than six months or both. In the case of continuing the offence, a fine of N10,000 for each day and a more frequent review period not exceeding five years to be carried out by a statutory tripartite committee that would be appointed from time to time by the President.
    The Bill was passed into Law on March 15, 2011 by both chambers of the National Assembly with minor adjustments that included: “that as from the commencement of the National Minimum Wage Act 2011, it shall be the duty of every employer to pay a wage not less than the national minimum wage of N18, 000 per month to every worker under his employment and the penalty for failing to pay minimum wage is N20, 000 while the penalty for every additional day the default continues is N1000.”
    However, six years after it was adopted, the minimum wage has become inadequate in the face of rising inflation and the sustainable budgets for all family income levels as well as the international benchmarks of the United Nations (UN).
    Notwithstanding the inadequacy, there has been no uniform compliance with the application of the minimum wage by the three tiers of government. The tiers have unique salary structures for workers on their payroll. For instance, in Enugu, state and local government employees get 18, 500 as minimum wage as against their federal colleagues who get N18, 900. In Osun State, the minimum wage is N19, 000.

    The NLC May 1 ultimatum

    The NLC has given the Federal Government a May 1 deadline for the implementation of N56, 000 as minimum wage, failing which it threatened nationwide strike.
    Speaking with The Nation, Wabba, decried the non-inclusion of the new wage increase in the N7.298 trillion Budget proposal for this year.
    The estimate, presented by President Muhammadu Buhari to the joint session of the National Assembly, is being scrutinised by the lawmakers for approval.
    Describing the poor workers’ remuneration amidst economic recession as unacceptable, the unionist argued that the Congress could not guarantee industrial peace if the government failed to raise a tripartite committee for the implementation of a new minimum wage on or before May 1.
    “The issue of minimum wage remains sacrosanct because by law and practice, the review is due and overdue. I have said clearly that we cannot guarantee any industrial peace any longer if necessary steps are not taken by the government to resolve this issue before the next May Day. This is very clear because as we said, we have sent a formal notice of demand as required by law to the government to try to constitute the committee.
    “Essentially, the tripartite committee expected to dialogue and negotiate the minimum has not been inaugurated. If it is set up, all of you will be aware of the membership and also their terms of reference and the timeline given to actually dispose with this very vital issue.
    “The issue is so sensitive because many of our members have been subjected to difficulties because the purchasing power of ordinary Nigerian worker has been reduced to virtually nothing owing to rising inflation, naira’s free fall and to compound it all, the high cost of goods and services. More so, most workers can no longer meet up with their daily needs, they can’t pay their rents; they can’t send their children to school.
    “It is even more compounded because the cost of goods and services have gone up. So, side by side with the issue of fighting corruption, it is also good for workers to be paid a decent wage that they can be able to have a meaningful living. So, this is the challenge.” the NLC President lamented.
    Reacting to the allocation of funds for the new minimum wage in the 2017 Budget, the NLC chieftain expressed optimism that the Federal Government and National Assembly will see reason to accommodate the fund when the tripartite committee agree on the new national minimum wage.
    “They must see reason to accommodate it because the fact is very obvious. It is legitimately due both in law and practice, and therefore, this is our approach. Once it is mutually agreed and from what I have heard from the official circle, I’ve not heard the government saying that they are not willing to consider the minimum wage issue. I think the minister of Labour has said it very clearly that the government is committed to reviewing the minimum wage. But but when that will happen is the issue.
    “Therefore, let us not mix the two things. Is there a resistant to say that there will be no review of minimum wage? I am not sure I have heard that because by our constant interaction, the government has through the minister of Labour said they are also willing to review the minimum wage.
    “As I said earlier, we have made a formal demand through writing and therefore, if there is the need to review the template, we will do that at the table. But that will have to be a joint decision. What we have submitted is N56, 000 and that is still valid,” Wabba said.
    The NLC General Secretary, Peter Ozo-Eson, backed the call for the establishment of a tripartite committee to review and agreed on a new minimum wage.
    He, however, said that the N56, 000 minimum wage proposal could no longer be tenable because it was arrived at when the economy was not too bad.
    Ozo-Eson told The Nation: “The issue of minimum wage remains sacrosanct because by law and practice, the review is due and overdue. We have said it clearly that we cannot guarantee any industrial peace if necessary steps are not taken by the government to resolve this issue this year.
    “This is very clear because as we said, we have sent a formal notice of demand as required by law to the government to constitute the tripartite committee.
    “The committee that should dialogue and negotiate the minimum wage has not been set up. If it is set up, its composition and terms of reference would be made public.”
    Ozo-Eson expressed doubt if labour would still stick to the N56, 000 minimum wage demand in the prevailing economic situation.
    He recalled that the proposal was made some years back when the economy was healthy, adding that the meeting between the stakeholders would address the matter.
    His words: “We made the N56, 000 proposal at a time the situation was not as worst as this. A lot of things have changed; prices of goods and services have gone up. So, what we propose then was based on the situation on ground. These are the things the tripartite meeting will address.”
    Ozo-Eson said N18, 000 was approved as the minimum wage seven years ago after the tripartite meeting.
    “Seven years ago, the current minimum wage of N18, 000 was reviewed from N5, 500 after the tripartite meeting, which also included both the private and the public.
    “After the N18, 000 agreement, the new proposal was sent to the National Assembly for approval. So, we expect that it will go this way also,” Ozo-Eson said.

