On Wednesday, the federal government chastised organized labor for failing to take into account the wider economic consequences of their demands for an unjustifiably higher national minimum wage.
The admonition was delivered by Mohammed Idris, Minister of Information and National Orientation. Idris warned that the N250,000 minimum salary proposed by labor may damage the economy, cause a mass layoff of workers, and endanger the wellbeing of Nigerians.
But during his Democracy Day speech on Wednesday, President Bola Tinubu claimed that an agreement had been reached on the new national minimum wage. These statements were denied by the labor unions.
The Tripartite Committee on the National Minimum Wage had not established a consensus as of the end of negotiations on June 7, according to Prince Adewale Adeyanju, acting president of the Nigeria Labour Congress.
Adeyanju is speaking in place of NLC President Joe Ajaero, who is in Geneva, Switzerland, for a conference of the International Labour Organization.
After declaring that his administration would soon present an executive bill to the National Assembly to formalize the agreements struck in the minimum wage negotiations between labor, the private sector, the states, and the federal government, Tinubu infuriated the unions.
The Federal Government and the Organized Private Sector offered N62,000, but the unions insisted on a minimum pay of N250,000 throughout the weeks-long negotiations.
The state governors, however, declared that they would not be able to support minimum wages above N60,000.
The labor unions declared they would not discuss what they called a “starvation wage,” rejecting the offers provided by the OPS and the federal government.
N62,000 is not deemed appropriate.
According to Chris Onyeka, the NLC’s assistant general secretary, Labour would not accept the most recent offer of N62,000 or the N100,000 suggestion put up by certain people and experts.
Joe Ajaero, the President of the NLC, stated that the unions were waiting on the President to take Labour’s suggestion into consideration.
Speaking on Wednesday at the commencement of the 2024 Synod of the Charismatic Bishops Conference of Nigeria in Abuja, the minister of information emphasized the need for a reasonable wage structure that covers workers’ needs and prevents widespread layoffs.
Reiterating the government’s commitment to reviewing the minimum wage, Idris issued a warning against making demands that would destabilize the national economy.
“The Federal Government is not opposed to wage increases for Nigerian workers, as I have repeatedly stated. However, we continue to advocate for a realistic and sustainable wage system for workers – a wage system that will not undermine the economy, lead to mass layoffs, and jeopardize the welfare of approximately 200 million Nigerians,” he said.
“We want the labor unions to understand that wage increases won’t be the only way that Nigerians receive the relief they fully deserve and are anticipating.”
He emphasized the continuous attempts to lower living expenditures, including programs such as the Presidential Compressed Natural Gas program, which aims to cut transportation costs by half.
Idris pushed for wage rises, but she also emphasized the need for comprehensive relief measures that go beyond pay adjustments. She urged Labour to acknowledge the role that initiatives like the CNG initiative have in boosting residents’ purchasing power.
Additionally, an attempt will be made to lower living expenses and guarantee that Nigerians retain a larger portion of their income. This is where initiatives such as the Presidential CNG initiative are useful.
He asserted, “That program alone will cut transportation costs by as much as 50% by replacing or complementing gasoline usage with CNG.”
The minister urged religious authorities to help spread the word about government programs and efforts.
Religious leaders
He emphasized how important it is for the clergy to spread the word about opportunities that are out there and the government’s ongoing initiatives.
“As a government, we require your input, counsel, and support,” Idris said.
In order for you to assist us in sharing these with your congregations and the wider public, he continued, “it is imperative that you are aware of the efforts being made and the challenges being faced.”
The minister emphasized the powerful platforms held by religious leaders, emphasizing their capacity to inform Nigerians about their rights, obligations, and the financial prospects afforded by the President’s Renewed Hope Agenda initiatives.
He mentioned that the plan sought to improve infrastructure and transportation, foster agricultural and food security, bolster national security, and encourage economic revival.
“Education and consciousness are essential, and our religious leaders can help with this. President Bola Tinubu’s “Renewed Hope Agenda” policies and programs are creating a wealth of economic prospects for Nigerians, and you have extremely powerful venues that can educate them about their rights and responsibilities,” he said.
During his speech, Archbishop Leonard Kawas, the National President of the Charismatic Bishop Conference, emphasized the organization’s steadfast support for Tinubu’s administration and reaffirmed their dedication to working together to achieve the goals of the nation as a whole.
‘No agreement yet’
Adeyanju disagreed with Tinubu’s claim that his administration engaged in sincere negotiations with Organized Labor on the new national minimum wage, saying that Tinubu had not acted in good faith or with open arms. This was their response to the President’s nationwide broadcast.
