Minimum wage: Showdown looms in states over NGF stance

…No justifiable reason for states not to pay new minimum wage -Ngige

…Economists, others urge Govs to comply with new Minimum Wage Act

Barring last minute change of mind, the organised labour may embark on industrial action across states any moment from now over the latest statement by the Nigeria Governor’s Forum (NGF) that the implementation of the N30,000 new minimum wage will be dependent on the ability of each state to pay the agreed amount.

Recall that the NGF after its meeting last Tuesday said the Federal Government cannot dictate to states on payment of the new minimum wage as well as the consequential adjustments.

Reading the communique of the meeting, the NGF chairman, who is also the Ekiti State Governor, Dr. Kayode Fayemi, said: “The forum as the representative body of the states keenly followed what happened in the negotiations that led to that template.

“As far as we are concerned, the best the forum can do is to stick with what has been agreed with the states. States are part of the tripartite negotiations.

“The FEC does not determine what happens in the states. Each state has an executive council which is the highest decision-making organ in the state. The states were part of the tripartite discussion and agreed to the N30,000 minimum wage.

“States also know there will be consequential adjustments, but that will be determined by what happens on the state by state basis because there are different numbers of workers at states.

There are different issues at the state level. Every state has its own trade unions and joint negotiations committee and they will undertake discussions with their state governments.”

Meanwhile, Minister of Labour and Employment, Sen. Chris Ngige, on several fora, maintained that states have no justifiable reason not to fully implement the new minimum wage as the law is binding on all.

Similarly, the organised labour has strongly disagreed with the NGF, insisting that the N30,000 minimum wage is binding on states.

Speaking through the President, Nigeria Labour Congress (NLC), Comrade Ayuba Wabba, the organised labour vowed to disrupt the industrial peace in states as part of efforts to force defiant Governors to abide by the law, which he maintained, has passed negotiation level.

Recall that Comrade Wabba had said that the NGF is not and cannot be seeing beyond its existence as a mere political organisation for the convenience of state governors and as such cannot assume the position of a negotiating body of the consequential adjustment of workers wage.

He explained that right from when the idea of minimum wage review was raised, the tripartite committee set up with the mandate of negotiating the wage review had sent letters to each state government to send in their memoranda as their contributions to the new national minimum wage negotiating process, adding that 21 out of 36 states including FCT sent in their memoranda, quoting figures which some were above the N30,000 that was finally agreed as new minimum wage.

Arguing why the state Governors cannot disassociate themselves from the agreement reached between the Government and labour on the minimum wage, he further explained that negotiation process which lasted for about a year had six governors as their representative on the Tripartite Committee from beginning to the end (one state governor represented each of the geo-political zones).

Meanwhile, indications at the weekend pointed that the NLC had perfected plans to call out workers on strike in several states whose governors have come out to say that they may not be able to pay the new minimum wage.

On his part the Secretary-General of the Trade Union Congress (TUC), Comrade Origi Musa-Lawal, however, said that “The state governments are only playing games.”

He added that “they were represented in the minimum wage committee. They cannot come around to deny their responsibility. They are simply courting labour anger and we are ready for them.”

The Daily Times gathered that as aside Ekiti, Lagos, Enugu, Kano, Delta, Akwa Ibom, Anambra and Kaduna states that have come out to say they will pay the new minimum wage and the consequential adjustment flowing therefrom, states like Osun, Jigawa, Bayelsa, Plateau, Oyo, Ondo, Benue and Ebonyi among others are likely to experience industrial action any moment from now going by the fact that these states had issues paying the erstwhile N18,000 minimum wage coupled with the fact that their current governors have not made any commitment to payment of the new minimum wage.

Although some states have declared intentions to pay the new wage, checks have shown that at least 10 states are currently owing workers backlog of benefits including salaries.

However, based on analysis of backlog of workers benefits owed, it is believed governors of Zamfara, Taraba, Kogi, Osun, Ondo, Benue and Ogun will hopefully play host to the organised labour anytime soon as they are either battling to pay the old N18,000 minimum wage promptly or currently owing salary arrears.

States like Osun, Ekiti, Abia, and Adamawa are owing their workers at least six months’ salary arrears, while states like Benue, Imo and Bayelsa owe shortfalls and Ondo State, one month arrears left by the previous administration is still pending.

Already the NLC had directed its chapters in states to get set for strike any moment from now should any governor refuse to abide by the new Minimum Wage Act signed by President Muhammadu Buhari on April 18. 2019.

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The NLC clearly told the negotiating councils of its state chapters not to succumb to pressure from state governors to vary the amount to be paid to workers as new minimum wage.

Economists, labour experts and other stakeholders in the meantime have asked governors to ensure payment of the N30,000 new minimum wage to workers, particularly because they were privy to the agreement, adding that it smacks of bad faith if they renege.

Expressing their opinions as regards the impasse currently encountered in implementing the minimum wage and the way forward, a Public Affairs Analyst and technical assistant to the President of the Nigerian Association of Small and Medium Enterprise, John Chris Mamuda, said it will be in the interest of the governors to pay the minimum wage to avoid a total shutdown of the economy.

“If we are looking at a principle of collective bargaining, the minimum wage payment is supposed to be uniform, but unfortunately the practice in Nigeria doesn’t follow collective bargaining and it has been in practice for a very long time.

“We are supposed to have salary differences in states across the country so that there can be mobility of labour so that depending on the packages and incentives, a worker can move from one state to the other.

“However, because of the weak nature of the economy, labour is right to insist. This is because the unions at the state and local government lack the capacity to negotiate for their members, so it will just be an exercise in futility to wait for workers at the states and local government to bargain for their own minimum wage.

“When you look at the lavish and expensive lifestyle political office holders live with their families, it will just be fair and reasonable to pay Nigerian workers a living wage,” he added.

In the same vein, a Financial Expert and Chief Executive Officer of Financial technology hub, Samuel Onu, believes that implementation of the minimum wage should not be a debate for the government.

“As it is, I don’t think N30,000 would have been something the government will argue and drag with labour about. Minimum wage is expected to be reviewed every five years, as it is long overdue.

“Therefore, it is important for government to implement the wage from federal down to the states level seamlessly to avoid any form of altercations,” he said.

Similarly, a human rights advocate, Musa Abdullahi, said that labour has been patient enough on the matter of minimum wage and called on state governments to act in line with the agreements.

“The consequential agreement between Federal Government and labour should be implemented seamlessly at all levels to avoid shut down by labour,” he added