Minimum Wage Negotiations Stalled Again

 

After a two-day delay, the negotiations over the national minimum wage hit another deadlock yesterday. By the end of the meeting, the Federal Government negotiating team had increased its offer by N2,000, bringing it to N62,000. In contrast, the Organised Labour reduced its demand to N250,000, down from N494,000.

 

Earlier in the day, while negotiations were ongoing, the state governors declared their inability to pay even the N60,000 minimum wage initially proposed by the Federal Government before it was increased by N2,000. It was reported that the Organised Private Sector (OPS) supported the government's offer.

 

Due to the impasse, the Tripartite Committee on the New National Minimum Wage (NNMW) has adjourned. A source stated, "There was a disagreement on the amount. The government offered N62,000, but Labour is now demanding N250,000. The report will be communicated to the President for further deliberation."

 

Before the Federal Government increased its offer to N62,000 yesterday, the state governors, under the Nigeria Governors Forum (NGF), had expressed their inability to pay the proposed N60,000 minimum wage, which the organised labour had already rejected. This stance was taken as the Tripartite Committee met to finalize the minimum wage negotiations.

 

The governors argued that the N60,000 minimum wage proposed by the Federal Government was unsustainable. They warned that if implemented, several states would need to borrow monthly to pay workers, which they believed was not in the collective interest of the country, including the workers themselves.

 

The governors emphasized that sustaining the proposed N60,000 minimum wage would result in many states using all their Federation Account Allocation Committee (FAAC) allocations solely for salaries, leaving nothing for development projects.

 

This position was articulated in a statement issued by the NGF's acting Director of Media and Public Affairs, Hajiya Halimah Salihu Ahmed, titled "The Forum’s Stand on the N60,000 Minimum Wage: Not Sustainable."

 

The statement read, “The Nigeria Governors’ Forum (NGF) acknowledges the need for a new minimum wage and sympathizes with labour unions in their pursuit of higher wages. However, the Forum urges all parties to consider that minimum wage negotiations also involve consequential adjustments across all cadres, including pensioners. The NGF advises caution and emphasizes that any agreement should be sustainable and realistic.”

 

“All things considered, the NGF maintains that the N60,000 minimum wage proposal is not sustainable. Many states would spend all their FAAC allocations on salaries, with nothing left for development purposes. In fact, some states would need to borrow monthly to pay workers. This is not in the collective interest of the country, including the workers. We appeal to all parties, especially labour unions, to consider all socioeconomic variables and settle for an agreement that is sustainable, durable, and fair to all segments of society with a legitimate claim to public resources.”

 

Members of the organised labour, including the Nigeria Labour Congress and the Trade Union Congress, had suspended their strike for five days on Tuesday. The strike, which began on Monday, was in response to the Federal Government's failure to approve a new minimum wage by May 31 and to reverse the hike in electricity tariffs.

 

After a six-hour meeting with the leadership of organised labour in Abuja on Monday night, the Federal Government reiterated President Bola Tinubu’s commitment to raising the proposed N60,000 minimum wage.

 

The agreement stated, “The President of Nigeria, Commander-in-Chief of the Armed Forces, is committed to establishing a National Minimum Wage higher than N60,000. The Tripartite Committee will convene daily for the next week to finalize an agreeable National Minimum Wage.”

 

The organised labour also agreed to “immediately hold meetings of its organs to consider this new offer, and no worker would face victimization for participating in the industrial action.” These resolutions were signed on behalf of the Federal Government by Minister of Information and National Orientation, Mohammed Idris, and Minister of State for Labour and Employment, Nkeiruka Onyejeocha.