Strike: Labour Seeks Tinubu’s Intervention As FG Says Economy Under Threat

The Nigeria Labour Congress (NLC) has declared an indefinite nationwide strike starting Monday, June 3, 2024, following the breakdown of negotiations over the new minimum wage with the Federal Government.

This development comes after Organised Labour urged President Bola Tinubu to personally intervene in the negotiations to avert the strike.

Talks between the government and Organised Labour stalled last Tuesday when the Federal Government and the Organised Private Sector raised their wage offer to ₦60,000, up from an initial ₦57,000, which Labour dismissed as inadequate.

According to several sources from the Trade Union Congress and Nigeria Labour Congress who spoke with Punch, the government’s incremental increase is seen as insufficient and does not reflect a “living wage” as promised by President Tinubu during his campaign and on Workers’ Day.

Labour’s insistence on a more substantial increase is grounded in the belief that the current offer does not meet the economic realities faced by Nigerian workers, particularly in the face of escalating living costs.

The unions have indicated that anything less than a six-digit offer would not be considered adequate, revising their initial demand down by ₦3,000 from ₦497,000 to ₦494,000, in a gesture that underscores their willingness to negotiate.

The President of the NLC, Joe Ajaero, expressed disappointment over the failed negotiations, stating that the government’s reluctance to meet their revised demands has forced labour into a position where a strike appears to be the only viable option to press for fair wages.

On the other side, the Minister of State for Labour, Nkeiruka Onyecheoja, in a telephone interview with the platform, called the impending strike “unnecessary” and appealed to Organised Labour to return to the negotiation table.

She emphasized the government’s stance that the proposed ₦60,000 minimum wage was a significant effort to balance worker welfare with economic stability, warning that a higher wage could destabilize the economy.

She said, “The government is still willing to accommodate them, to listen to words of reason and knowledge, and to know that the president is committed to the Nigerian workers and Nigerian citizens, all of us.”

Speaking on the ₦494,000 set by Labour, the minister noted that the government won’t be able to breathe.

She said, “By the time you do adjustments or anything, that means there won’t be…in short, the government will not breathe anymore.

“The government’s position is that the strike is unnecessary. If you say people are hungry, we know that people are hungry and that’s why we can increase the minimum wage, even when it’s not convenient.”

However, speaking with Sunday Punch, the National Treasurer of the Nigeria Labour Congress, Hakeem Ambali, urged Tinubu to personally intervene in the ongoing minimum wage negotiation by calling all parties to a parley to avert the strike.

Ambali insisted that the government’s offer of ₦60,000 was unreasonable, considering the current rate of inflation.

Ambali insisted that the Federal Government had a duty to avert the strike, adding that the government had a whole month to negotiate a reasonable minimum wage with labour to prevent industrial action.

He said, “For a whole month, we have been going forward and backward between FG and Labour. Labour shows concern and perseverance. You will recall that on May 1, Labour gave an ultimatum that we would embark on strike after the last day of May. Those in government should have done what was needed to avert this. As of today, labour has taken a decision.”

Ambali, however, noted that President Tinubu could avert the strike if he personally intervened in the negotiation with Organised Labour.

He said, “Within 24 hours, the FG and Mr President can avert the strike if he (Tinubu) shows direct interest. He has the final say. The buck stops at his table.”

He also disagreed with the argument that the FG had done enough by doubling the minimum wage from N30,000 to N60,000, noting that the rate of inflation was much higher than the announced increament.

He said, “If the PMS price was increased by 100 per cent, then the 100 per cent increment would have been reasonable. What is the percentage ratio? It was ₦165 to ₦700. All the macroeconomic indices pointed to it that the inflation rate had increased dramatically. For Nigerian workers to be able to cope with this inflationary trend, something reasonable should have been done. When you look at 2019 when that ₦30,000 (minimum wage) was agreed upon; you will agree that it was looking good with the dollar equivalent then. What is the dollar equivalent of this ₦60,000 now? Is it not $45 or so?

“If you look at that, you will realise that the government still has the obligation to give a reasonable wage to workers. From our calculations, to feed a family of six, a worker needs ₦90,000. So, what are they saying? The government should show understanding. A well paid worker is an asset to national growth and development.”

Ambali also disagreed that labour’s demand for a higher minimum wage would negatively affect the economy, stressing that it would have a positive impact.

He said, “Once workers are well paid, the purchasing power will increase. All the local manufacturing companies, the SMEs, and patronage will increase, and that will grow the economy. The government will also generate huge amounts of taxes from the workers.

“If the government shows that they are reasonable, Labour is ready to move. But, the peanut increment is as if we are not serious. Anything lower than six digits may not be reasonable. As an insider in the negotiation, I know that Labour will shift ground, but there must be commitment and seriousness from the government.”