Private sector, states fault Labour’s push for N1m minimum wage

The organised private sector have faulted the demand by the Nigeria Labour Congress for N1m minimum wage, saying it is not realistic.

The NLC President, Joe Ajaero, in an interview on Arise television on Monday, said the organised Labour might ask for N1m during the minimum wage negotiations with the Federal Government if the value of the naira continued to plummet.

Reacting to the proposal, the Minister of Information and National Orientation, Idris Mohammed, said the Federal Government would make a reasonable decision in line with national interest and after due consideration of available resources and other factors.

In the past months, the costs of goods and services had skyrocketed following the removal of the fuel subsidy while the value of the naira had continued to fall due to the forex crisis.

The NLC and Trade Union Congress had earlier pegged their minimum wage demand at N200, 000 but the NLC president in his Monday interview argued that the food inflation and high cost of living had made their previous demand unrealistic.

When asked if the unions’ demand for a living wage could be as high as N1m, Ajaero said, “This N1 million may be relevant if the value of the naira continues to depreciate; if the inflation continues. The demand of Labour is equally dependent on what is happening in society.

“You will remember that by the time we were contemplating N200,000, the exchange rate was about N900. As we talk today, the exchange rate is about N1,400 or even more.

“Those are the issues that determine the demand and it is equally affecting the cost of living and we have always said that our demand will be based on the cost of living index.’’

He added, “You’ll agree with me that a bag of rice is about N60,000 to N70,000. A bag of locally produced corn is about N56,000 or more.’’

He lamented prices of foodstuffs were getting out of reach, adding that the organised Labour would not accept get a minimum wage that would not be enough for transportation even for one week

Speaking further, the labour leader complained about the failure of the Federal Government to fulfil the agreement signed with the organised Labour last October, noting that it had not faithfully implemented the N35,000 wage award which was to be paid to federal workers for six months.

He stated, “Only one month of the N35,000 naira was paid to civil servants. Also, there is no evidence of payment of any N25,000 paid as palliative to workers. That’s what led to what’s happening in the humanitarian ministry.

“No farmer has come to say that he received fertilizers from the government. I don’t know whether the fertilizers are for sale or cultivation.’’

Speaking on the delay in constituting the minimum wage committee, Ajaero recalled that the old minimum wage will expire by April, noting that the government ought to have set up the negotiation committee six months earlier.

He expressed disappointment that the committee has not commenced sitting.

Responding to the labour’s suggestion, the information minister, Idris, said he would prefer to wait for the final decision of the 37-man minimum wage negotiation committee, which also included the representatives of Organised Labour.

Speaking with one of our correspondents on the phone, Idris said, “It is a proposal but the FG will not pre-empt the work of the 37-man committee that includes labour itself. The FG will do what is right in the interest of the nation as a whole, taking into account our resources and other factors.”

Ekiti State Commissioner for Information, Taiwo Olatunbosun, dismissed as unrealistic the N1m minimum wage suggested by the NLC president.

Olatunbosun, who said that “just as labour has the right to make any demand, the government has the right to negotiate,” advised the unions to set a realistic goal.

The commissioner said, “I know there is a need for planning and I know there is a reason to be realistic too. We all have to be realistic. I don’t think Ekiti can pay N1m per least-paid worker. I don’t think so given the available resources that we have in Ekiti.

“But I know it is not out of place for every segment, every level of government both federal, state, and labour to sit down and discuss.

“Concerning whether Ekiti has the money, well, it is still the same thing that even if they (labour) ask for N1b per the least paid person, the right of negotiation will still be there. I believe that the government will still do the needful by engaging the labour.’’

Olatunbosun said the government is already engaging with the labour at the national level and until the negotiation is concluded, the state government would only wait for the outcome of the parley.

Speaking in the same tone, the Sokoto and Benue State governments advised the labour leadership to present a realistic minimum wage.

The Sokoto State Commissioner for Information, Sambo Danchadi, urged the labour unions to consider other factors in making their demands for a living wage.

“I think they should be realistic, even though in any form of negotiation, you are entitled to make any demand but in the course of negotiation, every party must be realistic.

“I will advise them to be more cautious and realistic, even though it is their right, they still need to be realistic in their demands,” he said.

The Benue State Commissioner of Finance and Budget Planning, Michael Oglegba, acknowledged the pains workers were going through at this period, but stressed that ‘labour leaders must understand there is a limit to what the economy can handle.’

He further said, “The Federal Government negotiates minimum wage for its workforce and the states are allowed to negotiate with their workers anything over and above the minimum wage and this is determined by economic forces.

“We are very much concerned about what workers are going through; the inflation is at an abnormal rate. So, whatever is arrived at by the Federal Government, the states have to negotiate. The point is that whatever the labour may throw is an offer.’’

In a separate interview, the Commissioner for Information, Culture and Tourism, Matthew Abo described Ajaero’s offer as laughable. Abo said, “How can that be possible? N1m minimum wage?’’

The spokesman for the Kebbi State governor, Ahmed Idris, assured the labour leaders of the state’s readiness to engage in fruitful negotiations to determine an acceptable new minimum wage.

The Special Adviser on Media to Ogun State governor, Mr Kayode Akinmade, said the state government was waiting for the report of the minimum wage negotiation committee and would not speak on Ajaero’s comments.

The Osun State Commissioner for Information and Public Enlightenment, Kolapo Alimi, said since the wage negotiation was on the exclusive list, the state government would wait for the negotiation to be concluded at the federal level before taking a position.

Also, the President of the Lagos Chamber of Commerce and Industry, Gabriel Idahosa, described the N1m minimum wage demand by the NLC president as unrealistic.

Ajaero’s proposal, he said, was at variance with the current realities of the Nigerian economy.

Idahosa said, “What I heard was that he was proposing a N1m as minimum wage. In this country? They expect a bakery that has about 10 workers to pay N1m? Or a supermarket with 10 workers to pay each of the staff N1m?

“The NLC president seems disconnected from this country. Some of his utterances suggest that he believes playing to the gallery is all it takes to be a good labour leader. If you want to go to a negotiation with a serious intent to arrive at a successful negotiation, you start by making a reasonable request.’’

Speaking further, Idahosa pointed out that Labour’s position on an issue of this nature ought to be based on arduous and painstaking research rather than emotions.

He added, “At some point, they insisted on N200,000 as minimum wage. If they had stayed with that, even though a lot of people thought it was not feasible, it would have been a good tactical position to start from.

“Their demand is not possible. You cannot squeeze water out of stone. When you are targeting a settlement of N1m, then you are not ready for negotiation.’’