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Minimum Wage: We can’t pay N60,000, governors declare

By Azimazi Momoh Jimoh, Adamu Abuh, Ernest Nzor (Abuja), Gloria Nwafor (Lagos) and Rotimi Agboluaje (Ibadan)
08 June 2024   |   5:09 am
Expectations that the Tripartite Committee on New National Minimum Wage may arrive at a decision soon suffered another setback yesterday

• Seek a sustainable agreement with labour
• Grid shutdown: NLC, labour veterans, others differ on SGF’s treasonable felony comment
• Consider a living wage for workers, minority reps caucus advises FG

Expectations that the Tripartite Committee on New National Minimum Wage may arrive at a decision soon suffered another setback yesterday as governors of the 36 states of the federation have declared that they lack the financial capacity to pay N60,000 minimum wage.

This was even as the Nigeria Labour Congress (NLC) and some labour enthusiasts in the country yesterday expressed mixed feelings over the declaration last Thursday by the Secretary to the Government of the Federation (SGF) that the shutdown of the national grid by members of the NLC and Trade Union Congress (TUC) during their recent strike amounted to treasonable felony.

While NLC and some of the enthusiasts justified the action, others threw their weight behind the SGF, saying the striking workers inflicted more pains on Nigerians and damaged the economy further.

Speaking through their umbrella body, the Nigeria Governors’ Forum (NGF), the 36 states governors cautioned all stakeholders to consider the sustainability of a minimum wage before adopting a final figure.

“All things considered, the NGF holds that the N60,000 minimum wage proposal is not sustainable and cannot fly. It will simply mean that many states will spend all their FAAC allocations on just paying salaries with nothing left for development purposes,” it declared.

The NGF, in a statement released by its Acting Director on Media and Public Affairs, Hajiya Halimah Salihu Ahmed, said governors were of the opinion “that the N60,000 proposal is not sustainable and cannot fly.”

The Forum appealed that “all parties involved, especially the labour unions, consider all the socio-economic variables and settle for an agreement that is sustainable, durable and fair to all other segments of the society who have legitimate claim to public resources.”

The NGF, however, noted that it was “in agreement that a new minimum wage is due and equally sympathises with labour unions in their push for higher wages.”
The Forum urged all parties to consider the fact that the minimum wage negotiations also involve consequential adjustments across all cadres, including pensioners.

It charged parties “in this important discussion to look beyond just signing a document for the sake of it”, adding that, “any agreement to be signed should be sustainable and realistic.”

The governors contended that if the N60,000 proposal is adopted, “a few states will end up borrowing to pay workers every month. We do not think this will be in the collective interest of the country, including workers.”

SGF George Akume
SGF George Akume

The SGF, Akume, had also asked members of the Organised Labour to be more circumspect in their demands over national minimum wage and the restoration of old electricity tariff.
Addressing the National Executive Council of the Christian Association of Nigeria in Abuja last Thursday, Akume said the shutdown of the national grid by members of the NLC and TUC amounted to treasonable felony.

He said: “Nowhere in the world has labour ever tampered with the national grid. It is treason! A treasonable felony is economic sabotage, you don’t do that.”
Reacting to the assertion in a statement titled, ‘Mr. SGF: Treasonable Felons and Economic Saboteurs are in Agbada and Convoys’, the Organised Labour alleged that the SGF knows the real economic saboteurs in the country.

In the statement signed by Head, Information and Public Affairs, NLC, Benson Upah, the unions called on the SGF to retract his statement and to approach the ongoing negotiation with the seriousness and respect it deserves, urging the government to engage with labour in good faith, free from threats and intimidation.

Upah said: “Those who loot our treasury around the country, those who divert public resources meant for hospitals and schools; those who are involved in foreign exchange round tripping; padding of budgets and inflating contracts including those who steal trillions of naira in the name of subsidy are the real economic saboteurs who commit treasonable felony.

“These people are in costly Agbada and drive in convoys all around the nation occupying the corridors of power and not innocent workers who are not slaves but chose to withdraw their services because of the inhuman treatment meted to them by the government.”

He said it was particularly disheartening that the SGF, a high-ranking government official, would make statements that trivialise the genuine grievances of Nigerian workers.
“His assertion that he cannot afford to pay each of his four drivers N100,000 monthly is a stark reminder of the disconnect between the government and the realities faced by ordinary Nigerians.

“Such statements do not contribute to the resolution of the issues at hand but rather exacerbate tensions.
“It is a clear demonstration that the SGF pays his personal staff starvation wages and may be telling us that he is a slave master. We may have to remind him that a 50kg bag of rice is N88,000, which leaves the worker with just N12,000 if he is to pay the paltry sum he claims that he is unable to pay. Anyway, one wonders what the SGF does with four drivers alone. We would also want to know what work justifies the huge salaries and allowances the SGF takes home all the time. Do we need to wonder too far why we are here as a nation when you have individuals with this mindset occupying sensitive positions in the corridors of power?” he queried.

Upah said the demands of the NLC and TUC were clear and just, adding: “We seek the conclusion and signing into law of a new national minimum wage that is in sync with the realities of the cost of living, a reversal of the hike in electricity tariff to ₦65/kwh, and an end to the discriminatory classification of electricity consumers into bands. These demands are grounded in the need for economic justice and fairness for all Nigerian workers and citizens.”

The NLC chief said it was unfortunate that the SGF, who presides over the administration of the executive arm of government, which is one of the basic pillars of democracy and is supposed to be a protector and defender of democracy, its various institutions and practices, would be seen making statements that negate these traditions and principles.

He insisted that the NLC remains committed to advocating for the rights and welfare of all Nigerian workers.

