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NLC to set machinery in motion for new minimum wage

By Collins Olayinka, Abuja
02 October 2015   |   2:48 am
THE Nigeria Labour Congress (NLC) would soon se the machinery in motion to arrive at a new minimum wage that is sustainable, its President, Ayuba Wabba has said.
Wabba

Wabba

THE Nigeria Labour Congress (NLC) would soon se the machinery in motion to arrive at a new minimum wage that is sustainable, its President, Ayuba Wabba has said.

In his Independent Day address entitled, ‘Building Stronger Institutions for a Stronger Nigeria’, Wabba said apart from a clause which makes the present minimum wage negotiable after five years, the inflationary trend of the economy as well as the devaluation of the Naira has rendered the present pay package grossly inadequate.

The N18, 000 minimum wage is five years old. In view of the fact that we have a five- yearly minimum wage review arrangement, we believe a new minimum wage is legally due. But more compelling than this is the fact that a combination of progressive inflation and the massive devaluation of the Naira have undermined every conceivable benefit of the N18, 000. Therefore, we would want to use this opportunity to sound a notice for the commencement of the process for a review.”

While commending President Buhari on the bailout for state governments to pay salaries, Wabba urged the President to ensure governors use the money for the purpose it is meant.
“We note however, that the enthusiasm and commitment shown on this matter by the Council of State and Mr. President has been lacking in some states as governors rather than pay salaries and pensions, have elected to play politics with the welfare of their workers with some of them quoted as saying that they reserve the right to do what they like with the intervention fund from the federal government since it is a loan,” he said.

The NLC boss decried the non-payment of pensions at state and local governments levels, saying, “because they operate defined benefit pension system which often times is not funded. And even when it is funded, the governors and their cohorts help themselves to these funds because they are exposed.”
NLC declared that any state governor that fails to pay workers salaries and pension would face the wrath of the working class.

The NLC helmsman expressed fears that there are also strong speculations that the economy might run into a recession next year for reasons not unconnected with sluggish growth in two consecutive quarters.

In light of the uncomforting scenario, NLC urged government to do a re-think on how to fix the economy through robust macro-economic, civil, accountable and people-oriented policies that are capable of addressing our dependency syndrome.

Wabba, who lamented the downward slide of oil prices in the international market, called for the passage of the Petroleum Industry Bill (PIB) to bring about probity and guarantee Nigeria reaps maximally from her mineral deposits.

2 Comments

  • Author’s gravatar

    It is quite ludicrous and self serving for someone to be talking of upward review of government employees’ wages at this period of fiscal crunch and insolvencies of nearly all the tiers of government. What should be expected now from responsible labors unions, especially those representing government employees is to tow the path of the president, Vice President and some state governors to reduce the unserviceable minimum wage currently in place and canvass for a realistic minimum wage that is sustainable and can be afforded by the federal, states, and local governments. I laugh when the NLC president says “a minimum wage that is sustainable”. If N18,000.00 that was politically pegged by Jonathan is not sustainable, how would an upward review of the minimum wage be sustainable? It is too early for any trade organizations to start warming up for a show down with the Federal Government that is yet to settle down for proper business due to the fact that it is trying to unravel the destructions caused by the past administration(s) and to fantom a roadmap for the way forward.

    Indeed, the present minim wage cannot withstand the economic realities of the time. However, an increase in minimum wage with the necessary fiscal and micro/macro economic policies of government to check production, consumption and inflation matrices will be a mere magnanimity for perils. The present minimum wage can be sustaining and sustainable with proper policies of government designed to curb inflation, protect domestic industries and encourage local production; discourage imports, protect the local currencies against international influences and abuse; and ensure that the CBN carries out its primary and fiduciary duties of providing a sound monetary and credit policies, financial stability and management of the country’s foreign reserve and safeguard against the local currencies.

    The Buhari led government cannot be intimidated or deterred by any stooge or group of individuals who are only seeking unnecessary attention. His government is on top of the problems he inherited from the past administration(s) especially in the area of corruption and abuse of office. He has started blocking all the avenues where public office holders use to commit all kinds of financial reckless. By the time he is done, all the cheap monies that end up with government officials will be no more, and inflation will naturally take a bow to provide the civil servant an opportunity to enjoy their salary as it is today, or any downward review that the government employees will agree as a face saving for Nigeria. Therefore, the issue of negotiating any minimum wage upward should be off the table at least for now and in the intermediate time.

    May I also state here that the labor leaders of today are the most corrupt public servant there is. The days when labor leader fight for a true cause is gone. What obtains now is as scheme to seek relevance without prompting and at the end, get palms wet and at the end, call for cangaroo mediation. The labor union today is corruptible corrupt and are sell outs. It will interest readers to know that the present NLC connived with a corporate fraudster, KRISTON LALLY (NLC, KRISTON LALLY Housing Sceme) to dupe Nigerians of billions of Naira through estate development scam. The scam is a subject of litigation today.

  • Author’s gravatar

    The NLC should by now know that the consistent increase in minimum wage is not the solution to the problem of poverty in Nigeria. It is time the NLC mobilizes itself to be part of solution to Nigeria’s problem. They need to engage the government on how Nigeria’s resources are been allocated. I expect the NLC to take up the government on how to increase funding to public schools, public health, transportation and housing needs. Mere increasing salary will only go ahead to increase inflation. It is time we change our strategy.