Workers Deserve New Minimum Wage

Workers Deserve New Minimum Wage
Tomorrow, May 1 will be marked in Nigeria and also in many countries across the world as the International Workers’ Day or Labour Day. The day has been celebrated as such since the 19th century to honour the world’s toiling workers and to press home some of workers’ most pressing demands for safety, remuneration and fair socio-economic policies. May 1 was first made a national holiday in Nigeria by President Shehu Shagari’s administration in 1981, under pressure from the opposition state governors that had a year earlier made it a public holiday in their states.
The Federal Government has already declared tomorrow as a public holiday to enable workers celebrate 2017 Workers’ Day and hold rallies. Minister of Interior retired Gen. Abdurrahman Dambazau, who announced this on Friday, congratulated Nigerian workers for their resilience, hard work and commitment to the present administration despite current challenges and he urged them to continue to support President Muhammadu Buhari. The day will be marked with a workers’ rally at the Eagle Square in Abuja as well as in the state capitals.
But beyond the rallies and outward fanfare, serious issues confront both government and labour leaders and their members at this time. The most pressing one appears to be a review of the national minimum wage. The minimum wage was last reviewed in 2010 and the law calls for a joint review by federal and state governments, organised private sector and the workers’ unions every five years. Even though labour leaders have been calling for the review machinery to be kick started for three years now, government has been dragging its feet over the matter.
The debilitating economic recession has compounded matters for both sides. From labour’s point of view, the recession and in particular the naira’s sharp depreciation against major currencies has eroded workers’ purchasing power and has made a review of the minimum wage even more urgent. On the other hand, the fall in international oil prices, reduced oil exports due to renewed Niger Delta militancy and other associated factors have diminished government’s earnings and have made it unreceptive to calls for higher wages.
While probably no one doubts that Nigerian workers deserve a new minimum wage, governments at all levels seem to believe that they cannot pay it with available resources and still carry out other obligations. The problem is not so much the base wage paid to the least paid worker but the adjustment that must be made to all other categories of workers. While a new minimum wage will certainly lead to a larger wage bill for all levels of government, increases for higher categories of workers could be minimised and need not be proportional to the increase at the lowest category.
Indeed, since 2015 many state governments were unable to pay their workers’ salaries for months. Federal Government too had to borrow heavily in order to meet its obligations. Since then things improved with the emergency bailout funds that President Muhammadu Buhari released to the states. Inflow of money into the Federation Account also increased last year with a 50% official devaluation of the naira, called “flexible exchange rate,” while oil prices have picked up a bit. The states also got billions in Paris Club refunds. Despite all these, some states still owe their workers and pensioners many months’ salaries and benefits, sometimes hiding behind many rounds of “verification.”
We urge the Federal Government to use the occasion of tomorrow’s Labour Day rally to announce a fast track of the new minimum wage negotiations. Secretary General of the Association of Senior Civil Servants of Nigeria (ASCSN) Bashir Lawal said last week that “the delay [in minimum wage talks], apart from worsening the economic well-being of Nigerians, particularly the workers, industrial peace and harmony cannot be guaranteed.” The Minimum Wage Negotiating Committee has been working mostly in the background and it is time we see the result of its efforts.
Labour has other serious problems of its own, not the least being its split into two feuding factions. Last year a faction of the Nigeria Labour Congress [NLC] that emerged after its contentious 2014 elections formally split from NLC and formed the United Labour Congress, ULC. For example, while the NLC led by its president Mr. Ayuba Wabba has proposed a new national minimum wage of N56,000, ULC led by Comrade Joe Ajaero has proposed N96,000 minimum wage for workers. Ajaero is also threatening to mobilise workers to organise protests if government fails to accede to their demands. Clearly the contest for legitimacy in the eyes of workers between the two groups is hurting the formation of a united front needed to push for the new wage.
Yet another dimension was introduced to the minimum wage struggle with the introduction into House of Representatives of a bill to amend the constitution and make minimum wage a concurrent and not an exclusive legislative issue. That is, state assemblies should have the power to fix the minimum wage in their states. NLC is totally opposed to this bill and Wabba said he will mobilise workers to resist it. He argues that salaries of political office holders are centrally worked out by the Revenue Mobilisation, Allocation and Fiscal Commission and the National Wages Commission so there is no reason why workers’ salaries should not also be worked out nationally. Organised private sector must also be factored into these negotiations. It might be reluctant to take on a new minimum wage but this sector and also the informal sector will all reap huge benefits from a national wage increase.
We congratulate the Nigeria Labour Congress and all workers on the occasion of May Day. We urge labour and the authorities to work meaningfully and speedily to resolve outstanding labour issues for the betterment of our country. 

POSTED BY:OPUOMONI PRIYE
DATE:05/07/2017

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