….says 494k unsustainable, will ruin economy
The federal government says the N494,000 minimum wage proposed by organised labour is “unsustainable”.
In a statement on Saturday, Mohammed Idris, minister of information, said the demand by organised labour amounts to a N9.5 trillion bill for the federal government annually.
The minister added that the proposal of organised labour would increase the existing workers’ wage bill by 1,547 percent.
BACKGROUND
In 2019, former President Muhammadu Buhari approved N30,000 as the national minimum wage for workers.
Recently, the federal and state governments, organised labour, and the private sector commenced discussion over the new minimum wage.
Initially, the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) had proposed N615,500 as the minimum wage, citing the high cost of living.
However, the federal government rejected the N615,500 proposal and offered N48,000.
On May 15, the NLC and TUC rejected the N48,000 minimum wage offered by the government.
On May 21, the federal government increased the proposed minimum wage to N54,000, which the labour again rejected and described as “unacceptable”.
Again, the federal government proposed N60,000, and it was rejected.
On Friday, NLC and TUC declared an indefinite strike over the federal government’s refusal to increase the minimum wage from N60,000.
The planned strike is expected to kick off on June 3.
‘FG CONCERNED ABOUT 200M NIGERIANS’
The minister said organised labour is fighting for the interest of 1.2 million workers, while the federal government is concerned about 200 million Nigerians.
“The federal government’s new minimum wage proposal amounts to a 100% increase on the existing minimum wage,” the minister said.
“Labour, however, wanted N494,000, which would increase by 1,547% on the existing wage.
“The sum of N494,000 national minimum wage which labour is seeking would cumulatively amount to the sum N9.5 trillion bill to the Federal Government of Nigeria.
“Nigerians need to understand that whereas the federal government is desirous of ample remuneration for Nigerian workers, what is most critical is that President Bola Ahmed Tinubu will not encourage any action that could lead to massive job loss, especially in the private sector, who may not be able to pay the wage demanded by the organised labour.”
Minimum Wage: Nigerian Govt gives reason for N60,000 offer, warns against Strike
The Federal Government has reacted to the proposed strike by organised labour, set to take off on Monday, saying it would compound the economic woes of citizens.
The Minister of State for Labour and Employment, Nkeiruka Onyejoecha, who reacted on behalf of the government, cautioned that any new minimum wage must not lead to widespread job losses, particularly in the Organised Private Sector, which employs the bulk of the nation’s workforce.
She warned that the strike is not in the best interests of the country and its people, especially when negotiations are ongoing.
Recall that owing to failure of parties in the tripartite committee to reach a compromise on a new national minimum wage, the Nigerian Labour Congress, NLC, and Trade Union Congress, TUC, decided to embark on strike on June 3.
“Going on strike in the middle of ongoing negotiations would not only compound the economic woes but also exacerbate the suffering of millions of Nigerians who are already struggling to eke out a living from their daily endeavors,” Onyejeocha said through her media aide, Emameh Gabriel.
She noted that the “government has consistently demonstrated commitment and goodwill throughout the negotiations with organised labour”.
According to the Labour Minister, the government’s proposals were carefully crafted, taking into account the country’s economic realities and incorporating innovative solutions.
She listed these proposals to include a comprehensive package featuring a wage increase to N60,000 for federal workers, the introduction of CNG-fueled buses, and enhanced financial access for Micro, Small and Medium Enterprises (MSMEs).
Additionally, according to her, the government has pledged investments in strategic sectors such as agriculture, manufacturing, education, healthcare and many others that are already in the pipeline.
“This sector is crucial to the country’s economic growth and stability. The government’s stance is rooted in a deep understanding of the negotiations, demonstrating its dedication to finding a balance between the needs of workers and the economic realities of the country. The goal is to establish a minimum wage that is not only realistic but also sustainable, avoiding any potentially detrimental consequences for the economy.
“By adopting this approach, the government aims to safeguard the interests of both workers and employers, ensuring that any agreement reached is mutually beneficial and does not jeopardise the country’s economic progress. This balanced stance is crucial for maintaining harmony in the workforce and driving national growth”, she explained.
