The Federal Government, on Tuesday, made good its promise to inaugurate the National Minimum Wage Committee to negotiate a new minimum wage for public sector workers. The present minimum wage was reviewed from N18,000 to N30,000 on April 18, 2019, but the Naira had suffered severe depreciation while economic realities had become extremely harsh, especially after the withdrawal of petroleum subsidy at President Bola Tinubu’s inauguration on May 29, 2023. The inauguration of the minimum wage committee appears to have inspired optimism among public sector workers who believe that a wage increase would significantly improve their situation which had – in the last seven months – taken a dive for the worse.

Recall that in May 2017, the House of Representatives had moved to amend the National Minimum Wage Act to make way for a compulsory review of workers’ remuneration every five years.

WORKERS GROWING RESTIVE

Prior to the setting up of the committee, labour unions had begun to warm up for an industrial action to force the government to address the deterioration of their socio-economic conditions.

As at last week, workers unions had picked their own representatives for the wage negotiations while the Federal Government was yet to do so, and as the Naira suffered greater devaluation and cost of living escalated, workers grew restive, warning the government of imminent nationwide strikes and protests.

In June, 2023, workers and their leaders had demanded that the minimum wage be increased from N30,000 to N250,000 based on the deplorable economic realities. The amount was later adjusted to N200,000 monthly, according to Assistant General Secretary of the Nigeria Labour Congress, Chris Onyeka, who stated that many workers could no longer afford their rents or pay their children’s school fees. He also lamented that with the increase in the cost of transportation by almost 300 per cent, many civil servants were trekking to work.

Also, Deputy President of the Trade Union Congress (TUC), Tommy Etuk, had said the wage review committee was supposed to have been set up in time to make way for the commencement of a new minimum wage by April, 2024.

“If there is no agreement on the minimum wage review, there’s nothing anyone can do. I assure you that it is a recipe for industrial disharmony. The government should inaugurate the committee and let it start work on time to see some grey areas where we can agree or disagree, and work in tandem with the principle of collective bargaining so that we can arrive at a collective agreement. We believe it’s the best option rather than waiting for the 11^thhour to decide what to give to the organised labour. It will not work that way,” he had said.

WAGE COMMITTEE INAUGURATED

While workers were throwing threats at the Federal Government, talks were going on at the Federal Executive Council level and legal processes being prepared. On Sunday, the Federal Government unveiled a 37-man tripartite committee for the purpose.

The committee, led by a former Head of the Civil Service of the Federation, Bukar Aji, has six governors as members. They are Governor Mohammed Bago of Niger State, representing the North Central; Governor Bala Mohammed of Bauchi State, representing the North-East; Governor Dikko Radda of Katsina State, representing the North-West; Governor Charles Soludo of Anambra State, representing the South- East; Governor Ademola Adeleke of Osun State, representing the South- West; and Governor Out Bassey of Cross River State, representing the South-South.

The committee also has the Minister of State for Labour and Employment, Nkeiruka Onyejeocha; Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of Budget and Economic Planning, Atiku Bagudu, and the Head of the Civil Service of the Federation, Dr. (Mrs) Yemi Esan.

The Secretary to the Government of the Federation, George Akume, said the committee would be inaugurated on Tuesday, and so it was.

Tinubu, represented by Vice President Kashim Shettima, inaugurated the committee, made up of representatives of the Federal Government, state governments, labour circle and the organised private sector, at the Council Chambers of the Presidential Villa, Abuja.

President Tinubu, through his deputy, said his aim for constituting the committee was to reinforce the earnest desire to foster a motivated workforce while reaffirming his promise to improve the welfare of Nigerian workers and, by extension, the entire citizenry.

Inaugurating the committee, he congratulated the nominees for making the list of the Tripartite National Minimum Wage Committee, stressing that they have been carefully selected for the crucial task of renegotiating a new National Minimum Wage for workers in Nigeria.