    ULC seeks N96,000
    minimum wage

    The newly-formed United Labour Congress (ULC) brought another twist to the workers’ demand with its request for the implementation of N96, 000 minimum wage.
    Speaking with The Nation, President of the ULC, Joe Ajaero, insisted that N96, 000 will be the acceptable minimum wage for workers in the prevailing economic circumstances.
    According to him, the ULC has presented the proposal to the Federal Government for consideration.
    Ajaero explained that the economic reality has made it imperative for the federal and state governments to dialogue with organised labour for the immediate implementation of the new minimum wage.
    He disclosed said that the congress has mobilised workers to begin a national protest beginning from January 31 if the government failed to discuss and dialogue with the organised labour.
    The unionist said that workers have been at the receiving end of the economic policies rolled out by the government last year. Workers, he claimed, have lost their purchasing power, with millions sacked by their employers.
    He urged the federal and state governments to intiate policies that would improve workers’ living standard, protect their jobs and create employment opportunities.

    All eyes on Fed Govt

    Will the Federal Government agree to labour’s demand? This is the questions agitating the minds of many.
    At its last parley with labour leaders, the Federal Government proposed N45, 000 as the new minimum wage as against NLC’s N56, 000 proposal.
    But the increase came with some provisions, including a reduction in the number of civil servants and merger of ministries and agencies.
    Rather than take the news with enthusiasm, it was received with skepticism. Not a few Nigerians have expressed doubt on the capacity of the economy to cope with an increment in minimum wage.
    The Presidency has not responded to the labour’s latest proposal.
    In his address, the President, who was represented by Senator Ngige, also lamented the economic challenges facing the country.
    Investigation revealed that the average Nigerian worker is 400 per cent poorer than when N18, 000 was introduced as minimum wage in 2011.
    No doubt, the workers’ purchasing power has been eroded with rising inflation. But is this the best time for the labour leadership to demand for pay rise?

  • Much ado about minimum wage

    Much ado about minimum wage

    Workers umbrella body Nigeria Labour Congress (NLC) opened the New Year with a demand for an upward review of the national minimum wage from N18, 000 to at least N56, 000 by the Federal Government. Labour is justifying its demand on the ground that a minimum wage review was overdue, reports TOBA AGBOOLA. 

    Governors’ position on new minimum wage

    Two years ago, the 36 state governors said they could no longer pay the minimum wage of N18, 000. Their reason was the dwindling allocations from the Federation Account.
    After their meeting under the aegis of the Nigerian Governors’ Forum (NGF), at the Old Banquet Hall of the Presidential Villa in Abuja, they said the falling prices of oil prices at the global market which reduced the revenue accruing to the Federal Government had taken a debilitating toll on their financial capabilities.
    In a communique read by the NGF chairman and governor of Zamfara State, Abdulaziz Yari, the governors said the wage burden became heavier after the price of a barrel of crude oil went below $40.
    Yari said: “We resolved that we must look at ways to enhance revenue generation and at the same time look at ways to cut our overhead costs, more especially, the political office holders’ salaries and other overhead expenses.
    “The situation is no longer the same when we were asked to pay N18, 000 minimum wage, when oil price was $126 (per barrel) and continued paying N18,000 minimum wage when the oil is $41 and the source of government expenditure is from oil, and we have not seen prospects in the oil industry in the near future.
    “We will diversify our economy in the area of agriculture and mining. But, at the same time, we should understand our situation where some of us (states) today are taking N100 million take home (monthly allocation) and then have salaries in particular of over N2 billion to pay.”
    Analysts have cautioned the Federal Government against repeating past mistakes by unilaterally reviewing and fixing a new minimum wage without input from the federating units.
    They said the federal authority erred in 2011 by imposing a minimum wage on the states and local government areas without recourse to their capacities to pay. But, the unions have dismissed the governors’ argument as puerile, claiming that none of the governors who could not afford the minimum wage, offered to slash his salaries, or discontinue with the humongous security votes that are never accounted for.

