The Federal Government has increased its minimum wage hike for public sector workers twice within the past 24 hours in a bid to forestall a labour strike scheduled for Tuesday October 3.
In an Independence Day address to Nigerians Sunday October 1, President Bola Tinubu had announced a provisional addition of N25,000 per month to the wages of low grade workers to subsist for six months, to cushion the effects of the removal of fuel subsidy on the cost of living.
Organised Labour had been asking for a minimum wage hike of between 200 and 300 percent. The initial N25,000 addition to wages by government earlier Sunday, amounted to a little under a 100 percent increase, as the Federal Government workers minimum wage previously stood at N30,000 per month.
The hike in the addition from N25,000 to N35,000 takes the wage increase to just above a 100 percent hike.
After an emergency meeting with Labour Sunday, the Federal Government came out to say it is hopeful of the organised labour suspending its planned strike, saying the Nigeria Labour Congress (NLC) and Trade Union Congress of Nigeria (TUC) will consider the government’s offers, including a N35,000 pay increase for all “treasury-paid” federal workers.
“NLC and TUC will consider the offers by the Federal Government with a view to suspending the planned strike to allow for further consultations on the implementation of the resolutions above,” a statement by the Minister of Information and National Orientation, Mohammed Idris, said.
The meeting which was virtual, was chaired by the Chief of Staff to the President, Femi Gbajabiamila, with the Governor of Kwara State and Chairman of the Nigeria Governors Forum (NGF), Abdulrazak Abdulrahman; and Governor Dapo Abiodun of Ogun State also in attendance.
Labour was represented by NLC President, Joe Ajaero; Deputy President, TUC; Dr Tommy Etim Okon; NLC General Secretary, Emma Ugboaja; and TUC General Secretary, Nuhu Toro, among others.
Organised Labour has been embroiled in a series of vexed meetings with the Federal Government, following the removal of fuel subsidy and the free float of the naira last May.
This followed a 300 percent hike in the cost of petrol and a subsequent sharp upward spiral in the cost of food, goods and services.
Labour had met with the President Bola Tinubu, Senate President Godswill Akpabio, Chief of Staff to the President, Femi Gbajabiamila and Labour and Employment Minister, Simon Lalong, among others.
It had further called a protest and a warning strike before calling this impending strike.
Labour’s demands of the Federal Government included a 200/300 per cent wage increase; making the nation’s refineries to work to reduce the costs of petroleum products; tax exemption for certain categories of workers; fast-tracking the availability of Compressed Natural Gas (CNG) and its technology as a cheaper alternative energy source to petrol; and the Federal Government’s effective monitoring of the states’ implementation of the N5 billion worth of palliatives to mitigate the effects of subsidy removal. Labour further demands that the Federal Government meet the needs of the Academic Staff Union of Universities (ASUU), among which is a N1.3 trillion injection into the system for its revitalisation, as part of the pact reached in 2013; and the release of a N70 billion loan to Small and Medium Enterprises (SMEs) to stimulate the economy.
In his Independence Day address to the nation, President Bola Tinubu had announced a provisional wage increase which adds N25,000 to the monthly pay of Nigeria’s average low-grade worker for the next six months.
The President also announced the establishment of an Infrastructure Support Fund for states to invest in critical areas to ensure better grassroots development.
He further said the states have already received funds to provide relief packages against the impact of rising food and other prices.
He said government was committed to making the economy more robust by lowering public transport costs through the deployment of cheaper, safer Compressed Natural Gas (CNG) buses across the nation.
The CNG buses, he said will operate at a fraction of current fuel prices, positively affecting transport fares.
He said to this end, CNG conversions kits will start coming in very soon and all hands are on deck to fast track the usually lengthy procurement process.
“We are also setting up training facilities and workshops across the nation to train and provide new opportunities for transport operators and entrepreneurs. This is a groundbreaking moment where, as a nation, we embrace more efficient means to power our economy.
“I pledged a thorough housecleaning of the den of malfeasance the CBN had become. That housecleaning is well underway. A new leadership for the Central Bank has been constituted.
“Also, my special investigator will soon present his findings on past lapses and how to prevent similar reoccurrences. Henceforth, monetary policy shall be for the benefit of all and not the exclusive province of the powerful and wealthy”, he added.
“Wise tax policy is essential to economic fairness and development. I have inaugurated a Committee on Tax Reforms to improve the efficiency of tax administration in the country and address fiscal policies that are unfair or hinder the business environment and slow our growth.
“To boost employment and urban incomes, we are providing investment funding for enterprises with great potential. Similarly, we are increasing investment in micro, small and medium-sized enterprises.
“Commencing this month, the social safety net is being extended through the expansion of cash transfer programs to an additional 15 million vulnerable households.”
The strike action called by Labour was strategically timed to come soon after the anticipated October 1, Indepence Day address by President Bola Tinubu.
This was to leave sufficient time for labour to call off the strike, should President Tinubu adequately address their demands in his address.
In announcing the decision to call a strike NLC president, Joe Ajaero, said there would be consequences, “If the President ignites any responses to our demands in his Independence Day address that will be imposing wages on us and not a conscious negotiation between Labour and the Federal Government”.
Ajaero emphasised: “If he declares an amount to give, that will be mere tokenism and not a product of bargaining and negotiation.”
On this score, it would seem that Sunday’s meeting was to allow for further wage increase negotiation as demanded by Labour.
Nigerian Observer.