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Thursday, June 23, 2011

Minimum wage: Don’t set Nigeria on fire, labour warns govs

Nationwide strike appears imminent as state governors and labour maintained their different positions on the implementation of the N18,000 national minimum wage.
While the governors said on Tuesday night that states, at the moment, lacked the resources to pay the new wage, labour advised them on Wednesday to cut down on the cost of governance in other to overcome the challenge.
The governors, under the aegis of the Nigerian Governors’ Forum, had after their meeting in Abuja, called on the Federal Government to remove the fuel subsidy.
They argued that the over N693bn the Federal Government claims it spends annually on fuel subsidy could be shared to enable states to have more money.
But the Nigeria Labour Congress advised the governors against setting the country on fire by their non-willingness to pay the new wage and the call for an end to fuel subsidy.
To the NLC, subsidy removal was a direct invitation to anarchy similar to the uprising in the Arab world.
The NGF Chairman, Mr. Rotimi Amaechi, who read a statement at the meeting, said that the governors agreed that the amended Minimum Wage Act, which was signed by President Goodluck Jonathan in March, was a valid law.
He, however, added that the NGF had noted that the implementation of the new wage would pose “considerate challenge to a number of states.”
Amaechi said that the governors had mapped out some measures to resolve the challenges facing the implementation of the wage.
According to him, the forum will have a dialogue with labour “in a holistic manner so that they can agree to a common implementation framework.”
The governor, who reiterated the NGF’s call for the review of the revenue allocation formula in favour of states and local governments, had on June 3, lamented that many states were not buoyant to shoulder the responsibility imposed by the new wage.
He said, “There are states that are receiving over N1bn and their salary is about a billion. How will they manage?
“There are states that are receiving N2.5bn and if you have a minimum wage of about N4bn, how will they manage? Where will they get the N1.5bn to augment?
“There must be a solution that allows small money in the hands of state governors so that they can afford to pay this minimum wage.”
Besides calling for a review of revenue allocation formula and “immediate removal of the petroleum subsidy,” Amaechi said the governors had resolved to set up “a committee to determine the financial implications and work out details of implementing the new wage.”
He added that the NGF would “examine the realities this law (the minimum wage Act) had imposed on states and its implications for workers.”
Reacting to the governors call for fuel subsidy removal, the NLC, through its Acting General Secretary, Mr. Owei Lakemfa, said that it was an indirect appeal for an increase in the cost of pump prices across the country.
It said, “It is bait that the Federal Government should not take. There is a lot of problems in the country, our leaders must learn from the protests that have been sweeping through North Africa and the Arab world.
“Our governors must not set the country on fire. We advise them to pay the minimum wage religiously because the implementation date is April 1, so that they do fall into a lot of arrears.
“So the campaign about new revenue allocation formula and the removal of petroleum subsidy are diversions. We have to resist it.”
The body expressed surprise that the governors were calling for fuel subsidy removal at a time “the standard of living of Nigerians has dropped sharply.”
The congress asked, “How can they be making such a call when Nigerians cannot have kerosene to buy?
It added that “it was not in the interest of the country for any group of people to multiply the problems of Nigerians by hiking the prices of petroleum product, which they claim to be withdrawal of subsidy.”
Stating that “the Nigerian system is sufficiently heated up there,” the NLC warned that , “the NGF must not compound the problem by campaigning for the removal of subsidy.”
The NLC President, Mr. Abdulwahid Omar, and his Trade Union Congress counterpart, Mr. Peter Esele, had earlier on Wednesday reacted to Amaechi’s disclosure on Tuesday night that the NGF would engage workers in a dialogue.
They warned in their separate reactions that Nigerian workers would not accept anything less than N18,000 minimum wage.
Reminding the governors that since the new minimum wage had become a law, they stated that the N18,000 agreed by the Federal Government, the organised labour and other stakeholders, was not debatable.
Omar, who addressed the opening session of the National Constitution Review Conference of the Radio Television, Theatre and Arts Workers’ Union conference in Awka, Anambra State, said that states should not claim that they lack the resources to pay the new minimum wage.
What they need to do, he stated, was to cut the excesses in governance so that they could save enough money to pay the wage.
“The current national minimum wage of N18,000 is the law of the land and it was negotiated,” he added.
The NLC President said even though states were free to negotiate with their workers, they must realise that the benchmark remained N18,000 per month.
Omar pointed out that in accepting the minimum wage, labour was conscious of the survival of the national economy.
He said, “Let them call and sit down with the workers so that they can come up with a possible table for salary payment.
“What anybody cannot afford to do is to go below the minimum wage. Give what belongs to us to us and continue with governance.”
Speaking with one of our correspondents on the telephone, Esele urged states not to contemplate debating the N18,000 new wage.
He explained that the payment of the wage should be based on law and not the states’ ability to pay.
Esele, therefore, warned that governors would be encouraging lawlessness if they maintained their position that their states could not pay the new wage.
He expressed surprise that most of the governors were saying that they would not pay the new wage except the Federal Government increased their states’ monthly allocations.
The TUC leader said, “One thing is very clear; the governors, who say they cannot pay the new minimum wage, are encouraging lawlessness. They should know that the minimum wage issue is no longer an issue for debate.
“The issue is now a matter of the law and the most important thing is for them to start thinking of how to pay their workers based on the new wage.”
He said that labour unions in the country were already meeting on the matter and would soon make their resolutions public.
Explaining that governors were voted into power based on the provisions of the law, Esele wondered why they (governors) would not want to obey a law backing the payment of the new wage.
He advised that the issue of paying the minimum wage should not be linked to an increase in revenue allocated to the states.
Esele also called on the states to manage the issue of the new wage well to avoid any problem with labour unions.
“If the governors and governments don’t manage this issue of N18,000 minimum wage well, then they should wait for a maximum damage,” he added.
But the Vice-Chairman of the Nigerian Governor’s Forum, Mr. Peter Obi of Anambra State, who attended the National Constitution Review Conference of the Radio Television, Theatre and Arts Workers’ Union conference, said that states were not against the minimum wage.
Obi said that what the governors were asking for was to negotiate the rest of the wages based on the income that each state was getting.
“Some of the governors saying they cannot pay mean well. But they want a dialogue,” he said.
By Niyi Odebode, Fidelis Soriwei, Sunday Ojeme, Emmanuel Obe and Chukwudi Akasike       
Courtesy Of: Punch

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