Labour Seeks Tinubu’s Intervention As FG Warns Of Economic Threat From Strike

The Nigeria Labour Congress (NLC) has declared an indefinite nationwide strike starting Monday, June 3, 2024, following failed negotiations with the Federal Government over a new minimum wage…..CONTINUE READING....KINDLY READ THE FULL STORY HERE▶

Organised Labour has called on President Bola Tinubu to personally intervene to prevent the strike, which has become imminent due to a breakdown in talks last Tuesday. The Federal Government, in conjunction with the Organised Private Sector, raised its wage offer to ₦60,000 from an initial ₦57,000, which Labour dismissed as insufficient.

Sources from the Trade Union Congress and Nigeria Labour Congress conveyed their dissatisfaction, stating that the government’s incremental increase does not meet the promised “living wage” and fails to address the current economic realities faced by Nigerian workers amid rising living costs.

Labour’s revised demand has decreased slightly, from ₦497,000 to ₦494,000, showing their willingness to negotiate. However, NLC President Joe Ajaero expressed disappointment over the failed negotiations, emphasizing that the government’s reluctance to meet their demands has left Labour with no choice but to proceed with the strike to advocate for fair wages.

Minister of State for Labour, Nkeiruka Onyecheoja, labeled the impending strike “unnecessary” and urged Organised Labour to return to the negotiation table. She highlighted the government’s effort to balance worker welfare with economic stability, warning that a higher wage could destabilize the economy.

“The government is still willing to accommodate them, to listen to words of reason and knowledge, and to know that the president is committed to the Nigerian workers and Nigerian citizens, all of us,” Onyecheoja said. She added that the ₦494,000 demanded by Labour is unfeasible, saying, “By the time you do adjustments or anything, that means there won’t be…in short, the government will not breathe anymore.”

Hakeem Ambali, National Treasurer of the Nigeria Labour Congress, called on President Tinubu to personally intervene in the ongoing negotiations. Ambali argued that the government’s offer of ₦60,000 is unreasonable considering the current inflation rate and stressed that the Federal Government had ample time to negotiate a fair minimum wage to prevent the strike.

“For a whole month, we have been going forward and backward between FG and Labour. Labour shows concern and perseverance. You will recall that on May 1, Labour gave an ultimatum that we would embark on strike after the last day of May. Those in government should have done what was needed to avert this. As of today, Labour has taken a decision,” Ambali said.

He emphasized that President Tinubu could avert the strike by showing direct interest in the negotiations. Ambali also countered the argument that doubling the minimum wage from ₦30,000 to ₦60,000 is sufficient, noting that the rate of inflation has dramatically reduced the value of the wage increase.

“If the PMS price was increased by 100 percent, then the 100 percent increment would have been reasonable. What is the percentage ratio? It was ₦165 to ₦700. All the macroeconomic indices pointed to it that the inflation rate had increased dramatically,” Ambali stated. He pointed out that to feed a family of six, a worker needs ₦90,000.

Ambali also disagreed with the notion that Labour’s demand for a higher minimum wage would negatively impact the economy, arguing that it would instead boost the economy by increasing purchasing power and generating more tax revenue.

“If the government shows that they are reasonable, Labour is ready to move. But, the peanut increment is as if we are not serious. Anything lower than six digits may not be reasonable. As an insider in the negotiation, I know that Labour will shift ground, but there must be commitment and seriousness from the government,” Ambali concluded.