Troubled by incessant minimum wage headache
“One thing Ive learned in the labour movement is solidarity. We can only overcome the challenges if we stand together.”
—Marty Walsh
By Omoniyi Salaudeen
The Federal Governments refusal to announce a new national minimum wage for the workers during the May Day celebration has now effectively put the President of the Nigeria Labour Congress (NLC), Joe Ajaero, on the offensive. To overcome the challenge of endless postponement of the issue and the seemingly interminable dialogue, perhaps, it may be necessary for him to review his strategies.
Since January, all eyes have been on the 37-member tripartite committee set up by President Bola Ahmed Tinubu to review the current N30,000 minimum wage. However, the Workers Day celebration on Wednesday was another dashed hope for organized labour in Nigeria.
Contrary to the earlier expectation, the Federal Government failed to announce a new minimum wage for the workers. All along, the ensuing dialogue as to what should be the appropriate amount that aligns with the economic realities in the country has been characterized by suspicion, distrust, and a lack of confidence.
While labour and private sector representatives view with frustration the endless negotiations, those of the Federal Government team do not see any urgency in the matter. Rather, they prefer to adopt hide-and-seek as their regular pastime amid the hardship of fuel subsidy removal, dwindling value of the naira, and high food inflation, which has practically eroded the purchasing power of salary earners.
The anti-climax of all these intrigues was the announcement on Wednesday by President Tinubu that the working committee had yet to arrive at a final figure. Since the administration of Tinubu came on board on May 29, 2023, Ajaero has fought and lost many battles against the Federal Government.
He first put his force to test on July 26, when he led the NLC on a two-day “warning strike”, to protest against the growing cost of living caused by the removal of petrol subsidies. The union further threatened to “shut down” the nations economy if its demands for improved welfare were not met.
Though the strike was ultimately called off on August 2, nothing tangible was achieved at the end of the negotiations. Critics have accused Tinubu of not acting quickly enough to cushion the effects of his policies, which have impacted negatively on small-scale businesses and millions of households who rely on petrol generators for power due to epileptic grid power supply.
In his commemorative message during the Workers Day celebration at Eagle Square, Tinubu promised to give workers a living wage, but remained silent on the amount to be expected. Represented by Vice President Kashim Shettima, he said: “You would recall that on January 30, 2024, the Federal Government convened a 37-member Tripartite Committee on Minimum Wage.
“The committees mandate was to provide counsel and suggest a national minimum wage that aligns with our current economic conditions.
“Since then, the committee, in collaboration with labour leaders, has been diligently working towards proposing a new National Minimum Wage.
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“Unfortunately, despite concerted efforts, the committee was unable to reach a consensus at its last meeting. This shall be resolved soon and I assure you that your days of worrying are over.”
That was quite rhetorical, but hollow in its real interpretation. What the Federal Government considers in its own estimation to be a living wage may not necessarily be the same with organized labours because the two sides are looking at different dynamics. It is already in the news that the two leading unions in the country, the NLC and the Trade Unions Congress (TUC), have submitted a proposal of N615,000 minimum wage to the committee. As the committee continues to go back and forth, some concerned voices within the Presidency have also been heard whispering negative comments, saying that the figure is unrealistic.
On Wednesday, the government introduced another befuddling dimension to the raging debate by announcing a salary increase of between 25 per cent and 35 per cent for civil servants. At the same time, the Minister of State for Labour, Nkeiruka Onyejeocha, disclosed that the new minimum wage would take effect from May 1, 2024. She said it was regrettable that the new national minimum wage was not ready before the May Day celebrations, but assured that the document would be released as soon as possible.
This is the dilemma Ajaero will have to grapple with in the days ahead as the nation looks forward to the May 29 Democracy Day celebration promise. Smart enough, he was quick enough to smell the rat and dismissed the purported salary increase as mischievous, declaring that “there is no wage increment that government is announcing.”
He further issued a threat to shut down the economy if the Federal Government fails to honour its words on the new minimum wage by the end of May.
“The Nigeria Labour Congress and the TUC have made it clear and emphatically that should the minimum wage negotiation continues and lingers till the end of May, we can no longer guarantee industrial harmony in this country.
“We should be in the regime of a new minimum wage as of today. Discussions were supposed to have been concluded.
“The Federal Government through the National Assembly legislated on it. But we saw that the discussion entered voice mail because the Federal Government refused to reconvene the meeting that was adjourned.
“I think the announcement now appears mischievous because there is no wage increase that the government is announcing. For them to announce it now, it is an issue that we are worried about at the NLC and even at the TUC,” he said.
His counterpart in the TUC, Festus Osifo, also suspecting the government of intent to default on the new minimum wage, kicked: “What the government has done today does not substitute the minimum wage; it is a wage award that can be tinkered with anytime.”
All this underscores a lack of trust between the two contending parties. But beyond the threat of a strike, one other critical issue the leadership of organized labour has to take very seriously is the ability of states to pay the agreed minimum wage.
This is bearing in mind that some governors have yet to implement the existing minimum wage of N30,000. What then is the possibility that they will conform to the new wage structure when the committee eventually releases its recommendations? Already, the governors of the 36 states of the federation have faulted the recent announcement by the Federal Government on an increase in the salary of workers.
The Chairman of the Nigeria Governors Forum (NGF), AbdulRahman AbdulRazaq, in a communiqué at the end of its virtual meeting on May 1, while acknowledging the various initiatives adopted by way of wage awards and partial wage adjustments, said: “As members of the committee, we are reviewing our individual fiscal space as state governments and the consequential impact of various recommendations, to arrive at an improved minimum wage we can pay sustainably.”
With this divergence, Ajaeros leadership must prepare itself for multi-layer battles if it chooses to adopt the option of a strike as a last resort. The struggle will not be far-reaching enough should the NLC and other allied unions fight the Federal Government for a good bargain and leave the state and private sector employees in the lurch.
What is good for the goose, they say, is also good for the gander. For this struggle to be successful and meaningful, all concerned bodies must be carried along; after all, everybody patronises the same market and sellers will not discriminate against any individual based on his or her employment status.