    FRESH demands by organised labour for a new minimum wage for workers beginning from May 1 may have set the stage for a clash between the three tiers of government and labour unions.
    The workers’ unions – the Nigeria Labour Congress (NLC), Trade Union Congress of Nigeria (TUC) and United Labour Congress (ULC) – have requested for a new minimum wage for every worker on government payroll.

    What is a minimum wage?

    It is the lowest remuneration that an employer will legally pay to those on the payroll. Equivalently, it is the price floor below which no employee will sell his labour to employers.
    Despite the parlous state of the economy, the unions have set …….as deadline for upward review of the minimum wage, which according to them was overdue.
    The downturn in the economy has put workers on their knees to sell their labour for pittance.
    But the unions’ New Year demand came at a time no fewer than 26 state governors cannot meet their monthly obligations to the workers. They have been unable to pay salaries as at when due, with some owing between two and six months.
    The Federal Government, which gave bailout to the states in 2015, was forced to reimburse the states with their shares of the Paris Club’s refund before the close of last year. It urged the governors to give priority to workers’ salaries in the application of the funds.
    Workers in the country have been at the receiving end of the global economic downturn and Nigeria’s economic challenges triggered by falling oil prices at the international market.
    The declining value of the naira against the dollar and rising prices of goods have compounded the workers’ woes as the N18,000 minimum wage can no longer take them home.
    The National Minimum Wage Act, signed into law by former President Goodluck Jonathan, prescribed a N18, 000 as the minimum monthly wage for workers on Grade Level 1, Step 1.
    When converted to dollars at the prevailing official and black market rates, N18, 000 is far below $100.
    In the United States (U.S.), the minimum wage per hour is about $8. Impliedly, working eight hours daily and five days weekly, an average worker goes home with $320, an amount higher than three months’ salary for the a worker in Nigeria.

    Minimum wage history

    The history of minimum wage in Nigeria is inseparable from that of its public service negotiations and increments, beginning from the colonial era and the setting up of Hunts Commission in 1934.
    It is, however, noteworthy that the first National Minimum Wage Act was enacted in 1981, prescribing a minimum wage of N125 per month. It was contained in Federal Government of Nigeria Official Gazette 1981, A53-57.
    From N125 per month, the minimum wage was reviewed to N250 in 1991 and there was yet another revision in 2000, taking the mini­mum wage to N5, 500 per month. , The last review was done in 2011 when it was increased to N18, 000 per month.
    The Justice Alfa Belgore Committee had on July 1, 2010, submitted a Bill on the National Minimum Wage Amendment to the National Assembly and recommended N18, 000 as the national minimum wage for all establishments in the public and private sectors employing 50 workers and above.
    Other recommendations in the Belgore report include: an upward review of the sanctions that would serve as a deterrent for not paying the new national minimum wage including a fine not exceeding N100, 000 or imprisonment for a term not exceeding six months or both, and in the case of continuing the offence, a fine of N10,000 for each day during which the offence continues and a more frequent review period not exceeding five years to be carried out by a statutory tripartite committee that would be appointed from time to time by the President.
    The Bill was passed into Law on March 15, 2011 by both chambers of the National Assembly with minor adjustments that included:
    •That as from the commencement of the National Minimum Wage Act 2011, it shall be the duty of every employer to pay a wage not less than the national minimum wage of N18, 000 per month to every worker under his employment and the penalty for failing to pay minimum wage is N20, 000 while the penalty for every additional day the default continues is N1000.
    However, six years after it was adopted, the minimum wage has become inadequate in the face of rising inflation and the sustainable budgets for all the family income levels as well as the international benchmarks of the United Nations (UN).
    Notwithstanding the inadequacy, there has been no uniform compliance with in the application of the minimum wage by the three tiers of government. Each of the tiers has a unique salary structure for its workers. In Enugu State, workers at the state and local government levels get 18,500 as minimum wage, whereas, their colleagues of Federal Government’s payroll get N18, 900. In Osun State, the minimum wage is N19, 000.

