Wage Award: As labour suspends its strike state and LG employees futures are uncertain

The statewide, indefinite strike that organised labour had planned was called off on Monday night.

The Federal Government, the Trade Union Congress, and the Nigeria Labour Congress, or NLC, met in a triangular setting to reach a resolution.

According to OBASANJO NEWS24, the action was put on hold for 30 days to give the administration time to fulfil some of the commitments it made in a memorandum of understanding that was signed following the meeting.

The majority of the civil service, which consists of state and municipal government employees, does not appear to have a clear plan in place.

Recall that the withdrawal of the fuel subsidy by the President Bola Tinubu administration sparked a long-running disagreement between the federal government and the labour unions.

In his inaugural address on May 29, Tinubu proclaimed the end of gasoline subsidies.

Untold hardships and a high cost of living caused on by higher inflation have followed the strategy.

The Federal Government did, however, declare a N5 billion palliative to each state of the nation, including the Federal Capital Territory (FCT), in response to the aftereffect.

However, the organised labour thought that the palliatives fell well short of what they had expected from the government in terms of easing the suffering of the populace.

The NLC had earlier staged a two-day warning strike. Both parties later came together despite the TUC’s decision to abstain from the strike, which was scheduled to go indefinitely.

Following the Monday meeting, the strike was ultimately postponed for one month to give the government time to put the agreements agreed into effect.

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.

Simon Bako Lalong, the honourable minister of labour and employment, Dr. Nkeiruka Onyejeocha, the honourable minister of state for labour and employment, and Mallam Mohammed Idris, the honourable minister of information and national orientation, were all on the government’s side.

In accordance with the memo, the Federal Government would start paying all Federal Government employees a wage award of N35,000 (thirty-five thousand Naira) in September, pending when the government approves a new national minimum wage.

A minimum wage committee would also be established within a month of the agreement’s signing; the Federal Government would suspend the collection of Value Added Tax (VAT) on Diesel for a period of six months starting in October 2023; and, among other things, the Federal Government agreed to vote N100 billion towards the purchase of high-capacity CNG buses for Nigeria’s mass transit system.

However, the memo only recommended that the federal government should ask state governments to implement wage awards for their employees through the National Economic Council and Governors Forum, requesting that local government and private sector employees also receive the same consideration.

As the NLC encouraged the State Councils to begin discussions with respective State Governments on the necessity of pay awards and other reliefs to workers in the states of the federation, the concern increased on Tuesday.

In a letter written by Comrade Joe Ajero, the union’s president, asked NLC affiliates to start talks with their employers right now on the necessity of providing salary awards and other reliefs to members to lessen the impact of the increase in gas prices.

Ajero admitted that the union’s difficulties were not yet over because they still have other obstacles to overcome before their win can be considered complete.

The statement stated that the union’s attention should be directed towards the Affiliates and State Councils while acknowledging their efforts.

“Congress wants to express its gratitude to all of our Affiliates and State Councils for their significant contributions in organising their people in support of our proposed indefinite nationwide strike, which would have started today. Your perseverance and dedication made it possible to sign the Agreement with the federal government late on October 2nd.

While congratulating you everyone, we would like to remind you of the ongoing battle that must be won in order for our victory to be fully realised.

“The following actions must be started, on which our attention should be concentrated:

“All Affiliates are required to start talks with their employers right now on the necessity of providing wage awards and other reliefs to members to lessen the impact of the increase in the price of petrol.

The necessity for wage awards and other reliefs for workers in the states of the federation must be discussed by all State Councils with respective State Governments.

“We want to emphasise Congress’s unwavering commitment to the achievement of our common goals, which depends on our shared determination to release our members and fellow Nigerians from the ongoing hardships brought on by bad government policies. The sentence partially stated, “The trajectory of our destinies lays solidly within our control.

In response to the incident, Comrade Barrister Fabian Nwigbo, the chairman of the NLC in Enugu State, voiced concern for the destiny of state employees.

He said in an interview with OBASANJO NEWS24 that certain states would enter a new round of negotiations because they might not be able to afford to pay the N35,000.00 wage award.

Nwigbo bemoaned the fact that after its implementation, several states have been unable to pay the N30,000.00 minimum wage.

He recommended that the governors get a letter from the state councils that was aggressively worded and sent to the national leadership of organised labour.

“My concern is that another fight would start because the federal government decided to increase the wage award for federal employees by N35,000.00, just like every other chairman of the state council.

Despite their encouragement for state governments to make sure that they pay, up to 18 states in the nation are now not in compliance with the N30,000.00 minimum wage.

“We are fortunate that the previous administration in Enugu State got it going right away. We have a strong conviction that the current administration will seize on this federal government approval without hesitation.

But we worry that new negotiations may begin in the states where you have disagreements with the governors. So, the main concern is that. And some states might elect not to cover everything. They might get into negotiations or have the money to pay N25,000, N30,000, and so on. This is a wage award, not a minimum wage, therefore they have the legal ability to set the amount they will pay.

