This Day (Lagos)

Nigeria: Minimum Wage - FG Cautions on Impact of Global Crisis

Onyebuchi Ezigbo

13 January 2009


Abuja — The Federal Government yesterday opened up discussions with the organised labour over the demand for a new minimum wage, with a call for caution on the likely implications of an increased wage bill, in view of the current global financial crisis.

The meeting came just as President of the Trade Union Congress(TUC), Comrade Peter Esele, asked the Ministry of Labour to measure the success of government's seven-point agenda through its impact on job creation.

Yesterday's parley was sequel to the demand submitted by the Nigerian Labour Congress (NLC), for a new minimum wage of N52,200.

"We want to develop a solid partnership that would ensure that strike does not even happen, because we will be engaging ourselves on regular discussions. In addition to this, government wants to as much as possible, ensure that there is peace in the economic sector, because as you can see now, the whole world is in a big state of flop in the economic sector, which has adversely affected countries much more developed than Nigeria.

"No one knows where this economic crunch is going. The least we can do is to maintain a stable and peaceful industrial relations. If we can do that, then we can have fair chance of surviving the melt-down."

He added, adding that "I want to assure you that our mandate in the Ministry will be to cooperate with you, partner with you and also to proactively engage with you on issues as they arise. I have no doubt in my mind that some issues are already pending and all those issues as we move forward, we would expect full briefings on them and we would set up time-table for engaging with you.

"The Minister expressed the hope that with the on-going discussions, government will be able to close the communication gap that usually results in strike and turmoil in the labour sector, adding that the positive discussion would rather "open the doors of cooperation, partnerships and a solid symbiotic relationship that would move our country forward".

The minister said the intention of the meeting was to interact with key stakeholders in the labour sector and lay the needed foundation for a smooth and peaceful engagement.

"We will implement the law, we will engage with you. What government wants is partnership that can even even ensure that strike does not happen.

FG wants peace within the industrial sector considering the global economic melt-down.

This is the only way the country can have a fair chance of surviving the financial crisis".Responding, the Minister, Adetokunbo Kayode, said the Federal Government intends to set up a time-table for engaging labour on negotiations regarding the minimum wage and other issues relating to workers' welfare.

"Definitely, discussions will take place, but it will be done with all sense of responsibility, proactiveness and with a view to not only tackle the issue of salary increase, but dealing with the issue of job creation," he said.Kayode said the current administration is committed to ensuring the welfare of workers and indeed all Nigerians, adding that government would strive to achieve this by developing infrastructure and effectively implementing the seven-points agenda.

He requested workers to cue into the agenda, because it is all about the welfare of the people and pleaded with Nigerians to give the administration a chance to implement it, which translates to welfare for workers, more jobs and solution to infrastructural problems.

NLC President, Comrade Abdulwaheed Ibrahim Omar, said the Federal Government has acknowledged the receipt of its position on the minimum wage, adding that it is looking forward to engaging government on the issues.President of TUC, Comrade Peter Esele, had expressed the hope that Kayode would be able to redirect and reposition the Ministry to play its expected role as a rallying point for the resolution of labour-related disputes.

According to him, the labour sector use to be the centre of attraction among other sectors of the economy, but its poor management has resulted in the neglect of workers welfare."The Ministry of labour is supposed to be the hub of the country's economy, but unfortunately, workers are treated badly.

The organised labour in the country is very passionate about its well-being and we are ready to give whatever support the government needs, but what we also expect from government is that there should be mutual respect. He said one of the reasons why labour movement give ultimatum is to allow for negotiation, " but you find out that government does nothing until the eleventh hour, when everybody is scampering, at the end of which the strike happens and government feels that labour was being irresponsible, which of course is not true."

Speaking about the seven-point agenda, Esele said the policy is supposed to be measured from the Ministry of Labour. He said the Ministry's department of planning and statistics should be empowered to perform the role of tracking the success of the agenda as it impacts on efforts to reduce unemployment in the country.

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