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Labour Rejects Governors’ Bid to Take Over Minimum Wage Negotiations

Organised Labour, including the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), has firmly rejected the proposal from the Southern Governors’ Forum to decentralise minimum wage negotiations to state governments. The NLC denounced the proposal as “unfriendly and anti-worker,” arguing that allowing states to set their own minimum wages would harm workers’ welfare.

Labour Rejects Governors' Bid to Take Over Minimum Wage Negotiations

On Friday, we gathered that the Southern Governors’ Forum advocated for states to negotiate the minimum wage for their workers independently. Following a meeting on Monday at the Ogun State Presidential Lodge in Abeokuta, the forum resolved that wages should reflect the cost of living.

States Should Be Allowed to Negotiate with Workers, Governors Insist

In a communique from the meeting, signed by the forum’s newly-appointed Chairman, Governor Dapo Abiodun of Ogun State, and Vice-Chairman, Prof Charles Soludo of Anambra State, the governors expressed their unanimous agreement that the minimum wage should be reflective of the cost of living and that each state should have the autonomy to negotiate its minimum wage.

Key Attendees of the Meeting:

  • Governor Seyi Makinde of Oyo State
  • Governor Babajide Sanwo-Olu of Lagos State
  • Governor Godwin Obaseki of Edo State
  • Governor Hope Uzodinma of Imo State
  • Governor Abiodun Oyebanji of Ekiti State
  • Governor Duoye Diri of Bayelsa State
  • Governor Ademola Adeleke of Osun State
  • Governor Umo Eno of Akwa Ibom State
  • Governor Siminalayi Fubara of Rivers State
  • Governor Bassey Otu of Cross River State
  • Governor Francis Nwifuru of Ebonyi State
  • Governor Lucky Aiyedatiwa of Ondo State
  • Governor Peter Mbah of Enugu State
  • Governor Sheriff Oborevwori of Delta State
  • Governor Alex Otti of Abia State

Presidency’s Appeal for Patience

On Monday, the Presidency appealed to Nigerians to avoid putting undue pressure on the President, assuring that the Federal Government would present the proposed bill on the new minimum wage to the National Assembly once it was ready. Bayo Onanuga, Special Adviser to the President on Information and Strategy, stated, “People should be patient.”

Labour’s Stand on National Minimum Wage

Despite Organised Labour’s insistence on a N250,000 minimum wage, state governors claimed that even the N62,000 proposed by the Federal Government would drive many states into debt. President Bola Tinubu requested more time for consultation on Wednesday.

In response to the governors’ proposal, Akeem Ambali, National Treasurer of the NLC, emphasized in an interview with Saturday PUNCH that governors lack the authority to negotiate the new minimum wage. He stressed that governors must comply with the national minimum wage law once it is approved.

Ambali’s Remarks on State Compliance

Ambali highlighted the recurring need for strikes to compel the government to meet labour demands. He urged governors to disclose their earnings for negotiation purposes, asserting that the minimum wage is a national issue, not subject to state negotiation. “Governors should prepare their balance sheet and look at how to implement the national minimum wage once it is approved,” he said, criticizing states like Zamfara and Anambra for their non-compliance with the current N30,000 minimum wage.

Ambali urged President Tinubu to recommend the new minimum wage to the National Assembly after consulting with Organised Labour, emphasizing the importance of using realistic data from the Federal Bureau of Statistics to determine living costs.

Critique of Governors’ Pay Structures

Ambali criticized the disparity between governors’ salaries and their reluctance to pay the minimum wage, suggesting a committee debate on governors’ salaries. He noted the influence of some governors on the Organised Private Sector (OPS), who initially stated that no one earned less than N93,000 but later proposed wages below N70,000.

NLC’s Warning Against Dictatorial Tendencies

Benson Upah, NLC spokesperson, condemned the governors’ desire to set their own minimum wages, calling it “dictatorial” and undermining the essence of a national minimum wage. He clarified that the national minimum wage is a baseline to ensure a minimum standard of living for all workers, warning against any unilateral decisions by the governors.

TUC’s Stand and Advice to Workers

Dr. Tommy Etim, Deputy President of the TUC, stated that Organised Labour would not negotiate with governors. He urged the President to caution the governors, stressing that the minimum wage and pensions are constitutional issues. Etim emphasized that only the tripartite committee can negotiate the minimum wage and encouraged workers to remain steadfast.

Expert’s Call for Better Wages

Economist and development expert Aliyu Ilias urged governors to exceed their current stance and implement a higher minimum wage, given the federal subsidies supporting state finances. He called for clarity on the Federation Account Allocation Committee’s role in funding wage increases and stressed the need for collaboration between the government and labour unions to resolve ongoing disagreements.

Ilias concluded, “The tripartite committee needs to work well, and the president should consult more to achieve a better resolution.”

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