The count down for the implementation of the new minimum wage as far as the labour movement is concerned began in March when President Goodluck Jonathan in the heat of political manouevring and overtures signed the new minimum wage bill into law.
It would be recalled, however, that the new minimum wage right from its evolution has been bedeviled with several upheavals and hiccups created by the governments who supposed to translate it into payment that would bring succour to the groaning Nigerian workers.
In 2008, when the struggle commenced, labour represented by the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) had sent in a proposal of N52,200 as the least minimum wage to the Federal Government and by extension to all employers of labour.
The Justice Alfa Belgore Commission which deliberated on the wage with inputs from all stakeholders sat for almost two years before finally coming up with N18,000 as the minimum wage.
The president of the NLC, Comrade Abdulwahed Omar, had said then that labour agreed on N18,000 though it fell short of workers expectation to salvage the country’s economy.
In spite of the anticipation of workers on the new wage, the National Assembly considered it the least important. It could be recalled that late last year, it took a nationwide strike threat from labour before the National Assembly was prodded into action to enact the new Wage Act. That was after the government had sought and obtained the endorsement of the National Council of State comprising government officials, past heads of state and state governors.
Federal and state governments had waited until last month when labour threatened a three-day nationwide strike that would have crippled the economy before accepting to pay the new wage though the Federal Government had earlier promised to commence payment in June.
The NLC president, after the National Executive Council (NEC) meeting of the two labour houses has announced that the strike was in protest of the non-implementation of the new minimum wage by the federal, states and local governments, as well as the private sector. Besides defending the Minimum Wage Law, the labour leader also believed that the strike was aimed at protecting the fundamental rights of the Nigerian populace to live above poverty line.
Nevertheless, in line with the agreement reached with the Federal Government and state governors, the organised labour resolved to suspend its proposed three-day warning strike after 10 hours of discussion with the government on July 19, 2011.
It was quite a marathon meeting as the labour leaders earlier held a separate meeting with the state governors led by the River State Governor, Rotimi Amaechi, before launching into another one with the Federal Government which ended few minutes to midnight on that fateful Tuesday.
Among the demands of the NLC, TUC and the Civil Society Coalition was a signed agreement between the federal and state governments on one hand and the NLC and TUC on the other stating that:
— The New National Minimum Wage of N18,000 will be implemented across board based on salary relativity that will not distort the payment table at the federal, state and local government levels.
— The payment of the new minimum wage will take effect from March 23, 2011, the day President Goodluck Jonathan signed the New National Minimum Wage into law.
— The arrears from the minimum wage will be paid within three months.
— Workers will not be victimised over the minimum wage by way of mass retrenchment, increase in tax or any other form of punishment.
Between July 19 till date, labour has had over 10 meetings with the government on the contentious issues based on the implementation of the new wage. Though the implementation of the agreement, it was discussed at the meeting would not be later than August 1, 2011 and the effective date of the implementation of the new wage paid in arrears of the difference, Federal Government on several occasion during the discussion proved a major threat and stumbling block to the actualization.
After the earlier agreement which led to the suspension of the strike, Federal Government in one of the first meetings on implementation had stuck to her gun that only Level 1 – 6 would be accommodated, while other levels would only be considered in the next year budget. Specifically in the meeting between Labour and government on Thursday July 28, Labour accused government of unilaterally repudiating the agreement.
In a press conference addressed by the leadership of the two labour houses, labour accused government of deliberately violating nation’s Constitution, the National Minimum Wage Act.
Specifically, they say government acted in bad fate when its delegation at the meeting said government would only implement the N18,000 minimum wage from Grade Level 1 – 6 and that non-civil servants would not benefit from the new wage.
“For good measure, the government team threatened that unless Labour accepted this, even Grade Levels 1 to 6 in the civil service will not be paid the national minimum wage. Of course, Labour refused to be intimidated.
“It is clear that the Federal Government deceived Labour and the populace into believing that it will implement the minimum wage,” the labour leaders at the meeting has stated. In the same vein, an earlier meeting had been inconclusive and the two parties decided to inaugurate a technical committee that would work out the nitty gritty of the full implementation across all board. The report which was rejected at the July 28 meeting.
Another meeting fixed for Sunday, July 31, also ended without a clear direction as both parties failed to reach consensus on the figure worked out by the Technical Committee.
