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Private Sector, State Govt Kick As Labour Demands N1 Million Naira Minimum Wage

Published

9 months ago

Feb 13, 2024.

Eko Hot Blog reports that the organised private sector, Ekiti, Sokoto, and other states have faulted the demand by the Nigeria Labour Congress for N1m minimum wage, stating that it is not realistic.

The NLC President, Joe Ajaero, in an interview on Arise television on Monday, said the organised Labour might ask for N1m during the minimum wage negotiations with the Federal Government if the value of the naira continued to plummet.

Reacting to the proposal, the Minister of Information and National Orientation, Idris Mohammed, said the Federal Government would make a reasonable decision in line with national interest and after due consideration of available resources and other factors.

NLC Protest

In the past months, the costs of goods and services had skyrocketed following the removal of the fuel subsidy while the value of the naira had continued to fall due to the forex crisis.

The NLC and Trade Union Congress had earlier pegged their minimum wage demand at N200, 000 but the NLC president in his Monday interview argued that the food inflation and high cost of living had made their previous demand unrealistic.

When asked if the unions’ demand for a living wage could be as high as N1m, Ajaero said, “This N1 million may be relevant if the value of the naira continues to depreciate; if the inflation continues. The demand of Labour is equally dependent on what is happening in society.

“You will remember that by the time we were contemplating N200,000, the exchange rate was about N900. As we talk today, the exchange rate is about N1,400 or even more.

“Those are the issues that determine the demand and it is equally affecting the cost of living and we have always said that our demand will be based on the cost of living index.’’

He added, “You’ll agree with me that a bag of rice is about N60,000 to N70,000. A bag of locally produced corn is about N56,000 or more.’’

He lamented prices of foodstuffs were getting out of reach, adding that the organised Labour would not accept get a minimum wage that would not be enough for transportation even for one week

Speaking further, the labour leader complained about the failure of the Federal Government to fulfil the agreement signed with the organised Labour last October, noting that it had not faithfully implemented the N35,000 wage award which was to be paid to federal workers for six months.

He stated, “Only one month of the N35,000 naira was paid to civil servants. Also, there is no evidence of payment of any N25,000 paid as palliative to workers. That’s what led to what’s happening in the humanitarian ministry.

“No farmer has come to say that he received fertilizers from the government. I don’t know whether the fertilizers are for sale or cultivation.’’

Speaking on the delay in constituting the minimum wage committee, Ajaero recalled that the old minimum wage will expire by April, noting that the government ought to have set up the negotiation committee six months earlier.

He expressed disappointment that the committee has not commenced sitting.

Responding to the labour’s suggestion, the information minister, Idris, said he would prefer to wait for the final decision of the 37-man minimum wage negotiation committee, which also included the representatives of Organised Labour.

Speaking with one of our correspondents on the phone, Idris said, “It is a proposal but the FG will not pre-empt the work of the 37-man committee that includes labour itself. The FG will do what is right in the interest of the nation as a whole, taking into account our resources and other factors.”

However, Ekiti State Commissioner for Information, Taiwo Olatunbosun, dismissed as unrealistic the N1m minimum wage suggested by the NLC president.

Olatunbosun, who said that “just as labour has the right to make any demand, the government has the right to negotiate,” advised the unions to set a realistic goal.

The commissioner said, “I know there is a need for planning and I know there is a reason to be realistic too. We all have to be realistic. I don’t think Ekiti can pay N1m per least-paid worker. I don’t think so given the available resources that we have in Ekiti.

“But I know it is not out of place for every segment, every level of government both federal, state, and labour to sit down and discuss.

“Concerning whether Ekiti has the money, well, it is still the same thing that even if they (labour) ask for N1b per the least paid person, the right of negotiation will still be there. I believe that the government will still do the needful by engaging the labour.’’

President Bola Tinubu

Olatunbosun said the government is already engaging with the labour at the national level and until the negotiation is concluded, the state government would only wait for the outcome of the parley.

Speaking in the same tone, the Sokoto and Benue State governments advised the labour leadership to present a realistic minimum wage.

The Sokoto State Commissioner for Information, Sambo Danchadi, urged the labour unions to consider other factors in making their demands for a living wage.

“I think they should be realistic, even though in any form of negotiation, you are entitled to make any demand but in the course of negotiation, every party must be realistic.

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