• Labour centres propose N65, 500; Govs: N25, 000; Private sector: N25, 000; FG: ?
• Negotiations resume October 4 – Ngige

By Victor Ahiuma-Young

THE ongoing nationwide strike called by the Organised Labour over new national minimum wage has, once again, brought to the fore the hypocrisy of the ruling class and the incompetence of the managers of government industrial relations.

Nigeria would not have travelled this road if the political class and managers of government industrial relations had done the needful.

In fact, the huge economic loss to the country as a result of the strike would have been averted.

Minimum wage committee

On November 22, 2017, the Federal Government, through the Ministry of Labour and Employment, announced a 30-man tripartite committee to fashion out a new national minimum wage for the country.

This was predicated on two things. First, the current N18, 000 minimum wage, which came into effect in 2011, had expired in 2015.   Second, part of the agreements with Labour, after the May 2017 jerking up of the pump price of petrol from N65 to N145 per litre, was to review upward the minimum wage to cushion the hardship from the hike.

A government statement informed that a former Minister of Lands and Housing, Ama Pepple, would serve as Chairman of the committee.

The Minister of Labour and Employment, Senator Chris Ngige, was named the Deputy Chairman and Chief Richard Egbule (Chairman, National Salaries, Income and Wages Commission) as Secretary.

The Nigeria Governors’ Forum (NGF) nominated six governors, one from each geo-political zone, to represent it on the committee.

From the Labour side were the President of the Nigeria Labour Congress, NLC, Ayuba Wabba, while the Trade Union Congress of Nigeria, TUC, was represented by its President, Bobboi Bala Kaigama, among others. The committee also had Igwe Achese, then-President of the Nigerian Union of Petroleum and Natural Gas Workers, NUPENG, who represented the United Labour Congress of Nigeria, ULC. From the Employers’ side were Mr. Olusegun Oshinowo, Director General, Nigeria Employers’ Consultative Association (NECA); Mr. Timothy Olawale; Mr. Chuma Nwankwo; Mrs. Olubunmi Adekoje, Director General, Federation of Construction Industry (FOCI); Alhaji Ahmed Ladan Gobi, Chairman, Kaduna East Branch, Manufacturers’ Association (MAN); Otunba Francis Oluwagbenre; Hajia Muheeba Dankaka, President, Kano Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA); and Prince Degun Agboade, President, Nigeria Association of Small and Medium Enterprises (NASME).

President Muhammadu Buhari, on November 26, 2017 inaugurated the committee.

Labour’s demand

Even before the committee was announced, Labour had made its demand known as early as 2016. While the NLC and TUC initially demanded N56, 500, ULC demanded N96, 000.

Later, NLC and TUC upped their demand to N65, 500 in line with what they described as economic realities.

However, as negotiations continued, the three Labour centres harmonised their demand at N65, 500.

The private sector, it was gathered, proposed N42, 000 after considering its members ability to pay. The private employers, however, brought down their figure to N25, 000.

Whereas some of the state governors in the committee proposed a minimum wage of N25, 000 (which Edo, among others, is already paying), the Federal Government never announced any figure 11 months after the committee was inaugurated.

It was gathered that the committee had agreed on August to complete its work but this was allegedly frustrated by the Federal Government which ought to be the driver of the process, since Labour issues are on the exclusive legislative list. Rather, the Federal Government kept shifting the goal post through the Minister of Labour and Employment.

Frustrated after feelers indicated that the minimum wage issue was edging towards being a political tool ahead of the 2019 general elections, as the sine-die (till further notice) suspension of meetings of the committee tended to suggest, Labour leaders decided to not only bark, but to also bite through the 14-day ultimatum issued to the Federal Government.

Why strike became inevitable

At a joint meeting of the leaders of NLC, TUC, and ULC, in Lagos, they demanded that the Federal Government should announce its figure and ensure the completion of negotiations of the new national minimum wage or risk industrial unrest in the country.

The labour leaders warned that at the expiration of their ultimatum, they could

not guarantee industrial peace in Nigeria.

They accused Ngige of frustrating and delaying the process of arriving at a new minimum wage which, according to them, workers had expected since 2015.

According to them, while the committee had concluded its deliberations, the Minister of Labour kept saying the Federal Government needed to consult more before coming up with its own figure, saying this negated the earlier agreement to work within a timeline.

“The present posturing of the Minister of Labour and Employment, Dr Chris Ngige, who functioned as Acting Chairman of that Committee, brings back painful-memories of precious time wasted, energies dissipated and hopes betrayed. Coupled with this, the Minister’s latest pronouncement goes to cast further doubt on the integrity of the government as well as underscores the inherent danger in doing business with Government”, the Labour leaders said.

“In view of the foregoing, we demand that Government does all that is necessary to ensure that the Tripartite Committee is allowed to conclude its work within 14 days from today. We want to use this opportunity to let government and the whole world know that, in the event that this demand is not met, we will not guarantee continued industrial peace and harmony.”

