The Action Congress of Nigeria and the Congress
for Progressive Change on Wednesday called on the National Assembly to
urgently review the revenue allocation formula to enable state
governments to implement the N18,000 new national minimum wage.
The two parties berated the Peoples Democratic Party- led Federal Government for negotiating the wage on behalf of the states.
ACN, in a statement by its National Publicity Secretary, Alhaji Lai Mohammed, described the minimum wage issue as a time bomb that could shatter the existing industrial peace in the country.
The party, therefore, called for an urgent re-jigging of the revenue allocation formula to bring more money into the coffers of the states.
This, it added, would make it possible for them not only to pay the minimum wage, but also to improve the welfare conditions of their workers.
The ACN said that while long-suffering Nigerian workers deserved even more than N18,000 as minimum wage, “the current unfunded mandate handed over to state governors by the Federal Government in the name of a new minimum wage was the wrong way to go.”
The party explained that the new minimum wage might benefit workers at the higher echelons more than the lower-level ones.
It added that the issue might also distort the wage bill of some states and compelled them to borrow monthly to be able to pay.
The party stated, ‘’Today, the Federal Government takes 52 per cent of the accruing revenue, to a mere 30 per cent for states that are saddled with more responsibilities like paying teachers and health care services.
“This badly skewed allocation formula effectively renders the states impotent in paying the stipulated minimum wage, thereby putting them on a collision course with their workers.”
The ACN added that the “jumbo allocation to the federal lawmakers negated the principle of federalism, which should see the federating units - the states - which are the owners of the revenue keeping a chunk of it and deciding what to give the federal government.”
It called on the federal lawmakers to change the revenue allocation formula by giving the states at least 45 per cent of the nation’s revenue.
The review, according to the ACN, “is the biggest assignment facing the Seventh National Assembly.’’
The ACN also expressed concern at the implications of the situation because many states had publicly stated that they would not be able to pay the new wage.
It said, ‘’States are saying they cannot pay. Workers are agitating for immediate payment, especially as there is a law backing such payment. A stalemate is created.
“Industrial peace and harmony becomes the first casualty once workers down tools. The economy suffers in the long run, and no one benefits at the end. This is why we have termed it a time bomb, which must be defused immediately.’’
The party noted that even some oil producing states which receive double of what their non-oil producing counterparts get , had said that they would not pay the minimum wage.
It added that even the Federal Government that foisted the minimum wage on the states had not paid it.
The ACN insisted that “Nigerian workers who are the creators of the nation’s wealth, deserve the new minimum wage and even more.”
The CPC, through its National Publicity Secretary, Mr. Rotimi Fasakin, attributed the problem over the minimum wage to the country’s “dysfunctional system.”
The party stated during an interview with our correspondent that workers deserved a good minimum wage to improve their lot.
It added, “It still smacks of the level of our development and the maturity of our democratic practice that we still have a Federal Government negotiating wages for states and local governments.
“ What does the Federal Government do? Most of the governance that affects the people takes place at the state and local government levels. We really sympathise with state governments, especially those whose governors have mortgaged the future of their states, like Nasarawa State.”
By Niyi Odebode Courtesy Of: Punch
The two parties berated the Peoples Democratic Party- led Federal Government for negotiating the wage on behalf of the states.
ACN, in a statement by its National Publicity Secretary, Alhaji Lai Mohammed, described the minimum wage issue as a time bomb that could shatter the existing industrial peace in the country.
The party, therefore, called for an urgent re-jigging of the revenue allocation formula to bring more money into the coffers of the states.
This, it added, would make it possible for them not only to pay the minimum wage, but also to improve the welfare conditions of their workers.
The ACN said that while long-suffering Nigerian workers deserved even more than N18,000 as minimum wage, “the current unfunded mandate handed over to state governors by the Federal Government in the name of a new minimum wage was the wrong way to go.”
The party explained that the new minimum wage might benefit workers at the higher echelons more than the lower-level ones.
It added that the issue might also distort the wage bill of some states and compelled them to borrow monthly to be able to pay.
The party stated, ‘’Today, the Federal Government takes 52 per cent of the accruing revenue, to a mere 30 per cent for states that are saddled with more responsibilities like paying teachers and health care services.
“This badly skewed allocation formula effectively renders the states impotent in paying the stipulated minimum wage, thereby putting them on a collision course with their workers.”
The ACN added that the “jumbo allocation to the federal lawmakers negated the principle of federalism, which should see the federating units - the states - which are the owners of the revenue keeping a chunk of it and deciding what to give the federal government.”
It called on the federal lawmakers to change the revenue allocation formula by giving the states at least 45 per cent of the nation’s revenue.
The review, according to the ACN, “is the biggest assignment facing the Seventh National Assembly.’’
The ACN also expressed concern at the implications of the situation because many states had publicly stated that they would not be able to pay the new wage.
It said, ‘’States are saying they cannot pay. Workers are agitating for immediate payment, especially as there is a law backing such payment. A stalemate is created.
“Industrial peace and harmony becomes the first casualty once workers down tools. The economy suffers in the long run, and no one benefits at the end. This is why we have termed it a time bomb, which must be defused immediately.’’
The party noted that even some oil producing states which receive double of what their non-oil producing counterparts get , had said that they would not pay the minimum wage.
It added that even the Federal Government that foisted the minimum wage on the states had not paid it.
The ACN insisted that “Nigerian workers who are the creators of the nation’s wealth, deserve the new minimum wage and even more.”
The CPC, through its National Publicity Secretary, Mr. Rotimi Fasakin, attributed the problem over the minimum wage to the country’s “dysfunctional system.”
The party stated during an interview with our correspondent that workers deserved a good minimum wage to improve their lot.
It added, “It still smacks of the level of our development and the maturity of our democratic practice that we still have a Federal Government negotiating wages for states and local governments.
“ What does the Federal Government do? Most of the governance that affects the people takes place at the state and local government levels. We really sympathise with state governments, especially those whose governors have mortgaged the future of their states, like Nasarawa State.”
By Niyi Odebode Courtesy Of: Punch
No comments:
Post a Comment