BY VICTOR AHIUMA-YOUNG & LAJU ARENYEKA

SINCE the January 1, 2012, hike in pump price of petrol to N141 from the N65 per liter, workers in the country have been finding it difficult to cope with the socio-economic consequences. Even after the price was slashed to N97, the  high cost of living occasioned by the January 1, hike, has remained astronomical and  it has become increasingly hard for workers to grapple with the cost of living.

A cross section of the workers, who spoke to Labour Vanguard, expressed  frustrations with the turn of event in Nigeria and called on government to immediately implement policies to ameliorate the situation.

Mrs. Sarah Ogunsanya and Mr. Adekunle Olusola, both junior local government employees, before the hike spent N1,250 and N2,000 a week for transportation, now spend N2,000 and N3,000 a week for transportation.

Similarly, Mr. Friday Udoh, Mrs. Gloria Arenyeka, Mrs. Matina Okeke, and Mrs. Cecilia Okafor, now spend N7,000, N5,000, N1,400 and N1,000 a week for transportation as against N2,000, N3,000, N900 and N250 per week before the hike.

Full implementation of Minimum Wage

Responding to the plight of public workers,  the  Joint National Public Service Negotiating Council, JNPSNC,  (Trade Unions side) has written to the governors of the 36 states, urging them to implement fully the minimum wage because of the added burden the partial removal of petrol subsidy  has inflicted on workers.

In a letter to the governors,  JNPSNC’s National Secretary, Comrade Marcus Omokhuale, lamented the  astronomical rise in the cost of living consequent upon the recent hike in fuel pump price and its impact on the public servants, whose wages and purchasing power have been drastically undermined.

According to him, “It is a statement of fact that the growth of an economy depends on reasonable purchasing power for effective demand to be actualized in the market. Equally workers productivity is motivated by their wages. The remuneration of workers has lagged far behind the inflation rate and this is being worsened by the steep increase in fuel pump prices.

...A cross section of Nigerian workers

To us as Nigerians, this calls for necessary action to raise remuneration by government as state policies should be seen to impact on the living standards of the creators of the nation’s wealth. We are all aware that energy is central to both production and consumption in a modern economy.

This is, particularly so, for the movement of prices in a country such as Nigeria, where the level of infrastructural development is abysmal. Workers require petrol to power generators, at home as more often than not there is no electricity supply from Power Holding Company of Nigeria, PHCN. Food commodities have to be transported, and are also thus affected by price movements of petroleum products.”

Comrade Omuokhuale said: “We, however, realize that there might be cause for succour, as your state government, as well as states across the federation, will benefit from the revenue accruing to the Nigerian state from the partial removal of fuel subsidy.

We wish to point out, in the light of the foregoing, that, considering the change in the price regime of workers’ food basket costs, in particular, and cost of living in general, compared to when the new minimum wage was negotiated, as well as its impact on the array of the thirteen salary structures in the public sector, there is a very palpable need for the full implementation of the remuneration of workers in the public sector in line with the provisions of the National Minimum Wage Act, for them to be able to make ends meet.

We are confident that with your state’s increased income profile and your demonstrated commitment to improving the lot of working people in your state, you would find it needful to heed to our humble request, and now pay the full new minimum wage of N18,000 and other salary structures, like CONHESS, CONMESS etc.”

Need for urgent negotiations

Continuing, the public sector unions called “for urgent opening of a window of negotiations towards establishing a new wage regime for workers that will be in consonance with the current state of our cost of living as a motivator to a higher productivity. This is especially in states where the new minimum wage and other salary structures were whittled down, during the negotiation, because of the hitherto lean purse of the various states.

Now that the income of states have been improved, as a result of the increase of PMS pump price from N65 to N97, the Governors are implored to fully adopt the new minimum wage in full to shore up workers take-home-pay to enable them at least meet up with some of their immediate responsibilities and reduce the obvious restiveness, as a result of frustration in the society. This is imperative if the workers should continue to contribute their quota in your administration’s transformation agenda geared towards the provision of dividend of democracy to the generality of the citizenry of the state.”

Excessive taxation

Also of concern to the public sector unions is the issue of excessive taxation of civil servants, the JNPSNC said “the issue of excessive tax Pay As You Earn, PAYE, being deducted on monthly basis from workers salary is a source of worry. It tends to paint a picture of a case of giving with one hand and taking away with another hand. For this case, not to look so, there is therefore the dire need for your government to take a serious look into it, with a view to reviewing the existing computation on the basis of which the PAYE is being made.”