A Nigerian has analysed the demand of organized labour for N494,000 minimum wage as outrageous and unhelpful.
Dr Charles Omole, a strategist, retired United Kingdom Judge and a good govt advocate, who on X made the analysis titled: Minimum wage and Organized labour, said asking for over 1000% increase in minimum wage is bad economics in many ways.
Speaking during the Workers’ Day Celebration in Abuja, Joe Ajaero, president of NLC, said labour will not guarantee industrial harmony of the country if a new minimum wage is not announced before May 31.
The labour had initially demanded a ₦615,000 minimum wage but reduced it twice now at ₦494,000, while the Federal Government and the organised private sector had initially proposed ₦48,000 and ₦54,000, now at N60,000 which were also rejected by the workers’ union.
It was reported that the labour said that the new proposal of the government does not tally with the nation’s economic realities with Nigeria’s inflation rate of 33.69% as of April 2024 based on data from the National Bureau of Statistics (NBS).
The last meeting held with the Federal government ended in a deadlock, following Labour’s rejection of the new N60,000 minimum wage offer by the government.
This will be the fourth proposal the organized labour have rejected in two months since the discussion on minimum wage began, Labour is currently demanding N494,000 as minimum wage.
Dr Charles Omole in his reaction said the organized labour basis for their demand is not good economics. “Listing average cost of transportation; food etc and coming to a figure is not the way to calculate minimum wage”, he said.
According to Dr Charles Omole, “Firstly; prices go up and down all the time. So will the wages awarded be reduced if there is a sudden crash in prices of goods and services?
“Secondly; Minimum wage is not supposed to meet all your needs. It doesn’t anywhere in the world. If you can meet most of your needs with minimum wage; what is the incentive to get education and earn much more than minimum wage”.
He added, “A minimum wage of over 400k will also mean similar increment for all wage levels above the minimum as well. So a director who earns 300k at the moment will now need to be paid over 1million per month.
“As the minimum go up; all levels get increases as well. Also, many in public service earn more than the basic salary. There is all manner of allowances and awards that is also paid.
“Increase in minimum wage is not just increase for the lowest paid staff. All staff (including the Permanent Secretary) will also get an increase. This outrageous demand by Labour will bankrupt any economy and the government must resist their blackmail.
“In saner climates; you don’t see labour going on strike over minimum wage. The govt simply announces the percentage increases in minimum wage without much organised protest. The misuse of strike actions by the NLC and TUC has become damaging to the collective bargaining in this country”, Dr Omole said.
He asked the government to stand firm with the 100% increase in minimum wage it has offered, adding that anything more will just be playing to the gallery. “Some states have not been able to pay the current 30k up until now. How do you expect them to pay 60k much less over 400k.
“Minimum wage is not meant to be able to meet all your needs. Otherwise, what’s the need to advance and progress if I can meet most of my needs on minimum wage. It’s merely a starting point from which to advance and move up in the job market.
“The organised labour need to stop playing politics and being recalcitrant. The govt must stand firm and workers need to resist this needless strike called by labour in their name. There are many tools the government can use to stop this nonsense and I am sure they will do the needful. Enough is enough”.
Meanwhile, the leadership of the organized labour has said the nationwide strike will go on after meeting with the Executive arm of the Federal Government and the leaders of the National Assembly on Sunday in view of the planned nationwide industrial action.
“We don’t have the right to call off the industrial action approved by our Organs . Thus, The action will continue while we will have a meeting with our Organs to relate to them your proposals, labour tells the Leadership Of the National Assembly.
