Naijahood
In the wake of President Bola Ahmed Tinubu’s commitment in his New Year address to implement a “national living wage” this year, the Nigeria Labour Congress (NLC) has assembled a team to engage in negotiations with the government. The existing minimum wage, negotiated in 2018, is set to expire in April 2024.
Each agreed-upon minimum wage typically has a five-year lifespan, and as the current national minimum wage approaches the end of its term, the NLC is gearing up for discussions. President Tinubu emphasized in his address that the economic and material well-being of the less privileged, vulnerable, and the working class will not be overlooked.
He stated, “It is in this spirit that we are going to implement a new national living wage for our industrious workers this New Year. It is not only good economics to do this, it is also a morally and politically correct thing to do.” In an interview, the President of the Nigeria Labour Congress, Comrade Joe Ajaero, sheds light on the criteria for determining the new minimum wage, suggesting that, according to Labour’s preferences, the next minimum wage might not be less than N200,000. Here are some excerpts from the interview:
Q: The current minimum wage will soon be due for review. What is the status of the committee set up for this exercise?
A: The committee has yet to be established, but we have already submitted the names of the labour team. While we anticipated the government would form the committee in the first week of December 2023 or the last week of November, as of last Thursday, it hasn’t been constituted. However, we have submitted the names of those who are supposed to represent labour in the committee.
Q: There was a specific time frame in the Memorandum of Understanding between Labour and the government regarding the lapse of the minimum wage and the implementation of a new one. What transpired during that period?
I’m confident that you’ve perused our New Year message. Regrettably, the government has essentially backtracked on all agreements, including the N35,000 (petrol subsidy palliative) wage award, where they only fulfilled one month’s payment. The year is set to commence with clearing the arrears. Our starting point is to resume from where we left off, aiming to move forward.
In a previous conversation, you delved into economic indicators, suggesting that the new minimum wage wouldn’t be less than N200,000. Do you uphold this stance, or have there been any revisions?
My statement wasn’t exclusively about N200,000. I attempted to ascertain the value of $200 at that time. Considering the constant variables, with a dollar now at around a thousand two hundred naira, adjustments need to be made based on the prevailing circumstances.
In the event of negotiations with the government, what proposals would you put forth?
Our strategies are confidential, not disclosed in newspapers. However, I’ve given you a glimpse of our considerations. We’ll thoroughly examine our options, and when finalized, it will be publicly known; secrecy will not precede action.
What factors will Organized Labour take into account during negotiations for the new minimum wage?
Several factors, as reiterated before, include the cost of living, currency devaluation, and the labor market in comparison to countries with similar economic values, such as oil-exporting nations and others sharing similar economic indices.
Given the mentioned indices, what is the projected proposal from the NLC?
I’ve already discussed the projection, considering the value of the currency and the $200 benchmark.
When is the anticipated commencement date for the new minimum wage?
Possibly in April, coinciding with the expiration of the current minimum wage.
How long might negotiations between the government and Labour take, considering the absence of a committee? Is reaching a consensus before April feasible?
The timeline depends on the government’s commitment. While negotiations could conclude within a week, the government’s seriousness is a crucial factor.
As of January 1, 2024, reports indicated that the government had only paid for one month of the N35,000 wage award. Is there assurance of a payment exceeding the current minimum wage given the issues surrounding the award?
The wage award issue isn’t problematic; it was a willingly agreed-upon covenant. Despite setbacks, the sanctity of the agreement must be respected, and arrears need to be settled. We will address any circumstances hindering payment and proceed accordingly.
In light of the government reneging on agreements, has Labour prompted an inquiry into the reasons behind the non-payment?
Implementation varies across sectors within Labour, covering both private and public entities. It’s not a blanket scenario. Unions may need to remind specific sectors, and come January, we’ll assess the overall compliance percentage. This spans three months primarily for the public sector.
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