IT was the same tune at the public hearings on National Minimum Wage for Nigerian Workers staged in eight city centres across the country yesterday. The workers demanded for a living wage of N66, 500 minimum wage.
The hearings, organised by the Tripartite Committee of the National Minimum Wage, were staged in Abuja, Lagos and the six geo-political zones.
The government and employers of labour did not make their offers known yesterday’s public hearings, but the workers’ umbrella unions – the Nigerian Lagbour Congress (NLC) and the Trade Union Congress (TUC), explained why they united on the demand for N66, 500 as monthly salary for the minimum paid worker. The minimum wage is N18, 000.
Some state governors, however, urged stakeholders to apply caution in fixing a minimum wage.
Osun State Governor Rauf Aregbesola, who doubles as the Chairman, Tripartite Committee on the National Minimum Wage, Northcentral Sub-committee, urged all parties to settle for a fair, just and implementable minimum wage.
His Lagos counterpart, Akinwunmi Ambode, said the revenue profile of each state must be taken into consideration as a major determinant of what can reasonably be afforded in terms of wages.
Ambode said that workers’ salaries should not be allowed to jeopardize the government ability to fund social services that are critical to the well-being of the entire citizens.
President Muhammadu Buhari has promised to implement the recommendation of the 30-member tripartite committee, which he inaugurated on November 27, last year.
At the Southwest hearing, which held at the Adeyemi Bero Secretariat Auditorium, Alausa, in Ikeja, Lagos, the organised Labour demanded a new minimum wage for all workers in the country.
Presenting the memoranda of the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC), the Political Committee Chairman of the local chapter of the NLC in Lagos, Agnes Sessi, said that N18, 000 was no longer sustainable as minimum wage.
According to her, the two labour union unions agreed on the urgent need to review upward the minimum wage to meet the prevailing economic realities; lift a pool of working class out of the poverty trap; and to conform with the International Labour Organisation (ILO) standards on minimum wage fixing to meet the needs of workers and their families.
In her submission, Mrs. Sessi said: “Based on the current realities, the two labour centres demand for a new monthly national minimum wage of N66, 500, which is approximately the average of the implied minimum wages derived under three approaches.”
She listed the approaches as:
- Comparative analysis based on minimum wages in some African countries;
- An estimate of the monthly minimum cost of providing basic needs to a family of six and two dependants and analysis based on rising cost of living over time.
Mrs. Sessi added that both union seek the amendment of the Minimum Wage Act to provide its review every five years, or whenever there was a general wage review, adding that the recommended best international practice was that the minimum wage law should apply to all workers and not to establishments with 50 workers and above, as contained in the present Act as amended in 2011.
She said the review of the minimum wage would boost aggregate demand which would further provide a boost to the economy coming out of recession, adding that an enhanced minimum wage, financed by increased taxation on the rich and luxury goods, would promote equity and growth in the economy.
Also speaking, the Association of Senior Civil Servants of Nigeria (ASCSN), Lagos branch, aligned with the NLC and TUC in demanding for N66, 500 new minimum wage.
The ASCSN spokesman, Akeem Kazeem, said the upward review was overdue because the pay structure in the country had become unrealistic and inadequate, such that workers could no longer meet their basic needs, a scenario, he said that is impacting negatively on their morale.
Kazeem said: “The sum of N18, 000 which is currently being paid as the minimum salary in the civil service is grossly inadequate. An officer at that level will, however, require about N66, 500 a month to survive. We are in total support of the demand for the sum of N66, 500 for a salary of GL. 01 Step 1 officer as requested by the organised labout.”
Speaking through the Head of Service (Hos) Mrs. Folasade Adesoye, Governor Akinwunmi Ambode said there was a consensus of opinion on the need for workers to be reasonably remunerated and compensated in line with current economic realities.
He said that was why a provision was made in the law for periodic review of the national minimum wage, admitting that every worker deserved a wage that guarantees decent standard of living.
Ambode said: “The issue, however, which I believe is more peculiar to the public sector, is striking a balance between what goes into recurrent expenditure of which salaries and allowances is a major component and the ability of government to fulfill its obligations to the larger society.
“In this instance, the revenue profile of each state becomes a major determinant of what can reasonably be afforded in terms of wages, without jeopardizing the ability of the government to fund social services that are critical to the well-being of the entire citizens.”
The governor stated that at N18,000 minimum wage, the state’s monthly wage bill was in excess of N10 billion for a workforce of 103,000, asides retirement benefits obligations.
He said that despite Lagos being the highest revenue generating state internally, it must also be recognised that due to the growing population, “we also shoulder the highest responsibility in terms of the resources that must be expended on social and physical infrastructure renewal and development.”
Ambode charged stakeholders to be open-minded and flexible in their demands in the overall interest of all.
In his opening remark, the Chairman of the Tripartite Committee on the National Minimum Wage for the zone and Governor of Kebbi State, Atiku Bagudu, who was represented by his deputy governor, Col. Samaila Dabai, said the national minimum wage was first fixed in 1981 and subsequently reviewed in 1991, 2000 and 2011.
