Nigeria’s organised labour has withdrawn from talks with the government after rejecting the N48,000 minimum wage offer, citing economic realities.
Negotiations for a new minimum wage looked to have encountered a stumbling block on Wednesday, with organised labour announcing their withdrawal from the talks with the federal government in response to the government’s offer of N48,000 as a minimum salary.
However, in response to the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) walk-out during the National Minimum Wage Committee meeting, the Nigeria Employers’ Consultative Association (NECA) urged organised labour representatives to return to the negotiating table.
At a news conference on Wednesday, Joe Ajaero, President of the NLC, and Etim Okon, Deputy President of the TUC, stated that Nigerian workers would not accept the federal government’s proposed minimum wage of N48,000.
The government’s offer of N48,000 compared dramatically with the N615,000 advocated by organised labour as a sustainable minimum wage for Nigerian workers. Both union leaders stated that the government’s attitude does not represent the current economic reality and hardships that workers face in the country.
The NLC and TUC express grave sorrow that negotiations on the Tripartite National Minimum Wage began today but ended in an unfortunate deadlock due to the government’s evident unwillingness to engage in meaningful negotiations with Nigerian workers. “
Despite genuine efforts to establish an equitable deal, the government’s and the organised private sector’s (OPS) less-than-reasonable actions have caused the negotiations to fail.
The government’s suggestion of a meagre N48,000 as the minimum wage not only offends Nigerian workers’ sensibilities, but it also falls far short of meeting our needs and aspirations.” Ajaero stated that, in contrast, the OPS made an initial offer of N54,000.
He did, however, point out that, according to the OPS, even the lowest-paid workers in the private sector get paid N78,000.
According to Ajaero, the proposal by the private sector delegation revealed the huge discrepancy between the proposed minimum pay and current norms, further illustrating the unwillingness of employers and the government to properly negotiate a fair national minimum wage for workers in Nigeria.
He emphasised that NECA revealed that, while no one in the sector earns less than N78,000, establishing a new minimum salary of N54,000 was appropriate given current considerations.
The NLC and TUC leadership were also disappointed that the government had failed to present any verifiable statistics to back up its offer, which exacerbated the problem.
When asked what their next course of action would be, both labour centres stated that the May 31 deadline they had set for the May Day celebrations still remains, and that they would convene their organs to make a decision once the time expired.
The union leaders claimed that the government lacked openness and good faith, and that their actions had the potential to undermine the legitimacy of the bargaining process and erode trust between the parties involved.
As representatives of Nigerian workers, we cannot in good conscience accept a wage proposal that would result in a reduction in income for federal-level workers who are already receiving N30,000 as mandated by law, augmented by Buhari’s 40%, Peculiar allowance (N12,000), and the N35,000 wage award, for a total of N77,000 only. “Such a backward step would jeopardise the economic well-being of workers and their families and is not acceptable in a
National Minimum Wage Fixing process. “In light of these developments, and in order to prevent the negotiation of a wage deduction, the NLC and TUC have decided to withdraw from the negotiation process.”
We are committed to campaigning for Nigerian workers’ rights and interests, and we will continue to engage in constructive dialogue with the government if they demonstrate a genuine commitment to finding a fair and long-term solution to this deadlock. “
We urge the government to reconsider its position and return to the negotiating table with clear hands that reflect the true value of Nigerian workers’ contributions to the nation’s development, as well as the objective socioeconomic realities that confront not only Nigerian workers but all Nigerians today as a result of the federal government’s policies.
Together, in a civilised discourse, we can cooperate to provide Nigerian workers with an N615,000 national minimum wage, as we have recommended based on evidence and data. “
This will be in keeping with the pledge of President Bola Tinubu’s pledge to ensure a living wage for Nigerian workers,” the labour centres stated.
While explaining the proceedings at Wednesday’s negotiation, Ajaero stated that the government side did not give a detailed narrative regarding the housing, transportation, and feeding components of their proposal, indicating that they were not serious about negotiating.
You must explain how you arrived at the figure. “There must be a template for arriving at the N48,000 amount,” he emphasised.
He also chastised governors and other key government officials for failing to show seriousness in the negotiations, claiming that, aside from Anambra State Governor Prof. Chukwuma Soludo, who was preoccupied with defending the state’s inability to pay the old minimum wage, others failed to attend the meeting. Meanwhile, NECA has encouraged organised labour representatives to return to the negotiation table.
Speaking on behalf of the OPS in Abuja, Mr. Adewale-Smatt Oyerinde, Director-General of NECA, remarked that “the action of labour to walk out even when negotiations have not begun, though within its rights to do so, is unfortunate.”
“As is widely recognised, a key aspect of all talks is for all parties to give their initial positions, which were done by all social partners. “The expected follow-up activity is the actual negotiation, which includes counter-negotiations, position alignment, and realignment, among others.
The action of labour to walk out even while negotiations have not begun, even though it is within its rights to do so, has the potential to prolong the assignment of the Minimum Wage Committee.”
Oyerinde urged organised labour to reconsider its attitude and return to the negotiating table in the sake of its members and national development. “
The organised private sector remains absolutely committed to the review of the current National Minimum Wage to a new one that is fair, sustainable and which takes due cognisance of our current economic situation.”