Minimum Wage: Hope brightens as FG, Labour shift grounds

.To holistically review workers wage, Govs’ extravagant allowances

.Today’s meeting to determine fate of proposed strike

Following what was described as a genuine commitment on the part of the Federal Government, the Organised labour is likely to suspend its proposed industrial action over the consequential adjustment arising from the new Minimum Wage.

The Minister of Labour and Employment, Sen. Chris Ngige, on Tuesday, announced that the meeting to resolve the industrial dispute has been adjourned to Wednesday, October 16.

According to sources, the Federal Government has stepped up its proposal from 11 per cent for workers on grade levels 7-14 and 6.5 per cent for 15 -17 to 17 per cent for workers on level 7-9, 15 per cent for level 10-14 and 12 per cent for level 15-17.

Meanwhile, the Organised Labour also proposed 25 per cent for workers on level 7-14 and 20 per cent for workers on level 15-17 as against 29 per cent and 24 per cent initially proposed respectively.

The Deputy President of NLC, Amaechi Asugwuni, said: “Negotiation is still ongoing even though we actually thought negotiations will be concluded today (Tuesday) but we can’t predict the negotiations, therefore adjournment became necessary.

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“To the best of our knowledge, the struggle will still continue to apply. Tomorrow (today) we will meet by 2pm and that meeting will also determine the fate of that; we expect that we will close that meeting positively.

“So far, commitment has been shown but we believe that the areas that are still in context are critical therefore government can also on their part to see how they can shift ground positively in order to mitigate the agitation ahead.”

On her part, Head of Service of the federation, Mrs. Folashade Yemi-Esan, said: “We’ve had a very peaceful engagement so far; the labour side has discovered that there is just one side of the welfare of workers and both sides made a lot of concessions but we discovered that there are some grey areas that need to be ironed out. Some documents and information are being sorted out which we are providing and by Grace of God, tomorrow’s (today’s) discussions will continue and we believe that we will be able to get everything resolved”.

Earlier, the minister while addressing Nigerian Union of Local Government Employees (NULGE), said he was surprised that the labour is yet to open negotiations with the state governments and council chairmen on the issues of National Minimum Wage Act.

He said it was wrong for NLC and TUC to declare strike in states without having dialogue with state governments.

“I am surprised that your chapters and even state chapters have not opened negotiation with state governments and council chairmen on the issue of National Minimum Wage Act. It is a national law of 2019 and it should be obeyed by all. The discussion we are even having here is for the federal implementation.

“I am surprised that NLC and TUC in the states said they are declaring strike in states without having dialogue with state governments. It shouldn’t be. They should dialogue first and if it fails, they can talk of strike.

“Strike is not even the end of a dialogue. The minimum wage itself is for the persons on grade level one step one. That is what the Act is talking about. The other negotiations are consequential adjustment because you have given the man on grade level one the salary of a man on grade level six or seven. Therefore, you talk of consequential adjustment.”

While cautioning the labour not to misinform workers on the current industrial dispute, Ngige said “workers should know that this is consequential adjustment and not a holistic wage review”.

He also disclosed the government has set up a Presidential Committee on Salaries headed by the Minister of Finance and co-chaired by himself to holistically review the workers wage.

“The last holistic wage review took place in 2011 and new one is being planned. Government has put up the Presidential Committee on Salaries headed by the Minister of Finance and co-chaired by me.

“After the consequential adjustment, the committee will now look at the wage structure of the public service.

“There are people who earn 300 per cent of what others earn and they have the same degree. We may have people in NNPC, FIRS, Customs and others with third class earning 300 per cent more than the man with first class in the ministry. The committee is in place to look at different wage structures. We have 12 wage structures in Nigeria. We will beam our searchlight on them.

“Revenue Mobilisation will also look at what is given to political office holders. What is a governor doing with hazard allowance? What hazard when the state is feeding him and his family? What is a governor doing with constituency allowance? The whole state is his constituency. These are what will be holistically reviewed.”

Speaking further, Ngige lamented that of the N10.3 trillion in the 2020 budget, N3.8 trillion is for personnel cost alone, adding that N160 billion has been captured by the Federal Government for the consequential adjustment of the minimum wage.

“The 2020 budget of N10.3 trillion has N3.8 trillion as personnel cost without overhead. If you add running cost and other incidental costs, the total recurrent budget as presented to the National Assembly has taken 76 per cent. Where do we get the money to build roads, airport, rails, health centres, schools, etc?

“It is a matter of balancing a budget that is 76 per cent recurrent and 24 per cent capital, for me, it is nothing to cheer about. In the 76 per cent, government has captured N200 billion for consequential adjustment for the minimum wage and so on. These are all part of personnel. N160 billion is for consequential adjustment of the minimum wage and not total package of workers’ salaries”, said Ngige.

Meanwhile, the United Labour Congress (ULC) had earlier pulled out of the proposed strike action.

The ULC President, Joe Ajaero, stated this in a statement sent to journalists on Tueday afternoon.

He insisted that the industrial action was designed to fail, hence, its decision to pull out of such exercise in order not to whittle down the capacity of Nigerian workers and masses to earn the new minimum wage.

“We want to state that we will not be part of this attempt to whittle down the capacity of Nigerian workers and masses to earn the new minimum wage. It is a planned sabotage of our collective will and desire to see a new minimum wage and we shall not be part of it. Alienating critical national stakeholders who would have insisted in organising an effective nation-wide strike is intended to achieve only one purpose – the failure of the strike,” said Ajaero.