The differences in the proposals of the NLC and TUC in the South-West came as governors from the zone said the majority of governments in the zone could hardly sustain improved wages and salaries for workers as things stand now.
Organised Labour was divided, yesterday, over what the new minimum wage should be. The lack of unanimity was evident at public hearings organised by the Tripartite Committee on National Minimum Wage, TCNMW, across four of the six geo-political zones of the country.
In the South-West, while leaders of the Nigerian Labour Congress, NLC, proposed N794,000, those of the Trade Union Congress, TUC, proposed N497,000 as minimum wage as the Director-General, Michael Imoudu National Institute for Labour Studies, MINILS, Ilorin, Kwara State, Comrade Issa Aremu, said the range should be between N120,000 and N200,000.
In the South-East, the NLC said it preferred the new minimum wage to be N540,000, while the TUC suggested N447,000.
However, South-South workers proposed N850,000, with their North-West counterparts angling for N485,000 minimum wage.
This happened as North-West governors shunned the parley with their South-West colleagues, saying it will be hard to sustain higher wages for their workers without a significant adjustment in some of the narratives in the national economy, such as revenue sharing formula.
However, Governors Douye Diri (Bayelsa) and Umo Eno (Akwa Ibom) promised to abide by the resolutions of the parleys.
The differences in the proposals of the NLC and TUC in the South-West came as governors from the zone said the majority of governments in the zone could hardly sustain improved wages and salaries for workers as things stand now.
Organised Labour is advocating a N500,000 minimum wage, following the submission of proposals by state chapters to the headquarters of the congress.
The hearing is aimed at hammering out a new minimum wage that aligns with the current economic conditions and meets the expectations of workers.
On the government’s part, the argument was that even though workers deserve a new wage, each state should be allowed to negotiate with its respective workers because of its peculiarities.
However, labour unions described the stance of some governors’ inability to pay minimum wage as “unacceptable.”
These were the high points of the South-West, geo-political zone public hearings organised by the Tripartite Committee on National Minimum Wage, TCNMW, and chaired by the Minister of Finance, Mr Wale Edun. The hearing was held at LTV Ground, Agindingbi, Ikeja, Lagos.
The chairman of Lagos State NLC, Mrs. Funmi Sessi, recommended payment of at least N794,000 minimum wage for workers and appealed to the Federal Government to ensure that the national minimum wage remains on the exclusive list.
Sessi also suggested that a review of the minimum wage should be every two years instead of the current five years.
Sessi asked for a 13 per cent derivation for Lagos State because of its peculiarities, noting Lagos needs to conform to the standards of other cities of the world.
On his part, the representative of TUC, Mr Gbenga Ekundayo, called for an annual review of minimum wage as stated in Section 3(4) of the National Minimum Wage Act; and advocated for N497,000 new minimum wage.
To the Director-General, Michael Imoudu National Institute for Labour Studies, MINILS, Ilorin, Kwara State, Comrade Issa Aremu: “in real-time, the purchasing power of workers has been eroded. The two scriptures recognize the payment of workers. If you pay workers very well, it is Godly. It is also good economically because workers are meant to purchase goods and services.
“To get the minimum wage right, you must talk about affordability. We should be realistic on what will keep workers alive and at the same time sustain the establishments. I think we should be talking in the range of N120,000 to N200,000.”
Others who spoke at the South-West hearing include Professor Adejumo Akintoye, who represented the Congress of Nigerian University Academics, CONUA; Mr Tayo Adelaja, who represented the Manufacturers Association of Nigeria, MAN; Vice-President (South-West zone) Nigerian Association of Small and Medium Enterprises, NASME, Mr Solomon Aderoju, who lamented that firms and workers are facing hard times in the country.
Speaking on behalf of his South-West colleagues, Osun State Governor, Ademola Adeleke, said: “The committee on the proposed New Minimum Wage was established by the Federal Government and I was appointed to represent governors from the South-West geopolitical zone.
“In all our meetings and various deliberations, one thing that the committee has been able to establish is that the workers in Nigeria are due for an improved welfare package.
“To this effect, there is a consensus for an upward review of the National Minimum Wage because the existing one has become unrealistic.
“Having said this, it has to be reiterated that the majority of governments at the Sub” nationals can hardly sustain improved wages and salaries for their workers without a significant adjustment in some of the narratives in the national economy.”
He continued: “In tandem with the public outcry for the review of the sharing formula for the federation account, the time has come for the Federal Government to revisit the matter. “There is an urgent need for the review of existing sharing formulas in favour of states and local governments. I call on the National Assembly through the Revenue Mobilization Allocation and Fiscal Commission, RMAFC, to urgently take decisive action to look at the ratio objectively and realistically.
“As we offer opinions on minimum wage, I will admonish all workers both in the private sector and public service to improve their productivity. This is a way to ensure the sustainability of the new minimum wage when it is eventually approved.
“Our position from Osun State is that workers deserve improved wages and salaries. The Osun State Government is in support of a new and realistic minimum wage for all workers within the limit of available resources in a very sustainable manner.
Earlier, the chief host, and Lagos State Governor, Mr Babajide Sanwo-Olu, who was represented by the Head of Service, HoS, Bode Agoro, said that Lagos is committed to working collaboratively with other states and the Federal Government to arrive at a fair and realistic wage structure that takes into account, the diverse economic conditions across the nation.
“In Lagos State, we have always prioritized the welfare of our workers, recognizing that a well-compensated and motivated workforce is essential for sustainable development. One notable accomplishment has been the regular review of the minimum wage. I am proud to announce that Lagos State has implemented a minimum wage of N41,500, surpassing the standards set by many other states in the region.”
Earlier, Finance Minister Edun said the committee is interested in well-researched position papers that will aid informed decisions.
The minister, who is the South West Zonal Committee Chairman on the minimum wage, said: “We must recognize the significance of this assignment and its multiplier effect on the lives of millions of hardworking citizens and our great country Nigeria.
“We recognize the interests of balancing both employers and employees to achieve a fair and sustainable minimum wage that promotes social justice and economic stability.”
“The 37-member National Minimum Wage Tripartite Committee, which Mr. President constituted with equal memberships drawn from the government side (Federal and states) organised labour and the employers’ association has been tasked with ensuring that our minimum wage reflects the evolving economic landscape, adequately addresses the well-being of our workforce and of course the ability to pay sustainably.”