Labour and minimum wage

Since the worker’s day celebration on May 1, the campaign for the immediate review of the National Minimum Wage has gained currency. But the problem isn’t new. We recall that last year, the Nigerian Labour Congress threatened to embark on a nation-wide strike in May 2017 if the federal government does not begin the implementation of the N56, 000 new national minimum wage it proposed. At that occasion, the NLC President, Ayuba Wabba made the case for the review of the minimum wage: “The issue is so sensitive because of the fact that a lot of our members have actually been subjected to a lot of difficulties because the purchasing power of ordinary Nigerian workers has been reduced to virtually nothing because of the inflation in the system, the free fall of the naira and to compound it with high cost of goods and services.” “More so, most workers now cannot meet up with their daily needs, they can’t pay their rents, they can’t send their children to school.” “It is even more compounded because cost of goods and services has gone up. So, side by side with the issue of fighting corruption is also for workers to be paid a decent wage that they can be able to have a meaningful living…

However, while the NLC is fighting for the review of the minimum wage, it has yet to solve a more critical problem, which is the regular payment of salaries of workers. At the recent May Day celebration, Mr Wabba touched at the heart of the issue:

“We have had continuing crisis of non-payment of wages, allowances and pensions almost across board. Even with two bailouts by the federal government and Paris Club loan refunds to states, as at this May Day, about 12 state governments still owe their civil servants several months of unpaid wages, pensions and gratuity.”

He regretted that the debtor states had deliberately sought not to prioritise payment of workers’ salaries and entitlements, adding that reports at the NLC’s disposal indicated that part of the problems of states was their debt burden.

True, we agree with Wabba that the review of the minimum wage is long overdue. What is more, inflation has eroded the value of the naira since and the minimum wage cannot even buy a bag of rice in present day Nigeria.

But as much as the issue of review of the minimum wage is, we think the NLC is just chasing shadows because it is obvious to the NLC that as presently constituted, the Nigerian federation cannot afford to pay to proposed new minimum wage.

At a time over 30 states of the federation are unable to pay even the meagre N18, 000 minimum wage and now have to depend almost exclusively on bailouts to pay the little they now pay, it is wishful thinking that they will be able to pay a far higher minimum wage of N56, 000.

But it appears the goal of the NLC is just to make noise and remain relevant and not to ensure a vibrant and productive federation that can take care of the salary obligations of its workers. Pray, even if the NLC succeeds in getting the government to promulgate the proposed minimum wage, how does it hope to ensure that both the federal, states and local governments pay the salaries if it is unable to pressure them to pay the N18, 000 now?

We feel the NLC is just chasing shadows. If it must face the truth, it must realize that the present federal arrangement is unworkable and unsustainable and as long as the price of oil remains low, states will continue to find it difficult to fulfil their obligations including payment of workers’ salaries.

It is also clear to all that the current workforces of most states are over bloated and inefficient. Attempts by state governments to reduce their workforces have been met with stiff opposition by the NLC and the organised labour movement.

It is our considered view that the NLC and other labour and trade unions should join hands with those calling for the restructuring of the Nigerian federation along fiscally viable lines such that states will be financially and economically viable enough to maintain and pay its workforce without recourse to the federal allocation. Only a viable federation can ensure fiscally strong and stable states.

Editorial