He said: “Our sense of duty today thrives on both our sensitivity to the conditions of the Nigerian worker and the impending expiration of the last minimum wage instrument in a few months. It is in recognition of the need to ensure a fair and decent living wage, and in compliance with the Act, that the Federal Government has set in motion necessary mechanisms to assemble this tripartite committee to chart a future that aligns with our collective interests.

“While the decisions we have taken to save the economy are inevitable, we are not unaware of the short-term consequences. We believe that government is a continuum, and, as such, we have intervened in the systemic delays that undermined our economic growth.

“Since the removal of the subsidy, various committees have been established to examine and make recommendations to the government on measures to cushion the envisaged painful effects of the increase on workers and the Nigerian populace at large. I am pleased to share that action has since commenced on the implementation of the outcome of those agreements and initiatives.

“This gathering stems from the deliberations of one of the technical committees, which included representatives from both government and organised labour. We have identified the need for the review of the National Minimum Wage and to consider a minimum wage level that can alleviate the nation. It gladdens my heart that the recommendation is being acted upon today, and we can all acknowledge that this is in line with our democratic process and adherence to the rule of law. I express my gratitude to all those who contributed to that endeavour. .

“Given the comprehensive membership scope of this new National Minimum Wage Committee, it includes all stakeholders. Recognising the significance of this initiative, and to ensure a substantial engagement, I hereby direct that ministers and the Head of the Civil Service of the Federation should personally attend the meeting.

“In their unavoidable absence, their permanent secretaries should represent them. Similarly, governors are expected to attend in person or be represented by their commissioners where necessary. I urge you to consider the issue of a National Minimum Wage and all related matters with thoroughness and concern, keeping in mind not only the welfare of our workforce but also the impact on the country’s economy.”

The president went down memory lane, explaining that the issue of a National Minimum Wage for the federation falls within the exclusive legislative list of the 1999 constitution of the Federal Republic of Nigeria.

SOCIAL PROTECTION OFFER

He told the committee that the objective should be to surpass the basic social protection floor for all Nigerian workers, considering the sustainable payment capacity of each tier of government and other employers or businesses.

“I express this viewpoint because the minimum wage represents the least amount of compensation an employee should receive for their labour and, as such, it should be rooted in social justice and equity. I hope that the results of your deliberations will be consensual and acceptable to all parties involved.

“The government’s decision, following the consideration of your final recommendation, will be presented as an executive bill to the National Assembly. This bill, enriched by the contributions of state governments and private sector employers, will undergo thorough legislative scrutiny before being passed into law.

“I am hopeful that the committee will employ the principles of full consultation with social partners and their direct participation, considering the core provisions of the International Labour Organisation Minimum Wage Fixing Convention No. 131 and Minimum Wage Fixing Machinery Convention No. 26, both of which have been ratified by Nigeria.

“In accordance with this, the conditions of genuine social dialogue should prevail in the spirit of tripartism and collective bargaining agreements. I, therefore, encourage all of you to engage in collective bargaining in good faith, recognise each other, and maintain a spirit of give and take. Additionally, please continue your consultations outside the committee as you work towards recommending a new National Minimum Wage.

“The committee is anticipated to conclude its deliberations promptly and submit its report and recommendations. This timely submission is crucial to initiate the necessary processes for implementing a new National Minimum Wage. The Hon. Minister of Finance and Coordinating Minister of the Economy has been instructed to allocate the essential funds and logistics to the committee, facilitating the timely completion of its assigned task,” he added.

TARGETING ECONOMIC CHALLENGES

Secretary to the Government of the Federation, George Akume, told the committee members that they carry the hopes and aspirations of millions of Nigerian workers, noting that it would be instrumental in shaping the economic landscape of Nigeria.

He said the past year In the life of Nigeria had been marked by significant economic challenges following the removal of fuel subsidy, while a necessary step towards long-term fiscal sustainability had undoubtedly imposed temporary hardships on many in recognition of the challenges.

