Friday, November 26, 2010

The National Council of State succumbs to the implementation of the N18,000 minimum wage

The National Council of State on Thursday endorsed the implementation of the N18,000 national minimum wage.
The NCS consequently asked President Goodluck Jonathan to immediately send a bill to the National Assembly to give a legal backing to the new wage.
The council, which is the highest advisory body in the country, took the decision at a meeting in Abuja chaired by Jonathan.
Former Nigerian leaders at the meeting were Alhaji Shehu Shagari, Chief Olusegun Obasanjo, Maj.-Gen. Muhammadu Buhari (retd.) and Chief Ernest Shonekan.

State governors, who are also members of the council, were in attendance at the meeting, which lasted about five hours.

The endorsement of the minimum wage was not without reservations as some governors raised concerns over their ability to pay.
As a result, the council suggested a “deregulated minimum wage” system that would allow the states pay different wages to their workers.

The NCS, however, noted that relevant sections of the constitution had to be amended to give a legal teeth to a deregulated minimum wage system in the country, in line with the principle of federalism.



Addressing journalists after the meeting, Gombe State Governor, Danjuma Goje, said the council approved the payment of the new wage in the interest of Nigerian workers and the economy.

He added that the NCS was optimistic that the development would end the differences between the government and the organised labour over the issue.

Goje said, “Council deliberated extensively on the issue of the national minimum wage for Nigerian workers and resolved to advise Mr. President to send a bill to the National Assembly requesting it to enact a law on the N18,000 as a minimum wage for workers.

“This is the position of the council and it is done in the interest of the Nigerian workers and in the interest of the economy, so that, at least, our workers will live a very decent life.

“On the issue of legislation that put the minimum wage issue under the exclusive legislative list, the fact is that the resources available to the states in the country are different. While some are rich, others are very poor.

“Secondly, we are operating a federal system; states should be given the leverage to pay their workers in line with the peculiar situation.

“Others can decide to pay N40,000 per month; others can decide to negotiate downward according to their resources

“But that can only be done if the constitution is amended; for now, the minimum wage is binding on all governments and corporate bodies.

“I believe the problem between the government and the labour will be resolved finally. This is the position of the council.”

Lagos State Governor, Mr. Babatunde Fashola, who also spoke with journalsists, admitted that there were concerns over the ability of states to pay the new wage.

“There were concerns, very fair concerns, from all the states about its widespread application of the minimum wage and within the context of the federation,” Fashola said.

However, the governor said that the concerns “are considerations the National Assembly (should) take care of when it discusses the Executive bill on the matter.”

His Akwa-Ibom State counterpart, Chief Godswill Akpabio, said that the council noted that a deregulated minimum wage would be the best approach to ending controversies on minimum wage.

He said, “Council noted the submissions from various states on their ability or otherwise to meet the newly approved minimum wage.

“Council advised that the best approach for any deregulated minimum wage would be to tinker with the present constitutional provision and of course, if the National Assembly wants to effect any amendments, then the states in future could negotiate what their minimum wages will be so that it will reflect the true position of the federation.

“ But in the mean time, what could be applied will be what has been advised, which is N18,000, unless otherwise advised by the National Assembly.”
Reacting, the Nigerian Labour Congress, applauded the NCS action, saying it is up to the National Assembly to ensure that the bill on the minimum wage is passed quickly once it is sent to it by Jonathan.

The Secretary General of the Congress, Mr. John Odah, told one of our correspondents on the telephone that the implementation of the new wage must not fail to commence on December 31.

Odah said, ”We are very excited with the news and commend President Jonathan and all those involved in taking this landmark decision. This decision is obviously a recognition by our leaders of the deplorable purchasing power of Nigerian workers.

“We now expect the National Assembly whose leadership is part of the NCS to expedite action on the passage of the bill so that the new national minimum wage Act becomes operative in December.”

Similarly, the President-General, Trade Union Congress of Nigeria, Mr. Peter Esele, who commended the NCS, said the organised labour received the news with ‘cautious optimism.’

But he assured that there might be no more strikes by the workers because of the new wage.

Esele said, ”It is a welcome development and a joy to Nigerian workers. It also shows that the council listens. We can now guarantee that there will be no further industrial actions because of the new minimum wage provided the Federal Government acts on what we agreed on which is N18,000.

“‘The new wage must become operational by December or the workers will have to ask for arrears.”

Organised Labour had on November 8, commenced a three-day warning strike to protest the delay in the implementation of the new minimum wage.

The strike was, however, suspended the following day following Jonathan’s intervention and promise to send a bill to the National Assembly to give it a legal backing.
The implementation of the new wage, a product of a tripartite Minimum Wage Committee set up by government in 2009, was expected to have started months back.

Meanwhile, investigations by THE PUNCH have revealed that some states — Rivers, Ekiti and Kano— are willing to pay their workers the new wage.

The Senior Special Adviser on Media and Public Relations to the Kano State Governor, Mallam Sule Sule, said that the state government appreciated the contributions of its workers to the development of the state.

But the Ekiti State government said that it would not retrench any of its workers or take a loan to pay the wage.

“No worker will be sacked because of this and no loan will be taken. We will look inward and pay to make our people happy. We have approved new salary for doctors, so, there will not be problem paying the new minimum wage,” the Governor‘s Senior Special Assistant on Media, Mr. Mojeed Jamiu, said.

In Port Harcourt, the Rivers State Commissioner for Information and Communications, Mrs. Ibim Semenitari, said, ”We will pay whatever the Federal Government approves for our suffering workers. We have no intention to sack any worker.”

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