“Some refused to pay even when there was a minimum wage, and the House of Assembly permitted them. One of the requirements for a chief executive to be impeached is that there must have been a legal violation. However, our system is awful.

“We worry that some States would try to resume negotiations and try to avoid paying the full N35,000.00 or even not pay at all out of dissatisfaction. That’s what we fear.

“We anticipate a stern letter from the national leadership of organised labour to all the state councils, which will be forwarded to the governors, instructing them to make sure they adhere to that national directive; otherwise, they should be prepared for action that will come from all directions.

The national body should back any state that would be denied such a chance. “It won’t be the state alone.

“Generally, one might not be completely satisfied, but given the state of the economy right now, we might say, “Let’s take what we’ve got. If not, how much does N35,000.00 represent to a typical worker—who should have between five and ten dependents—in that case?

“That sum of money is insufficient for me. However, one can argue that we should utilise it as a test case and wait to see how the minimum wage develops the following year.

“But when you talk about this, is the minimum wage now N30,000.00 + N35,000.00 for those who might be fortunate enough to obtain it? You can reach a point when petrol is sold for N600 to N70 per litre, and as you are aware, the majority of our economy is based on the price of fuel. But the salary award is still preferable to nothing.

Humphery Nwafor, chairman of the Anambra State NLC, said that all states and even the private sector were required to support the labour deal signed with the federal government.

The NLC at the centre would participate in the struggle when the states start dealing with their separate governments after meeting with the Governors’ Forum and the Economic Council, according to Nwafor, who also told OBASANJO NEWS that it will not be simple.

“The problem is that those of us from the state asked questions yesterday during our national executive council meeting,” he remarked. The reply was that the discussion would serve as a standard. From there, all the states and even the private sector will connect. Furthermore, no state is required to provide less than N35,000.

It won’t be simple, but the National Secretariat of the NLC will participate in the struggle once we start working with our various state governments following their meeting with the Governors’ Forum and the Economic Council. With the governors, the state council will start conversing.

“You should be aware that certain governors have issued statements. Some N10,000 in cash awards have been distributed. We have N12,000,000, just like Anambra State. Everything we should discuss should be based on the differences.

It’s not like the state and municipal governments weren’t covered by the deal. You can observe that they stated that the “states are urged” under item number 10. Thus, we are involved in it.

“You are aware that the minimum wage will be up for review early in the next year. It is a topic that was covered throughout our meeting. I think you can see that the minimum wage is included in that MoU as well. Within a month, a committee will be established to examine the minimum wage.

And the N35,000.00 that has been given to federal employees as of today will remain in effect till the new minimum wage is enacted into law. It is a component of how we would interact with our government because, as you may know, just like Anambra State, ours will last for four months beginning in September.

“October, November, and December are the remaining payments; the first payment has been made. Despite what the government stated, a review will be conducted in three months. However, as agreed upon with the labour, this arrangement will continue until a new minimum wage is enacted into law.

“I don’t think we’ll have that old system; perhaps after negotiations, states will turn around and resume their conflict. Because we have new leadership, we will have a new invention.

“I think that the national leadership of organised labour will see how the governors are incorporated into whatever negotiations we do at the state level. The leadership and administration of Joe Ajaero have something to give, even though they haven’t explicitly stated it.

Comrade Odion Olaye, the NLC chapter chairman for Edo State, expressed his satisfaction with the labour deal with the federal government in a statement to OBASANJO NEWS24.

Olaye claimed that the governor of his state was awaiting any proposals from the federal government.

I’m satisfied,” he declared. Before Congress urged the president to go and meet with the federal government, we were in a Zoom meeting for over three hours yesterday. We requested them to go sign since we are completely satisfied, so they did.

“I am unable to speak for other states. I can only speak for my state, and I’m aware that the governor of that state is also anticipating what the federal government will do,” he said.

While also expressing concern, Mr. Wale Oyerinde, Director-General of the Nigeria Employers Consultative Association (NECA), stated that the difficulty lay in how the states and local governments will react to the deal labour struck with the federal government.

On Tuesday, Oyerinde spoke while appearing on the Sunrise Daily programme on Channels Television.

He remarked that the private sector had demonstrated leadership, creativity, and a clear path for supporting all employees in spite of the nation’s economic slump.

“It is unfortunate for us in the private sector that labour didn’t feel it necessary to commend the private sector for the role it has played,” the NECA DG added.

“The president even mentioned the private sector’s part in taking the initiative in his broadcast from August. The private sector has truly seized the bull by the horns since July, right when the president announced the elimination of subsidies and the resultant consequence of the increase in the cost of living.

Private sector firms have created several programmes to help their employees, including raising or adjusting pay, increasing or reducing allowances, and raising or reducing wages. Some have developed a fresh design for a workspace.

The private sector is now in charge. We have paved the road, pointed the way, and introduced new ideas in terms of helping workers everywhere.

It will be difficult to predict how the states and municipal governments would react. We also anticipate that they will react properly.