According to the SGF, the government made a commitment to cushion the effects on workers through a wage award being currently implemented.

“Today, we take another crucial step in fulfilling that promise by embarking on a comprehensive review of the national minimum wage.

“The Minimum Wage Act of 2019 empowers this tripartite committee, composed of representatives of government, organised labour, and employers, to engage in open and constructive dialogue to arrive at a fair and sustainable minimum wage,” Akume said.

Outside of representatives of the Federal and state governments, other members of the committee were drawn from the Nigeria Employers’ Consultative Association (NECA), and they are Adewale-Smatt Oyerinde, Director-General, NECA; Mr. Chuma Nwankwo; Mr. Thompson Akpabio with members from the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) including Asiwaju (Dr.) Michael Olawale-Cole, National President; Hon. (Dr.) Ahmed Rabiu, National Vice President and Chief Humphrey Ngonadi (NPOM), National Life President.

The membership from the National Association of Small and Medium Enterprises (NASME) are Dr. Abdulrashid Yerima, President & Chairman of Council; Hon. Theophilus Nnorom Okwuchukwu, private sector representative; Dr. Muhammed Nura Bello, Zonal Vice President, North West and also from the Manufacturers Association of Nigeria (MAN) are Mrs. Grace Omo-Lamai, Human Resource Director, Nigerian Breweries; Segun Ajayi-Kadir, Director-General, MAN; Lady Ada Chukwudozie, Managing Director, Dozzy Oil and Gas Limited.

From the organised labour, the Nigeria Labour Congress (NLC), Comrade Joe Ajaero, President, NLC; Comrade Emmanuel Ugboaja, Comrade Prince Adeyanju Adewale; Comrade Ambali Akeem Olatunji; Comrade Benjamin Anthony and Prof. Theophilius Ndukuba.

From the Trade Union Congress of Nigeria (TUC) are Comrade (Engr.) Festus Osifo, President, TUC; Comrade Tommy Etim Okon, Deputy President I, TUC; Comrade Kayode Surajudeen Alakija, Deputy President II; Comrade Jimoh Oyibo, Deputy President III; Comrade Nuhu A. Toro, Secretary-General and Comrade Hafusatu Shuaib, Chairperson Women Committee.

But the President, Nigeria Labour Congress, Joe Ajaero, criticised the selection process of state governors drafted as members of the Committee, saying that most governors on the panel were not even paying the current minimum wage.

Ajaero, speaking on Channels Television’s Politics Today on Tuesday, said: ”Most of the governors in the minimum wage committee are those who are not paying minimum wage or paying them in breaches.

”The governors who are in full compliance with the minimum wage are not adequately represented, so whatever made the Federal Government bring in those who are not compliant or compliant in breaches to form the bulk of the membership of the minimum wage committee from the state government, that will unfold with time.”

When asked to name the states that have failed to implement the minimum wage, Ajaero said: “A state like Zamfara. I don’t know how much Borno and Bauchi are paying – there is a minimum wage law which criminalises the non-compliance of the minimum wage.

“And the Nigerian state has not tried to enforce these laws, others are just enforcing them in the breach. Take Anambra State, for instance, Anambra state pays N30,000 for the least paid. I challenge anybody from Anambra to prove that even a permanent secretary is earning up to N170,000 or N180,000.”

LABOUR UNIONS AIM HIGH

On Tuesday, organised labour tabled a new minimum wage of $300 (N436,500) for Nigerian workers before the Federal Government, saying the proposed N436,500 was due to the fall in the value of the naira against the dollar.

This was disclosed by the Chairman, Trade Union Side, Joint Meeting of the National Public Service Negotiating Council, JNPSNC, Comrade Benjamin Anthony. He made this proposal at the 2023 meetings of the Separate and Joint National Public Service Negotiating Council held in Goshen City, Nasarawa State. Anthony said fuel subsidy removal had eroded the current minimum wage of N30,000.

