Salary review: NLC wants N850,000 as minimum wage, mulls sanctions against erring govs.

 

.Says Govs’ excuses on wage increase no longer acceptable ..States should be allowed to negotiate with their workers–S/W Govs

IBRAHIM QUADRI

 

 

The South South Zonal chapter of the Nigeria Labour Congress (NLC) has proposed N850,000 as new minimum wage for workers.

Organised Labour equally advocated for impeachment or imprisonment of any governor, who may refuse to abide by the new minimum wage benchmark.

The Chairperson of NLC in Akwa Ibom, Comrade Sunny James, indicated this while speaking on behalf of the Zone during the Zonal Public Hearings, organised by the Tripartite Committee on National Minimum Wage (TCNMW) on Thursday in Uyo.

James also added that operational licenses of the private sector that may default in paying the new minimum wage should be withdrawn.

“It is the collective request from the zone that the inflation-dependent model of wage adjustment be adopted.

“This will automatically raise the minimum wage for the workers, whenever inflation rises and hence eradicate the struggle for a new wage every five years as obtained in the developed world.

“Minimum wages should be paid to all workers in the employment of not less than five employees.

“This act will bring inclusiveness to all Nigerians as exhibited in the composition of the Minimum Wage Negotiating Committee.

“The Zone proposes a penalty for those contravening the minimum wage to include: the impeachment and imprisonment of erring Governors,  withdrawal of operational license to the defaulting private sector employers,” James said.

The Secretary of Akwa Ibom State Trade Union Congress (TUC), Comrade Kingsley Bassey, who spoke on behalf of the Zone pegged the new minimum wage at N450,000.

Bassey urged government to implement the wage to ameliorate the plight and sufferings of the Nigerian workers.

On his part, the TCNMW Chairman, Mr Adewale-Smatt Oyerinde, said that the committee was keenly interested in receiving well-researched position papers that will aid in making informed decisions.

Oyerinde was represented by the Chairman of the National Association of Small, Medium Enterprise (NASME), Mr Nnoron Theophilus.

He assured that the diverse opinions gathered from both private and public sectors would help to impact the livelihood of the citizens.

In his remarks, Gov. Umo Eno promised to cooperate in the payment of the new minimum wage, when it is approved.

Eno, who was represented by the Head of Service, Mr Effiong Essien, said that within one year in office, his administration had paid workers entitlements to the tune of N14.7 billion.

However, Leaders of the labour unions and organized private sectors differed on Thursday over the appropriate new minimum wage for Nigerian workers at the resume public hearing.

 

While NLC and TUC could not agree on specific amount for the minimum wage, organized private sectors appealed for understanding from workers, saying sustainability of their businesses should be taking into consideration.

 

On government part, the argument was that even though workers deserve new wage, each state should be allowed to negotiate with their respective workers because of their peculiarities.

 

However, the labour unions described the stance of some governors’ inability to pay minimum wage as unacceptable.

 

These were the high points at the South-West, Geo-Political zone, Public Hearings, organised by the Tripartite Committee on National Minimum Wage, chaired by Minister of Finance, Mr Wale Edun, held at LTV, Agindingbi, Ikeja, Lagos.

 

The chairman of Lagos State, Nigeria Labour Congress, NLC, Mrs. Funmi Sessi recommended the payment of at least N794,000 minimum wage for workers.

 

She appealed to the federal government that the national minimum wage should remain on exclusive list.

 

She stressed that the removal of fuel subsidy had resulted in untold hardship, saying “When you compare our minimum wage with other West African countries, ours is ridiculous. Government should allow workers in the country to have a living wage.”

 

Sessi argued that the review has become expedient in view of the rising cost of living across economic sectors.

 

“Mr President has promised us a living wage and he must fufil the promise,” she stated.

 

Sessi stressed that the review of the minimum wage should be at every two years instead of the current five years, noting that the minimum wage should remain on the exclusive list as opposed to demand in some quarters for it to be on concurrent.

 

She added, “Any state Governor that says he cannot pay the.minimum wage should tender his resignation letter.

 

Sessi also asked for 13 percent derivation for Lagos state because of its peculiarities, notng Lagos state needs to conform with other cities of the world.

 

Speaking in the same vein, the representative of Trade Union Congress, TUC, Mr Gbenga Ekundayo, called for the review of the wage, as stated in section 3(4) of the national minimum wage Act.

 

He stated that the wage be reviewed annually, rather than 5 years, considering the economic situation.

 

Ekundayo further requested for power supply to improve activities of Micro, Small and Medium Enterprises in the country. He advocated for 497,000 as the new minimum wage.

 

Earlier, in his welcome address, the minister of Finance and Coordinating minister of the Economy, Mr Edun said the committee is interested in a well-researched position papers that would aid an informed decisions.

 

The minister who is the South West zonal committee chairman on the minimum wage noted, “We must recognize the significance of this assignment and its multiplier effect on the lives of millions of hardworking citizens and our great country Nigeria.

 

“We recognize the interests of balancing of both employers and employees to achieve a fair and sustainable minimum wage that promotes social justice and economic stability.”

