Labour Rejects Governors’ Bid to Decentralize Minimum Wage Negotiations

Organised Labour, including the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), has strongly opposed the Southern Governors’ Forum’s proposal to allow state governments to independently negotiate minimum wages. The NLC described the proposal as “unfriendly and anti-worker,” arguing that it would undermine workers’ welfare.

The Southern Governors’ Forum, in a communique issued after a meeting in Abeokuta, Ogun State, suggested that minimum wages should reflect the cost of living in each state. The communique was signed by the forum’s Chairman, Governor Dapo Abiodun of Ogun State, and Vice-Chairman, Prof. Charles Soludo of Anambra State. Governors from various southern states attended the meeting.

The Presidency, meanwhile, has urged patience, assuring that the proposed bill on the new minimum wage would be transmitted to the National Assembly once ready. Despite Labour’s demand for a N250,000 minimum wage, the state governors argue that even the N62,000 proposed by the Federal Government would be financially unsustainable for many states.

NLC’s National Treasurer, Akeem Ambali, criticized the governors for their stance, emphasizing that minimum wage is a national issue mandated by law. He urged the governors to focus on implementing the national minimum wage rather than pushing for state-level negotiations. Ambali also highlighted the inconsistent actions of some governors regarding the current N30,000 minimum wage, pointing to instances where compliance only occurred under the threat of strikes.

Ambali further advised President Bola Tinubu to engage with Labour using realistic data to reach an amicable resolution on the new minimum wage. He also condemned the influence of some governors on the Organised Private Sector (OPS), which initially indicated readiness to pay higher wages but later shifted their stance.

The NLC’s spokesperson, Benson Upah, underscored the importance of maintaining a national minimum wage, which serves as a baseline for workers’ earnings across the country. He criticized the governors’ push for decentralized wage negotiations as dictatorial and detrimental to the welfare of Nigerian workers.

Similarly, TUC Deputy President Dr. Tommy Etim emphasized that pensions and the minimum wage are constitutional issues under exclusive legislation, beyond the purview of state governors. He urged workers to remain resolute, expressing confidence that the Federal Government would address their concerns.

Economist and development expert, Aliyu Ilias, urged governors to implement a higher minimum wage, especially in light of federal subsidies. He called for clarity on the role of the Federation Account Allocation Committee in funding wage increases and emphasized the need for concerted efforts between the government and Labour unions to resolve the ongoing disputes.

Overall, Labour remains firm on maintaining a national minimum wage, rejecting the decentralization proposal, and advocating for fair and consistent implementation across all states