Minimum Wage: Labour Criticizes FEC’s Decision to Step Down Memo, Demands Consultation

The Organised Labour has expressed discontent with the Federal Executive Council’s (FEC) decision to step down the memorandum on the Tripartite Committee’s report on the new National Minimum Wage. The FEC’s move, announced during Tuesday’s meeting, has sparked concerns among labour unions about potential delays and speculations regarding the wage increase.

Key Points:

• Labour’s Criticism: Benson Upah, Head of Public Relations for the Nigeria Labour Congress (NLC), criticized the FEC’s failure to discuss the memo, stating it leads to harmful speculations and uncertainty for workers.
• FEC’s Reasoning: Minister of Information and National Orientation, Mohammed Idris, explained that the memo was deferred to allow for further consultations between President Bola Tinubu, state governors, local government authorities, and the private sector. Idris emphasized that the Federal Government is not the sole stakeholder in the national minimum wage issue.
• Wage Proposals: The NLC and Trade Union Congress leaders have been pushing for a minimum wage of N250,000. In contrast, the Federal Government, states, and the Organised Private Sector (OPS) have proposed N62,000. State governors have indicated they cannot sustain a minimum wage higher than N60,000.

Labour’s Position:

• NLC’s Stance: The NLC, represented by its President Joe Ajaero and Assistant General Secretary Chris Onyeka, has rejected the government’s counter-offer of N62,000 and any lower proposals. Labour insists on a living wage that reflects the current economic realities.
• Concerns Over Economy: Idris warned that the NLC’s proposal of N250,000 could undermine the economy, lead to mass retrenchments, and jeopardize the welfare of Nigerians. He reiterated the need for a realistic wage system that balances workers’ needs with economic stability.

Presidential Commitment:

• Democracy Day Address: In his Democracy Day speech, President Tinubu promised to forward a bill on the new minimum wage to the National Assembly soon. He assured that the administration would pay what it could afford as the new minimum wage.
• Labour’s Response: The NLC criticized the President’s statement, arguing that political office-holders should also be paid the minimum wage. Labour leaders are awaiting the President’s action on harmonizing the figures proposed by the tripartite committee.

Legislative Process:

• Pending Bill: Senate spokesman Yemi Adaramodu indicated that the minimum wage bill would likely be sent to the National Assembly after the Sallah break. The Senate is expected to resume on July 2.

Government’s Perspective:

• Consultation Required: Idris emphasized the necessity for the President to consult with all stakeholders, including state governors and the OPS, to ensure an informed position before presenting the executive bill to the National Assembly.

Conclusion:

The FEC’s decision to step down the minimum wage memo has caused frustration among labour unions, who fear further delays and economic uncertainty for workers. The NLC has called for a swift and decisive resolution to the minimum wage issue, urging the government to prioritize workers’ welfare in its consultations and legislative actions.