Editorial
Minimum Wage: Averting National Strike
Nigerians, especially workers across the country, heaved a sigh of relief when President Muhammadu Buhari finally signed a new National Minimum Wage of N30,000 into law on April 18, 2019.
However, six months after the presidential assent that eventually ended nearly two years of gruelling negotiations (and about four years after it was due), threats and counter-threats, promises and broken promises and industrial actions that nearly shut down the economy of the nation, the implementation of the law has remained the subject of another long-drawn cat and mouse battle between organised Labour and the Federal Government.
Pissed by the government’s obvious lacklustre attitude towards ending negotiations and commencement of payment to workers, organised Labour, comprising the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), after a meeting with the Joint National Public Service Negotiating Council (JNPS NC-Trade Union Side) on Wednesday, October 2, 2019, issued a clear warning to the Federal Government that it could no longer guarantee industrial peace and harmony in the country if workers’ demands are not met at the close of work on Wednesday, October 16, 2019.
In a statement jointly signed by NLC President, Comrade Ayuba Wabba, TUC President, Comrade Quadri Olaleye, the Acting Chairman, JNPSNC (Trade Union side), Comrade Simon An Chaver and JNPSNC Secretary, Comrade Alade Bashir Lawal, Labour demanded that the issue of consequential adjustment, which the government has used to delay the commencement of the implementation of the new minimum wage should be concluded within one week.
According to the statement, organised Labour insists on 29 per cent for workers on Grade Levels 07-14 and 24 per cent for workers on Grade Levels 15-17 while in the same breath rejecting government’s offer of 11 per cent for public service workers on Grade Levels 07 -14 and 6.5 per cent for officers on Grade Levels 15-17.
In the statement, Labour also demanded “the reconvening of the meeting of the committee negotiating the consequential adjustment with a view to concluding the process that started on May 28, 2019, within one week”, while noting that it had, out of its patriotic disposition, demonstrated a great deal of restraint, consideration and patience with government.
It further noted that since the last minimum wage of N18,000 came into effect and now, “the Naira had suffered devaluation from N150 to $1 in 2011 to N360 to $1 in 2019, a depreciation of 140 per cent” and accused the government of insensitivity to the plight of workers who ultimately bear the brunt of the negative economic climate in the country.
While labour leaders have since reiterated the resolve of workers to embark on an indefinite nationwide strike without further warning, the Federal Government, through the Minister of Labour and Productivity, Dr Chris Ngige, has only responded with a threat of a consequential retrenchment of workers if government must accede to Labour’s demand.
The Tide views as callous and insensitive the Federal Government’s response to Labour’s demand for a marginal improvement in the excruciating economic circumstance of the average Nigerian worker through the implementation of the new National Minimum Wage. In a country where politically exposed persons turn instant millionaires upon assumption of office, it is inexplicable that government would invent all manner of excuses and adopt absurd and ridiculous subterfuge to deny the suffering worker an enhanced living condition.
While we acknowledge that the full implementation of the N30,000 new minimum wage as demanded by Labour would significantly increase the recurrent budget profile of the Federal Government and others, we refuse to accept that government cannot rise up to the challenge and still remain afloat. We insist that with a little bit of creativity and diversification of the economy, government is very likely to raise more money to meet its capital needs as well.
In order to end this perennial cry of inadequate funds, government needs to cut its overall cost of governance while taking heed to expert advice on exploiting other sources of revenue to meet its obligations. Some well canvassed measures of reducing recurrent expenditure and conserving funds for other uses include downsizing the Ministries, Departments and Agencies of government, a downward review of the emoluments of elected and appointed political office holders, the abolition of constituency projects of lawmakers, among other steps.
The Tide is not completely in opposition to the idea of reducing the workforce of the government. However, government must be prepared to fully meet the financial requirements needed to settle all workers to be disengaged.
Finally, we think that the position of organised Labour for a quick resolution of implementation talks on the new National Minimum Wage is reasonable and should be attended to with all the urgency it deserves.
We also believe that the nation can ill afford another industrial action on the scale threatened by Labour as the present state of the economy is too tenuous to withstand such pressure. Government should, therefore, do the needful by immediately re-engaging Labour with a view to averting the looming strike, strengthening the prevailing industrial peace and giving the workforce in the country a reason to smile, even though government’s intention to increase Value Added Tax (VAT) and the re-introduction of toll gates, and sundry measures will significantly eat into the accruable benefits.
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