    NLC, minister respond

    Reacting to the NGF position, the NLC urged any governor who could not afford to pay the minimum wage to resign without delay. Speaking through its President, Ayuba Wabba, the NLC warned that any attempt to renege on the payment of the national minimum wage will be tantamount to breaking the law of the land.
    Wabba said: “They have been misinforming the people about the N18, 000 minimum wage. Minimum wage is not fixed. It was negotiated through a tripar­tite system; ten state governors represented the governors, the Federal Government and organised private sector were also represented. It was a tripartite process of collective bargaining.
    “We had looked at all the indices of ability to pay. It is a law and anybody that refuses to pay is breaking the law of Nigeria and we advise any such governor to resign.
    “Why is it that the salaries of councillors to the highest political office all over the country remain the same? If there is economic challenge, why should it be the workers that will bear the burden? So, who are they fooling?
    “Can they continue to fool us? When the resources were there, workers were not enjoying. Now that there is a challenge in the system, why should the burden be shifted only to the workers? That is not acceptable to us. This is like a battle for us as we must continue to insist that workers should work in dignity and there must be dignity in labour.”
    To Labour & Employment Minister Chris Ngige, the governors were only playing politics by saying that they could not cope with the N18, 000 as minimum wage. He advised them to be creative in revenue generation.
    Ngige, who spoke at a meeting with the NLC leadership in Abuja, added that both labour and the governors should be blamed for the state of the workers.
    He said: “When the NLC joined the governors in talking about minimum wage with the governors saying ‘we cannot pay N18, 000 minimum wage and NLC saying it is time for us to ask for increase’, we know that these talks are talks that are heating up the system.
    “The NLC knows better that the governors are playing politics. This is one matter that you cannot play politics with because it is a matter of rule of law.

    The NLC May 1 ultimatum

    The NLC has given Federal Government a May 1 deadline to begin the implementation of the N56, 000 as a new national minimum wage, failing which it threatened nationwide strike.
    Speaking with The Nation, Wabba, decried the non-inclusion of the new wage increase in the N7.298 trillion Budget proposal for this year.
    The estimate, presented by President Muhammadu Buhari to the joint session of the National Assembly, is being scrutinised by the lawmakers for approval.
    The NLC chief, who decried the poor remuneration of the average worker amidst economic recession, argued that the Congress could not guarantee industrial peace if the government failed to raise a tripartite committee for the implementation of the new minimum wage on or before May 1, 2017.
    “The issue of minimum wage remains sacrosanct because by law and practice, the review is due and overdue. I have said clearly that we cannot guarantee any industrial peace any longer if necessary steps are not taken by government to try to resolve this issue before the next May Day. This is very clear because as we said, we have sent formal notice of demand as required by law to government to try to constitute the committee.
    “Essentially, the committee to dialogue and negotiate the minimum wage which is supposed to be tripartite has not been set up. If it is set up, all of you will be aware of the membership and also their terms of reference and the timeline given to them to actually dispose with this very vital issue.
    “The issue is so sensitive because of the fact that a lot of our members have actually been subjected to a lot of difficulties because the purchasing power of ordinary Nigerian workers has been reduced to virtually nothing because of the inflation in the system, the free fall of the naira and to compound it, the high cost of goods and services. More so, most workers now cannot meet up with their daily needs, they can’t pay their rents; they can’t send their children to school.
    “It is even more compounded because the cost of goods and services had gone up. So, side by side with the issue of fighting corruption, is also for workers to be paid a decent wage that they can be able to have a meaningful living, so, this is the challenge.” the NLC President lamented.
    Reacting to the allocation of funds for the new minimum wage in the 2017 Budget, the NLC chieftain expressed optimism that the Federal Government and National Assembly will see reason to accommodate the fund when the tripartite agree on the new national minimum wage.
    “They must see reason to try to accommodate it because the fact is very obvious that it is legitimately due both in law and practice and therefore this is our approach. Once it is mutually agreed and from the statements I have listened to, I have not heard government say that they are not willing to consider the issue of minimum wage. I think the minister of Labour has said it very clearly that they are committed to reviewing the minimum wage, but when is the issue now.
    “Therefore, let us not mix the two things. Is there a resistant to say that there will be no review of minimum wage? I am not sure I have heard that because by our constant interaction, the government has through the minister of Labour said they are also willing to review the minimum wage.
    “As I said earlier, we have made a formal demand, written and therefore if there is the need to review the template, we will do that at the table but that will have to be jointly. What we have submitted is N56, 000 and therefore that N56, 000 is still valid,” Wabba said.
    The NLC General Secretary, Peter Ozo-Eson, backed the call for the establishment of a tripartite committee so as to review and agreed on a new minimum wage.
    According to him, the N56, 000 minimum wage proposal was no more tenable because it was arrived at when the economy situation was not as bad as this.
    Ozo-Eson told The Nation: “The issue of minimum wage remains sacrosanct because of the fact that by law and practice, the review is due and overdue. We have said it clearly that we cannot guarantee any industrial peace any longer if necessary steps are not taken by government to try to resolve this issue this year.
    “This is very clear because as we said, we have sent a formal notice of demand as required by law to government to constitute the committee.
    “The tripartite committee that should dialogue and negotiate the minimum wage has not been set up. If it is set up, all of you will be aware of its composition and terms of reference.”
    Ozo-Eson expressed doubt if labour would still stick to the N56, 000 minimum wage demand because of the prevailing economy situation.
    He said the proposal was made some years back when the economy was in good health, adding that the meeting between the stakeholders would address the matter.
    His words: “We made the N56, 000 proposal as at the time the situation was not as worst as this. A lot of things have changed; prices of things have gone up. So, what we propose then was based on the situation on ground. “These are the things the tripartite meeting will address.
    Ozo-Eson said the current N18, 000 minimum wage was approved seven years ago after the tripartite meeting.
    “Seven years ago, the current minimum wage of N18, 000 was reviewed from N5, 500 after the tripartite meeting, which also included both the private and the public.
    “After the N18, 000 agreement, the new proposal was sent to the National Assembly for approval. So, we expect that it will go this way also,” Ozo-Eson said.

