Earlier last week, the Southern Governors’ Forum argued that the minimum wage should not be uniform. They insisted that states pay what they could afford.
“The Forum discussed the minimum wage issues demanded by labour and unanimously agreed that the minimum wage should be reflective of the cost of living and ability to pay, and each State be allowed to negotiate their minimum wage,” the governors wrote in a communique.
However, the NLC has criticised the governors’ decision, claiming that it “threatens the welfare of Nigerian workers and the national economy”.
The idea of a national minimum wage is not arbitrary. It indicates a national pay floor, a standard below which no worker under the law should be compensated. This threshold is a collective agreement that guarantees a minimum standard of living to all workers under the law. “The governors’ demand to unilaterally determine the minimum wage violates this principle and jeopardises the welfare of Nigerian workers and the national economy,” the union stated.
“It is critical to remind governors that the national minimum wage is not synonymous with the state pay structures that they religiously apply, which represent their specific budgetary capabilities and circumstances. This multiplicity of pay schemes highlights the flexibility that already exists inside the system, allowing states to award their workers in alignment with their financial realities.”
The NLC berated governors and political officeholders for their extravagant lifestyles. “Why is there no hue and cry when political office holders across the nation receive uniform salaries as determined by Revenue Mobilisation, Allocation, and Fiscal Commission?” the statement asked. “This double standard which piths a few privileged against the majority poor is an issue that should be of concern to those who love this country.”
For months, discussions on a new national minimum wage have been high on the agenda. The withdrawal of fuel subsidies and the naira’s floating, which drove inflation to all-time highs, intensified the discussions over a new wage structure for workers.
The government and labour unions have traded positions during the talks, but they haven’t come to an agreement yet. In order to emphasise their demands, workers had started a warning strike and were forcing the closure of vital economic sectors like power.
The Nigeria Employers’ Consultative Association (NECA), which represents the organised private sector, issued a warning against setting a minimum salary greater than N62,000. That followed the Federal Executive Council’s (FEC) withdrawal of a minimum wage memo in order to conduct additional discussions.
If it exceeds N62,000, you have established two or three distinct dynamics. One, you’ve set the tone for noncompliance.”That’s one. Because I simply cannot pay. You have now created a headache for the judiciary. According to the Act, any employees who are dissatisfied have the right to file a complaint with the National Industrial Court,” stated Adewale Oyerinde, NECA director-general.
“This idea is not only autocratic, but it also challenges the fundamental foundation and the model used to establish a national minimum wage in Nigeria,” the NLC stated in a statement released on Friday by Benson Upah, Head of Information and Public Affairs.
For months, discussions about a new minimum wage have been frozen out between labour unions, the government, and the corporate sector.While organised labour insists on N265,000, the tripartite committee on the new minimum wage has recommended a new minimum salary of N62,000.
After receiving the committee’s report, President Bola Tinubu pledged to provide the funds that the nation could afford. After further stakeholder consultation, a measure to establish a new minimum wage will be forwarded to the National Assembly.
