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Minimum Wage Review ’ll Not Trigger Inflation -Wabba …As NLC Says Protest Against NHIS’ Executive Sec Continues
The President, Nigeria Labour Congress (NLC), Mr Ayuba Wabba, has said that the proposed workers minimum wage will boost the country’s economy rather than trigger inflation. The NLC boss said this while addressing newsmen in Asaba, Delta State, yesterday .
Wabba was in the state as a Special Guest at the 6th Quadrennial National Delegates Conference of the National Union of Hotels and Personal Services Workers. He said that the assertion that an increase in workers’ salary would lead to inflation was not true. “It is not true and has no empirical bases that an upward review of minimum wage would trigger inflation in the country.
“This is because when the minimum wage was increased in 2011, in fact, the inflation rates went down. “Go and look at the records and the data, it would rather boost the economy because it would increase the people’s disposable income.
“You remember that in the midst of recession in the U.S., one of the strategies President Barrack Obama used to boost the economy of the country was to increase the minimum wage.
“This, because as at that time, production was going on; people didn’t have money to purchase and what he (Obama) did was to increase the minimum wage and there was money; General Motors started to produce and people were able to buy,” he said.
Wabba added: “In the World Bank report of recent, it has been proven that when there are money in the hands of many it is a means to addressing poverty.
“Therefore, in the context of Nigeria, it is very clear and proven that once you are able to remove many of our people out of poverty, their will be a boost in our economy.
“This is because those at the lower echelon that are receiving N18,000 cannot afford good meals, that is the reality and truth.” He, however, blamed the challenges being faced by the people on high cost of governance in the country. “On cost of governance, if you remember, the first engagement NLC had in 2016 was a national rally for good governance and the fight against corruption.
“Minimum wage has international dimension, and that is why it is a convention of the International Labour Organisation (ILO). “The ILO convention 131 is the law about minimum wage and that is why even in the most capitalist economy, you have the minimum wage law.
“In a particular state recently when we were arguing on the ability to pay the minimum wage, N10 billion was used to charter flight in that particular state, so we must look at it from diverse ways the challenges we are having,” he said.
He said that if it was true that Nigeria belonged to the third world country and as such, its people would continue to be impoverished, “how come that members of the National Assembly receive the best salaries in the world ?”
“If the minimum wage of a local government councillor is N200,000, we must be on the same page and we must argue on the bases that all of us are Nigerians and we go to the same market.
Meanwhile, following the refusal of the Executive Secretary of the National Health Insurance Scheme (NHIS), Usman Yusuf, to obey the decision of the scheme’s governing council to suspend him over alleged gross misconduct, some unionists have continued to mount pressure on the federal government to compel him to vacate office.
Speaking yesterday in Abuja during the ongoing protest by NHIS workers against Yusuf’s continued stay in office, the unionists said his obedience of the suspension order would allow a thorough investigation into allegations raised against him.
According to Abubakar Shanabo, a representative of the NLC and the Chairman, Medical and Health Workers Union (MHWUN) FCT Council, the protest over the resumption of the Executive Secretary must continue until victory was ascertained.
“This is the third day of this protest and we will not relent, I have been mandated by the national body that we are in full support of the struggle. “We insist that Yusuf remains suspended and must vacate his office for the administrative panel to carry on with their investigation.
“We call on the Federal Government to do the needful as it stands for integrity with zero tolerance for corruption, if nothing is done TUC and NLC national bodies will carry on with the protest on Oct 29. “The enrollees are being affected and not getting the maximum health services they deserve, therefore peace and sanity must return to the scheme,’’ he said.
Similarly, Adediwura Adeshina, who is Chairman, Stakeholders Committee of National Association of Nigeria Colleges of Education Students also called on the federal government to resolve the continuous conflicts in NHIS.
Adeshina said that the scheme expected to function effectively as the health insurer for tertiary institution students across the country could not function due to problems. “I was part of the representatives in 2013 that signed an agreement during the introduction of the Tertiary Institution Social Health Insurance Scheme under the NHIS.
“I know the way it started and I have the guideline of how it should function and all the students complied and keyed into the scheme.
“Today, the Nigerian students are not benefiting from the scheme anymore; if the system is not working the regulatory body should take over and sanitise it. “We will not relent in the struggle, this is a sacrifice and we will pay the price for the freedom of our members,’’ he said..