FG’s refusal to establish minimum wage panel draws criticism from Labour

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The country’s labour unions are gearing up for a potential clash with the federal and state governments due to the lack of progress on a new minimum wage for public sector workers. Industrial crisis has not been ruled out.

Their unease follows Federal Government’s failure to form a committee to negotiate the new minimum wage by appointing its representatives. The labour unions have expressed their readiness to commence talks as their negotiators are on standby.

Workers have been grappling with the soaring prices of goods and services following the removal of fuel subsidy by the Federal Government, leading to inflation and a steep rise in the cost of living, which has significantly reduced their purchasing power and made their monthly wages insufficient to meet their basic needs.

For instance, in June 2023, workers and some labour leaders demanded an increase in the minimum wage from N30,000 to N250,000, with subsequent adjustment to N200,000 monthly.

A few weeks after assuming office, President Asiwaju Bola Tinubu emphasized that enhancing the livelihood of Nigerians remained a top priority of his administration and assured Nigerian workers of the need for a review of the national minimum wage to reflect current realities.

However, Nigerian workers have continued to bear the burden of escalating inflation. The minimum wage was revised from N18,000 to N30,000 on April 18, 2019, after extensive negotiations.

Representatives of the Organised Labour indicated that they had appointed representatives to join the Federal Government representative on the National Minimum Wage Review Committee.
The Trade Union Congress has threatened to embark on industrial action if the government continues to disregard the issue. The Deputy President of the TUC, Tommy Etuk, stressed the necessity for the wage review committee to be established promptly since the country was scheduled to have a new minimum wage by April 2024.

He emphasized the importance of engaging in negotiations on time to address potential areas of agreement or disagreement and align with the principles of collective bargaining. Etuk also urged the government to inaugurate the National Minimum Wage Committee to oversee the modalities across the board.

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