Nigeria Labour Congress Stages Walkout Over Minimum Wage Talks with Federal Government

 

The ongoing discussions between the Nigeria Labour Congress (NLC) and the Federal Government on the minimum wage hit a significant impasse yesterday, as organized labour staged a walkout during the third tripartite meeting. The Federal Government's offer of N60,000 was rejected by the NLC, which has lowered its demand from N497,000 to N494,000 for public sector workers.

The resumed talks saw the Federal Government increase its proposed minimum wage from N57,000 to N60,000. However, this offer was deemed unacceptable by the NLC, leading to their dramatic exit from the meeting. The NLC’s latest proposal of N494,000, a slight reduction from their previous demand, remains far apart from the government's offer.

Minister of State for Labour and Employment, Mrs. Nkeiruka Onyejeocha, expressed the Federal Government's commitment to establishing a new minimum wage for workers. She noted that the Labour leaders requested time for further consultation but ultimately did not return to the negotiation table.

"The Federal Government is open to a 100 per cent wage increase for workers," Onyejeocha stated. "However, the Labour leaders absconded from the meeting, and we remain open to resuming talks to reach a fair agreement."

The tripartite committee, tasked with negotiating a new minimum wage, has been engaged in discussions since its inauguration in January. In an attempt to expedite the process, the NLC and the Trade Union Congress (TUC) issued an ultimatum on May Day, demanding that negotiations conclude by the end of the month. This deadline expires on Friday night, putting pressure on both parties to find a resolution and avoid a looming strike by workers.

The urgency of the minimum wage negotiations is underscored by the harsh economic realities facing Nigerian workers. The current minimum wage of N30,000 is widely regarded as insufficient, given the skyrocketing costs of living and inflationary pressures. Key economic indicators illustrate the financial strain on workers:

- Petrol Price: Increased from N238.11 per litre in May 2023 to N1,000.00 per litre today.

- Food Inflation Rate: Rose from 24.82% to 40.54%, a 37.52% increase.

- Exchange Rate: Devalued from $1/N461.76 to $1/N1,900, a 1500% increase.

- Diesel Price: Jumped from N844.28 per litre to N1,700 per litre, an 80% increase.

- Inflation Rate: Climbed from 22.41% to 33.69%, a 31.15% increase.

- Interest Rate (MPR): Hiked from 18% to 26.25%.

These stark economic changes have made it increasingly difficult for workers to sustain themselves and their families on the current minimum wage, necessitating an urgent review.

As the deadline approaches, there is hope that the Federal Government and the NLC will return to the negotiation table with a renewed commitment to reaching a fair and sustainable agreement. The potential strike looms large, and both sides recognize the critical need to avert further disruption to the nation's economy and public services.

The NLC's walkout underscores the deep divisions and challenges in finding a mutually acceptable solution. However, with the clock ticking, the pressure mounts on both parties to act swiftly and decisively. The nation watches closely, anticipating a resolution that will bring relief to workers and stability to the economy.