Opinion
Minimum Wage And Economic Realities
Minimum wage increase is not peculiar to Nigeria as a nation. In most cities of the world, bills are passed to increase the minimum wage. Nevertheless, in some developed climes, most employers of labour do not wait for a law to be passed, nor to see their workers agitate for pay increase before such is enforced.
This is probably because they understand that wage increase does not only guarantee the recruitment and retention of top talents, it improves employees satisfaction as well as improves the company’s brand.
According to a 2015 career builder survey, 64% of employers believe in raising minimum wage. In a core capitalist economy, raising employees wage before any official legislation to that effect has always been known to boost both the image and economic potential of such companies.
Companies which have problems getting and retaining top talents, quickly resort to upward review of their pay as a measure to attract the desired workforce. Benefits are merely sprinkles on top of the minimum wage. It is only when the minimum wage is sweet and satisfying that a worker can consider any other garnishing ingredient called benefit.
Here in Nigeria, workers’ well being is yet to receive the priority it deserves. This accounts for why there are always heated agitations and pressures on employers of labour for a wage increase before such can be achieved.
This ought not to be so. Apart from issues of structure and tradition, wage rate in virtually all the economies around the world is usually influenced by the market forces of demand and supply and legislation. In the United States, market forces are more dominant in determining what the worker goes home with at the end of the month.
In our own clime, collective bargaining is usually employed. This provides an opportunity for labour union to negotiate on workers’ behalf, taking into consideration the market forces, the whole essence being to protect the well being of the working class.
The Nigerian situation as it were, is one that no sane mind needs be told that the workers have been patient enough and so need meaningful pacification, given the economic hardship they are submerged in.
Unfortunately, it is not only surprising that Nigeria, the so-called giant of Africa, is belatedly deliberating on its supposed workers minimum wage at this point in time, it is equally embarrassing that the government is considering the sum of N30,000 only, to be too much a wage for a folk who have relentlessly worked the country to the pedestal it now assumes.
This action of the government tends to undermine the role of the market forces in determining the workers’ pay after all. Having spent ample time and scarce resources talking about a possible and acceptable wage for the country’s workforce, one expects that the prevailing cost of living should constitute a cogent reason for anyone to determine a wage befitting enough for the workers.
Surprisingly, here we are contending with the threat by the state governors to downsize the workforce if the said amount of N30,000 as proposed by the organised labour could be feasible. Their reason being that the states do not have the financial muscles to implement and sustain the supposed upward review of wage bill.
This is not only pathetic, it is indeed shameful. If the poor and financially incapacitated worker should be sacked for a few of his colleagues to receive a paltry sum of N30,000 only, what happens to the bulk sum given to our political servants?
With several insinuations over Nigerian lawmakers’ take-home at the end of every month, is it not yet rife for a cut in the said perceived jumbo pay just to accommodate the rest of the nation’s workers? Why should the country’s legislators go home monthly with exorbitant pay while millions of Nigerians wallow in abject poverty?
About a year ago, in what anyone could describe as a rare moment of ‘honesty’, which of course is not usually expected from a Nigerian politician, the lawmaker representing Kaduna Central, Senator Shehu Sani , revealed that a senator receives N13.5 million monthly as “running cost” alongside a N750,000 consolidated salary as well as other allowances.
Senator Sani also disclosed that every senator gets N200 million as a constituency fund which he admitted is sometimes fraught with fraud as projects are not done despite receipt of the money.
If this revelation of the distinguished senator be anything close to the truth, then suffice it to say that within the pocket of every Nigerian lawmaker, is hidden the meals of over 46 Nigerian civil servants on salary Grade Level 16, under the running wage scheme.
In the spirit of a review of Nigerian workers’ pay, the writer is of the view that the country does not have lesser mortals whose fortunes should be corked in others’ pockets.
We need to stop looking at wage increase for Nigerian workers as a bad omen that will only bloat our cost of production, but as a necessity for a productive work environment. Only on this premise will the amount involved not matter but its worth vis-a-vis the prevailing economic realities.
By: Sylvia ThankGod-Amadi.
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