He said: “It therefore means that hitherto, there appeared to be an unwritten cycle of 10 years between reviews.
“This onerous task cannot be adequately carried out without the wide consultations, which this public hearing provides.”
At the Abuja hearing, the Federal Capital Territory (FCT) Minister Mohammed Bello demanded a living wage for workers, describing them as the birds that lay the golden eggs.
“Those who create the wealth of the nation deserve to be treated well and their welfare adequately taken care of,” the minister said.
NLC President Ayuba Wabba told state governors canvassing for what they described as true federalism that there was nothing like true federalism anywhere in the world.
He said federalism has a provision to protect the weak and vulnerable in the society.
On their part, pensioners, under the auspices of Nigeria Union of Pensioners (NUP) demanded a minimum pension of N40,000, arguing that a situation where some state pensioners still collect as little as N2000 monthly was unacceptable.
The FCT minister, who was represented by the Director, Human Resource Management, Hajia Amina Bello, said while the minimum wage review was in tandem with ILO Convention, it should be juxtaposed with government revenue profile to make whatever is arrived at will be implementable.
Bello said: “The planned review and proposal of a new national minimum wage is laudable, bearing in mind the current economic realities, in lauding the cost of living, particularly as it affect the middle and low income earners. That the review should be juxtaposed with the government revenue profile to ensure hitch free implementation upon approval.
“This is because it may be counter-productive to arbitrarily consider an upward review without taking into cognizance the cost of funding the revised wage by government and private organisations.”
The minister frowned at salary disparity among government workers, saying “there is the need for the committee to consider recommending the implementation of salary structure relativity among all federal establishments.
“A situation where some government parastatals operate enhanced salary structure and allowances for its workforce, while others especially core ministries operate regular salary structure is to say the least somehow demoralising.
“Investigation to this effect indicates that junior officers in some of these juicy parastatals earn more than directors in the core ministries and department.
“While not canvassing for a downward review of this salary and allowances of this category of workers, considerable review and introduction of some allowances should be contemplated to mitigate this disparity.
“There is the need to take into account the peculiar nature of the FCT and the high cost of living, housing, transportation among others.”
The minister also proposed a special allowance for workers living within the FCT saying, “a comparative analysis of the cost of living in nation’s capitals indicate a wide gap in relation to the states across the countries. Hence there is the need to consider special allowance for workers in the FCT.
“In view of the other core responsibility of the government and the cost of providing social amenities, the proposed review should be fair and considerate.”
In his presentation, Wabba said the demand for a national minimum wage was in line with ILO Conventions, which prescribe minimum wage so that we can protect the most vulnerable workers from exploitation.
He said: “The idea is to protect the most vulnerable worker which cut across both the public and private sector. That is the context which we must look.
“I have heard the argument that the call for minimum wage is trying to bring about an equal wage across the states of the federation. That is not true. When we signed the minimum wage in 2011, some states offered to pay more than N18, 000. What we are saying is that you need to have a minimum, while across the country, you can pay higher. This also applies to the private sector.”
On the governors who are using the issue of true federalism to demand that they be allowed to fix their own salaries, he said: “I have heard people talk about true federalism and I have checked and discovered that there is nothing like true federalism.
“I have checked all the vocabulary in political science and discovered that what you have is federalism and not true federalism. What the United States of America (USA) practice is federalism and in federalism, you need to protect the most vulnerable group from exploitation.
“If you say states should fix their own salaries, what about the private sector? What that means is that there will be exploitation. What we are saying is fix the minimum and not the maximum. We must protect the most vulnerable group in our society.
“Also, the minimum wage review is evidence based anywhere in the world. So, it is not arbitrarily fixed. ILO says it should be evidence based with empirical data. In some countries like Ghana, they look at inflation.
“The workers create the wealth and should benefit from the wealth they create. The issue of ability to pay has always come up. We have said that there are several responsibilities that the federal government is handling that they should not be handling.
“We have agreed in principle that we should take a look at how to distribute our resources, while we work towards increasing internally generated revenue. If all these and more are considered, the will to pay will be there and the way will also be there.”
In his argument, Aregbesola said the constitution vested in the Federal Government the right to fix minimum wage for all segments of the society. He, however, cautioned that in discussing the minimum wage, it should be done side by side with the issue of productivity.
He said: “The assembly here this morning is an indication of our commitment to keep faith with our constitution and the national minimum wage is a constitutional one. Item 34 of the exclusive list empower the Federal Government to deal with the issue of Labour, in losing proscribing the national minimum wage for the federation.
“This committee comprises of government, both at the federal and state levels, organised labour and the organised private sector in accordance with ILO Conventions.
“Its task cannot be adequately carried out without the dill consultation which this public hearing provides. I therefore urge you all to make your input dispassionately.
“We have all along been concentrating on cost of living which is also important. However, in your contribution, let us also look at productivity index, so as to get the best for the economy. By so doing, we will be enriching the outcome of this debate and making it less controversial and more amenable to implementation.”
