Labour shifts ground on N1m minimum wage as panel meets Monday

Labour shifts ground on N1m minimum wage as panel meets Monday

PUNCH

Indications have emerged that the organised labour is prepared to lower its demand for N1m minimum wage for workers in the country in line with realities on the ground. The shift in position will likely be communicated to the Federal Government during the second meeting of the tripartite committee on the minimum wage on Monday and Tuesday.

Sunday PUNCH gathered that the meeting would enhance deliberations between all parties involved in negotiations to allow for the announcement of a new minimum wage on or before April 1 following the expiration of the current N30,000 minimum wage as provided by the law.

President Bola Tinubu, through his deputy, Kashim Shettima, had on January 30, 2024, inaugurated a 37-member panel on the new minimum wage at the Council Chamber of the State House in Abuja.

With its membership cutting across the federal and state governments, the private sector, and organised labour, the panel is to recommend a new national minimum wage for the country.

In his opening address at the inauguration, Shettima urged members to “speedily” arrive at a resolution and submit a report early as the current N30,000 minimum wage expires at the end of next month.

“The timely submission (of the report) is crucial to ensure the emergence of a new minimum wage,” Shettima said.

He also urged good faith in collective bargaining, emphasising contract adherence and encouraging consultations outside the committee.

In May 2017, the House of Representatives moved to amend the National Minimum Wage Act for a compulsory review of workers’ remuneration every five years.

The Minimum Wage Act of 2019 signed by former President Muhammadu Buhari empowers the committee to deliberate and come up with an agreed wage, which will be eventually ratified by the National Assembly after due legislative scrutiny.

Buhari had also signed the Minimum Wage Act that approved N30,000 for both federal and state workers in the same year.

However, President Bola Tinubu announced the discontinuance of fuel subsidy on May 29, 2023, which triggered a sharp rise in the general cost of living.

Although the administration approved an additional N35,000 wage award for six months starting from September 2023 to alleviate the impact of the subsidy removal, the organised labour maintained that this was only a provisional solution and called for a complete review of the minimum wage.

Chairing the panel is a former Head of the Civil Service of the Federation, Bukar Aji, who at the inauguration affirmed that its members would come up with a “fair, practical, implementable and sustainable” minimum wage.

The inauguration of the committee follows months of agitation from the organised labour, which expressed concerns over the Federal Government’s failure to inaugurate the new national minimum wage committee as promised during negotiations last October.

On the government’s side, members include the Minister of State, Labour and Employment, Nkeiruka Onyejeocha, representing the Minister of Labour and Employment; Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, who was represented by the ministry’s Permanent Secretary, Mrs Lydia Jafiya.

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