Labour unions in the country are warming up for a possible confrontation with the federal and state governments over the lack of progress on a new minimum wage for public sector workers and have not ruled out an industrial crisis.
The reason for their unease is the failure of the Federal Government to constitute a committee to negotiate the new minimum wage by naming its representatives whereas the labour unions have expressed readiness to begin the talks as their negotiators are on standby.
Workers have had to contend with rising prices of goods and services since the removal of fuel subsidy by the Federal Government, with the attendant inflation and escalating cost of living eaten deep into their pockets and rendering their monthly wages inadequate to meet their basic needs.
In June 2023, for instance, workers and some labour leaders demanded that the minimum wage be increased from N30,000 to N250,000, adding that the current situation would increase the demand for a salary review. The amount was later adjusted to N200,000 monthly.
This was made known by the Assistant General Secretary of the Nigeria Labour Congress, Chris Onyeka, who stated that many workers could no longer afford their rents, or pay their children’s school fees.
He also lamented that with the increase in the cost of transportation by almost 300 per cent, many civil servants were trekking to work.
A few weeks after being sworn in as President, Asiwaju Bola Tinubu, said improved livelihood for Nigerians remained a top priority of his administration, stating that he would have more people-focused economic policies.
Tinubu, in a statement by the Director of Information, State House, Abiodun Oladunjoye, also assured Nigerian workers that the national minimum wage needed a review to reflect current realities.
However, Nigerian workers have continued to groan under the weight of escalating inflation.
The minimum wage was reviewed from N18,000 to N30,000 on April 18, 2019, after several years of back-and-forth.
The Federal Government also stressed that governors of the 36 states of the federation should pay the new minimum wage of N30,000.
The then-Minister of Labour and Employment, Chris Ngige, said it had become imperative that all employers of labour in the country must comply with the national law, adding that a committee was working out a new template for upward consequential adjustment for those already earning above N30,000.
To date, several states have yet to implement the law, even as workers are advocating for further increment to the tune of over N200,000.
Executives of the Organised Labour had said they had appointed representatives who would join the Federal Government representative on the National Minimum Wage Review Committee.
The committee, by law, is supposed to oversee the negotiations and send recommendations to the Federal Government on appropriate wage rates reflective of new economic realities.
Strike looms – TUC
The Trade Union Congress has threatened to embark on an industrial action if the government continues to treat the issue with levity.
The Deputy President of the TUC, Tommy Etuk, said that the wage review committee was supposed to have been set up before now, as the country was due to have a new minimum wage by April 2024.
He said, “If there is no agreement on the minimum wage review, there’s nothing anyone can do. I assure you that it is a recipe for industrial disharmony. The government should inaugurate the committee and let it start work on time to see some grey areas where we can agree or disagree, and work in tandem with the principle of collective bargaining so that we can arrive at a collective agreement.
“We believe it’s the best option rather than waiting for the 11th hour to decide what to give to the organised labour. It will not work that way.”
Etuk added that the right thing for the Federal Government to do was to set up the National Minimum Wage Committee to oversee the modalities across the board.
He said, “The National Minimum Wage Committee should have been inaugurated because the task ahead is a difficult one. It’s not about getting the committee in place and there is a lot to be done. It is about the government to inaugurate the committee and appoint a chairman so that they can start work in earnest.
“April is around the corner, and if things are not done this January, things might get out of hand. This isn’t going to be a fire brigade matter like they always do.
“But I can assure you that the organised labour will not leave any stone unturned to ensure that the needful is done. Whether it is a delay strategy on the part of the government, or not, we have got to follow due process, because it is a matter of law.
“This is because it will go to the National Assembly and the President before it becomes a law.
“The government is conscious of this, and on our part, we’ve done what we should’ve done. It’s just for them to inaugurate the committee and the committee will start working.”
Etuk added that Tinubu seemed like a man who would not play with the welfare of workers since he had been talking about living wage before he became President.
FG keeps mum
A Presidency official who did not want to be mentioned confirmed that talks were ongoing at the Federal Executive Council level on the the Minimum Wage Committee. The official said the administration was keen on reviewing the minimum wage and, therefore, would inaugurate the committee soon.
The official said, “It is by law. Such a committee must come on stream. The Organised Labour has announced members from its own end. Though it has not been set up formally, we are certain that it will be set up at the right time.
“It is based on law. So, it is not something you simply set up haphazardly. You must follow the legal process. The other one must expire before you bring in the new one. The old one is expiring this year. And the committee will be beginning its work.
“It was mentioned at the last FEC meeting. The Minister of State for Labour said something about that committee. So, it is on course. The government is committed to setting it up.”
The spokesman for the Ministry of Labour and Employment, Olajide Oshundun, had earlier directed inquiries on the minimum wage issue to the Presidency.
When contacted, the Special Assistant to the Minister of Information and National Orientation, Rabiu Ibrahim, stated, “The Federal Government’s agencies relevant to the issue, particularly the Ministry of Labour, are working on firming up the processes towards a consensus on all aspects of the issues.”
Wage award
Speaking on the living wage, Etuk said a lot of things must be considered such as transportation, housing, health and education.
He said, “These are critical components that will form the negotiation for minimum wage. With what’s going on now, it’s not even enough. In a month, a worker will spend not less than N70,000 on transportation. We’ve not even spoken of rent where a one-bedroom apartment goes for about N400,000.
“When you consider all these and look at the negotiation of the N200,000 minimum wage that was then. It’s no longer realistic to look at the inflation rate, which is 28.9 per cent as of today.
“Whatever is being given as minimum wage is to be consumed by inflation. Even the N200,000 being clamoured by organised labour, I don’t think that is the right thing to do. This wage doesn’t cover the National Health Scheme and you don’t expect a worker to die because of cancer or another life-threatening disease.
“These are the components that will form the discussion and engagement with the government on a minimum wage that will be measured.”
Etuk added that negotiations had successfully started across the 36 states for a living wage as a result of the removal of fuel subsidy.
He stated, “When it comes to the issue of palliative, it is to ensure that there is industrial peace and harmony, and also to stop the socio-economic challenges facing the workers. We believe that it is incumbent on the NLC and the TUC in the states to develop a strategy to engage the government to do the needful.
“Most of the state governors have been saying they’ve given palliatives in terms of an additional N10,000 every month, some said they’ve paid 13th month salary and also distributed grains.
“It is incumbent on every organised labour in the states to develop a strategy to engage the government to do the necessary things. We are also begging the Federal Government to live up to the memorandum of understanding they consciously signed on the payment of the N35,000 wage award. I can also assure you that the Minister of Labour recently acclaimed that they’re working on it and they know the implications.” (PlatinumPost)
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Strike Looms As NLC, TUC Gear Up For Showdown With FG Over Minimum Wage Panel