 

In his remark, the Chief Host, Lagos State Governor, Mr Babajide Sanwo-Olu stated, “As we deliberate on the issue of the National Minimum Wage today, I assure you that we are committed to working collaboratively with other States and the Federal Government to arrive at a fair and realistic Wage structure that takes into account, the diverse economic conditions across the Nation. Our goal is to strike a balance that ensures the well-being of our workers while fostering economic sustainability.

 

The Governor who was represented by the state Head of Service, Mr Olabode Agoro stressed,  “In Lagos State, we have always prioritized the welfare of our workers, recognizing that a well-compensated and motivated workforce is essential for sustainable development.

 

“One notable accomplishment has been the regular review of the minimum wage. I am proud to announce that Lagos State has implemented a minimum wage of ₦41,500, surpassing the standards set by many other States in the region. This step is a testament to our commitment to providing a living wage that reflects the economic realities facing our citizens.”

 

He added, “Minimum Wage is not just a matter of fiscal policy. It is a reflection of our values and our dedication to ensuring that the hardworking men and women who contribute to the prosperity of our great nation are treated with the dignity and fairness they deserve.”

 

In his comments, Osun state Governor, Mr Ademola Adeleke who represented the six south west Govenors maintained that one thing that had been generally agreed was that Nigerian workers were due for a new minimum wage.

 

According to him, “The current minimum wage has become unrealistic with the economic realities.”

 

He however pointed out that the position of Osun state is a minimum wage within the limit of the available resources.

 

“I implore both workers from private and public sectors deserve a minimum wage within the limit of the available resources. Individual states will have to negotiate with their respective workers and agree.”

 

The Governor urged Federal Government to review the revenue sharing formula and also revisit the matter of solid minerals that are on exclusive list, saying the National Assembly should look at these issues to correct imbalances in allocation.

 

In his submission, Director-General, Michael Imoudu National Institute for Labour Studies, MINILS, Ilorin, Kwara state, Comrade Issa Aremu said, “In real time, the purchasing power of workers have been eroded. The two scriptures recognize the payment of workers. If you pay workers very well, it is Godly.

 

“It is also good economic because workers are meant to purchase goods and services. We should take advantage of this gathering provided by Mr President to a realize a living wage.

 

He however stated, “To get the minimum wage right, you must talk about affordability. We should be realistic on what we keep workers alive and at the time sustain the establishments. I think we should be talking in the rage of N120,000 to N200,000.”

 

As regard organized private sector, speaking on behalf of Manufacturers Association of Nigeria, MAN, Mr Tayo Adelaja reiterated that it had been very tough for manufacturers, saying there was no need to beat about the bush.

 

He said many manufacturers had been declaring losses as a result of the devaluation of the naira, urging federal government to look into their plight.

 

The Vice-President (South-West zone) Nigerian Association of Small and Medium Enterprises (NASME), Mr Solomon Aderoju said, “In the first instance, we wish to state that the issue concerning the minimum wage is timely and crucial in view of the economic pressure, high inflation rate, high cost of living and low purchasing power of workers and the general populace in the country.

 

“We also appreciate the concern and position of the labour unions and other concerned parties as the economy is at a low level of subsistence.

 

“Without any vestige of doubt, MSMEs in Nigeria are being faced with lots of challenges which include the followings, amongst others: Lack of infrastructural facilities such as power, good roads, water supply, etc

 

“Lack of finance and where available at high interest and other fees. We appreciate the the present regime’ efforts in addressing this, but effect is yet to be felt by the MSMEs.

 

“It is well noted that many businesses in this sector are still operating as informal enterprises at the start-up stage while some have closed-down due to some exogenous factors beyond their control.

 

“In this circumstance, we are of the opinion that MSMEs should be given a special concession as regards the National minimum wage. We therefore conclude here, that if MSMEs are supported, coupled with a more conducive enabling environment, we shall be able to pay and surpass the National minimum wage being considered by the committee.”

 

While presenting Congress of Nigerian University Academics, CONUA paper, Prof Adejumo Akintoye stated, “Production in Nigeria is insufficient and this raises a challenge for the needs of Nigeria’s booming population. Thus, the economy relies heavily on imports to meet daily needs of citizens, from cars to cutlery.

 

“Sadly since 1986, the government is yet to effect the required structural change towards reflating the economy. Consequently, the Nigerian economy is easily affected by external shocks, especially fluctuations in the foreign exchange rates, which determine domestic prices of goods and services. Thus, any proposed wage structure for Nigeria should take into consideration the prevailing naira exchange rates to international currencies, such as the US dollar.

 

The don added, “The government of President Bola Tinubu has pledged to improve the living conditions of Nigerians, particularly the working class. Implementing a new minimum wage is seen as a step towards achieving this goal, which the subsidy palliative of ₦35,000 for six months cannot substitute.

 

“Above all, a new minimum wage that incorporates ability to live  is mandated by humanity. This is a necessary political weapon for good use  for the workers’ share in the dividend of democracy.”