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Business & Economy

Minimum wage: You can’t dictate what to pay – NLC replies governors

The FrontierThe FrontierJune 28, 2024 3151 Minutes read0

•Nigerian workers

The Nigeria Labour Congress (NLC) has faulted the comments credited to governors that states should determine their minimum wage in their domains.

“This notion is not only dictatorial but also undermines the very essence as well as the model adopted for creating a national minimum wage in Nigeria,” the NLC said in a statement today by its Head of Information and Public Affairs Benson Upah.

Labour unions, the government, and the private sector have been locked in negotiations over a new minimum wage for months, reports Channels TV.

The tripartite committee on the new minimum wage had proposed N62,000 as a new minimum wage while organised labour insists on N265,000.

President Bola Tinubu later received the report of the committee, promising to pay what the country can afford. He is still consulting with stakeholders after which a bill to enact a new minimum wage will be sent to the National Assembly.

In a meeting earlier this week, the Southern Governors’ Forum argued that the minimum wage should not be uniform. States should pay what they can afford, they insisted.

“The Forum discussed the minimum wage issues demanded by labour and unanimously agreed that the minimum wage should be reflective of the cost of living and ability to pay, and each State be allowed to negotiate their minimum wage,” the governors said in a communique.

But the NLC says the governors’ move, saying it “threatens the welfare of Nigerian workers and the national economy”.

“The concept of a national minimum wage is not arbitrary. It represents a national wage floor, a baseline below which no worker in the law should be paid. This threshold is a collective agreement that ensures a minimum standard of living for every worker in the law. The governors’ demand to unilaterally determine the minimum wage negates this principle and threatens the welfare of Nigerian workers and the national economy,” the union said.

“It is important to remind the governors that the national minimum wage is not synonymous with the individual pay structures of the states which they implement religiously, reflecting their unique financial capabilities and circumstances. This diversity in pay structures underscores the flexibility that already exists within the system, allowing states to reward their workers in alignment with their financial realities.”

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