“In this spirit, we have negotiated in good faith and with open arms with organized Labour on a new national minimum wage,” Tinubu said in his broadcast. We are about to submit an executive measure to the National Assembly that would codify the agreements reached into law for the next five years or less.
“As a dictatorship administration would have done, we did not attempt to repress or crack down on the workers in response to labor’s request for a national strike. We opted for collaboration over confrontation.
Nobody was detained or intimidated. Rather, the leadership of the labor movement was asked to have a meal together and work toward a sincere settlement.
“The characteristics of democracy are reasoned debate and morally sound compromise. My policies and interactions with the many components of our political economy will remain animated by these themes.
However, Adeyanju refuted the President’s claim in a statement, stating that he might have been duped by his advisors. Adeyanju also pointed out that two figures—N250,000 from Organized Labor and N62,000 from the government and OPS—were calculated and should have been given to Tinubu.
Anything to the contrary, the NLC official claims, is not only fabricated but would also not be approved by Labour.
The government’s offer of N62,000 was rejected by the congress, which stuck to its position of N250,000 as the minimum wage.
Part of the statement said, “The NLC would have expected that the President’s advisors would have informed him that we did not reach any consensus with the employers and the Federal Government over the other components of the National Minimum Wage or the base amount for one.
“We have not received any convincing arguments to modify our demand, which is N250,000 only, which we believe to be a significant concession made by Nigerian workers during the three-way bargaining process.
“Thus, we are taken aback by Mr. President’s submission regarding a purported agreement. We think it’s possible that he was duped into thinking there was a deal with the TUC and NLC.
“There was none and it is important that we let the President, Nigerians and other national stakeholders understand this immediately to avoid a mix-up in the ongoing conversation around the national minimum wage.”
Adeyanju claimed that during the minimum wage negotiations, security agencies intimidated the labor leaders.
While we were negotiating with the government, fully armed soldiers encircled us. Despite the administration’s denials, recent remarks made by top officials confirmed our concerns and went against their claims.
“Nevertheless, we are confident that the President’s democratic qualifications will be highlighted for the benefit of Nigerian laborers and the general public,” he said with hope.
The union claims that the President chose the occasion of Democracy Day to show his love for the people and Nigerian workers by rejecting any suggestion that might come from “those whose intentions were continuously focused on hurting Nigeria’s poor and struggling workers.”
In an appeal, he said, “Mr. President should not permit these people and organizations to undermine his pledge to pull Nigerian laborers out of poverty.
“It is clear that the President’s advisors misled him about the intimidation and harassment of trade union leaders. It is crucial that Mr. President realizes that his operatives may have threatened us multiple times without getting his permission.
“Senior government officials have waged and continue to wage a campaign of media propaganda against the trade unions with the intention of intimidating and harassing us.”
Regarding how long the Minimum Wage Act would remain in effect, the NLC observed that there was no consensus.
It’s also critical that the president understands that the majority of his officers are working nonstop to appoint congressional and trade union leaders.
Although the President stated that the Minimum Wage Act would last five years or fewer, we never agreed on that length.
“We also agreed that inflation should be pegged at a level for a certain amount to be agreed as minimum wage. This is to bring clarity to what the report should contain.
We stress once more how difficult it will be for Nigerian laborers to accept any national minimum pay that is comparable to a living wage. We cannot continue to live in such poverty while working.
We emphasize again how hard it will be for workers in Nigeria to accept any kind of national minimum wage that comes close to a livable wage. We can’t work and live in such poverty forever.
OPS speaks
The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture also commented on the presidential broadcast, saying that there was still no agreement on the minimum wage in the country.
NACCIMA President Dele Oye, a member of the 37-person tripartite group, criticized the inconsistent comments being made about the discussions, stating that the panel was still in the midst of negotiations.
He warned, “No agreement has been reached with Labour; however, aside from appealing to all parties involved to work harder to resolve outstanding issues, it is wrong to make a press statement in the middle of negotiations, as the impasse is already creating uncertainty in the ability of businesses to make decisions.”
The tripartite committee on the national minimum wage was established by the government in January.
The committee’s assignment was to make recommendations for a new national minimum wage for laborers in Nigeria.
The federal and state governments, organized labor, and members of the private sector have been discussing a new minimum wage for workers for the last few months.
But the organized labor movement’s demand for a minimum wage has not yet been satisfied.
The Nigeria Labour Congress and Trade Union Congress started a statewide, indefinite strike on June 3 in protest of the government’s refusal to abide with their demands for a minimum wage.
The labor unions “relaxed” the walkout for one week after twenty-four hours.
