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Labour unions in the country are warming up for a possible confrontation with the federal and state governments over the lack of progress on a new minimum wage for public sector workers and have not ruled out an industrial crisis.
The reason for their unease is the failure of the Federal Government to constitute a committee to negotiate the new minimum wage by naming its representatives whereas the labour unions have expressed readiness to begin the talks as their negotiators are on standby.
Workers have had to contend with rising prices of goods and services since the removal of fuel subsidy by the Federal Government, with the attendant inflation and escalating cost of living eaten deep into their pockets and rendering their monthly wages inadequate to meet their basic needs.
In June 2023, for instance, workers and some labour leaders demanded that the minimum wage be increased from N30,000 to N250,000, adding that the current situation would increase the demand for a salary review. The amount was later adjusted to N200,000 monthly.
This was made known by the Assistant General Secretary of the Nigeria Labour Congress, Chris Onyeka, who stated that many workers could no longer afford their rents, or pay their children’s school fees. He also lamented that with the increase in the cost of transportation by almost 300 per cent, many civil servants were trekking to work.
A few weeks after being sworn in as President, Asiwaju Bola Tinubu, said improved livelihood for Nigerians remained a top priority of his administration, stating that he would have more people-focused economic policies. He said, “The National Minimum Wage Committee should have been inaugurated because the task ahead is a difficult one. It’s not about getting the committee in place and there is a lot to be done. It is about the government to inaugurate the committee and appoint a chairman so that they can start work in earnest. “April is around the corner, and if things are not done this January, things might get out of hand. This isn’t going to be a fire brigade matter like they always do.
“But I can assure you that the organised labour will not leave any stone unturned to ensure that the needful is done. Whether it is a delay strategy on the part of the government, or not, we have got to follow due process, because it is a matter of law.
“This is because it will go to the National Assembly and the President before it becomes a law. The government is conscious of this, and on our part, we’ve done what we should’ve done. It’s just for them to inaugurate the committee and the committee will start working.”
Etuk added that Tinubu seemed like a man who would not play with the welfare of workers since he had been talking about living wage before he became President.
FG keeps mum
A Presidency official who did not want to be mentioned confirmed that talks were ongoing at the Federal Executive Council level on the the Minimum Wage Committee. The official said the administration was keen on reviewing the minimum wage and, therefore, would inaugurate the committee soon.
The official told Sunday PUNCH, “It is by law. Such a committee must come on stream. The Organised Labour has announced members from its own end. Though it has not been set up formally, we are certain that it will be set up at the right time.
“It is based on law. So, it is not something you simply set up haphazardly. You must follow the legal process. The other one must expire before you bring in the new one. The old one is expiring this year. And the committee will be beginning its work.
“It was mentioned at the last FEC meeting. The Minister of State for Labour said something about that committee. So, it is on course. The government is committed to setting it up.” The spokesman for the Ministry of Labour and Employment, Olajide Oshundun, had earlier directed inquiries on the minimum wage issue to the Presidency.
When contacted, the Special Assistant to the Minister of Information and National Orientation, Rabiu Ibrahim, stated, “The Federal Government’s agencies relevant to the issue, particularly the Ministry of Labour, are working on firming up the processes towards a consensus on all aspects of the issues.”
Wage award
Speaking on the living wage, Etuk said a lot of things must be considered such as transportation, housing, health and education.
He said, “These are critical components that will form the negotiation for minimum wage. With what’s going on now, it’s not even enough. In a month, a worker will spend not less than N70,000 on transportation. We’ve not even spoken of rent where a one-bedroom apartment goes for about N400,000.
“When you consider all these and look at the negotiation of the N200,000 minimum wage that was then. It’s no longer realistic to look at the inflation rate, which is 28.9 per cent as of today.
“Whatever is being given as minimum wage is to be consumed by inflation. Even the N200,000 being clamoured by organised labour, I don’t think that is the right thing to do. This wage doesn’t cover the National Health Scheme and you don’t expect a worker to die because of cancer or another life-threatening disease.
“These are the components that will form the discussion and engagement with the government on a minimum wage that will be measured.”
Etuk added that negotiations had successfully started across the 36 states for a living wage as a result of the removal of fuel subsidy.
He stated, “When it comes to the issue of palliative, it is to ensure that there is industrial peace and harmony, and also to stop the socio-economic challenges facing the workers. We believe that it is incumbent on the NLC and the TUC in the states to develop a strategy to engage the government to do the needful.
“Most of the state governors have been saying they’ve given palliatives in terms of an additional N10,000 every month, some said they’ve paid 13th month salary and also distributed grains.
