Organised Labour Rejects Federal Government’s Minimum Wage Offer

Organised Labour, comprising the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), has firmly rejected the Federal Government’s proposal of a N48,000 minimum wage.

The private sector initially proposed a living wage of N54,000 per month.

The unions withdrew from the minimum wage negotiations on Wednesday after the Federal Government proposed N48,000, which is significantly lower than the N615,000 demanded by the unions.

In an emergency press conference, the unions expressed their dissatisfaction with the offer, describing it as “an insult to the sensibilities of Nigerian workers”. This was the second breakdown in negotiations within two weeks.

During the previous session on April 29, discussions stalled as the unions insisted on a N615,000 minimum wage, which the Federal Government deemed unreasonable.

NLC President Joe Ajaero explained that the demand was based on a thorough analysis of the economic situation and the needs of a typical Nigerian family of six. He blamed both the government and the organised private sector for the negotiation breakdown, stating, “Despite earnest efforts to reach an equitable agreement, the less than reasonable action of the government and the organised private sector has led to a breakdown in negotiations”.

“Living wage is such that it will, at least, keep you alive. It is not a wage that will make you poorer and poorer. It is not a wage that will make you borrow to go to work. It is not a wage that will lead you to be in the hospital every day because of malnutrition. For that living wage, we have tried to look at N615,000,” Ajaero elaborated.

He detailed the calculation, noting that housing and accommodation would cost N40,000, electricity N20,000, utilities N10,000, and fuel N25,000 to N35,000. He added that food for a family of six would cost about N270,000 per month, health N50,000, clothing N20,000, education N50,000, sanitation N10,000, and transportation N110,000, summing up to N615,000.

NLC National Treasurer, Mr. Hakeem Ambali, criticized the Federal Government’s N48,000 offer, insisting that labour would only return to negotiations if the government proposed a more substantial wage. He highlighted that the government must consider factors like food inflation, increased electricity tariffs, and the removal of fuel subsidies.

“Our government and employers of labour must show seriousness towards prioritising workers’ welfare and better remuneration. This is because this hardship that is meted out on Nigerians was caused by the policies of the government. All other employers are already benefiting from the increase in allocation in the state and local government. Retailers have also increased the price of their goods. Transporters have also increased their rate. Electricity tariff has also been increased. It is only the salary that is static and something urgent must be done. Labour is of the opinion that the right thing must be done. Government must show seriousness towards resolving this issue because it is no longer easy to live in Nigeria as a worker,” he added.

Ambali emphasized that the government’s refusal to address the root causes of the unsustainable N30,000 minimum wage and to present empirically supported proposals showed a lack of seriousness.

Responding to experts suggesting N100,000 as a reasonable wage, Ambali dismissed them as out of touch with reality, stating, “Those experts must be among the bourgeoisie because how can N100,000 be enough for the worker? Even treating malaria now is a problem for a Nigerian worker. By the calculation of labour, it means no one would be able to live or afford to take care of his family.”

Government’s Financial Capacity and Spending

The NLC Treasurer asserted that the government could afford to pay a decent wage, citing the savings from fuel subsidy removal, which reportedly earns the government over N1 trillion monthly. He urged the government to reinvest half of these savings into addressing poverty and improving workers’ conditions.

Ambali also called for a reduction in government spending and the number of government appointees, international trips, and unnecessary appointments to address labour’s demands effectively.

He encouraged workers to trust in their leaders and remain united in the struggle for a fair living wage, despite any propaganda or attempts to divide them by politicians.

Labour’s Position on Negotiations

Dr. Tommy Etim, Deputy National President of the TUC, reiterated that labour remains committed to negotiating a fair wage. He noted that the unions had given the government a May 31 deadline to finalize the wage discussions.

“Labour has already met and our position is very clear on this issue. When we pulled out, we wrote to the two centres (FG and organised private sector), appealing to us to come back for negotiation. They have agreed to shift their grounds and invited us for the continuation of the negotiation. We have given our submission. It is up for negotiations. It is based on variables which are known to them. Let them shift ground based on the variables. They have to take cognisance of the cost of accommodation, food, and other important things,” Etim stated.

He emphasized that labour expects the government to be reasonable and serious in addressing their demands.

Potential Strike Action

Etim confirmed that a strike remains a viable option if the government fails to meet labour’s demands, stating, “That is one of the options and it is legal. No sane judge or court can give that kind of order to stop workers from exercising their constitutional rights. We are not deterred.”

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