Federal Government’s Stance on Minimum Wage
On Sunday, the Presidency reiterated that the N250,000 minimum wage demanded by Organised Labour is unsustainable. The Federal Government emphasised that it cannot allocate all its resources to meet such demands. This assertion came just two days after the Association of Local Governments of Nigeria (ALGON) expressed concerns over the N62,000 minimum wage proposed by the government.
Concerns from ALGON
ALGON highlighted that approving the N62,000 wage might place a financial burden on local councils. The group’s apprehension underscores the complexity of balancing fair wages and financial sustainability.
Breakdown of Talks
On May 28, discussions between the Federal Government and Organised Labour broke down. The government, alongside the Organised Private Sector, had raised their offers to N62,000. However, labour unions considered this proposal an insult to Nigerian workers, who deserve much better compensation.
Government’s Perspective
Speaking with The PUNCH, Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, argued that resources should benefit the entire population, not just the 10% represented by labour unions. He urged labour to be realistic, highlighting that many Nigerians are self-employed or work in the private sector and are not affected by these demands.
Economic Realities and Non-Monetary Incentives
Onanuga also pointed out that the Federal Government’s resources are limited and must address various needs. He mentioned the necessity for labour unions to reassess their stance critically, considering the broader economic implications and non-monetary incentives provided by the government.
Awaiting Labour’s Response
As President Tinubu prepares to send an executive bill on the new national minimum wage to the National Assembly, the timeline for this remains uncertain, potentially occurring after the Sallah break. The tripartite committee reviewing the minimum wage has urged labour unions to reconsider their demands in light of economic factors and the array of incentives already offered by the government.
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