Represented by the Secretary of the Union, Comrade Boma Mohammed, he said: “In light of the above, Labour has proposed a living wage of $300 (N436,500) for Nigerian workers. This is due to the fall in the value of our currency. Today, if you carry N100,000 to the market, you will come back with a leather bag of items.

“We call on government to immediately pay the arrears of the N35,000 wage award along with the current and expedited action on the process of getting a new living wage to bring succour to the working class people.”

Worthy of note is that workers in the public sector are actually upbeat that the minimum wage negotiation would offer succour to them but the Director-General of Nigeria Employers’ Consultative Association, Adewale Oyerinde, said the substantial impact of inflation in the country had significantly diminished the disposable income of an average Nigerian worker.

“The far-reaching consequences of inflation on the disposable income of the average worker emphasises a broader economic challenge that warrants urgent attention.

“With prices on a continuous upswing, the true value of wages is eroded, resulting in a reduction of purchasing power for individuals already struggling with the rising cost of living,” Oyerinde said.

Ironically, the Federal Government, last year, approved a monthly wage of N35,000 for its workers until the implementation of the anticipated new minimum wage but they have been questions concerning the failure of the government to comply accordingly. It was gathered that the Federal Government only paid the N35,000 for a month. Employees in the Federal Civil Service disclosed that the government only paid the N35,000 wage for September.

The NLC and TUC had demanded that President Tinubu fulfil his promise to pay a wage award of N35,000 to low cadre workers for the next six months to cushion the effect of the removal of the subsidy.

Chairman of the tripartite committee on a new minimum wage, Buka Goni Aji, said that the new wage would be based on what prevails in the country’s West African neighbours. This was his suggestion after President Tinubu urged members of the committee to engage in collective bargaining in good faith.

But NLC president, Joe Ajaero, insisted that the minimum wage negotiations must be based on cost of living and not just about give and take as requested by the vice president.

While reacting to the vice president’s inauguration speech, Ajaero, who explained that he had left the country for a scheduled trade union engagement before the government’s invitation for the inauguration got to the NLC’s secretariat, said the essence of every negotiation was compromise.

He said: “However, national minimum wage is a reflection of objective realities driven by existential issues, such as cost of food beverages, housing, clothing, transport, communication, education, health care etc.

“These and others are the factors that must determine the eventual outcome for it to have any meaning. You do not play give and take with the lives of workers and Nigerians.

“It must be based on what does it cost the average Nigerian worker to survive or exist as a human being? That is where the compromise must be worked around, anything less than that makes the outcome less humane and reinforces poverty. The outcome must renew the hopes of Nigerians and not sabotage or betray it.

“My absence at the inauguration should not be an issue. The inauguration was just ceremonial and all the relevant stakeholders, including NLC leaders, were well represented at the inauguration.

”Let Nigerians know that they should look forward to the actual meetings that would mark the beginning of the negotiation process where all the parties will be expected to seriously canvass their positions.”

CONCERNS FOR PRICE INSTABILITY

The Nigerian Association of Chambers of Commerce, Industry, Mines and Industry and Agriculture, NACCIMA, has urged the government to ensure prices of commodities in the market were brought down for the minimum wage to make any meaning. Humphrey Ngonadi, Life Vice President, NACCIMA, said: “Well, I thank God for this initiative that government is taking at this place. But I’m worried.

“We may remember some time ago that an Udoji award was done. And that was the first time the salary of workers was increased and, immediately after the increment, the commodity in the market ran up to meet it. So, while we are talking about minimum wage, I think the government, on its own side, has to think of how to bring down the prices of commodities in the market.”

The above remains the basic challenge – maintaining acceptable standard of living with new minimum wage amid ever-increasing cost of commodities. This is why some commentators have noted that the new wages would achieve very little if other economic challenges, including security, agriculture, and transportation, are not effectively addressed. (Sunday Independent)