Nigeria: Subsidy Removal - Labour Calls Off Strike After Meeting With Federal Govt

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The organised labour, comprising the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC), has suspended its proposed strike scheduled for tomorrow, Wednesday over the removal of fuel subsidy by the federal government.

The suspension of the planned strike followed a meeting between Labour and officials of government.

Speaker of the House of Representatives, Femi Gbajabiamila, who read the communique at the end of the meeting between organised labour and the federal government.

According to the speaker, the federal government, the TUC and the NLC are to establish a joint committee to review the proposal for any wage increase and a framework and timeline for implementation.

He said the federal government, the TUC and the NLC are to review the World Bank-financed cash transfer scheme and propose inclusion of low-income earners in the programme. They are also to revive the CNG conversion programme earlier agreed with Labour centres in 2021 and work out detailed implementation and timing.

He said, "The Labour centres and the federal government are to review issues hindering effective delivery in the education sector and propose solutions for implementation.

"The Labour centres and the federal government are to review and establish the framework for completion of the rehabilitation of the nation's refineries. The federal government is to provide a framework for the maintenance of roads and expansion of rail networks across the country.

"All other demands submitted by the TUC to the federal government will be assessed by the joint committee."

Consequently, Gbajabiamila said the parties agreed that the NLC will suspend the notice of strike forthwith to enable further consultations, while the TUC and the NLC are to continue the ongoing engagements with the federal government to ensure the realization of the resolutions above.

The Labour Centre and the federal government are to meet on June 19, 2023, to agree on an implementation framework, the speaker added.

Meanwhile, the National Industrial Court (NIC) sitting in Abuja had earlier stopped the organised from going ahead with their planned strike to protest the unilateral removal of fuel subsidy by the federal government.

Justice O. Y. Anuwe of the court, in his ruling, barred the two organisations from proceeding with the strike pending the determination of a suit brought before it by the federal government.

The court held that the interim order, as well as the substantive suit, should be immediately served on the two labour unions that were defendants/respondents in the suit marked: NICN/ABJ/158/2023.The court, however, fixed the matter for hearing on June 19.

The order followed an ex-parte application that the federal government filed through the ministry of justice.

The counsel to the federal government, Mrs. Maimuna Lami Shiru, who brought the application, maintained that the proposed strike was capable of disrupting economic activities, the health sector and the educational sector.

The federal government tendered Exhibits FGN 1, 2 and 3, which were notices from the NLC, TUC and the Nigerian Union of Journalists, NUJ, to their members, asking them to withdraw their services with effect from Wednesday, June 7.

The court, in its ruling, held that it was empowered by section 7(b) of the NIC Act, 2006, with the exclusive jurisdiction in matters relating to the grant of any order to restrain any person or body from taking part in any strike, lockout or any industrial action.

It held that sections 16 and 19(a) of the NIC Act 2006 also empowered it to grant urgent interim reliefs.

The court held that the affidavit of urgency as well as the submission of the FG's lawyer revealed: "a scenario that may gravely affect the larger society and the well-being of the nation at large".

"Counsel has pointed out that students of secondary schools nationwide, especially those writing WAEC exams nationwide, will be affected; the tertiary institutions who have only just resumed after a long ASUU strike will also be affected, not leaving the health sector, amongst other sectors; and above all, the economy of the nation.

"In my view, this is a situation of extreme urgency that will require the intervention of this court," Justice Anuwe held. "Having, therefore, considered the totality of this application, I make the following orders:

"The defendants/respondents are hereby restrained from embarking on the planned industrial action/or strike of any nature, pending the hearing and determination of the motion on notice dated 5th June, 2023.

"It is ordered that the defendant/ respondents be immediately served with the originating processes in this suit, the motion on notice and the order of this court hereby made."

Prior to the order, the Judiciary Staff Union of Nigeria, JUSUN, had in a notice signed by its general secretary, M. J. Akwashiki mobilised its members across the country to withdraw their services from Wednesday.

