Before The New National Minimum Wage





Since the suspension of the two-day strike by the Organised Labour in the country over the acceptable new national Minimum wage, negotiations have taken place between Organised Labour and government on the one hand and among at least two tiers of government – the state and federal government on the other hand.

Given that the need to adjust and improve the minimum wage which has been eroded by the economic Restructuring of the federal government needs no argument.
Rather, what the argument and discussions are all about are the percentage of salary increase and the need to fast track the resolution of the issues for the sake of industrial harmony which the country needs at this critical period in its life.

In the move to increase the minimum wage, one issue which has come forth which both parties have not openly acknowledged is the issue of productivity of the about three million workers serving both the Federal and thirty six state governments.

While it could be argued that determining such at this stage could slow down the negotiations or cause enough distractions that could affect industrial harmony, the fact remains that today’s public servants all over the world except the few communist states, have a role to play in government’s ability to generate revenue to pay them.

While the Organised Private Sector, OPS, has an embedded appraisal and reward system which to a large extent determines wages, the reverse is the case for public servants whose remunerations at the end of the month is regarded as a fait accompli.

At this critical period of our development as a nation and with our mono- product economy, is it not germaine that this period should also be used as an opportunity to reappraise the Public Service system such that an appropriate appraisals and reward system is designed for various government departments such that contributions to the state’s economy ALSO determines the remunerations of officers?

For instance, should Drivers and Gatemen Who work till late in the night be paid the same remunerations with clerks who resume by 8.00-9am and close by 3.30-4pm?

At this critical period, all stakeholders in the negotiations should factor such contributions backed by performances into the take home pay of civil servants and other public workers. Same applies to workers in the Private Sector.
In the advanced countries of Europe and the United states, those doing menial jobs like cab drivers, artisans and other jobs earn more money than desk bound clerks or other administrative staff.

The more productive hours you put in determines your wages. Another reason why health workers and allied professions earn more money in those countries.

At this crucial stage of our national development, productivity should determine our wages and reward system if we must move away from a parasitic economy.

Another issue crucial to the sustenance of our social system and nation’s stability, is the issue of fiscal federalism which was used in the First republican constitution but abandoned by successive military and civilian governments.

It is quite clear that in spite of our unitary constitution,the level of development varies from one part of the country to the other and so the wages earned by workers should be a reflection of the economic capacity of each of the states.
Western region was paying a higher salary than both East and North between 1955-1966.

Workers should be free to migrate to earn higher salaries in states they consider suitable and able to pay for their services.
Era of operating a feeding bottle economy is over.
A situation where states have to wait to receive bail -out from federal government before paying salaries of civil servants should stop.

On this point, I agree With Governors of the Southern part of the country who issued a 16-point Communique last Tuesday, part of which is that states should pay what they can afford.

It is wrong for the Nigeria Labour Congress, NLC, to insist on uniform wages for workers all over the country.
This informs my personal belief that NLC should indeed be in the vanguard of advocating for the adoption of fiscal federalism if it must help its members.

If the principle of fiscal federalism is adopted, states will be able to tap into their natural endowments and only pay tax to federal government.
We as a people cannot operate a unitary system on one hand and a feeding bottle economy on the other hand.
Democracy is about people being free to enjoy their God-given resources.
Since all states in Nigeria are endowed with one mineral resource or the other, they should also be made to enjoy the benefit of their endowments while contributing to the centre for the Federal government to run the federation.
The declaration by the Nigeria Governors Forum last Wednesday that workers will enjoy a reasonable wage increase should be backed up with a reasonable legislation by the national and state assemblies based on need to free God- given natural resources to the states to enable them grow at their own pace based on the resources available to them.

When this is done,the country will avoid strike actions in the states as a result of their inability to pay as experienced during previous exercise in the country since the introduction of the Jerome Udoji Award in the early 70s when the country was enjoying its petro-dollar boom.

The declaration by the NLC to states that could not pay the New National wage to its workers signals a probable industrial crisis in the states.
The organised Labour has to realise that Nigeria Is no longer running a unitary system where military rule made enforcement of such new policies all over the country unavoidable.

States on their part should curb wastages in terms of government spending on political appointees and implementation of projects that have no direct benefit to its local economy.