Business
FG Gives Conditions For Minimum Wage Increase
The Federal Government has said that consideration for an increase in the minimum wage of workers would be based on affordability and availability of funds.
Speaking while inaugurating the Joint Negotiating team to look into workers’ agitation for wage increase, in the Office of the Head of Service of the Federation on Monday, Minister of Labour and Productivity, Chief Emeka Wogu, said although the government is desirous of improving the lot of the Nigerian work force, such a measure should be guided by what it could afford. Members of organised labour have been asking for a new minimum wage of between N52,000 to N75,000.
The minister said that whatever agreements arrived at should be based on availability and affordability of resources. “It is my belief that all things should be taken into consideration and the issues at stake are affordability and availability and that is why the Head of Service in his wisdom included the Director General of the Budget Office and the Permanent Secretary Finance in the team,” he said.
Affirming President Goodluck Jonathan’s inclinations to improved workers’ welfare, Wogu said: “These issues are not limited to salaries alone but include other welfare of workers.
The President and Commander-in-Chief is labour-friendly, he is workers-friendly and is a friend of labour and is so passionate and desirous to improve the lot of the Nigerian work force and it is on his authority that we inaugurate this team. “The minister said with the inauguration of the negotiating team, the resolution of the dispute that had existed with respect to salaries of certain level of civil servants will soon be achieved.”
My expectation as the Minister of Labour is that at the end of the deliberation of the team that they will be able to resolve it and come up with some decisions that will be passed on to Mr. President for his consideration”, he said.
Earlier in his remarks, the Head of Service, Mr. Steve Oronsanye, had called on the negotiating team to also consider the related issue of productivity in the course of its deliberation.
He urged the negotiating team to look into the issue of productivity and to use as part of the yardstick for arriving on the new wage. “Whilst the specific term of reference for the Negotiating Team (Government and Trade Union side) is to resolve the issue of wage increase, it is not limited to it. Negotiations must also dwell on the issue of productivity. Ordinarily, a wage increase should be concomitant to improved level of productivity, but this has not always been the case, “ he said.
According to Oronsanye, “many employees of the Federal Government have often carried on as though they owed no obligation to their employer.” He affirmed that “increase in the salaries of civil servants would go along with increased productivity.”
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Sugar Tax ‘ll Threaten Manufacturing Sector, Says CPPE
In a statement, the Chief Executive Officer, CPPE, Muda Yusuf, said while public health concerns such as diabetes and cardiovascular diseases deserve attention, imposing an additional sugar-specific tax was economically risky and poorly suited to Nigeria’s current realities of high inflation, weak consumer purchasing power and rising production costs.
According to him, manufacturers in the non-alcoholic beverage segment are already facing heavy fiscal and cost pressures.
“The proposition of a sugar-specific tax is misplaced, economically risky, and weakly supported by empirical evidence, especially when viewed against Nigeria’s prevailing structural and macroeconomic realities.
The CPPE boss noted that retail prices of many non-alcoholic beverages have risen by about 50 per cent over the past two years, even without the introduction of new taxes, further squeezing consumers.
Yusuf further expressed reservation on the effectiveness of sugar taxes in addressing the root causes of non-communicable diseases in Nigeria.
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