Wage Award: Uncertainty over fate of state, LG workers as labour suspends strike

The labor unions called off their statewide indefinite strike on Monday night.

A tripartite conference between the Nigeria Labour Congress (NLC), the Trade Union Congress (TUC), and the Federal Government led to the decision.

According to Infostride News, the action was put on hold for 30 days to give the government time to carry out some of the commitments made in the memorandum of understanding that was signed following the meeting.

State and local government employees, however, make up the vast majority of the civil service workforce, and they don’t appear to have a clear plan either.

You may recall that the administration of President Bola Tinubu removed a fuel subsidy, which sparked a dispute between labor unions and the federal government.

In his inaugural address on May 29th, Tinubu said that the government will no longer subsidize the cost of gasoline.

Unprecedented difficulties and high costs of living as a result of inflation are the policy’s aftereffects.

However, the federal government pledged N5 billion in relief funds for each of the fifty states and the Federal Capital Territory (FCT) as a result of the fallout.

However, organized labor felt the government’s efforts to alleviate the suffering of the masses fell well short of their expectations.

The NLC had previously issued a two-day strike notice. Despite the TUC’s initial withdrawal, a reconciliation between the two organizations led to plans for an indefinite strike regardless of Monday’s meeting’s outcome.

After Monday’s meeting, the strike was called off for a month to give the administration time to implement the commitments made.

Comrade Joe Ajaero, President NLC, Comrade (Engr) Festus Osifo, President TUC, Comrade Emmanuel Ugboaja, General Secretary NLC, and Comrade Nuhu A. Toro, Secretary General, TUC, all signed the agreement of understanding.

H.E. Simon Bako Lalong, the Honorable Minister of Labour and Employment, the Honorable Minister of State for Labour and Employment, Dr. Nkeiruka Onyejeocha, and Mallam Mohammed Idris, the Honorable Minister of Information and National Orientation, represented the government.

Until a new national minimum wage is signed into law, the memorandum states, all Federal Government employees would get a lump sum payment of N35,000 (thirty-five thousand Naira) in September.

In addition, the Federal Government agreed to vote N100 billion for providing high-capacity CNG buses for mass transit in Nigeria, and a minimum wage committee would be established within one month of the agreement’s date. Additionally, the Federal Government agreed to suspend the collection of Value Added Tax (VAT) on Diesel for six months beginning in October 2023.

The Federal Government, through the National Economic Council and Governors Forum, was urged to implement wage awards for State Government employees, with a request that local government and private sector employees be given the same consideration.

Concerns grew on Tuesday as the NLC urged state councils to discuss the need for a wage award and other reliefs for workers in the states of the federation with their respective state governments.

In a letter written by the union’s president, Comrade Joe Ajero, the NLC asked its affiliates to begin talks with their employers on the need to offer salary award and other reliefs to members to mitigate the impact of the recent increase in the price of gasoline.

Ajero admitted that the union’s troubles were not over, as they still faced more struggle that would have significant repercussions.

The union should be paying attention to the Affiliates and State Councils, the statement said.

Congress wishes to express its gratitude to all Affiliates and State Councils for their hard work in organizing their constituents for the indefinite nationwide strike that was scheduled to begin today but was postponed. Your doggedness and dedication allowed us to seal the deal with the federal government late on October 2nd.

While we celebrate with you, we want to stress the importance of the future fight that lies ahead of us and without which our triumph will be incomplete.

“We need to pay close attention to the necessity of taking the following steps:

To help members cope with the impact of the recent increase in the price of gasoline, we are urging all Affiliates to immediately begin discussions with their respective employers on the need to give Wage Award and other reliefs.

Workers in the states of the federation require a Wage Award and other reliefs, and all State Councils should start conversations about this with their respective state governments.

“We want to emphasize Congress’s unwavering dedication to the fulfillment of our common aims, which depends on our mutual determination to liberate our members and fellow Nigerians from the persistent difficulties brought on by the Government’s harmful policies. We have complete control over our own destinies,” the declaration stated in part.

Comrade Barrister Fabian Nwigbo, chairman of the NLC in Enugu State, reacted to the news by expressing concern for the safety of state employees.

In an interview with DAILY POST, he said that some states could have to enter into new negotiations since they can’t afford to pay the N35,000.00 wage award.

Nwigbo expressed disappointment that certain governments have been unable to implement the N30,000.00 minimum wage.

A letter from the national leadership of organized labor to all state councils, with copies to the governors, was proposed.

I share the concern of every chairman of a state council that the federal government’s plan to increase the salaries of federal employees by N35,000.00 may spark another battle.

While they did urge state governments to make sure that workers were paid, as of this writing, 18 of the country’s states had not met the federally mandated minimum wage of N30,000.00.

We got lucky in Enugu State because the previous government got the ball rolling on this right away. We are confident that the current administration will seize the opportunity presented by this governmental endorsement.