    ULC seeks N96,000
    minimum wage

    The newly-formed United Labour Congress (ULC) is strongly forging ahead with its request for the implementation of N96, 000 minimum wage for workers.
    Speaking with The Nation, President of the ULC, Joe Ajaero, insisted that N96, 000 will be the acceptable minimum wage for the Nigerian workers in the present economic circumstances.
    According to him, the ULC has presented the proposal to the Federal Government for consideration.
    Ajaero explained that the economic reality has made it imperative for the federal and state governments to dialogue with organised labour for the immediate implementation of the new minimum wage.
    He said that ULC has mobilised workers to begin a national protest beginning from January 31 if the government failed to discuss and dialogue with the organised labour.
    The unionist said that workers have been at the receiving end of the economic policies rolled out by the government last year. Workers, he claimed, have lost their purchasing power, with millions sacked by their employers.
    He urged the federal and state governments to intiate policies that would improve workers’ living standard, protect their jobs and create employment opportunities.

    Fed Govt responds
    to labour proposal

    “Will the Federal Government agree to labour’s demand?” This is the questions agitating the minds of many workers.
    Though Federal Government had at its last parley with labour leaders, proposed N45, 000 new minimum wage as against NLC’s N56, 000 proposal.
    But the increase came with some provisions, including the reduction in the number of civil servants and merging ministries and agencies.
    Rather than take the news with enthusiasm, it was received with skepticism. Some Nigerians expressed doubt if the government could cope with an increment in minimum wage.
    The Presidency has not responded to the labour proposal.
    In his address, the President, who was represented by Senator Ngige, also lamented the economic challenges facing the country.
    Investigation reveals the average Nigerian worker today is 400 per cent poorer than he was when N18, 000 was introduced as minimum wage.
    Today, the economy is troubled and the naira has lost its value. The workers purchasing power has been eroded with rising inflation.
    But is this the best time for the leadership of labour to demand for pay rise for workers?

  • New minimum wage

    Trade unions in their New Year message to workers and other Nigerians demanded good leadership from the federal government and a new National Minimum Wage to avoid a nationwide industrial unrest.

    Nigerian Labour Congress, NLC, Trade Union Congress, TUC and the National Union of Textile Garments and Tailoring Workers of Nigeria insisted that the new wage structure is the only remedy for workers to cope with the high cost of living occasioned by the current economic recession.

