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Minimum Wage Negotiations to Restart, Government Considers Revision

Published

4 months ago

May 17, 2024

After a dramatic walkout by labour leaders following the Federal Government’s proposal of N48,000 as the new national minimum wage, negotiations are set to resume with indications that the government might reconsider its stance.

The Chairman of the Tripartite Committee on National Minimum Wage, Alhaji Bukar Goni, conveyed this possibility in a letter inviting labour leaders back to the negotiation table.

The letter, dated May 16, 2024, highlighted the government’s willingness to shift its position on the proposed minimum wage.

The walkout occurred 24 hours after the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) leaders left the negotiation committee in protest against the government’s offer.

The organised private sector had initially proposed an offer of N54,000, which also spurred contention during the talks.

In response to the government’s proposal, the National President of the NLC, Joe Ajaero, vehemently rejected the offer, insisting on a minimum wage of N615,000.

Ajaero argued that this figure was arrived at after a thorough analysis of the current economic situation and the needs of an average Nigerian family of six.

Blaming both the government and the organised private sector for the breakdown in negotiations, Ajaero expressed disappointment in what he deemed as an inadequate proposal.

He highlighted the disparity between the proposed minimum wage and prevailing standards, asserting that the suggested amount would undermine the economic well-being of workers and their families.

The Director-General of the Nigeria Employers Consultative Association (NECA), Mr Adewale-Smatt Oyerinde, criticized the unions’ decision to walk out, labeling it as unfortunate.

He urged union leaders to reconsider their position and return to the negotiation table in the interest of their members and national development.

In response to the criticism, Ajaero defended the unions’ actions, emphasizing that the proposed N48,000 as the minimum wage insulted the sensibilities of Nigerian workers.

He accused the government of failing to provide substantiated data to support its offer, further undermining the credibility of the negotiation process.

Amidst the ongoing dispute, Goni’s letter invited labour leaders to resume negotiations, assuring them of the government’s willingness to reconsider its proposal. The letter underscored the importance of all parties coming together to analyze the tripartite position and make necessary concessions.

The resumption of negotiations holds significance for Nigerian workers, as the current minimum wage of N30,000 is set to expire soon.

The tripartite committee, comprising representatives from the government, private sector, and labour unions, aims to recommend a new national minimum wage that reflects prevailing economic realities and meets the needs of workers across the country.

As labour leaders prepare to return to the negotiation table, hopes are high for a resolution that addresses the concerns of workers while fostering national development and economic prosperity.

The outcome of the resumed negotiations will have far-reaching implications for millions of Nigerian workers and their families.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Jobs

FG Approves Disbursement of N70,000 Minimum Wage for Nigerian Workers

Published

1 day ago

September 27, 2024

Bassey Marshall

The Nigerian government under the leadership of President Bola Tinubu has approved the payment of the newly approved N70,000 minimum wage to workers in the country.

The latest development was made known by the Spokesperson of the Office of the Accountant-General of the Federation, Bawa Mokwa on Thursday.

However, Mokwa who confirmed that payment will commence on Thursday, September 26, 2024, expressed uncertainty over the minimum wage arrears.

Mokwa said, “Federal Government civil servants will start getting the new minimum wage from today (Thursday) this September 2024. What I can tell you is that the minimum wage salary payment is today I am not sure of the arrears.”

The latest development comes hours after the National Youth Service Corps (NYSC) secured a 133.33 percent increase for corps members.

Investors King reported that the increase was in line with the enactment of the National Minimum Wage (Amendment) Act 2024 by the President Bola Tinubu-led government.

The NYSC also revealed that the Chairman of the National Salaries, Incomes and Wages Commission, Ekpo Nta, confirmed the upward review of consolidated public service salary structure, CONPSS in line with the Minimum Wage (Amendment) Act, 2024.

Jobs

Unemployment in Nigeria Rises to 5.3% in Q1 2024

Published

2 days ago

September 26, 2024

Yetunde Olugbenga

The Nigerian unemployment rate increased to 5.3 percent in the first quarter (Q1) of 2024 from 5.0 percent reported in 2023.

However, the report showed that the unemployment rate among youths decreased to 8.4% in Q1 2024 from 8.6% reported in Q3 2023.

In the same vein, there was a 0.7% increase in the engagement of youths in employment, education, and training.

“The percentage of Youth Not in Education, Employment or Training (NEET Rate) was 14.4, indicating a 0.7 percentage point increase from Q3 2023,” the report revealed.

The report further revealed that females recorded a higher unemployment rate of 6.2 percent compared to males at 4.3 percent.

In terms of employees’ availability for additional hours of work, there was a decline from 12.3 percent in Q3 2023 to 10.6 percent in Q1 2024.

It was also reported that despite this improvement, self-employment remains dominant, with 84% of Nigeria’s labor force engaged in self-employment as against 86% in Q1 2023.

Focusing on environmental metrics, the report revealed that the unemployment rate in urban areas remained unchanged at 6.0 percent, while rural unemployment stood at 4.3 percent, with 91.9 percent of workers in rural areas being self-employed, compared to 78.2 percent in urban regions.

In addition, 82.5% of the labor force in rural areas and 74 percent in urban areas were actively participating in the workforce.

However, by gender, male participation stood at 77.5 percent, while female participation was slightly lower at 77.1 percent.

“Disaggregation by place of residence shows 82.5 percent in rural and 74.0 percent in urban areas. The participation rate among males was 77.5 percent and 77.1 percent for females,” the report read.

Furthermore, the report revealed that the labor force participation rate among the working-age population declined to 77.3 percent in Q1 2024 from 79.5 percent in Q3 2023.

Jobs

FG Warns Private Sector Against Paying Below ₦70,000 Minimum Wage, Says It Is A Punishable Crime

Published

1 week ago

September 19, 2024

Bassey Marshall

The Federal Government has insisted that no Nigerian worker, either in the government or private sector, should earn less than the approved ₦70,000 minimum wage.

This update was shared by the Permanent Secretary, Ministry of Labour and Employment, Kachollom Daju, at the 13th Annual General Meeting of the Employers Association for Private Employment Agencies of Nigeria, held in Ikeja, Lagos.

Daju was represented by the Director of Employment and Wages of the ministry, John Nyamali.

The government warned that those who choose to ignore the directive are disobeying the law, and can be jailed for it.

The FG reaffirmed its commitment to ensuring that the least paid worker goes up with ₦70,000 as salary every month.

His words: “The minimum wage is now a law, and as a result, it is a punishable crime for any employer to pay less than ₦70,000 to any of its workers.

“The private employment agencies should make it compulsory in any contract they take from their principal that their workers should not earn less than the minimum wage. The least paid worker in Nigeria should earn ₦70,000, and I think that should be after all deductions.

“The minimum wage is a law, and you can be jailed if you fail to implement it. The Federal Government is committed to ensuring that the least paid worker goes home with ₦70,000.”

The President of the Employers Association for Private Employment Agencies of Nigeria, Dr. Olufemi Ogunlowo, also gave a speech at the event.

He called on the government to highlight all ambiguities in the Act and explain it to them.

Notably, he wants the government to clarify whether the new minimum wage is net or gross.

“As a labour union in the private sector, we are committed to the implementation of the minimum wage. We are a law-abiding and guided association. Our principals and clients have also keyed into the minimum wage.

“However, the government must clarify whether the ₦70,000 minimum wage is net or gross. The government and NLC should address all ambiguities in the minimum wage,” he stated.