However, in the states where you have disagreements with the governors, we worry that new negotiations will soon begin. Therefore, that is the main concern. Some states may opt to pay less than the whole amount. They might try to negotiate a lower price, or they could just pay N25,000 instead of N30,000. Since this is a wage award and not a minimum wage, they are within their rights to choose the rate of pay.

“Even though we have a minimum wage, there are still those who refuse to pay, and the House of Assembly is fine with that. As a violation of the law, it meets one of the criteria for impeachment of a chief executive. However, we have a horrible system.

We’re worried that some states won’t pay their full N35,000.00 or won’t pay at all because of disagreements and will try to reopen negotiations. That’s exactly what we’re worried about.

We anticipate a strong letter from the national leadership of organized labor to all state councils, which will be forwarded to the governors, demanding that they comply with that national directive, failing which they should be prepared for action from all directions.

If a state is denied this opportunity, it should not have to tackle it alone; the federal government should back it up.

In spite of general dissatisfaction, given the state of the economy, it may be prudent to settle for the circumstances. What good is N35,000 to the typical worker if he or she has a family to support of five to ten people?

To me, that sum is insufficient. But some would argue that this is just a stepping stone until next year’s minimum wage is set.

“But when you talk about this, is the minimum wage now N30,000.00 plus N35,000.00 for those that might get lucky?” Since the majority of our economy is directly tied to the price of gasoline, you may eventually see prices in the range of N600.00 to N700.00. The pay award, however, is preferable to none at all.

Humphery Nwafor, chairman of the NLC in Anambra State, said that everyone from the federal government to individual states was required to participate in the labor agreement.

After meeting with the Governors’ Forum and the Economic Council, Nwafor assured the media that the NLC at the center would be involved in the fight, despite its difficulty.

The problem is that several of us from the state asked questions at yesterday’s meeting of our national executive council,” he explained. The reply was that the upcoming negotiation will serve as a standard. From there, everyone from governments to businesses will take note. The minimum amount that any state is expected to pay is N35,000.

In light of the next meeting between the NLC’s national secretariat and the Governors’ Forum and Economic Council, we can expect the following: “You know, it is not going to be easy, but the national secretariat of the NLC is going to be part of the struggle when we begin to engage our various state governments. Communication between the state council and the governors will soon commence.

A few of the governors have already made statements, so keep that in mind. They have handed out cash prizes totaling around N10,000. We have N12,000, just as in Anambra State. The discrepancies should serve as the basis for whatever discussion is appropriate.

It’s not as if municipal and state governments were left out of the pact. You can observe that the’states are urged’ language is located in point number 10. That makes us a part of it.

You know that early next year, the minimum wage will be up for review. It was a topic of conversation during our conference. So, I think it’s clear that the minimum wage is included in that MoU as well. Within a month, a committee will be established to examine the minimum wage.

This N35,000.00 increase in pay for federal employees effective today will remain in effect until the new minimum wage is enacted. It’s going to be a part of how we interact with our administration starting in September, as our term is also four months long, like Anambra State’s.

Initial payment received; remaining due dates are in the months of October, November, and December. Despite the government’s assurances, a review will be conducted after three months. This labor agreement, however, will remain in effect until a new minimum wage law is enacted.

We won’t be returning to the old system, I don’t think; perhaps after some discussion, states will renew their conflict. Now that we have new leadership, we should expect to see fresh ideas implemented.

If I’m right, the national leadership of organized labor will be able to observe how the governors are incorporated into the upcoming state-level negotiations. Joe Ajaero’s administration and leadership have something to give, even if they haven’t said so.

Comrade Odion Olaye, chairman of the NLC chapter in Edo State, also addressed the media, saying that he approved of the deal labor had made with the federal government.

Olaye stated that his state’s governor was holding out for federal assistance.

I’m good with this,” he declared. Yesterday, we spent over three hours in a Zoom conference before the president was called away to speak with Congress. Since we were content overall, we had them sign off on it.

“I can’t speak for any other countries. I can only speak for the state I live in, and I know the governor is waiting to see what the federal government does before making any decisions.

Also voicing concern was Mr. Wale Oyerinde, Director-General of the Nigeria Employers Consultative Association (NECA), who said that the difficulty lay in the reaction of state and local governments to the deal struck by labor with the federal government.

On Tuesday, Oyerinde appeared on the Channels Television show Sunrise Daily and made his remarks.

He said that in the midst of the economic slump, the private sector had demonstrated the way forward, the direction to take, and the creativity to implement in order to support employees generally.

It’s disappointing that labor didn’t deem it necessary to congratulate the private sector for the part it’s performed, the NECA DG stated.

In his August radio address, the president acknowledged the business sector’s role in spearheading programs. Since the president’s announcement in July to eliminate subsidies and the subsequent impact on rising living costs, the private sector has seized the initiative.

“In order to help their employees, private sector companies have increased or restructured pay, boosted benefits, and introduced new programs. A new type of office layout has been proposed by several.

The business world is now at the forefront. We have set the standard for how to best support employees across the board, both in terms of direction and new approaches.

How individual states and municipalities react will be a major challenge. We also anticipate a positive reaction from them.