The Nigerian Labour Congress said on Tuesday that the N200,000 minimum wage it earlier proposed to the Federal Government was no longer realistic, considering the country’s current economic situation.
The congress, which spoke through its National Vice President, Tommy Etim, was reacting to Tuesday’s inauguration of the Minimum Wage Committee by Vice President Kashim Shettima.
Etim, in an exclusive interview with The PUNCH on Tuesday, emphasised that the congress would base its national minimum wage negotiation on the current economic reality rather than what it earlier proposed.
He said, “You are aware that when we opted for the N200,000, the socio-economic challenges were not as biting as they are now. And when you now look at the exchange rate, it was not what it is now. The naira rate not been devalued as it is now. So, N200,000 is no longer tenable”
When asked whether there was a minimum figure the congress would take along to the committee, Etim said, “We are not going there with a fixed amount, but definitely not N200,000. By the time we get there, we will decide based on the socio-economic situation. That’s what we are going to base our national minimum wage discussion and negotiation on.”
The Federal Government had earlier charged the 37-man wage committee to hasten its deliberations and submit its recommendations promptly while directing the Ministry of Finance to ensure its adequate funding and calling for collective bargaining in good faith, emphasising contract adherence even as he urged committee members to consult outside their ranks.
With its membership cutting across federal and state governments, the private sector, and the organised labour, the panel is to recommend a new national minimum wage for the country.
To guarantee sustainability in all tiers of government, President Bola Tinubu said the committee must pay attention to the ability of all parties to pay the new wage, just as he asked the committee members to ensure the timely completion of their assignment.
Tinubu, represented by the Vice President, said this when he inaugurated the tripartite committee on the national minimum wage at the Council Chamber of the State House in Abuja.
“The committee is anticipated to conclude its deliberations promptly and submit its report and recommendations.
“This timely submission is crucial to initiate the necessary processes for implementing a new National Minimum Wage.
“The Honourable Minister of Finance and Coordinating Minister of the Economy has been instructed to allocate the essential funds and logistics to the Committee, facilitating the timely completion of its assigned task. I hereby inaugurate the Tripartite Committee on National Minimum Wage and extend my best wishes for fruitful deliberations,” declared the President.
Tuesday’s inauguration follows months of agitation from organised labour who expressed concerns over the FG’s failure to inaugurate the new national minimum wage committee as promised during negotiations last October.
In May 2017, the House of Representatives moved to amend the National Minimum Wage Act for a compulsory review of workers’ remuneration every five years.
Consequently, the Minimum Wage Act 2019, signed by former President Muhammadu Buhari, empowers the committee to deliberate and present an agreed wage to be ratified by the National Assembly after due legislative scrutiny.
Buhari also signed the Minimum Wage Act that approved N30,000 for federal and state workers in the same year. However, Tinubu announced the discontinuance of fuel subsidies on May 29, 2023, which triggered a sharp rise in the general cost of living.
Although the administration approved an additional N35,000 wage award for six months (starting September 2023) to alleviate the impact of the subsidy removal, the organised labour maintained that this was only a provisional solution and called for a complete review of the minimum wage in 2024.
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