News

January 27, 2011

FG can’t pay new minimum wage, by Labour Minister

BY TORDUE SALEM
ABUJA—Labour and Productivity Minister, Mr. ‘Emeka Worgu, yesterday warned that an industrial action by the Nigerian Labour Congress, NLC might be difficult to avert, as the Federal Government, in the prevailing circumstances, may not be able to  pay the minimum wage of N15,000 to workers across the country.

“Crisis could emerge in the course of the implementation of the Minimum Wage law because it is on the concurrent list (shared by all tiers of government). An increase of up to 60% to handle overhead cost (remuneration) is high,” he said.

The Minister said this at a 2010 budget defense session of his Ministry, convened by Rep. Ado Dogo-led House Committee on Labour and Productivity.

The Minister, however, advised the committee in the course of giving an Executive Summary that “to avoid an industrial crisis, the National Assembly must approve the budget of the Ministry as proposed.”

The budget proposal for the Ministry this year is N9.1billion, a chunk of which is to go for the minimum wage.
An amendment to the minimum wage bill, sponsored in 2009, by Rep. Doris Uboh (PDP/Ika North-Delta), was passed and concurred by the Senate, but because of litigations and high-wire politicking, the Bill was not accented to until late last year when President Goodluck Jonathan signed it.

According to the constitution, issues of worker compensation and remuneration are on the concurrent list, meaning that the Federal Government, states and local governments parliaments must all approve before the law applies for all workers.