The Organized Labour has put the Federal Government on notice. The one-week grace period granted last Tuesday, June 4, 2024, is set to expire by midnight on Tuesday, June 11, 2024. Should the Federal Government and the National Assembly fail to act on workers’ demands by then, the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) will decide on resuming the nationwide strike, temporarily paused last week.
What They Are Saying
Assistant General Secretary of the NLC, Chris Onyeka, voiced his concerns on Channels Television’s The Morning Brief show on Monday. Onyeka fears that if the government agrees to Labour’s demands, many states might sack workers or delay salaries, considering Nigeria’s already rampant corruption. He doubts if ₦250,000 is a feasible demand, given the country’s economic situation.
Onyeka stated, “The Federal Government and the National Assembly have the call now. Our demand is there for them to consider. They need to send an Executive Bill to the National Assembly to establish a National Minimum Wage Act that meets our demands.”
He warned that if the government does not respond by the deadline, the Organized Labour will reconvene to decide the next steps. Onyeka emphasized Labour’s firm stance against accepting any “starvation wage” like ₦62,000 or ₦100,000, insisting that ₦250,000 is the only acceptable minimum wage for Nigerian workers.
Why It Matters
The situation has been tense since Labour declared an indefinite strike on June 3, 2024, paralyzing businesses, shutting down airports, hospitals, the national grid, banks, and legislative complexes. The current minimum wage of ₦30,000 is deemed inadequate due to inflation and the effects of petrol subsidy removal and forex unification policies.
Labour unions highlight that many governors are not even paying the current wage, which expired in April 2024. The Minimum Wage Act of 2019 mandates a review every five years to align with economic demands.
President Bola Tinubu had initiated a tripartite committee to negotiate a new minimum wage. Labour’s initial demand of ₦615,000 was lowered to ₦494,000. In contrast, the government proposed between ₦48,000 and ₦60,000, all of which Labour rejected.
Despite relaxing the strike on June 4, 2024, after Secretary to the Government of the Federation George Akume’s assurance of a wage above ₦60,000, negotiations have stalled. Labour dropped its demand to ₦250,000, but the government only upped its offer to ₦62,000. Both sides have submitted reports to the President, who is expected to make a final decision and forward a new minimum wage bill to the National Assembly.
Bottom Line
The Labour’s demand of ₦250,000 as the minimum wage is steep, given Nigeria’s economic challenges. While their argument against “starvation wages” is valid, there is a realistic concern about the ability of states and the private sector to meet this demand without significant layoffs or financial instability. The government’s counteroffer of ₦62,000 seems insufficient given the current cost of living, but a more balanced and sustainable compromise is essential.
Labour’s hardline stance could backfire, leading to more suffering for workers if states and businesses cannot comply. The government must find a middle ground that reflects economic realities while addressing workers’ needs. Both sides need to engage in genuine, good-faith negotiations to prevent further disruption and hardship for the Nigerian people.
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