FG to Nigerian workers: Your new minimum wage takes effect May 1

The federal government Wednesday said notwithstanding the ongoing negotiation on a new national minimum wage, payment to civil servants had taken off May 1, 2024.

The assurance came as the Organised Labour threatened industrial action  if the tripartite committee on the exercise failed to conclude negotiation by the end of this month.

The two parties spoke at the 2024 May Day celebration in Abuja.

Addressing the workers, Minister of State for Labour and Employment Nkiruka Onyejeocha said the government was receptive to the committee’s suggestion of transitioning beyond a mere minimum wage to a living wage that truly reflects the value of workers’ contributions.

Announcing the decision, the minister said: “You will recall that on January 30, 2024, the Federal Government took a decisive step towards enhancing the welfare of Nigerian workers by inaugurating a 37-man Tripartite Committee on Minimum Wage.

“This committee was tasked with the critical responsibility of recommending a realistic national minimum wage that aligns with our current economic landscape. Since then, the committee has been working tirelessly alongside Labour leaders to reach an agreement on a new National Minimum Wage that reflects the country’s economic realities.

“Although the committee could not reach a consensus at its last meeting before the May deadline, we want to reassure Nigerian workers that we are working diligently around the clock with organized labour to conclude negotiations and ensure a successful outcome. Our commitment is unwavering: the Nigerian workers should be rest assured that despite the short delay, the new minimum wage will take effect on May 1st, 2024. Moreover, this government is receptive to the committee’s suggestion of transitioning beyond a mere minimum wage to a living wage that truly reflects the value of workers’ contributions”.

Continuing, she said:  “Fellow Comrades, as we gather here under the theme “People First” we are reminded of the fundamental principle that must guide our actions and policies which is the prioritisation of the welfare and well-being of our people. Our gathering today therefore is a testament of our affirmed commitment to placing the needs and aspirations of our workers at the forefront of our national agenda through provision of fair and just working conditions which are not just ideals but basic human rights. This is because every worker deserves to work in an environment free from exploitation, discrimination, and oppression. We must therefore, strive to create workplaces that foster dignity, respect, job security and inclusivity for all, a foundation upon which individuals build their lives and support their families.

“In our rapidly changing world, we must recognize the importance of guaranteeing stable employment opportunities for our workforce by investing in policies and initiatives that safeguard jobs and create avenues for sustainable livelihoods where wages must reflect the true value and effort of labour. It is thus unacceptable for any worker to toil tirelessly and still struggle to make ends meet; hence the ongoing efforts by Government to pay Wage Award to workers and the review of the National Minimum Wage by a tripartite Committee involving the representatives of Employers, Workers and Government towards ensuring that every worker receives a fair living wage that enables them to live with dignity, provide for their families, and contribute to the growth of our economy.

“We must therefore see each other as partners in progress and utilize the initiatives already provided by the Government to turn our challenges into new opportunities for national growth and development by lending our support to this administration which had promised and remains committed to revitalizing the economy in line with its mantra of “Renewed Hope for Unity and Prosperity for All” through careful implementation of its eight (8) point Agenda as is clearly set out.

“As we commemorate this Workers’ Day, let us not forget the sacrifices and contributions of the labour movement in shaping our nation’s history. Let us honour the legacy of those who fought for the rights and freedoms we enjoy today by continuing their struggle for justice, equality, and solidarity. Let us stand united in our resolve to building a future where every worker is valued, respected, and empowered to achieve their dreams because together, we can create a Nigeria where the well-being of our people is not just a slogan but a lived reality.”

…Labour warns, kicks

And in a joint address at the event, President Nigeria Labour Congress (NLC) Joe Ajearo and his and his Trade Union Congress (TUC) counterpart, Comrade Festus Osifo, urged workers in Nigeria not to drop their guards as the negotiation on national minimum wage gradually comes to an end.

They reiterated their demand for six hundred and fifteen thousand naira(N615,000) living wage.  

“However, it is important that we urge every worker around the country to remain vigilant as this process winds to an end. We must not let our guards down but be at alert so that together, we can assist the government take the right decision and pay workers a living wage as promised by our President, Bola Ahmed Tinubu during his inaugural speech.

“If however, the negotiation of the National Minimum Wage is not concluded by the end of May, the Trade Union Movement in Nigeria will longer guarantee industrial peace in the country,” they said.

On the increase in electricity tariff, the organized labour frowned at the hike, stressing that the National Electricity Regulatory Commission (NERC) and power sector operators must reverse same within one week.

…Rejects 35% pay rise

And speaking on Channels Television Wednesday, Comrade Ajaero Ajaero described  the federal government’s  35 per cent pay rise as  mischievous, insisting the  living wage should be pegged at N615, 000.

While saying the last minimum wage of N30, 000 expired April 18, the labour leader said:  “We should be in the regime of new minimum wage as of today. Discussions were supposed to have been concluded. The federal government through the national assembly legislated on it. But we saw that the discussion entered voice mail because the federal government refused to reconvene the meeting that was adjourned.

“I think the announcement now appears mischievous because there is no wage increase that the government is announcing. For them to announce it now, it is an issue that we are worried about at the NLC and even at the TUC.”

Continuing, he said: “Living wage is such that will, at least keep you alive. It is not a wage that will make you poor and poorer. It is not a wage that will make you borrow to go to work. It is not a wage that will lead you to be in the hospital every day because of malnutrition. For that living wage, we have tried to look at N615, 000.

“Let me give you a breakdown of how we arrived at that figure. We have housing and accommodation of N40, 000. We asked for electricity of N20, 000 — of course that was before the current tariff increase. Nobody can spend this amount currently. We have utility that is about N10, 000. We looked at kerosene and gas that is about N25, 000 to N35, 000.

“We looked at food for a family of six, that is about N9, 000 in a day. For 30 days, that is about N270, 000. Look at medical, N50, 000 provided there will be no surgery or whatever.

“For clothing, we looked at N20, 000; for education, N50, 000. I don’t know for those who tried to put their children in private school, they will not be able to cope with this amount. We also have sanitation of N10, 000.

“I think where we have another bulk of the money is transportation. This is because the workers stay in the fringes and because of the cost of PMS, that amounted to N110, 000.

“That brought the whole living wage to N615,000 and I want anyone to subject this to further investigation and find out whether there will be any savings when you pay somebody on this rate,” the labour leader further justified their stand.

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