Trade Union Congress Asserts Minimum Wage Increase Will Not Worsen Inflation, Citing Increase in FAAC Allocation to States.
In the wake of President Bola Tinubu-led government’s approval of a 35% pay rise for civil servants, the President of the Nigeria Labour Congress (NLC), Joe Ajaero, has voiced strong opposition, advocating for a livable wage of N615,000 for workers in the country.
President Tinubu’s announcement on Tuesday, sanctioning a salary increase ranging from 25% to 35% for civil servants on six consolidated salary structures, sparked controversy within the labor community.
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The six salary structures are; the Consolidated Public Service Salary Structure (CONPSS), Consolidated Research and Allied Institutions Salary Structure (CONRAISS), Consolidated Police Salary Structure (CONPOSS), Consolidated Para-military Salary Structure (CONPASS), Consolidated Intelligence Community Salary Structure (CONICCS) and Consolidated Armed Forces Salary Structure (CONAFSS).
However, during an interview with ChannelsTV, Ajaero expressed dissatisfaction with the proposed increase, asserting that discussions on a new minimum wage had been stalled. He added that the current minimum wage of N30,000 expired on April 18, meaning that discussion around the new minimum wage should have been concluded before now.
“The federal government through the National Assembly legislated on it. But we saw that the discussion entered voice mail because the federal government refused to reconvene the meeting that was adjourned,” he said.
Ajaero also stated that organized labor had agreed on N615,000 as the livable wage for civil servants.
“Living wage is such that will, at least keep you alive. It is not a wage that will make you poor and poorer. It is not a wage that will make you borrow to go to work. It is not a wage that will lead you to be in the hospital everyday because of malnutrition. For that living wage, we have tried to look at N615, 000,” he said.
Ajaero elaborated on the NLC’s proposal for a livable wage, outlining a breakdown of expenses that culminated in the figure of N615,000.
“Let me give you a breakdown of how we arrived at that figure. We have housing and accommodation of N40,000. We asked for electricity of N20,000 — of course that was before the current tariff increase. Nobody can spend this amount currently. We have utility that is about N10,000. We looked at kerosene and gas that is about N25,000 to N35,000,” he said.
“We looked at food for a family of six, that is about N9,000 in a day. For 30 days, that is about N270,000. Look at medical, N50,000 provided there will be no surgery or whatever.
“For clothing, we looked at N20,000. For education, N50,000. I don’t know for those who tried to put their children in private school, they will not be able to cope with this amount. We also have sanitation of N10,000.
“I think where we have another bulk of the money is transportation. This is because the workers stay on the fringes and because of the cost of PMS, which amounted to N110,000.
“That brought the whole living wage to N615,000 and I want anyone to subject this to further investigation and find out whether there will be any savings when you pay somebody on this rate.”
He emphasized the need for a wage that would enable workers to meet basic living standards without financial strain.
Earlier this year, the Nigerian Labour Congress (NLC) and Trade Union Congress (TUC) submitted proposals for a significant increase in the national minimum wage. These demands varied across different geopolitical zones, with figures reaching as high as N794,000 for workers in the Southwest and N540,000 for those in the Southeast. These proposals reflect the unions’ efforts to secure higher wages for workers across various regions in Nigeria, amid the crippling impact of inflation on their earnings.
In a similar vein, the Trade Union Congress (TUC) echoed sentiments regarding the minimum wage increase. Amidst the Government’s argument that accepting the proposed wage increase will compound inflation, TUC President, Festus Osifo, disagrees. He cited the significant rise in revenue allocation to states since May 2023 as justification for the wage increase.
Osifo stated, “Giving workers what is due them won’t necessarily worsen inflation,” highlighting the crucial role of labor in economic production.
“If you look today, from May 2023 to date, revenue from the Federation Accounts Allocation Committee (FAAC) to the state governments has tripled,” he said.
“This means the state government has more money to build roads and schools to purchase other items.
“The most critical aspect of production is labour. It is for you to take part of the money and pay workers. That won’t increase inflation because the money will be spent anyway; if you don’t give it to workers, it will be spent on other projects.”
Meanwhile, amidst conflicting reports on the effective date of the salary increase, Minister of State Labour, Nkeiruka Onyejeocha, clarified that the new minimum wage would take effect from May 1, 2024, despite ongoing negotiations by the Tripartite Committee On National Minimum Wage.