The ongoing discussions between the Federal Government and organized labor regarding a new minimum wage have reached a stalemate, with both parties failing to reach a consensus on the matter.
This revelation was made by President Bola Tinubu during his speech at the International Workers’ Day celebration in Abuja on Wednesday.
Mr. Bayo Onanuga, the President’s Special Adviser on Information and Strategy, also expressed his disagreement with workers’ insistence on a minimum wage of N615,000, stating that there has been no agreement reached between the government and labor unions regarding the wage amount.
However, the President of the Nigeria Labour Congress (NLC), Joe Ajaero, defended the demand, stressing that the organized labor will not accept any amount that would lead to the impoverishment of its members.
The tripartite committee, comprising representatives from the government, labor, and private sector, was established by the President in January to review the N30,000 minimum wage introduced during the administration of former President Muhammadu Buhari.
Last month, the NLC and the Trade Unions Congress submitted a proposal of N615,000 as the new minimum wage to the committee. However, the government did not announce the new minimum wage at the May Day celebration, as it had not accepted the demand put forth by labor.
Officials from the Federal Ministry of Labour and Employment, speaking on the condition of anonymity, revealed that while organized labor is advocating for a N615,000 minimum wage, the government and private sector are proposing a range of N60,000 to N70,000, leading to an impasse in the negotiations.
During an interview on Channels Television, NLC President Ajaero explained that the proposed N615,000 minimum wage was determined based on an analysis of the current economic situation and the needs of an average Nigerian family of six. He emphasized that the aim is to establish a living wage that would not push workers further into poverty.
Despite the stalemate in negotiations, President Tinubu assured workers that his administration is committed to providing better living and working conditions, including a fair living wage. He acknowledged that the Tripartite Committee on Minimum Wage has not yet reached a consensus but pledged to resolve the impasse and announce a living wage soon.
President Tinubu commended Nigerian workers for their dedication to the nation’s progress and development, highlighting the crucial role they play in various sectors, from clerical officers to security personnel, teachers, and doctors. He expressed his commitment to improving their welfare, working conditions, and providing necessary support for their success.
In summary, the negotiations for a new minimum wage have reached an impasse, with the government and organized labor failing to agree on the proposed N615,000 minimum wage. While the discussions continue, President Tinubu assured workers of his administration’s commitment to their well-being and the announcement of a living wage in the near future.
The negotiations between the Federal Government and organized labor over a new minimum wage have hit a deadlock, with the Presidency expressing its dissatisfaction with the N615,000 demanded by labor unions. The President’s Special Adviser on Information and Strategy, Bayo Onanuga, stated that both parties need to agree on a realistic wage amount that the government and private sector can afford.
Onanuga highlighted the government’s inability to pay such a high wage, questioning the source of the funds. He expressed hope that a reasonable agreement could be reached in the next meeting that reflects the financial capabilities of the government and private sector.
A Ministry of Labour official, who preferred to remain anonymous, disclosed that the Federal Government proposed a wage range of N60,000 to N70,000 per month. However, the official stated that anything beyond that range would be impossible for the government to accommodate.
Vice-President Shettima, during the inauguration of the minimum wage committee in January, urged members to reach a resolution promptly, as the current N30,000 minimum wage expires at the end of March 2024. The Vice-President stressed the importance of timely submission to ensure the emergence of a new minimum wage.
The removal of the fuel subsidy by President Tinubu in May 2023 caused a significant rise in the cost of living. To mitigate the impact, an additional wage award of NGN 35,000 for six months was approved by the administration. However, organized labor insisted on a comprehensive review of the minimum wage in 2024, considering the provisional nature of the wage adjustment.
Responding to the President’s comments, the Vice President of the Trade Unions Congress (TUC), Mr. Tommy Etim, argued that it was premature to claim the committee had failed to reach a consensus since the final agreements had not been finalized. Etim emphasized that other stakeholders would present their views, and the negotiations were still ongoing.
During the May Day celebration, the NLC and TUC demanded an end to excessive borrowing by the Federal Government. They expressed concerns about the devaluation of the naira and inflation resulting from borrowing foreign currency to support the local currency. The labor unions called for a reevaluation of government policies to prioritize the welfare of the people and support local industries.
The organized labor stressed the need for transparency in governance, accountability for public funds, and an end to disastrous policies. They highlighted the negative impact of rising petrol prices and the devaluation of the naira on the majority of the population, while a few benefited.
The discussions between the government and organized labor continue, with hopes of reaching a consensus on a new minimum wage that balances the financial capabilities of the government and the welfare of workers.
