Minimum wage: FG, labour fail to agree

After extensive talks on Monday, the Federal Government and labour failed to reach an agreement on the implementation of the Minimum Wage Act 2011. 

Our correspondents report that although the negotiators will be meeting again on Tuesday (today), the likelihood of a truce is low.

Sources at the meeting said while labour wanted the implementation of the new wage regime to cut across all cadres of public workers, the Federal Government negotiators insisted that the government could not implement the Act fully.

One of the sources, who represented the government, told one of our correspondent, in Abuja on Monday that since the Federal Government had increased the salaries of its workers in 2010, by about 53 per cent, it would be wrong to expect it to also increase salaries in 2011 based on the N18,000 new minimum wage. 

“You know they did 53 per cent increase last year. Let’s take a look at it: where in the world do you do such a thing? Your salary was increased by 53 per cent and you are demanding another increase in less than a year. So what we have agreed on is to give more money to the younger, ones, so that the government will not have problems,” he said. 

Members of the Federal Government team to the negotiations on Sunday included the Minister of Labour and Productivity, Mr. Emeka Wogu; Minister of Information, Mr. Labaran Maku; and Head of Service, Prof. Oladapo Afolabi. 

The labour team, which was led by the Deputy-President of the Nigeria Labour Congress, Mr. Mohammed Kiri, also had the Acting Secretary of the NLC, Mr. Owei Lakemfa, as members. 

At a point during the talks, representatives of labour reportedly stormed out of the meeting in anger at the ‘recalcitrance’ of the Federal Government team. Before they did, the government team had complained about the absence of the presidents of the Nigeria Labour Congress and Trade Union Congress, Abdulwaheed Omar and Peter Esele, respectively.

The meeting was so stormy that the labour team, led by Kiri, left the meeting to strategise for three hours while the Federal Government team led by the Secretary to the Government of the Federation, Chief Pius Anyim, waited.

The unionists at the meeting were said to have accused the government of insincerity in its negotiation with the workers. According to a source, the labour leaders were at pains that the government deceived them into calling off its warning strike last month by promising to commit to the full implementation of the new minimum wage.

A top labour source at the meeting said that Anyim had condemned the absence of the top leadership of the labour movement which made the NLC Deputy President to counter that the accusation was unnecessary.

The government source at the Sunday failed talks said that apart from the issue of implementation, the FG had agreed in principle to pay the money. 

He said, “The Federal Government increased salaries by 53 per cent last year. With this, the wage bill of the government has increased to N1.5tn. 

“Also, with the increase in salaries last year, the least paid federal worker earns N17, 000.00. Now, what does the law say? It says that the least paid worker should earn N18, 000.00. 

“What we need to do therefore is to adjust the salary of this category of workers to the minimum wage as prescribed by the law. That will be done. But I think this is the area of disagreement between the government and the labour leaders. 

“The labour people want the increment to be across the board, but I can conveniently tell you that if we do that it will affect the finances of the government.” 

Organised labour under the coordination of the NLC and TUC had scheduled a nationwide three-day strike from Wednesday, July 20 to Friday, July 22, but the action was called off at the last minute, courtesy of a tripartite agreement reached among the Federal Government, labour and the state governors on the eve of July 20.

The organised labour communiqué read by Omar, on the night of July 20 reads, “Federal Government agreed to comply with the new National Minimum Wage Amendment Act 2011.

“Federal Government shall conclude negotiation with Labour on the implementation of the minimum wage not later than 31st July, 2011.

“Detailed negotiations on the relativity implication of the implementation of the new National Minimum Wage Act 2011 will be concluded not later than 31st July, 2011.

“The new wages will be implemented from 1st August, 2011.

“The arrears of the new wages with effect from 23rd March, 2011 will be paid not later than 31st August, 2011.

“No worker shall be victimised in any manner or form as a consequence of the implementation of the new Minimum Wage Act.

“In line with the agreement earlier reached with the Federal Government and state governors, labour resolves to suspend the three-day warning strike across the country.”

Soon after, however, the Federal Government and state governors said they would not be able to pay across board, in defiance of the agreement, due to the huge amount involved in fully implementing the new wage.

However, Wogu said there was no need for Nigerians to panic over the inability of the government and the organised labour to reach agreement on Sunday. 

He said since both parties had agreed to meet on Tuesday and he was sure that they would be able to reach an amicable agreement. 

He said, “We are meeting again on Tuesday. There is no need for Nigerians to panic on whether there will be strike or not. This is because the Federal Government has agreed to pay the money. 

“What we are yet to agree is the implementation proper. That would be settled tomorrow at our meeting.” 

SOURCE: Punch Newspaper 2 August 2011 http://www.punchontheweb.com