    They cited the “astronomical increase in the pump price of petroleum products, the massive and continuing devaluation of the Naira, the rise in inflation and the 43 per cent increase in electricity tariff” as factors that have combined to worsen the living standards of workers and teeming millions of ordinary Nigerians.

    In the absence of the wage increase, the unions have promised a nationwide industrial action that is bound to ground economic activities with deleterious consequences for an economy that is already in serious straits. That is the warning signal organized labour has left for us in the New Year.

    The issues raised by the labour unions especially as regards the debilitating living conditions of a vast majority of our people in the last one and a half years can only be ignored at a great peril. Workers in both the public and private sectors have had to contend with a mixed grill of retrenchment, salary arrears and salary cuts in the face of spiralling inflation never witnessed in this country for almost two decades now. The value of their take home pay has been drastically reduced as they now pay more for basic goods and services with many of them unable to access the basic things of life anymore.

    And in a milieu where the average worker has had to contend with the challenges of catering for his extended family, the reality of the situation becomes more glaring. There are hardly new job openings for the teeming army of our unemployed graduates and sundry school leavers.  It is therefore to be expected that the fastest way to ameliorate the debilitating living conditions of those who are lucky to still have jobs is through wage increase.

    That is the view of organized labour. And they have left nobody in doubt that they want the national minimum wage which now stands at N18, 000 to be reviewed upwards to lighten the burden of living and enable workers access the basic things of life. That sounds very plausible. But the government has not been forthcoming.

    With the dwindling revenue accruing to federal coffers on account of the drop in the price of oil in the international market resulting in the inability of most governments to pay salaries and allowances, the foot-dragging by the current regime can be understood. The government appears not to have come to terms with the rationale in wage increase when states are unable to cope with extant wage structure.

    The big puzzle is do you increase salaries when most governments are unable to meet the current wage regime?  And if such increases are made, are they not going to worsen the burden which the various governments are currently facing such that the federal government had to bail them out with some funds not long ago? That is the main issue to contend with.

    Labour unions believe the various governments should be able to pay and not hide under the drop in the price of oil to starve workers to death. They seem to be contending that given the lifestyle of some of these governments, they should be able to pay if only they make the necessary adjustments. This point cannot be discountenanced also.

    The way some of the state governors conduct themselves, the number of cars in their fleet, observed wastages and their ostentatious lifestyles do not seem to convey the impression of leaders who make judicious use of the resources available to them. If organized labour insists on wage increase, it cannot be faulted. Even with the current campaign against graft in public offices, the reality on the ground is that many public functionaries are yet to align themselves with the realities of the time. Corruption has eaten so deep into the nation’s social fabric that it would amount to wishful thinking to nurse the feeling that the malfeasance will disappear overnight. That is the sad reality on the ground and the toiling masses of this country are not under any illusion about it.

    That is why the rationalization about the dwindling revenue of the country does not seem to impress them. That is also why they have been strident in their demands for wage increase to cushion the biting effects of the economic downturn; the inability of the government to keep faith with the current wage regime notwithstanding.

    The situation therefore presents a dilemma of sorts. Workers are on the right path to route for wage increase as they have had to pay more for all goods and services. It is getting increasingly difficult, if not neigh impossible for them to survive in the face of the astronomical cost of living. Wage increase therefore appears to be the short term solution to the spiralling inflation that has made nonsense the current earnings of the working population.

    But the government is not entirely out of order in exercising utmost caution in approving a new national minimum wage that will not be implemented by state governments given their current defaulting profile in the payment of salaries and allowances.

    That is how bad the situation is. What to do? It would seem that even with the hardship encountered by workers on account of the difficult economic conditions, a wage increase may not be the soothing elixir out of it. We say so because various governments have not been up and doing in their payment of the current wage regime.

    Many of them have had to sack workers while some others had to evolve very questionable formulae to reduce the take home pay of public servants. Pensions and gratuities are in several months in arrears in many states with no respite in sight. What guarantee is there that a wage increase will not compound the already hopeless situation and precipitate a major labour crisis? That is the uncanny dilemma brought to the fore by the situation. What are the options in the circumstance?

    The way to go is for the government to embark on a comprehensive social intervention measures to cushion the effects of its debilitating economic policies. In saner climes, such policies would have been immediately followed up with social security measures that will enable the people have access to basic food items, healthcare and other social services that are now out of their reach at relatively affordable prices. We would have seen the government in conscious and concerted efforts to create jobs, accelerate investments in mass transit programmes and others that will have the net effect of reducing the cost of transportation and by the same logic that of goods and services.

