Condemns labour’s decision to tie strike to electricity hike
By our correspondent
The Federal Government has clarified its stance on the ongoing minimum wage negotiations, explaining why Labour’s demands are unrealistic.
This was contained in a statement signed by members of the Tripartite Committee on Minimum Wage, stating that the government’s offer is based on economic considerations and non-monetary incentives, including a N35,000 wage award for federal workers, CNG-fuelled bus procurement, and financial inclusion for MSMEs.
The organised labour yesterday declared an indefinite strike that would commence on Sunday night after staging a walk-out from the negotiations meeting with the federal government, refusing to budge from their stance.
At the May 28, 2024, tripartite meeting, employers offered a 100% increase to N60,000 per month, while Labour insisted on N494,000, a 1,547% increase.
The government however, defended its offer, highlighting various investments in agriculture, manufacturing, education, and healthcare.
The meeting agreed that any new minimum wage should not trigger further massive job losses, and that linking the strike to electricity hikes was unfair.
The government’s context provides a clear understanding of the negotiations, expressing its commitment to a realistic and sustainable minimum wage that balances workers’ needs with the country’s economic realities.
The statement reads: “At the last meeting of Tuesday, 28th May, 2024, all tripartite partners were invited to make their offers. Employers made up of Government side and Organised Private Sector made offers of N60,000.00 per month which is 100% increase on the existing National Minimum Wage of 2019. On their part, the Organised Labour made an offer, of N494,000 per month which is an increase of 1,547% on the existing National Minimum Wage of 2019.
“During the course of the meeting organised labour left the meeting to continue further consultations before they shift grounds again. These decisions were arrived at the meeting with full attendance including the personal attendance of the Hon. Minister of Finance & Coordinating Minister of the Economy, Hon. Minister of Budget and National Planning as well as Hon. Minister of Labour & Employment. The meeting was later adjourned to Monday, 3rd June 2024.
“However, after the Chairman reached out to Organised Labour and they agreed to hold the meeting on Friday, 31st May 2024 and notices were sent to all members. At the meeting Organised Labour when called upon to make their concession, or new offers outside of the last N494,000 per month when requested, insisted on the employers to first shift grounds. Both sides stated that their offers of N60,000.00 per month, which is 100% increase on the existing National Minimum Wage of 2019, were based on prevailing economic considerations and governments non-monetary incentives.
“Thereafter organised labour walked out of the meeting. During the continuation of the meeting the Government further defended their offer of N60,000.00 per month, was based on economic considerations and non-monetary incentives which include the following:
“N35,000 wage award for all treasury-paid Federal workers.
100 billion naira for the procurement of CNG-fuelled busses and CNG conversion kits.
125-billion-naira conditional grant and financial inclusion to MSMEs.
N25,000 each to be shared to 15 million households for 3 months.
185 billion palliatives (loans to States) to cushion the effects of fuel subsidy removal.
“200 billion naira to support the cultivation of hectares of land to boost food production.
75 billion naira to strengthen the manufacturing sector.
1 trillion naira for student loans for higher education.
“Release of 42,000 metric tons of grains from strategic reserves.
Purchase and onward distribution of 60,000 metric tons of Rice from the rice millers association.
Recent salary increase of 25-35 per cent on all consolidated Salary structures for federal workers.
90% subsidy on health costs for Federal Civil Servants registered on NHIS.
“Light rail commissioned in Abuja to relieve transportation cost till the end of the year. Lagos State had already commence same initiative with their Blue and Red lines.
In addition to the freedom of Civil Servants to engage in agriculture, Federal Government has approved the inclusion of ICT services for alternate sources of income.
“In conclusion, the meeting agreed that even where major and small businesses are closing down with consequent loss of jobs, the outcome of a new National Minimum Wage should be such that it will not trigger further massive job losses. It further noted that linking the strike to electricity hikes with the NMW determination was not fair to the negotiating parties.