“We stand firm in our demands and will continue to pursue them through all legitimate means available to us. We will not surrender the trust and confidence Nigerian workers and people have bestowed on us to blackmail by the SGF or any other official. Our commitment is to Nigeria, Nigerian workers and peoples and this will continue driving our engagement,” he noted.

Also, a human rights activist and labour lawyer, Femi Aborisade, yesterday, faulted the SGF, saying it remains to be seen how the Federal Government would sustain the charge of treason against organised labour that was pushed to the wall.

He said the statement by the SGF suggests a regime that seeks to criminalise peaceful strike in which nobody destroys a pin.

The activist maintained that it is the Federal Government that was ruling unconstitutionally and illegally by its refusal to negotiate a new national minimum wage after the 2019 Act statutorily expired.

Aborisade said: “The statement by the SGF shows a tyrannical regime ruling by economic terrorism, which imposes pangs and pains and without expecting the victims of economic terrorism to complain.

“Treason is an offence involving levying war against the state with a view to forcefully or violently removing constitutionally established organs of government. It is punishable by death.

“It remains to be shown how the Federal Government will sustain the charge of treason against organised labour that was compelled or practically pushed to the wall and struck merely to influence governments to negotiate a new national minimum wage after the expiration of the 2019 Minimum Wage Act.

“It is the Federal Government that is ruling unconstitutionally and illegally by the refusal to negotiate a new national minimum wage after the 2019 Act has statutorily expired.”

Aborisade urged the labour movement not to be intimidated by the Federal Government.

He added: “The labour movement should not fight only for an increase in minimum wage. The labour movement should fight for the principle of wage indexation such that the national minimum wage rises as inflation rises. This is the principle that governs wage reviews internationally. In many countries of the world, wages are reviewed every six months or every year or every two years based on inflationary trends.

“A government that can remove fuel subsidy, a government that can float the national currency, a government that can allow fuel prices and electricity tariffs to rise astronomically should be prepared to pay wage rises based on inflationary trends. Where the governments refuse to concede, the labour movement should embark on peaceful mass rallies and protests on a nationwide basis as it happened in 2012 and call for the resignation of those in power.

“Section 40 of the constitution guarantees the right to peaceful revolt or peaceful mass action, including peaceful strikes and rallies, for the protection of rights against unfavourable harsh economic policies of the government.”

Meanwhile, a group, under the umbrella of Labour Veterans and Trade Unionists/Assembly has thrown its weight behind the SGF, insisting that the shutting down of the national grid by the labour leaders amounted to treasonable felony.

In a statement yesterday signed by former National Vice President of Nigeria Labour Congress (NLC), Isa Tijjani, the group expressed disappointment with the Congress over its recent strike.

The group called for an investigation into the actions of the Congress, which they deemed criminal and contrasting with International Labour Organisation (ILO) conventions.
Tijjani, who is also a former National Deputy President of the National Union of Petroleum Workers, condemned the violent tactics adopted by the labour movement during the strike.

He alleged that the striking labour leaders engaged in forceful eviction of citizens from their offices, employed arm-twisting tactics and brought down the national grid, causing harm to the economy and citizens.

He said: “We are miffed by the apparent treasonable felony committed by the striking Labour leaders in bringing down the national grid, stopping citizens from going about their legitimate businesses, forceful eviction of law abiding citizens from their offices and employment of force and arm twisting tactics on people to abide by the strike. All these should be investigated and appropriate actions taken.

“Agitations for minimum wage is a legitimate right; however, the means and method used in undertaking the strike is not only unfair but criminal and against rectified ILO conventions, which are aimed at protecting essential service sectors in any given economy from such disruption.

“Our earlier caution against using the congress as a platform for partisan politics has gone unheeded and the consequences are here for all to see.

“The penchant to opt for strike as the first option in settling labour disputes is inimical even to the interest of workers in whose name the strike was embarked upon in the first place.

“This demonstrates lack of seriousness and deep reflection on the side of congress’ leadership for always swinging into acting before they think. Such actions are inimical to well known norms and practices of the labour movement and should be stopped forthwith.

“We want to highlight Ajaero’s actions, which is aimed at dragging the congress into muddy waters of ethnicity, political partisanship and self-aggrandisement, which has been there for long.”

In a related development, the Rising-Up for a United Nigeria (RUN) has applauded the SGF over his mediatory role that led to the suspension of the nationwide strike by labour.

Jointly led by Amb. Solomon Adodo and Otunba Michael Msuaan, the group stated after an emergency meeting held in Abuja that but for Akume’s prompt intervention, the strike would have completely crippled government activities had it lasted for another day.

“The fact that the SGF did not allow the recent labour dispute to linger on forever by mobilising the Federal Government and coordinating the dialogue between relevant agencies and labour shows that he has the capacity to salvage the country from any crisis.

“He spared Nigerians the brunt of the skirmishes between Labour and the Federal Government by frontally confronting the situation. One can only imagine what would have happened if the strike action lingered for another day,” the statement noted.

Meanwhile, the Minority Leader of the House of Representatives, Kingsley Chinda, yesterday stated that the Federal Government should be considering a living wage for Nigerian workers, not a minimum wage.

Chinda, who made this disclosure in an interview in Abuja, declared that a minimum wage of N70,000 cannot solve the problems of a family of a wife and four children.
He added: “We believe that the issue of corruption can be drastically reduced if we pay a living wage and it will ignite the spirit of believing in the state.

“Pay Nigerians a living wage; it will solve a lot of problems. Let’s see how we can pay an affordable living wage; let the government look deeply into it.

“I think the law recognises one wife and four children. Can N70,000 pay rents and feed them? How much is the price of a bag of rice?

“Nigerians are angry because they believe that there’s so much wastage. We the caucus support a living wage without compromise but labour must follow the laws because two wrongs can never make a right.”

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