Politics

Federal Government warns Labour Over Minimum Wage Hike as Labour Disagree

Published by Tope Fakinlede on June 13th, 2024.

Federal Government warns Labour Over Minimum Wage Hike as Labour Disagree

By Deborah Tolu-Kolawole, Josephine Ogundeji, and Gift Habib

On Wednesday, the Federal Government cautioned organized Labour about the potential negative economic impacts of their push for a significantly higher national minimum wage. Minister of Information and National Orientation, Mohammed Idris, highlighted that the N250,000 minimum wage demanded by Labour could destabilize the economy, lead to widespread job losses, and harm the welfare of Nigerians.

Despite these warnings, Labour unions rejected President Bola Tinubu’s assertion during his Democracy Day speech that an agreement had been reached regarding the new national minimum wage. Acting President of the Nigeria Labour Congress (NLC), Prince Adewale Adeyanju, clarified that as of June 7, no consensus had been reached by the Tripartite Committee on the National Minimum Wage. Adeyanju stepped in for NLC President Joe Ajaero, who was attending an International Labour Organisation conference in Geneva.

President Tinubu stated his administration would soon propose a bill to the National Assembly to formalize agreements from the minimum wage negotiations between Labour, the private sector, state governments, and the Federal Government. However, Labour unions denied reaching any agreement, maintaining their demand for a N250,000 minimum wage, while the Federal Government and the Organised Private Sector offered N62,000. State governors indicated they could only sustain a N60,000 minimum wage.

The NLC dismissed the government’s offers as insufficient, describing them as ‘starvation wages.’ Assistant General Secretary of the NLC, Chris Onyeka, stated that Labour would not accept the N62,000 proposal, nor the N100,000 suggested by some individuals and economists. They await the President’s consideration of their proposal.

At a conference in Abuja, Idris emphasized the need for a sustainable wage system that prevents mass layoffs while addressing workers’ needs. He reiterated the government’s commitment to revising the minimum wage but warned against unrealistic demands that could destabilize the economy.

Idris noted, “The Federal Government advocates for a realistic and sustainable wage system that will not harm the economy or lead to mass layoffs, thereby affecting 200 million Nigerians’ welfare.” He stressed that relief for Nigerians should come from more than just wage increases, pointing to initiatives like the Presidential Compressed Natural Gas (CNG) program, which aims to cut transportation costs by 50%.

Idris also urged religious leaders to help raise awareness about government efforts and initiatives, emphasizing their role in educating the public about the government’s policies and opportunities under the President’s Renewed Hope Agenda, which focuses on economic revival, national security, agricultural development, and infrastructure improvement.

In response to President Tinubu’s national broadcast, Adeyanju insisted that no agreement had been reached and that the President might have been misled. The NLC maintained its demand for a N250,000 minimum wage, rejecting the government’s offer of N62,000 as inadequate.

The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) also noted that no consensus had been reached on the national minimum wage, urging all parties to resolve outstanding issues to reduce uncertainty for businesses.

The Tripartite Committee on the national minimum wage, formed in January, has been working on recommending a new minimum wage for Nigerian workers. Despite ongoing deliberations, Labour’s demands have not been met, leading to an indefinite nationwide strike by the Nigeria Labour Congress and Trade Union Congress on June 3, which was temporarily paused for a week.