“It is incumbent on every organised labour in the states to develop a strategy to engage the government to do the necessary things. We are also begging the Federal Government to live up to the memorandum of understanding they consciously signed on the payment of the N35,000 wage award. I can also assure you that the Minister of Labour recently acclaimed that they’re working on it and they know the implications.”
Sokoto in talks
The organised labour in Sokoto State led by the NLC has disclosed that discussion with the state government on the wage award will soon reach a compromise level.
The Chairman of the state NLC, Abdullahi Jungle, said the state government had made some promises to the union.
However, he noted that the governor was yet to give the green light.
Jungle stated, “I am sure you know the state governor is in Abuja as we speak, but we have written a letter to him and he promised to see us when he returns.
“All I can say now is we are making progress and the state governor is ready to sit with us to know how much should be approved as wage award and when it is expected to commence.”. Efforts to speak with the state government officials were not successful as both the state commissioner for information and the spokesman of the governor could not be reached at the time of filing this report.
Kwara adamant
Workers in Kwara State have alleged that the government has refused to engage with the organised labour on issues around minimum wage, stressing that life has been really difficult after the removal of fuel subsidy. This is as the labour leaders insisted that the 14-day ultimatum issued to the state government to accede to their demands by paying all workers a monthly wage award of N35,000 stands.
The Chairman of the TUC in the state, Tunde Joseph, lamented to Sunday PUNCH that despite many letters written to the government to pay the wage award, it had remained adamant. He added that the NLC and TUC in September 2023, wrote to the state government on the wage award after the Federal Government and the NLC agreed on it at the federal level.
However, the state Commissioner for Communications, Mrs Bolanle Olukoju, said the administration, despite being among the third lowest recipients of federal allocations, was committed to the welfare of workers.
“In the wake of the removal of subsidy by the Federal Government, the administration has committed additional N1,392,135,000.00 every month to the payment of palliatives to the workers alone,” the commissioner said.
She added that the doors of government officials remained open for the workers to lodge their complaints.
Kano wage award
The Kano State Government commenced the payment of N20,000 as a wage award to the state and local government workers in December. It will last for six months.
It also agreed to pay N15,000 to pensioners for three months from December 2023.
The Chairman of the NLC in the state, Kabiru Inuwa, disclosed in an interview with Sunday PUNCH.
He said the agreement was reached after the state government and representatives of labour signed an agreement following a meeting between both parties. Inuwa stated, “The agreement came after serious discussions with the committee set up by Governor Abba Kabir Yusuf on the issue.
“The agreement was signed between the state government and representatives of the labour comprising Nigeria Labour Congress, Trade Union Congress and the Joint Public Service Negotiation Council. The government shall also ensure the prompt disbursement of the wage award to all eligible civil servants and pensioners in the state.”
Benue unresponsive – NLC
In Benue State, labour leaders are in a serious dilemma over the silence of the state government on the implementation of the wage award. Labour union leaders in the state explained that the government had yet to respond to several letters sent to it on the subject. The Chairman of the NLC in Bauchi State, Dauda Shuaibu, told Sunday PUNCH that the state government had yet to start paying workers the N35,000 wage award.
Speaking in a telephone interview with one of our correspondents, he said the negotiation committee was waiting for the governor’s consent before talks could commence. He said, “The Bauchi State Government has not paid workers the N35,000 wage award but we have written to them so that they can engage us in the negotiations.
“We negotiated under the Joint Public Service Negotiation Council and we have written to the government, we followed it with a reminder and they have written a memo to His Excellency on that. “They are waiting for his permission to go ahead with the negotiations. As soon as they get the go-ahead, we’ll start the negotiations.”
‘No plans yet’
Out of four demands made by the Gombe State Negotiation Committee, none has been implemented, one of our correspondents has learnt. He stated, “We wrote the government and they told us that they were ready to negotiate. This was before the northern governors met on the need for a uniform wage award.
“The position has yet to change. Perhaps, the government wants to base its decision on the uniform wage increase being planned by the northern governors.” When contacted, the Chief Press Secretary to Governor Uba Sami, Alhaji Mohammed Shehu, could not be reached as his telephone indicated that it was unreachable.
‘No meeting yet’
In Bayelsa State, no meeting has been held between the organised labour and the state government concerning the implementation of the wage award. The state Chairman of the NLC, Simon Barnabas, who disclosed this, said the government had not replied to a letter written to it last year on the implementation.
The Commissioner for Information, Orientation and Strategy, Ayibaina Duba’s rang out when contacted by one of our correspondents. Olanrewaju said that the government had since September 2023 been paying the wage award to its civil workers. However, he did not confirm how much was being paid.
(PUNCH)
