NLC ADVANCES N1 MILLION AS PROPOSED MINIMUM WAGE

Joe Ajaero, the head of the National Labour Congress (NLC), suggested in an interview on Arise TV that the potential new minimum wage could surge to N1 million monthly if economic indicators, including inflation, continue to worsen in the country.

In his statement, Ajaero emphasized the necessity for the new minimum wage to align with the economic realities, pointing out that the persistent rise of the Dollar against the Naira makes a higher minimum wage unavoidable.

He highlighted that the initial proposal of N200,000 is no longer viable due to the escalating prices of food items and inflationary pressures on the economy.

“The relevance of N1 million might be contingent on the continuous depreciation of the Naira and escalating inflation. Labour’s demands are intricately linked to societal dynamics. When we were considering N200,000, the exchange rate was around N900. Today, it’s about N1,400 or even more,” Ajaero explained.

Factors such as the high cost of living, with a bag of rice costing between N60,000 to N70,000, and the soaring prices of essential goods necessitate a minimum wage that adequately covers basic needs, including transportation.

Ajaero highlighted ongoing discussions between organized labour and the federal government, expressing concerns about the government’s failure to fulfill agreements, especially regarding temporary wage awards to workers. He cited instances where only one month of the N35,000 wage award was disbursed to civil servants, and questioned the purported N25,000 palliative payments to workers, noting challenges in the humanitarian ministry.

Presently, the minimum wage in Nigeria stands at N30,000, with an additional N35,000 temporary wage award for federal workers introduced in October 2023, set to last for at least six months. The federal government is initiating a presidential committee to review the new minimum wage, comprising representatives from organized unions, state governors, and respected citizens.

In response to the looming strike threat, organized labour issued a 14-day warning for the government to implement a new minimum wage plan, emphasizing the urgency of negotiations running out of time.

News Source: Techeconomy