Alleged blackmail

Reacting to the ultimatum less than 24 hours after, Ngige described Labour’s 14-day ultimatum as “a subtle blackmail” to stampede the tripartite committee on the new national minimum wage.

The Minister said it was not true that the Federal Government was trying to stall negotiations.

He said: “The following facts speak in that direction: If the Federal Government is not interested, why did Mr President inaugurate the presidential committee on the new national minimum wage? If it is not interested, Mr President would have asked me to do an inter-ministerial meeting, but Mr President took interest and set up a presidential committee.

“As a matter of fact, before the meeting adjourned last week, I told the committee that the Economic Management Team (EMT) could not hold.

“This is due to the fact that most people in the team travelled with Mr President to China. Also if the Federal Government is not interested, why will l brief the entire tripartite committee and tell them that work is in progress?”

The minister claimed he had requested for two weeks from the committee to enable the Federal Government delegation consult with state government delegation.

“That means that the meeting can be called at any time, in one day or within three days which is still stipulated within the month of September. So it is very surprising to know that Labour gave ultimatum of 14 days to the Federal Government. This is uncalled for and a subtle blackmail to the Federal Government.”

This was the last the Minister addressed the issue of the ultimatum until a day to the expiration when it became obvious that the Organised Labour would make good its threat to down tools to force government to announce its figure and complete all the processes leading to a new national minimum wage.

4-man committee

Meanwhile, on September 19, the Federal Government, after a meeting of its EMT, set up a sub-committee to look at different scenarios, especially on the financial implications of the new minimum wage.

It was gathered that the sub-committee, after completing its assignment, was to brief the EMT on Tuesday, September 25, ahead of the Federal Executive Council, FEC, meeting the next day.

Moves to stop strike

In a desperate move to stop the strike, Ngige, on Wednesday, September 26, invited Labour leaders to Abuja for a meeting to find a way forward.

At the meeting, the Minister did not only announce that the minimum wage committee would resume meeting on Thursday, October 4, he equally claimed the 14-day ultimatum issued by Labour did not get to him, otherwise the ultimatum would have been addressed.

Ngige said that before the meeting of October 4, all the demands of Labour would have been factored in.

He said, “Part of our consultation means that the Economic Management Team, which is managing the entire economy of the country, would have something to work on. Already they are working on it alongside the National Salaries and Wages Commission and it is expected that, before that meeting on October 4, they would have been through with the work. So, everything is subject to negotiation; so, on Thursday October 4, we are going back to the negotiating table.”

Ngige added that the 14-day ultimatum issued to the Federal Government did not get to him, “otherwise we would have addressed it scientifically”.

The Minister added that Federal Government was optimistic that the committee would wrap up in October all the processes of the new national minimum wage.

Industrial action

True to its threat, the Organised Labour, on Thursday, commenced a nationwide strike, crippling critical sectors of the economy as well as public sector institutions.

As the industrial action kicked-off, Chief of Staff to the President, Abba Kyari, invited Labour leaders for a meeting which he said was to know what stalled negotiations on the new minimum wage.

The President of NLC, Wabba, told journalists after the meeting, “The Chief of Staff tried to give us details of government’s position which we have to convey to our members and then we can revert back to him”.

As the strike goes on, besides the disruption of government activities in most states, flight operations have been disrupted in some states including Lagos and Edo. Banking services are also disrupted, maritime activities crippled while fuel loading and distribution are affected among others.

Speaking to Sunday Vanguard on what next, Wabba said: “Like I said after the meeting, the strike was called by a larger organ and until we get their mandate, we cannot make any pronouncement on the strike. We will meet and look at issues critically with a view to determining the next line of action. All I can is that we are not averse to meetings. If we are invited to any meeting on our cause, we will attend. As representatives of workers and organs of the Organised Labour, we have their mandate to attend meetings and must revert back to them to take decisions. Until we get back to them, brief them on our meetings for them to take decisions on what next, the strike continues.”

MINIMUM WAGES: HOW NIGERIA COMPARES WITH SOME COUNTRIES

1. Nigeria – $38 (N18, 000)
2. Algeria – $175 (N83,000).
3. Belgium – $1,738 (N810,000).
4. Cameroon – 36, 270CFA ($75) N38,000.
5. Chad – $120 (N60,000).
6. Denmark – $1,820 (N900,000).
7. Libya – $430 (N190,000).
8. Japan – $1000 (N450,000).
9. Cote D’ivoire -36,607CFA $72.
10. New Zealand -$3,187 (N1.4m).
11. Luxemburg – $2,500 (N1.1m).
12. Spain – $760. (N300,000).
13. Switzerland – $5,620 – N2.5m.
14. USA – $11 per hour.

It is believed that Nigerian politicians earn the highest salaries in the whole world.

According to reports, in Luxemburg where minimum wage per month is $2,500, their lawmakers are paid $7,400. In Libya where minimum wage is $430, lawmakers earn $3000. In Nigeria where minimum wage is $38 (N18,000), lawmakers earn $65,000 (N29m).