Government Proposes N62,000 Minimum Wage Amidst Strong Opposition from Labor Unions

On Sunday, the Presidency emphatically declared that Organised Labour’s N250,000 minimum wage demand is unfeasible, cautioning that the Federal Government cannot allocate all its resources to fulfil such a request.

This stark warning followed closely on the heels of the Association of Local Governments of Nigeria (ALGON) expressing grave concerns over the Federal Government’s proposed N62,000 wage, fearing it could severely strain the councils’ financial stability.

On Tuesday, May 28, negotiations between the Federal Government and Organised Labour collapsed after the government and the Organised Private Sector increased their offer to N62,000.

The labour unions have criticized the proposal, calling it a brazen affront to the dignity of the average Nigerian worker, who deserves significantly more than the government’s meagre offering.

In an exclusive interview with The PUNCH, Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, argued that unless the Nigeria Labour Congress and the Trade Union Congress are acting out of self-interest, they should recognize that the nation’s resources cannot be solely allocated to benefit their members, who represent less than 10% of the population.

He stated, “We consistently urge labour to adopt a pragmatic approach, as the government cannot allocate all its resources to worker salaries alone. There are numerous other obligations to fulfill. The workers in question constitute less than 10% of the populace. A significant portion of the population is either self-employed or engaged in the private sector and unaffected by these demands.”

Read also: Anticipation Grows As Workers Await New Minimum Wage

“This underscores the critical necessity for labour unions to meticulously reconsider their stance rather than perpetually seeking to paralyze the system. The Federal Government’s actions were taken in collaboration with the private sector and other stakeholders. Labour, seemingly in the minority, stubbornly insists on rejecting the N62,000 proposal. It’s important to note they are employees, not employers.

THE WAIT ON THE NEW MINIMUM WAGE

“Let us await their response upon their return from the ILO conference, but they must approach the matter with a sense of realism.”

During his Democracy Day address, President Tinubu revealed that an executive bill concerning the new national minimum wage for workers would be forwarded to the National Assembly.

When asked about the timing for transmitting the bill, Onanuga stated that, while he couldn’t specify an exact date, he anticipates it will occur following the Sallah break.

The presidential media aide expressed doubt that the Federal Government would reconvene with Labour leaders unless a compelling reason arose.

“I cannot confirm the timing for the bill’s submission, possibly after Sallah. However, I am uncertain about any upcoming meetings with the Labour leaders or any changes in the government’s stance on the minimum wage. Remember, the current proposed amount was the result of deliberations by a committee that included the private sector, represented by NECA and NACIMMA.

“This figure was a consensus reached by the Federal Government’s delegation, sub-nationals, employers, NECA, and other sectors. Therefore, the government cannot arbitrarily decide on a different amount without consulting these stakeholders. Additionally, any decision must consider the financial capabilities of state and local governments to implement the new wage,” he stated.

Efforts made to reach labour leaders on Sunday were unsuccessful as close sources told our correspondents they were on their way back to the country from their recent trip to Geneva for the International Labour Organisation conference.

Meanwhile, the tripartite committee established by the Federal Government to review the minimum wage has urged labour unions to reassess their wage demands.

Speaking with NAN on Sunday, the committee’s chairman, Bukar Aji,  asked labour to reconsider their position based on economic factors and the non-monetary incentives provided by the government.

Aji highlighted several incentives of the government, including the N35,000 wage award for all treasury-paid federal workers, N100bn for gas-fuelled buses and gas kit conversions, a N125bn conditional grant, financial inclusion for small and medium enterprises, and a N25,000 monthly stipend for 15 million households over three months.

He also listed the N185bn in palliative loans to states to mitigate the effects of petrol subsidy removal, N200bn to boost agricultural production, N75bn to strengthen the manufacturing sector, and N1tn for student loans, among other interventions.

Aji called on the labour unions to consider accepting the N62,000 minimum wage offered by the Federal Government.

He said the committee was trying to avert a situation where the minimum wage would lead to further job losses, especially as many businesses are already struggling.