News

December 25, 2014

Labour seeks upward review of minimum wage

Labour seeks upward review of minimum wage

Protesters along Ikorodu Road in Lagos.

By Victor Ahiumayoung

Organised labour yesterday said the devaluation of the Nigerian currency by the Federal Government had reduced the current National Minimum Wage, NMW, to 90 dollars as against 120 dollar per month.

Protesters along Ikorodu Road in Lagos.

Speaking through the National Union of Textile, Garment and Tailoring Workers of Nigeria, NUTGTWN, labour argued that it was time for upward review of the minimum wage, warning against any attempt to further impoverish the workers of this country with reduction in pay or loss of jobs on account of the recently announced austerity measure by the Federal Government.

In a statement by the President of NUTGTWN, Mr. Oladele Hunsu and its General Secretary, who is also a Vice President of Nigeria Labour Congress, NLC, Mr. Issa Aremu, organized labour said “We call on the government to emulate the system of robust collective bargaining as obtainable in the private sector. We cannot drive the country to the path of sustainable recovery without adequate pay for the workers.

At N18,000.00 national minimum wage and exchange rate of N150 to one $1, Nigerian workers were earning approximately $120 per month in 2010.  However with the devaluation of the currency and current exchange rate of almost N200 to $1, minimum wage has dropped to as low as $90 dollars per month, a shortfall of $30.

When we take into consideration the rising inflation it is clear the real income of the working people has declined by over 50% within the last four years. Nigeria now has working poor whose monthly pay can hardly take them home because of government unstable policies.  Nigeria certainly cannot be developed with working poor or working beggars. 

“It is time the Federal Government reviews upward the minimum wage. We warn against any attempt to further impoverish the working men and women of this country with reduction in pay or loss of jobs on account of the recently announced austerity measure by the Federal government. Austerity measure must first reflect through reduction in costs of governance. We will join the Nigeria Labour Congress (NLC) to reject any further attempt to impoverish the Nigerian workers.

”We also condemn in strong terms the nonpayment of salaries in some states by some state governors especially Benue State. Delayed payment of salaries is wage theft. It is an economic crime. These are the same politicians who duly paid all their delegates for their political parties conventions, yet find it difficult to pay the legitimate earnings of workers as and when due.”

They disclosed that NUTGTWN and employers in the textile sector, recently reached an agreement for upward review of workers’ wages, saying “one major achievement of the union during the year is the just concluded national negotiation between the Union and the Nigeria Textile Garment and Tailoring Employers Association which has improved basic earning in the industry by 15%.

This year’s agreement is the 44th national collective agreement since 1979. With the new national agreement workers in the textile industry has improved wage with effect from 1st October 2014.  Yearly review of collective agreement in the industry shows the vibrancy of collective bargaining in our sector.  Through the instrument of collective bargaining we have increased minimum basic wage cumulatively in our sector by over 50% within the past four years.

“The increase is well over 75% if we calculate from the period 2004 to 2014.”