NLC Urged To Obey Court Order On Strike

Meanwhile, stakeholders have called on the leadership of the NLC to, as a law abiding organisation, to obey the court order restraining the planned nationwide strike.

Speaking with LEADERSHIP, Comrade Lanre Arogundade called on the federal government to come out with what can make the average Nigerian live meaningfully.

"The federal government should remember that due consultation with organised labour before making public announcement on things like subsidy removal is necessary because labour which stands as the voice of the voiceless should be involved in things that will affect the masses."

Reacting to the Industrial Court interim order, the national president of Precision Electrical and Related Equipment Senior Staff Association (PERESSA), Comrade Rufus Olusesan, expressed mixed feelings over the order.

According to him, until the union holds a group discussion, it will be unwise to suggest the next line of action.

Olusesan said the government should not depend on jankara market judgement to intimidate labour because it is like shutting the mouth of a child flogged from crying.

He said, "Nigerian masses are going through much stress whereas government just woke up suddenly to implement painful policy without due consultation to get how to cushion the effect."

TUC Demands N200,000 Minimum Wage

Meanwhile, the Trade Union Congress (TUC) has called on President Bola Tinubu to jerk up the minimum wage of workers in the country in order to cushion the effects of subsidy removal.

It said that should be done before the end of June in order to implement the Petroleum Industry Act, adding that the consequential adjustment on Cost of Living Allowance (COLA) should be considered.

The president and general secretary of TUC, Festus Osifo and Nuhu Toro respectively, in a statement they jointly signed. said these were parts of their demands during their ongoing negotiation with the government.

Osifo said they also demanded that the "status quo ante of PMS pump price" be maintained while discussion continues, adding that a representative of state governors must be a party to the communique, adding that all the governors must commit to implement the new minimum wage.

The labour leader said, "Tax holiday for employees, both in government and private sector, who earn less than N200,000 or $500 monthly whichever is higher. PMS allowance to be introduced for those earning between N200,000 to N500,000 or $500 to $1,200, whichever is higher.

"The exchange rate for retailing PMS in the country must be kept within a limit of +- 2% for the next ten (10) years where the fluctuation is more than 2%, the minimum wage will automatically increase at the same rate.

"Setting up an intervention fund where the government will be paying N10 per litre on all locally consumed PMS. The primary purpose of this fund is to solve perennial and protracted national issues in education, health and housing.

"A governance structure that will include labour, civil society and government will be put in place to manage the implementation. Federal government should provide mass transit vehicles for all categories of the populace.

"State governments should immediately set up a subsidized transportation system to reduce the pressure on workers and students. The framework around this will be worked out."

Osifo also called for immediate review of the National Health Insurance Scheme to cover more Nigerians and prevent out of stock of drugs.

According to him, a visitation should be made to the refineries that are currently undergoing rehabilitation to ascertain the state of work and setting up a timeline for its completion.

He said the president should direct whoever will be labour minister to immediately constitute the National Labour Advisory Council (NLAC), saying that this platform will be used by government, Labour and employers to discuss issues and policies of government that may affect workers and all other mandates as specified in the law.

He added: "Provision of subsidy directly for food items, the 800million dollars could be a first step. The existing National Housing Fund (NHF) should be made accessible to genuine workers; the framework on this must be discussed and agreed upon.

In the medium term, he called for the deployment of Compressed Natural Gas (CNG) across the country in line with the earlier promise made by the government.

He went on: "Labour and government to design a framework that will be geared towards the reduction of cost of governance by 15% in 2024 and 30% by 2025.

"A framework should be immediately put in place to maintain the road and expand the rail networks across the country. Government must design a framework for social housing policy for workers through the Rent to Own System.

"The state of electricity in the country must be appraised and an action plan should be defined with time lines on how to get this fixed. A strong monitoring team of all parties will be constituted."

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