At the meeting held in the office of the Secretary to the Government of the Federation in Abuja, the labour leaders had demanded 5.43 per cent increase in wages across board from levels one to 17 above the N17,000 the least paid government worker was earning before the introduction of the N18,000 minimum wage.
But this was rejected by the Federal Government delegates who were of the opinion that the wage bill would swell by N54 billion to accommodate such percentage.
As far as government was concerned, acceding would imply undertaking another wage review as well as drawing up a supplementary budget. The two options, government considered not favourable.
Government, however, agreed that all workers across board would be paid the new wage, while public sector workers would equally benefit. A shift from the old position.
The meeting, however, could not be conclusive as government was only offering N10 billion per annum which was a far cry from Labour’s demand. Not until the last meeting on Tuesday August 2 that both government and labour representatives finally reached a pact. Government at the meeting offered N11 billion, one billion higher than the N10 billion it offered earlier.
The TUC president, Comrade Peter Esele, had commented after the meeting: “I think today we have a more conducive atmosphere and the presentation was made and we have an offer on the table, which will be considered by the National Administrative Council of the NLC and TUC and whatever come out of those meetings would also be communicated accordingly and hopefully we can have a closure on this.”
Though Labour is still awaiting the report of the Technical Committee who is expected to translate the N11 billion offered by the Federal Government into a table, there seem to have been some kind of contentment from Labour on the new offer by government.
Comrade Amina Danesy, Deputy President, Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI), also NAC member of the NLC who spoke with Workforce after the emergency NAC meeting last Wednesday, August 3 said Labour might consider Federal Government offer after the Technical Committee might have submitted its report.
But she noted that Labour problem was never about the offer but willingness to implement.
“We all know how Labour due to the state of our economy came down to N18,000, how to pay the money is now the problem we have been hearing different discordant tunes from all tiers of governments. It is always the willingness to pay that is the issue here,” she said.
Comrade Danesy might not be far from the truth as several states governors have come out to reiterate the fact that they cannot pay the new wage despite the earlier agreement reached in the heat of the aborted strike. One of the governors has equally stated that even if Labour should go on one year strike, h is state could not afford to pay.
Observing the foot-dragging attitude of respective governments, NLC was swift to remind them that the suspension of the earlier proposed warning strike should not be seen as mistaken to imply that Labour has shelved the strike option.
According to Comrade Abdul Gafar Mohammed, the National President of Chemical and Non-Metallic Products Senior Staff Association (CANMPSSA), who is also a NAC member of TUC, government sincerity is in question in relation to the issue of minimum wage.
The Labour leader who was part of the Labour negotiating team said that government insincerity was apparent throughout several meetings held on the implementation. “When you say a law is passed, it should be applicable to all, once there is no respect to that, there is no sincerity. “The implementation supposed to commence on August 1, that is our agreement, but several days into the month, we are still deliberating,” he said.
He lamented that the political class used the minimum wage as a bait to win election, warning that failure to respect the law of minimum wage might lead to anarchy. The Labour leader also challenged the state governors to prepare for the battle ahead as no state would be spared from respecting the law. Comrade Mohammed wondered why the state governors could get money to buy jets, but have no money to pay their workers. He advised: “If Federal Government has been sincere, the governors would have followed the paths of honour to do what is right.
“We know getting the state to pay is a complex situation, but we will deal with the complexity as it unfolds both in the state and local government. “Any state that cannot pay should recapitalise, merge with those who can pay as we have in the banking sector.”
The CANMPSSAN president stressed that government should respect the agreement as there has been a great compromise on the path of Labour to agree on the paltry offer being offered by the government. The General Secretary of the Medical and Health Workers Union of Nigeria (MHWUN), Comrade Marcus Omokhuale, who also was in the Labour team for the negotiation confirmed that Labour only acceded based on patriotism.
“If the people on the seat are telling you that economy is so bad, security situation, Ramadan, then going on strike would portray us as insensitivity,” he said. On government sincerity, he noted that no one can see through a man’s heart but advised the government to live up to their promises.
Over the past three weeks, lots of manhour that could be geared towards productivity would have been wasted on meetings. It would be an understatement what it could be if the whole nation or state is shut down due to failure to respect agreement earlier reached between Government and Labour. There is no doubt that a worker deserve his/her wage. All the same, the interest of the nation should be paramount, hence those in the position of authority should do what is right for the workers and nation.
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