    But we are yet to see much progress in that direction. All we have been treated to are promises that there will be bountiful harvest this year. We have also been treated to claims of self-sufficiency in rice production; a projected capacity to export the same commodity in a matter of months and such other political talks. Yet, the commodities have remained largely beyond the reach of the vast majority of our people. We would have seen governments subsidizing certain goods and services to cushion the effects of some of its policies. That has not happened.

    The government must take immediate steps to ensure that its current economic policies do not suffocate our people to death. Wage increase, as attractive as it is, only affects those in gainful employment. The answer lies in a multi-faceted approach that captures the demands of the workers and those of other citizens that do not have jobs but are equally exposed to the vagaries of the biting economic situation.

  • NLC seeks committee on new minimum wage

    The Nigeria Labour Congress (NLC) has called on the Federal Government to reconstitute a tripartite committee to negotiate a new minimum wage for workers.

    NLC President, Comrade Ayuba Wabba, told The Nation that the developments in the economy, which have made nonsense of the purchasing power of the workers, had made a new minimum wage inevitable.

    “When the 2011 National Minimum Wage Act was being signed, all the tripartite partners were in agreement that this would be negotiated after every five years. So, the five-year time-frame is here.

    “We hope that we will not be pushed into taking action that would be costly for the economy, which is already in deeply troubled as it were. Our standpoint is that any of the parties to the negotiation who may have reasons why we shouldn’t have a new minimum wage should bring those arguments to the negotiation table,” he said.

    Wabba said the major cause of the  economic crisis was the irresponsible mismanagement of the economy over the years by  political leaders.

    “The way corruption was allowed to eat into virtually every fibre of our national life by the governing class across the political spectrum meant that in due time, we would find ourselves in the mess we are currently today,” Wabba said.

    Wabba said manufacturers had stories of woe to tell about the fall in capacity utilisation caused by the difficulties in obtaining foreign exchange to import vital raw materials.

    He said a larger portion of the forex demand was for the importation of refined products.

    “We know because the leadership of the unions in the manufacturing sector has approached us several times to engage powers that be at the federal level on the consequences of government policies that had increased the problem of scarcity of forex for manufacturing purposes,” Wabba added.

  • Non-payment of minimum wage is criminal, says Oshiomhole

    Non-payment of minimum wage is criminal, says Oshiomhole

    Edo State Governor Adams Oshiomhole yesterday said governors who refuse to pay the national minimum wage are committing a criminal offence.

    The governor spoke in Abuja at The Podium, a public discourse organised by the Kukah Centre, with the theme: From Activism to Political Power: The Challenges of Democratic Governance in Nigeria.

    Oshiomhole noted that it is wrong for governors, who enjoy fixed national emolument – the same way it was fixed for National Assembly lawmakers – to refuse to enforce same.

    The governor said many states believed that the national minimum wage should not be treated as a federal matter.

    He called for a national wage structure for all tiers of government.

    Oshiomhole said: “What I question and which I don’t accept is that we cannot have a centralised system of compensation for executives, governors, commissioners and local government chairmen. Their pay is centrally determined and the economy can afford that. What Lagos State governor is receiving is what Edo State governor is receiving.

    “If we have a national compensation, how can these governors turn round and question the wisdom of a national wage structures for workers?

    “It is that selective application of fiscal federalism that I found extremely offensive and unacceptable. Even today, I remain firm that we must maintain a national minimum wage and we must find ways to implement and adjust it to reflect the cost of living. It is the duty of government and employers to find the revenue to pay those they hired to work, whether in private or in government. Non-payment of wages is a criminal breach of contract, whether in recession or prosperity.

    “The idea of a minimum wage is to protect workers who are not organised. So, the states use the law to protect them.”

  • Emulate Oshiomhole on minimum wage, Labour advises governors

    Emulate Oshiomhole on minimum wage, Labour advises governors

    Organised labour in Edo State has called on other governors to emulate their Edo State counterpart Adams Oshiomhole on workers’ welfare.

    A joint statement signed by Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) chairmen, Comrades Emmanuel Ademokun and Marshal Ohue described Oshiomhole as a pace setter who should be emulated for increasing workers’ salary without agitation, especially at  a time when many governors could not pay salaries.

