By Funmi Komolafe & Victor Ahiuma- Young
LAGOS—ANY ONE who fails to comply with the new National Minimum Wage Act when passed by the National Assembly is likely to pay a fine not exceeding N50,000, and in the case of continuing offence, to a fine not exceeding N100,000 for each day during which the offence continues.
Violators may also pay a fine of N100, 000 or be sentenced to a prison term not exceeding six months or “both fine and imprisonment.”

These are some of the amendments proposed by the Alfa Belgore committee on amendment of the new national minimum wage presented to the Secretary to the Government of the Federation, SGF, in Abuja, yesterday.

The amendments came as the negotiating committee of government, labour and employers, yesterday, proposed a new minimum wage of N18,000 per month for the least paid worker.  However, there was no fixed date for the implementation of the new minimum wage as it is subject to a review of the National Minimum Wage Act 2000 by the National Assembly.

All the parties had earlier agreed on N22, 500 per month but had to scale down to N18,000 because they agreed that “ the economy could not sustain it”.

The Alfa Belgore committee submitted its report to the Secretary to the Government of the Federation, Alhaji Yayale Ahmed in Abuja, yesterday.

The report stated: “Taking cognisance of the submissions by the State Governments, the Expert Institutions and the SME, the Committee arrived at an average of N22,5000 per month as the appropriate figure for a new national minimum wage.

However, the Committee observed that the economy would not support the N22,500 as the new national minimum wage. After extensive deliberations, negotiations and appeals, it was agreed that the new national minimum wage should be N18,000 per month.”

NLC General Secretary, Comrade John Odah said:  “It was  the best we could get under the circumstance. It is something we  struggled  to get.” The Nigeria Labour Congress had demanded a national minimum wage of N52, 500 per month.
Employers’ participation

Mr.  Olusegun Oshinowo, Director-General of the Nigeria Employers Consultative Association, NECA, said: “Employers participated in the negotiation, so its okay with us.”

President-General of Trade Union Congress of Nigeria, TUC, Comrade Peter Esele, said: “The figure was the outcome of over six months negotiations involving Nigeria Labour Congress, NLC, Trade Union Congress of Nigeria, TUC, Nigeria Employers Consultative Association, NECA, and government representatives. The report was submitted to the government today (yesterday).

We cannot say it met our expectation. It is a product of negotiation. We considered a lot of things like the inflationary trend and so on.

The most important thing is for us to have a minimum wage that has legal backing that covers both the public and private sectors.”

For those who fail to comply with the amended law when passed by the National Assembly, the Alfa Belgore committee also recommended “a fine not exceeding N50,000 and in the case of continuing offence, a fine not exceeding N10,000 for each day during which the offence continues.”

In a bid to forestall labour crisis in the states, the Alfa Belgore committee suggested: “In order to forestall any possible industrial crises that might arise as a result of the new national minimum wage, the Federal Government through the Federal Ministry of Labour and Productivity as a matter of expediency convene a meeting of the social partners (NLC, TUC and NECA) to agree on the broad guidelines for the implementation of the new national minimum wage in the various sectors of the economy including the public service”.

Exempted from the payment of the national minimum wage are, those in “seasonal employment such as in agriculture, workers on part-time basis and allied employment”.

It is, however, binding on “organisations with 50 employees and above”.
Unlike the year 2000 negotiation, state governments were represented during the negotiation.

The amount was arrived at by consensus after the social partners agreed that many employers may not be in a position to pay the N22, 500 initially agreed on.
Sources close to the Alfa Belgore committee on national minimum wage confirmed that Bauchi State proposed N16, 585.50, Federal Capital Territory, N25,000;  Kwara State, N30,000; Imo State, N30,000 and Zamfara, N15,000.
Others were: Jigawa, N20, 800; Abia, N46, 700; Plateau State, N10,000; Kebbi, N30,000; Anambra N25,000; Ebonyi, N10,000; Akwa Ibom, N13, 333.12; and Kano State, N11, 022.17 .

Abia State had the highest proposal of N46, 700 while Eboyi made the lowest proposal of N10,000.

Organisations such as the Nigerian Institute of Social and Economic Research proposed N41,00; the Institute of Personnel Management proposed N15,000; National Productivity Centre N22,000 and  National Planning Commission, N15,000.

The National Bureau of Statistics proposed, N18, 036.73 and the Central Bank of Nigeria, N20, 216.01. Lagos State government was represented at the negotiation by its Commissioner for Establishment, Mr. Adesegun Ogunlewe. It was, however, not known what the Lagos State government proposed.

The Belgore committee also recommended that “Section 8 of the 2000 National Minimum Wage Act, which prescribes a fine not exceeding N500 or imprisonment for a term not exceeding three months or both such fine and imprisonment should be amended to “a fine not exceeding N100,000 or to imprisonment for a term not exceeding six months or both such fine and imprisonment”.