NUP Deputy President Aminu Ayuba said the Nigerian laws stipulate that pension should be reviewed every five years or whenever salaries are being reviewed.
He said that prescribing a minimum pension remained the only way to review the low pensions being paid by all tiers of government.
At the Southeast centre in Enugu, stakeholders urged the federal and state governments, as well as private employers, to facilitate payment of the new minimum wage to reduce the suffering of workers.
Speaking for the local chapter of the NLC in the Southeast, Virginus Nwobodo said that the new minimum wage review and implementation had been overdue.
Nwobodo, who doubles as the NLC Chairman in Enugu State, said that N66, 500 should be the takeoff point as a minimum wage, arguing that it has become difficult for workers to live on N18, 000 with families and dependants to take care of.
He said: “It is long overdue and we are asking for nothing less than N66, 500 to meet the current socio-economic realities.’’
Chukwuma Igbokwe, who spoke for the TUC in the region, called on the Federal Government to conduct a public hearing on political office holders’ wages, so that it would be reviewed.
Igbokwe said that the huge amount being collected by politicians across board was inimical to the purchasing power of workers, since both patronised the same market.
NUP zonal chair, Chukwuma Udesi, called on the government to inaugurate a Committee for the National Minimum Wage for Pensioners.
He said that by so doing, pensioners would start enjoying increment like other workers.
Udesi said: “NUP is demanding a minimum of N40,000 to meet the basic needs of a pensioner and reduce their sufferings.’’
He urged Abia and Imo state’s governors to pay the backlog of pension arrears in their state.
In his remarks, Anambra State Governor Willie Obiano said that the state would remain labour-friendly and implement any fair agreement reached and concluded by the tripartite committee. He was represented by his Senior Special Adviser on Labour Matters Godwin Igbokwe.
He noted that the government had assured the state workers of increment in their salaries.
His words: “The state government is ready to implement the increase but wants to wait for the tripartite committee to conclude their assignment. Hopefully in July this year, I assure you that Anambra will be the first to implement.”
Purpose of hearings
The Chairman of the Tripartite Committee on National Minimum Wage, Ms. Ama Pepple, said that the public hearings, simultaneously on-going in eight centres, was meant to collate the aggregate views of the people, especially organised labour, employers and groups.
Ms. Pepple said that the exercise would enrich the outcome and make the implementation of the new minimum wage easier, since everybody would be taken into account.
She said: “We have assembled here this morning to collectively exchange ideas in the ongoing efforts by government aimed at establishing a new National Minimum Wage for Nigerian workers. As it is the practice the world over, a minimum wage, once established, is reviewed from time to time in accordance with economic realities.”
The demand was not different at the Northwest zonal hearing in Kaduna.
Defending the 40, 000 payment for retirees, NUP President, Dr. Abel Afolayan, argued that the N18, 000 can no longer sustain the standard of living of an average worker, who must meet up with the basic needs of life.
Afolayan said: “Nigerian pensioners are also confronted with the above enumerated social problems in addition to their age-related health challenges.”
Represented by his vice, Sani Muhammad, the NUP chief said: “The agitation for minimum pension alongside minimum wage has been going on since the of our union in 1978.
“This is to correct the ugly situation whereby some pensioners particularly at the state level, earn as low as N2, 000 per month.”
The TUC faulted the rise in price of food stuff, transport fare, which it said have gun up by 80 per cent, while only the cost of labour remains stagnant.
Awwalu Mudi Yakasai, who represented the local chapter of the TUC/NLC in Kano State chapter, called for reasonable improvement of the minimum wage, considering the hardship faced by workers whom have families to cater for.
The TUC chairman in Kaduna State, Shehu Muhammad, told reporters his views on the anticipated minimum wage.
He said the decision to setup a tripartite committee was a calculated move to strike a balance among all stakeholders.
Muhammad said: “We are not expecting any resistance from any government in Nigeria, because there interest is well represented in the meeting.
“We have taken that as a mistake from our own part. That is why this time around the committee is tripartite in nature. We have the representative of governors, Federal Government and the labour organisations.
“So, whatever decision reached at the end of the committee submission is going to be all encompassing, and include the decision and agreement of the state governors, Federal Government and the labour.
Gombe State Governor and the chairman of the National minimum wage from the Northwest, Ibrahim Dankwanbo assured that the interest of the labour union will be deliberated upon and a minimum wage figure will be released on a tripartite agreement.
Dakwambo said: “It is a matter of relying on the indices, inflationary trends of the country, the devaluation of the Naira, our own living standards and a host of other indices we have taken into consideration.”
He was represented by the TUC National President, Boboye Bala Kaigama.
Dakwambo said: “The state governments will make their own decision, while the organized private sector will do the same. At the end of the day, we will collate them, and I assure you that with the sprite of tripartism, we will come up with a national minimum wage figure that will be acceptable to all.” - The Nation
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