No N615K National Minimum Wage,  No Deal, Labour Says

● Warns FG to prepare for a crippling strike

By Jonas Happy

The Nigeria Labour Congress, the leading umbrella body of workers in the country, is insisting that it will not accept  a minimum  wage of less than N615 thousamd naira.

Labour leaders who spoke against the backdrop of this year’s Workers Day said they would ask workers to embark on strike unless the Federal Government accedes to their request.

While governments at the national and sub national levels agree that a need to increase wages exists, the issue is how they will find the money in these times to pay Labour’s exorbitant minimum wage.

President Bola Tinubu set up a 37-man team to handle the minimum wage issue. They are yet to submit any report.

Adams Oshiomhole, a former labour leader and serving Senator said both government and the Labour movement apparently share similar sentiments on the issue of a salary raise for workers.

In the meantime, the National Salaries  Incomes and Wages Commission, an arm of the Federal Government, has ordered a wage increase of between 25% and 35% for workers and between 20% and 28% for retirees.

South South States Take The Lead:

Nonetheless, two South South states, Edo and Cross River, have come out with the minimum wage for workers in their respective enclaves.

Whereas Edo is to pay N70,000 minimum wage, Cross River State has pegged its own at N40,000.

Workers in Bayelsa, Delta. Akwa Ibom and Rivers will be waiting to see what their state governments are capable of.

The disparity in the figures, from an economic perspective, reveal that states may have to take hard decisions when it comes to what they are likely to cough out pursuant to the implementation of the new wage plan.

Bassey Otu, Governor of Cross River State said while announcing the position of his administration that reality rather than fantasy has influenced the approval made in respect of the welfare of workers.

“Owing to the peculiarity of Cross River State regarding its lean finances occasioned by low Statutory Federal Allocation and aggravated by the unfavourable State GDP to Debt servicing ratio, the new wage implementation is in line with the realities of the time rather than sentiments”, Otu noted.

 

Labour Unimpressed:

Labour leaders led by the NLC President, Joe Ajaero are not impressed. They insist that the new minimum wage must reflect what they refer to as the current realities that workers and other Nigerians are facing.

How did Labour come by the N615,000 minimum wage for the lowest paid worker?

A statement issued by the NLC leadership has attempted to provide answers to the nagging question that Nigerians are asking and a foundation for what it is doing.

“It has become imperative at this point that we inform Nigerians who may not have known already the foundations upon which our initial demand for a N615,000 (Six Hundred and Fifteen Thousand Naira) new National Minimum Wage is based”, the NLC statement said.

“The figure was a product of a painstaking effort through which we captured the cost of living of Nigerian workers and masses in all parts of the country.

“It was essentially an outcome of an independent research conducted by the NLC and TUC on the cost of meeting the primary needs of an average family around the country.

“Our research was based on a family with both parents alive and four children without the burden of having other dependents with them”, the NLC concluded.

 

Can Nigeria Carry The Burden?:

Still many wonder what kind of economic books, leaders of the NLC are reading at this time; and wonder if the outcome of NLC ‘s research prepared by experts which it did not name addresses reality.

Unable to meet its OPEC quota, unable to put a stop to oil theft in the oil belt and unable to diversify its revenue earning capability, the stark reality is, Nigeria may not be in a position to afford the kind of wage bill that NLC strategists want.

Sobowale, an analyst on Arise Television dismissed NLC’s demand,  describing it as something that is coming from a world of fantasy.

Given events that are playing out, Nigeria has had more sporadic strikes that have been hastily called and called off under Ajaero’s watch than it has witnessed under any labour leader.

Despite having his neck almost broken when he went to Imo State in the name of Labour to interfere in the electoral process, Ajaero continues to dream of scheduling more strikes.

Already, the NLC has issued a deadline for a proposed nationwide strike. Workers, the NLC vows, would go on strike on the 31st of May if its demand for N615,000 minimum wage fails.

Experts argue that Labour’s quest for a staggering wage bill may not be realistic, but most observers think that what Nigerians are seeing as negotiations proceed after the expiration of the old minimum wage regime may not be the point where Labour leaders want to land.

Somehow, Labour wants a minimum wage across board in a country which operates a federalist system. Components, namely states, which make up the federation certainly have a say on how much they can pay.

Fubara Pledges To Pay New Minimum Wage:

Not many states were able to pay the N30,000 minimum wage. It is doubtful  inspite of the windfall that has come to the states through fuel subsidy removal that most sub national governments would be able to cope with the jumbo salaries that are being proposed.

 

Governor Siminalayi Fubara on Wednesday pledged that the Rivers State will pay the new minimum wage.

He said his administration is waiting for more information, essentially from the outcome of negotiations, in order to deal with its obligation to workers.

Fubara has been labour friendly, embarking on the promotion of civil servants whose promotions have been stagnated in the last 10 years, and paying pension and gratuities to retirees.

Last year, civil servants received N100,000 each as bonuses from the State Governor. Insiders say this has never happened in the history of the State.

He has equally ensured that local government councils in the State pay the N30,000 minimum wage to staff at the third tier level.

Notwithstanding, the general consensus across the country at this time seems to be that an upgrade in the monthly pay packets of workers in Nigeria is desirable.

Many however pray that the outcome of the salary increase which is at the centre of national discourse as Nigerians face hard times may not be such that it fuels inflation and leads to a new wave of retrenchments in the workplace in the near future.

That may prove counterproductive if it ever  happens.