Danger Ahead: Specialists Discuss Potential Impact of Minimum Wage Struggle
By Experts Warn of Economic Perils Amid Minimum Wage Dispute
Industry experts and financial analysts warn that the economy is on a difficult path to recovery, and the ongoing minimum wage agitation and reintroduction of the fuel subsidy will further complicate the prospects for early recovery.
Organised Labour stated over the weekend that President Bola Tinubu and the National Assembly (NASS) would determine their next steps following last Friday’s stalled negotiations on a new national minimum wage (NNMW).
On Friday, June 8, the tripartite committee on NNMW concluded negotiations without an agreement due to significant differences between employers (government and OPS) and organised labour (Nigeria Labour Congress, NLC, and the Trade Union Congress of Nigeria, TUC).
Despite expectations, the Federal Government negotiating team only increased its offer by N2,000, bringing it to N62,000. This led to a deadlock, prompting labour to declare a nationwide strike. The committee resolved to present both the N62,000 offer from the Federal Government and the N250,000 demand from organised labour to President Tinubu for further action.
A member of Labour’s negotiating team told Vanguard that President Tinubu and the National Assembly would determine the next step for organised labour.
‘Looking to the President, NASS’
He stated: “At this point, we are looking up to the President and the National Assembly to correct the wrongs by the government negotiators and their OPS counterparts. There was a high-level conspiracy among the federal government negotiators, state governors, and the OPS.
“Members of OPS hid under the guise of small and medium enterprises (SMEs) to claim they cannot pay reasonable wages. State governors, who rarely attended meetings, were clandestinely working with OPS to prevent a reasonable wage increase.
“The Federal Government team members did everything, including issuing threats, to ensure no progress was made. One senior government official specifically targeted the NLC president with threats, blaming him for labour’s tough stance. Even when the TUC president tried to defend the NLC president, he was not allowed to speak.
“Well, we have done our best. Since it was Mr President who set up the committee, we have returned the responsibility to him. Mr President has always promised Nigerian workers a living wage. He now has the opportunity to fulfil that promise.
“If Mr President fails to act, the National Assembly, as representatives of the people, should ensure Nigerian workers earn a living wage. We expect our representatives in the National Assembly to understand our pain. The issue will come to them as an executive bill, and they should make the nation’s workforce happier.
“What Mr President and the National Assembly do will determine our next action. After that, we will hold our organs’ meetings to decide our responses. For now, we have to wait.”
After two days of waiting at Friday’s meeting, the Federal Government negotiating team increased its offer to N62,000, while organised labour reduced its demand to N250,000 from N494,000. The Organised Private Sector (OPS) backs the government on the N62,000 offer. Following the disagreement, the Tripartite Committee on the New National Minimum Wage (NNMW) has adjourned.
ITUC Raises Grave Concerns Over Akpabio’s Comments
Meanwhile, the International Trade Union Confederation (ITUC) has petitioned Senate President Godswill Akpabio, expressing grave concerns over his recent characterization of the NLC and TUC’s nationwide strike as economic sabotage.
In a letter to Akpabio, ITUC-Africa General Secretary Akhator Joel Odigie wrote: “We have received information from our affiliates in Nigeria – The NLC and TUC – that the Nigerian Parliament, particularly the Senate, through its utterances and actions, is gaslighting the country’s organised labour for merely taking industrial actions to protect their members from socioeconomic hardship.
“There are concerns that the Senate’s utterances represent covert attempts to punish trade unions for undertaking legitimate, patriotic actions to protect their members’ rights.
“Mr. Senate President, ITUC-Africa expresses grave concern over your recent characterization of the NLC and TUC nationwide strike as economic sabotage. Such assertions are unfounded and detrimental to democratic values.
“ITUC-Africa monitored the processes before, during, and after the industrial action. From our observations, the industrial action was avoidable, and Nigerian labour demonstrated a firm commitment to open, effective, and inclusive dialogue.
“Nigeria’s organised labour communicated clearly and regularly with the government, its members, and the public. The strike is a lawful and justified response to the Federal Government’s failure to address critical issues affecting workers, including unresolved minimum wage negotiations, unjust electricity tariff hikes, and discriminatory consumer classifications.
“From the preceding, Mr. Senate President, we found your remarks troubling and capable of undermining democratic principles. Victims of socioeconomic hardships seeking survival must not be labelled as enemies of the state.
“The National Assembly must respect its citizens’ grievances. Industrial actions like strikes, protests, pickets, and work-to-rule are fundamental rights for facilitating industrial harmony and holding authorities accountable. They must never be criminalized.
“Nigerian workers and people must receive fiscal support to cope with current socioeconomic woes. ITUC-Africa appeals for your genuine and effective mediation in the negotiation process to ensure an amicable agreement. Struggling Nigerians look up to your leadership and support.”
Experts See Dangers Around Minimum Wage Battle
Industry experts and financial analysts caution that the economy faces a challenging recovery, with the minimum wage agitation and fuel subsidy return complicating prospects for early recovery.
Tajudeen Olayinka, Investment Banker & Stockbroker, said: “The re-emergence of fuel subsidy and the economy’s loss of purchasing power indicate that the economy is failing to adjust along the set parameters.
“The economy cannot afford a return to subsidy in any guise, especially with the current minimum wage agitation by organised labour.
“The government and the economic team need to carefully consider this, as allowing labour leaders to push for a minimum wage chasing inflation will worsen the economic situation. Instead of increasing the minimum wage, efforts should be made to moderate inflation to an affordable wage level.
“Organised labour must understand the nation’s problems. Any minimum wage above N60,000 could spell doom for the economy.”
Better Options Than Subsidy and Increased Wages — Iledare
Prof. Omowumi Iledare, a professor of Petroleum Economics and Policy Research, disagreed with increasing workers’ wages as a solution to weak purchasing power.
He stated: “Reintroducing subsidy payments is not the solution. There are other ways to improve society’s welfare than high wages in an inflationary economy with low productivity.
“First, embrace the rule of law as a nation. Second, tax less and spend borrowed funds on infrastructure while promoting transparency and accountability.”
Govs, Senators, Reps Should Also Earn N62,000 Minimum Wage — Mbaka
Reacting to the minimum wage dispute, controversial Catholic priest Ejike Mbaka said that governors and members of the National Assembly should also earn the N62,000 minimum wage proposed by the Federal Government.
Governors stressed that they cannot pay a N60,000 minimum wage, which organised labour had rejected. But speaking on African Independent Television (AIT), Mbaka said that governors, senators, and National Assembly members should also earn the N62,000 minimum wage.
“We can push these poor Nigerians to the point of rebellion. If we decide to give labour N60,000 or N62,000, why not generalize it to National Assembly members and governors?
“They are also civil servants. Are the others slaves? I cannot imagine why someone can amass billions in allowances while others struggle. Teachers, nurses, and doctors are paid meager wages despite working tirelessly.
“Let’s be realistic. Civil servants work from Monday to Saturday, waking up early and returning late. How much are they being paid? Look at the level of inflation in the country.”
Mbaka urged the government to address the minimum wage issue promptly to avoid another strike. “If they (the government) are not careful, this crisis can be hijacked, leading to unpredictable consequences.”