NLC And TUC Criticized For Accepting Inadequate N70,000 Minimum Wage Amid Economic Hardships

The Democratic Socialist Movement has berated the leaderships of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) for accepting N70,000 as the new national minimum wage.

This was communicated in a statement signed by the DSM Organising Secretary, Peluola Adewale.

The group said it believed that the NLC, TUC and its affiliates needed to be sober for being able to achieve just N70,000 minimum wage.

“We of the Democratic Socialist Movement (DSM) believe that labour leaders need to be sober over what they were able to win for Nigerian workers as the new national minimum wage considering the depth of the cost-of-living crisis.”

 “Also importantly, while the agreed minimum wage is relatively small, they must be prepared to lead a serious, protracted struggle for its full implementation, without losing a single job, especially at the state level and private sector.”

While acknowledging that the N70,000 minimum wage is an increment for workers, it was noted that it remains a far cry from the N250,000 sought by the workers’ union.

 “No doubt, N70,000 minimum wage is an increment for workers. But it is a far cry from the demand of N250,000 which the labour leaders considered to reflect the reality of the prevailing high cost of living after the initial N615,000 minimum wage demand.”

 “Truly, as labour leaders have been highlighting as a positive, N70,000 translates to a 133 percent increment in the national minimum wage from the N30,000. So, ordinarily the new minimum wage would have been applauded especially given the fact that the government and private employers had initially offered different lesser amounts.”

The group however called for adjustment of the approved minimum wage in line with inflationary tendencies.

 “This is why Socialists call for minimum wage to be automatically adjusted in line with the rate of inflation and rising cost of living.”

The DSM also opined that the NLC agreed to a wage bill that is lower in dollar terms than the 2019 wage figure.

"However, the problem is that in dollar terms, something which is a major economic index in Nigeria being a heavily import dependent economy, there is a huge decline in its value between April 2019 when the old minimum wage was passed into law and now. In other words, what the labour leaders agreed to is, in reality, a near halving of the minimum wage’s real value from $83 in 2019 to $44 if N70, 000 comes into effect today.”

 “Even if the price of any food item is used as a measure of the real value of the minimum wage, the result would show a steep decline. For instance, using data obtained from the National Bureau of Statistics (NBS), while N30,000 would buy about 120 pieces of 500g sliced bread in April 2019, N70,000 can only buy about 58 pieces in July 2024. “

The group also praised the NLC and its affiliates for getting a wage increment, it however lamented that with the current in price of goods and services, the increment may not be substantial on the longer run.

 “We acknowledge it was the struggle of Labour, and the possibility of more struggles, that forced the Tinubu government to grant this increment in minimum wage.  Labour also won the reduction in the life span of minimum wage from 5 years to 3 years, but with the speed at which prices are increasing, even this does not offer any real protection to workers’ wellbeing.”

 “Nevertheless, we strongly believe that the struggle could have won more if the labour leadership had waged it more seriously. For instance, on June 4, 2024, labour leadership suspended an indefinite strike for five days. But instead of mobilising for mass actions when the government failed to meet the demands, the vast majority of labour leaders embarked on an unnecessary trip to the meeting of International Labour Organisation (ILO) in Geneva, Switzerland, 2 or 3 trade unionists would have been sufficient instead of 116 going.”

“As a result, at the expiration of the suspension period and afterwards, there was no plan in place to move the struggle forward. Worse still, as they did concerning the ultimatum issued following the suspension of the February 2024 nationwide protest over cost of living, no mention has been made again of some of the demands of the June 2024 strike which include the reversal of the criminal hike in electricity tariff.”

DSM also argued that many workers would not agreed to a N70,000 minimum wage of their opinions were sought.

 “Also importantly, it is not likely for a majority of workers to have agreed to N70,000 minimum wage if the offer had been subjected to a democratic decision-making process. This further underscores the necessity for a campaign within trade union movement, including the NLC and TUC, for its repositioning as a democratically-run organization where workers debate and ballot before an important decision like on minimum wage and strike action is made.”

The group also urged the NLC and other unions to kick against casualisation of workers or retrenchment of staffs by companies due to the new wage.

Nigeria recently approved a N70,000 minimum wage after protracted disagreement with the federal government

Post a Comment

Previous Post Next Post