Labour
By Rufus Olusesan
IT is no longer news that COVID–19, a pandemic that is spreading around the globe, originated from Wuhan in China and has infected and killed many in Europe, Asia, America, Africa, including Nigeria. Globally, the pandemic has exposed capitalism for having paid a greater premium on the private accumulation of capital and profit as against adequate investment in social services such as healthcare delivery services, education, food production, potable water, electricity, etc. As a consequence of this failure, the global economy is vulnerable and has entered a recession with its attendant job losses, scarcity and inflation.
In response to COVID-19, President Muhammadu Buhari announced first 14 days’ lockdown in Lagos and Ogun states as well as the Federal Capital Territory, Abuja from March 30, 2020 which was renewed for another 14 days. The lockdown has since been eased, even as COVID-19 has continued to spread. There are also different degrees of restrictions and lockdowns across the federation.
The Federal Government announcement of the lockdown was without consideration to our economy wherein the majority of the people are peasant farmers, petty traders, artisans, bus drivers and casual workers. This left the mass of the people groaning under more poverty. Workers and the poor observed the lockdown rules by staying at home but the government failed to provide adequate palliatives needed for a successful lockdown.
Government palliatives available were not adequate and some of it were hijacked by the ruling elite for either their families or party members leaving the poor working masses to wallow in more hunger.
Arising from economic disruption from COVID-19 which forced demand for oil downward and the oil war between Russia and Saudi Arabia led to crashing of price, the Federal Government reviewed the country’s federal budget from N10.50 trillion to N10.27 trillion and is proposing further cuts of N1.5 trillion; the government equally reviewed oil benchmark from $57 per barrel to $30 per barrel. Just to remind us, larger percentage of the budget will be financed through borrowing. The over N200 billion cuts in the 2020 budget largely affected the working class and poor as the privileges of the ruling elite remained intact.
Government has officially devalued naira from N360 to a dollar to N380. This has grave consequences on the economy during and after COVID-19 pandemic as it will give rise to inflation, rise in cost of production and attendant increase in the cost of living. The ruling elite in their vicious and callous outlook will be out more than before to attack the rights, privileges and interests of workers in both public and private sectors of the economy.
Kaduna State government has announced plans to deduct 25 per cent of workers’ salary as a contribution to the state’s COVID-19 Emergency Fund; Lagos Airport Hotel sent workers on three months compulsory leave without pay; an airline which is presently benefiting from N300 billion bailout has sacked 90 per cent of its workers and has cut the salaries of the remaining 10 per cent by 80 per cent. The management of another hotel has placed its workers on three months leave without pay. While many private companies are currently paying fractional monthly salaries, some employers have adopted no work, no pay policy- the attack is endless.
Labour unions in Kaduna State have rejected plans by the state government to deduct 25 percent of workers’ salaries to contribute to the state’s COVID-19 Emergency Fund while Kogi State government announced 20 per cent cut in workers’ salary. The N30,000 minimum wage signed into law on April 18, 2019 is currently under threat more than ever before as most states are yet to implement it and many states will refuse to pay workers’ salary while guaranteeing the jumbo salaries, allowances, unaccounted fabulous security votes and privileges of the political office holders which constitute huge drain on the public funds.
Government and private sector employers will force the working people to bear the consequence of COVID-19 economic crises. This time around, NLC, TUC and ULC must mobilise the Nigerian workers to defend N30,000 minimum wage, forcing government and private sector employers to implement it without retrenchment or loss of jobs.
The trade unions should be prepared to lead a struggle against this widespread sack and fractional salary payments. The programme of action drafted by the Nigeria Labour Congress, NLC, to Mr. Boss Mustapha, Chairman, Presidential Task Force on COVID-19 pandemic is a welcome development but if such programme is left to the government without struggles, it will never materialise.
COVID-19 lockdown, according to Dr. Timothy Olawale, Director General, Nigeria Employers Consultative Association, NECA, is to minimise the potential of job losses. NECA suggests, as the practice in other climes, that government augments payment of salaries of workers’ of companies that are worst hit by the impact of the pandemic by at least 50 to 70 percent for the next four months.
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This statement amounts to calling for a bailout of private companies. Under capitalism, the private sector leads the economy; private companies only exist for profit making alone; as soon as there is an economic crisis, the private companies begin to opportunistically beg for bailout from the government. Where is the years of profit made and why can’t the private sector’s profit be channelled towards paying salaries to guarantee the welfare of workers.
The pains of the ravaging COVID-19 lockdown, coupled with the low oil prices, mean that a deeper recession is not only sure, but poses a dangerous trend to job security more than what was experienced between 2008 and 2010 which led to factory closures amounting to job losses. NLC, TUC & ULC must brace up to defend workers for the challenges ahead of COVID-19 backlash.
The medical workers in the frontline against COVID-19 are not adequately encouraged, motivated and protected to do the job. The entire healthcare delivery service is in shambles. The lesson from COVID-19 is that there may be a time when the ruling elite will be forced to seek medical attention in Nigeria without the usual expensive medical tourism.
Shocking is the fact that our healthcare delivery service is so vulnerable that some states like Nasarawa do not have a single ventilator. As workers brace up for the task ahead, we must struggle to defeat neo-liberal policies and capitalism.
This can only be achieved, if the working class can form and build an alternative pan- Nigeria mass working people political party to struggle for the socialist transformation of the country with the major sectors of the economy being nationalised, planned and placed under democratic control and management of the workers and consumers for the betterment and needs of all.
This is the only way adequate investment in healthcare, education, jobs, transportation, housing, food and other basic amenities will be achieved.
What labour movement should demand and fight for:
a. N100,000 monthly special COVID-19 allowance for health workers who are in the frontline and regular testing for health workers in the frontline.
b. A compulsory special Life insurance policy Scheme for health workers especially those in frontline while compulsory Group life insurance to other categories of workers as enshrined in Section 4 (5) of Pension Reform Act, 2014 (as amended).
c. Provision of safety kits including face mask, globes, hand sanitizer, hand washing facilities etc., for workers in all factories and government institutions as well as in communities. Observation of physical distancing measures in workplaces and factories.
d. Payment of N50,000 to working class and poor households to cushion the effect of COVID-19 lockdown.
e. Fighting for immediate payment of all outstanding salaries and allowances of workers both in the public and private sectors of the economy.
f. Reduction in salaries and allowances of public office holders to the earnings of skilled civil servants, thus creating more money to pay 30,000 minimum wage and fund budget for the betterment of all.
g. Granting of tax waivers to small and medium businesses, lowering of interest rate through the Central Bank (CBN), provision of restructuring of existing loans, this is imperative with a caveat, no retrenchment of worker or loss of job as a result of COVID-19 pandemic and economic crises.
h. No to job losses or pay cuts on account of the COVID-19. End casualization now, for the government to guarantee all employment and nationalise any company that retrench or fail to pay its workers.
i. For 3 months’ payment relief of public utilities such as Electricity, LAWMA refuse payment etc., for workers and the poor.
j. Democratic management of palliatives with inclusion of labour movement representatives in the Presidential Task Force on COVID-19 at all levels.
k. In order to contain COVID-19 backlash, organized labour need to reactivate its organ link with Civil Society through the revival of Labour – Civil Society Collation (LASCO)
m. For freedom of the press and the right to freedom of expression and association. Respect for the fundamental rights of citizens even while battling the virus.
Comrade Olusesan,National Chairperson, Campaign for Democratic and Workers’ Rights (CDWR), wrote from Lagos
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