Festus Osifo, the president of the Trade Union Congress of Nigeria (TUC), has stated the rationale behind organized labor's rejection of the new ₦60,000 minimum wage for workers put forth by the federal government.
On Tuesday, May 29, the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), together representing organized labor, rejected the federal government's latest proposal for a minimum wage for the third time.
When the committee last convened last week, the government had initially suggested ₦48,000, ₦54,000, and ₦57,000, all of which were rejected by Labour, according to The Nation. On the other hand, the labor union changed its stance, moving from ₦615,00 to ₦497,000 and ultimately ₦494,000.
To speak In an interview with Channels TV's "Politics Today," Osifo outlined labor's position on the proposed minimum wage, claiming that the value of N60,000 today was substantially less than what could be obtained with N30,000 in the past due to the ample reduction in the purchasing power of the naira. "The position of Labor has been very clear. Today the government came to the negotiation table: if you remember, the last time it was N57,000. So they moved it to N60,000. So when they moved to N60,000, the first thing we asked them was to kindly give a breakdown of the sum. How do you want a Nigerian to survive on this today? Someone who is in Grade level one, step one; how will Does this individual still exist? Assuming that this individual resides in Lugbe, Maraba, or Yanyan and works in the Central region, could you please provide us with the breakdown? What is the included transportation cost of this N60,000? How much does feeding it cost buried in it? Please provide that breakdown. They didn't.
However, Labour has been steadfast in its approach to this issue since the outset, outlining our predictions for the survival of a man married to a woman with four children. Since the president has committed to pay Nigerians a livable salary since Day One, in our opinion. You are welcome to read his inaugural address ... every speech he has given to the nation since then. Thus, we continued to attract them there. However, they did not provide us with that breakdown on their end.
Looking at it now, N60,000 is equivalent to around $40 at a rate of exchange of N1,500. When we negotiated the last two minimum wages of 18,000, you can see what I mean. In 2011, the minimum wage of N18,000 was worth $125. The 2019 N30,000 minimum wage ranged from $95 to $100, depending on the exchange rate you selected. But due to the value, you are unable to offer us $40 right now. Thus, the amount of money is not the issue. Therefore, when you hear N60,000, you would believe that's a big sum of money. However, the issue remains: how valuable is this cash?
Also Read: TUC criticizes the naira's weakening due to the high cost of living
The head of the TUC insisted that the country's currency has depreciated, significantly affecting its purchasing power.
Therefore, N60,000 today cannot purchase for us what N18,000 could in 2011 or N30,000 might in 2019. That, then, is the main point of the minimum wage discussion. The goal of minimum wage is to get you back to where you were before, if not better. But that's a long way from where we are now.
Osifo continued by contrasting Nigeria with other African nations, mentioning in particular Angola, which he said had recently raised its minimum wage to $120.
"I would like to draw your notice to the fact that Angola just raised their minimal pay. Like Nigeria, Angola is a country that produces crude oil. The minimum wage was raised to approximately 100,000 kwanza, or $120. This is Angola only. Furthermore, it's not the greatest nation in Africa. You might consider Mauritius, Seychelles, Morocco, and Libya.
Osifo stated, "So, what we have told government, for Nigeria, with all the challenges that we are having today, $40 cannot take anybody home as it stands today and that is why on the part of labor, we rejected it," further illuminating labor's stance on the rejected N60,000 proposed minimum wage. Because, once more, Net Present Value is a concept in accounting and financial economics. You could calculate your N18,000's Net Present Value in 2011 Get your N30,000 in 2019 and just understand our current situation. So, we vehemently disagreed with it.
The head of the TUC asserts that Labour is convinced the government can provide a minimum wage for Nigerians provided it takes action, closes any loose ends, and follows other governments around the globe. As is evident in Angola and other African nations today.
He continued, "So, for us, we are rejecting it; we are not there yet."
Comments
Post a Comment