    Oshiomhole had during the Workers’ Day celebration promised to increase the minimum wage from N18,000 to N25,000, and this was effected in workers’ salaries last month.

    Meanwhile, TUC has urged leaders to be upright and God fearing.

    In a statement signed by its  President Comrade Bobboi Kaigama to mark the Eid-el-Fitri celebration, TUC called on the leaders to learn from the lessons of Ramadan, which are to be upright and honest for Nigeria to compete with other nations.

    “One of the things fasting does is that it humbles you and helps check acts of ungodliness. It is rather unfortunate that what we have had over the years is that people claim a form of godliness during fasting, but turn otherwise on its completion.

    ‘’The leadership of our dear country and politicians have a lot to learn here, and we encourage them to do so. This is the period we must match our words with action,” the statement said.

    Continuing, he said: “We all should understand that our purpose in life here is to live in obedience to our creator’s will and make other people happy.We all must take advantage that the celebration has provided the opportunity to pray for the return of peace in the country; an end to terrorism and every form of disaster and the gross waste of our national assets by the militants. Peace and development are like Siemens twins, which is what we need in Nigeria of our dream.”

    Kaigama called on Muslims faithful to remain self-disciplined, work for the progress of the country and accommodate every Nigerian irrespective of their religious orientation as these appear to be the only recipe for development.

  • NLC: no minimum wage panel yet

    NLC: no minimum wage panel yet

    The Nigeria Labour Congress (NLC) said yesterday that the proposed committee on the new national minimum wage was yet to be constituted by the government, dismissing media reports that the committee has started work.

    NLC’s President Comrade Ayuba Wabba said in a statement  in Abuja that while the government agreed to constitute two committees to address issues raised by organised labour following increase in the pump price of petrol, the committee on the review of the national minimum wage has not been constituted by the government.

    He said the story in the media about the committee beginning its work was not only false and misleading, but mischievous.

    According to him, considering the sensitive nature of the issue, the story is alarmist, and constitutes an unnecessary overheating of the polity, saying “to the best of our knowledge, government accepted to set up two committees as a result of the major protest action by Labour following the increase in the pump price of petroleum products from N86:50 to N145.

    “These committees are Palliatives Committee and National Minimum Wage Committee. Broadly-speaking, they are to make recommendations to government on how to cushion the harsh effects brought on the people by the sharp increase in the pump price of petroleum products as well as address other issues connected with the workings of the institutions in the downstream sector of the petroleum industry, especially the PPPRA.

    “Similarly, the committees are to make recommendations on other challenges militating against the regular supply of petroleum products. The acceptance of government to set up these committees was part of the process of addressing the concerns of labour”.

    He added: “On June 2, 2016, the Committee on Palliatives was inaugurated by the secretary to the Government of the Federation. An inaugural meeting chaired by the Minister of Labour and Employment, Dr Chris Ngige held thereafter during which it was agreed that a tripartite committee (comprising representatives of Government, Employers and Labour) on a new National Minimum Wage be set up in line with extant laws and procedure.

    “Organised Labour had taken the position that in order to deepen its presentation, it would consult widely with its affiliate unions. Although the framework or the outline of the work of the committee and its membership were discussed, the committee was not constituted.

    “Part of the explanation for this was that the annual International Labour Conference in Geneva to which the stakeholders in Labour were invited was already in progress and members had to travel to Geneva.

    “We have no doubt that with the stakeholders back from Geneva,  the committee will be constituted in line with the established law, convention and practice.

    “From this account, it is evident that there is a difference between the Palliatives Committee and the National Minimum Wage Committee. We find it necessary to advise the media to verify their stories from appropriate sources, such as the NLC before rushing to the press.

    “Even before the fall-out from the increase in the pump price of petroleum products, the NLC and theTrade Union Congress had submitted a proposal to government for a new minimum wage.

    “This action was informed by the fact that a new minimum wage was legally due after five years, and coupled with this, inflation and major devaluations of the naira had rendered the N18,000 minimum wage unrealistic.

    “Without the slightest intention to pre-empt the direction of discussion, a realistic minimum wage at the moment will have to take on board the recent complications created by the N145 pump price of petroleum product and the floatation of the naira as an economic policy and their aftermath.

    “In a few words, the earlier figure by NLC and TUC may have been rendered inappropriate by these recent developments. We have gone to this length to show how sensitive this subject matter is and why no one should test waters with speculations or outright lies.”