Minimum Wage: Triumph Of Reason

The Federal Government, Governors of the 36 states of the federation under the aegis of Nigeria Governors Forum (NGF) and the organized labour, comprising the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), penultimate Tuesday, finally reached an agreement to fine-tune modalities for the implementation of the N18,000 new minimum wage proclaimed by the National Minimum Wage (Amendment) Act, 2011.

Prior to the meeting, which averted a looming three-day warning strike by labour, some governors had given review of the Revenue Allocation Formula and removal of subsidy on petroleum products by the Federal Government as conditions for implementing the new minimum wage regime.

Understandably, both demands courted the ire of NLC and many Nigerians who described the governors’ position as unfortunate, considering the fact that the governors had been part of the process culminating into the signing of the act into law by President Goodluck Jonathan. Subsequently, labour vowed to begin a three-day warning strike last Wednesday to impress on government its readiness to embark on a full scale industrial action.

But emerging from the Tuesday meeting, Presidents of both NLC and TUC, Comrades Abdulwaheed Omar and Peter Esele, respectively, announced the suspension of the planned warning strike based on a seven-point agreement reached by the parties.

Endorsed by the labour leaders and the Chairman of the Governors’ Forum and Governor of Rivers State, Rt. Hon. Chibuike Rotimi Amaechi, the agreement stated readiness of the states to comply with the new National Minimum Wage (Amendment) Act 2011, and conclude all negotiations with labour on the implementation not later than July 31, 2011, while actual detailed payments would take effect August, 2011. However, modalities for payment of the minimum wage will be worked out according to the peculiarities of each state.

It also noted that the 36 states have agreed that the effective date for the implementation of the new minimum wage shall not be later than 1st August, 2011, provided that any worker who earned less than the N18,000 between 1st April and the effective date of the implementation of the new minimum wage shall be paid arrears of the difference.

In addition, the agreement stated that the timeframe for the payment of the arrears of the difference of the new minimum wage effective April 1, 2011 shall not be later than October, 2011, while stressing that no state shall victimize any worker in any manner or form as a consequence of the implementation of the new minimum wage.

The agreement, which was also reached separately on the same day between organized labour and the Federal Government, represented by Secretary to the Government of the Federation (SGF), Senator Anyim Pius Anyim and Minister of Labour, Chief Emeka Wogu, is no less timely and commendable, particularly at this very trying moment of our national history.

We were, indeed, glad to hear the chairman of the strike coordinating committee, who is also a Deputy President of NLC, Comrade Promise Adewusi, remark that the technical committee meeting, which began few hours after the resolution of all gray areas in the interpretation of the act between labour and government, was progressively successful.

This is why we are shocked and worried by statements credited to some governors of still suggesting unwillingness to comply with the collective agreement reached in Abuja, which to our mind, could signal further threats to the relative industrial harmony already gained. For these, labour has already threatened to embark on a nationwide industrial action without notice should governments fail to pay the N18,000 minimum wage to workers by the end of August.

TUC President, Comrade Esele, who made the declaration at the annual general meeting of Nigeria Employers Consultative Association (NECA) barely two days after the Abuja agreement, also asked Nigerians to prepare for another strike should the governments renege on the promise to respect the agreement reached by the end of August.

We hope that it would not degenerate to that level, judging by the caliber of leaders in the various parties, whose sense of service, without doubt, stemmed what would have been another industrial crisis.

Nigerians are, indeed, assured that the implementation of the new wage regime would help check corruption and increase productivity and service delivery.