The Nigeria Labour Congress and Trade Union Congress on Wednesday dumped the minimum wage negotiation after the Federal Government offered to pay N48,000, a figure far below the N615,00 the unions were demanding as the new national minimum wage.
After abandoning the session, the furious labour leaders summoned an emergency press conference where they vented their displeasure with the offer, describing it as ‘an insult to the sensibilities of Nigerian workers.’
This was the second time in two weeks that the negotiation had run into trouble. The last session, held on April 29, deadlocked after organised labour insisted on N615,000 minimum wage.
The Federal Government disagreed with labour’s demand, which it deemed unreasonable.
However, the National President of the NLC, Joe Ajaero, explained that the amount was arrived at after analysing the current economic situation and the needs of an average Nigerian family of six.
Rationalising the N615,000 demand, the labour leader stated, “Living wage is such that will, at least, keep you alive. It is not a wage that will make you poorer and poorer. It is not a wage that will make you borrow to go to work. It is not a wage that will lead you to be in the hospital every day because of malnutrition. For that living wage, we have tried to look at N615,000.
“Let me give you a breakdown of how we arrived at that figure. We have housing and accommodation of N40,000. We asked for electricity of N20,000 — of course, that was before the current tariff increase. Nobody can spend this amount currently. We have a utility that is about N10,000. We looked at kerosene and gas, that is about N25,000 to N35,000.
“We looked at food for a family of six. That is about N9,000 in a day. For 30 days, that is about N270,000. Look at medical. With the N50,000 provided, there will be no surgery or whatever.
“For clothing, we looked at N20,000. For education, N50,000. I don’t know about those who tried to put their children in private schools, they will not be able to cope with this amount. We also have sanitation of N10,000.
“I think where we have another bulk of the money is transportation. This is because the workers stay on the fringes and because of the cost of petrol, which amounted to N110,000.
“That brought the whole living wage to N615,000, and I want anyone to subject this to further investigation and find out whether there will be any savings when you pay somebody at this rate,’’ the NLC president explained.
But speaking at the press conference in Abuja on Wednesday, hours after the stalemate, Ajaero disclosed that, in contrast to the N48,000 offer made by the Federal Government, the organised private sector proposed an initial offer of N54,000.
He blamed the government and the OPS for the breakdown in negotiation, saying, “Despite earnest efforts to reach an equitable agreement, the less than reasonable action of the government and the organised private sector has led to a breakdown in negotiations.”