NLC Affirms Government Intentions To Pay Workers’ Wages To Mitigate Effects Of Subsidy Elimination
According to Nigeria Labour Congress (NLC) President Joe Ajoero, organized labor is negotiating wage awards for employees with the Federal Government even though negotiations for a new minimum wage are not due until the third quarter of this year.
This is being done to mitigate the consequences of the loss of the petrol subsidy.
Yesterday, the labour centre clarified that there is no ambiguity in the two wages when addressing the wage issue at the International Labour Conference being held in Geneva, Switzerland, and being organized by the International Labor Organization (ILO), saying, “Minimum wage is a national wage that must be negotiated with the three tripartite bodies – government, employers and the union – while the wage award is given to workers to alleviate the additional social pressure brought upon the working population by the removal of the subsidy.”
The meeting next week will focus on the wage award rather than the minimum wage negotiation, according to NLC President Joe Ajaero.
He stated: “The agreement we had with them is not minimum wage. The agreement we had with the government team is a wage award and it must be understood clearly. The minimum wage will be due early next year. We will, therefore, review it statutorily.”
He stated that the Federal Government’s lack of preparation for the effects of eliminating the subsidy without putting in place a palliative framework is the root of the confusion that is lagging wages.
“Now that they have taken action by removing subsidies without providing anything, that is why they are talking about minimum wage. And they are talking at cross-purposes. It is all-important that people understand the concept when they use it wrongly or rightly. We have proposed to them a wage award, which could be implemented immediately without waiting for the statutory period for the minimum wage law or for it to expire,” he added.
Ajaero made a suggestion that a technical committee would be formed to determine the specifics of the wage award and how the percentages would be applied to different grade levels. The NLC leader also criticized the Federal Government for utilizing the courts to thwart a planned nationwide protest against the subsidy reduction, claiming this was the first time a government had been successful in doing so.
“The same government moved ahead to get a court order to stop the action which we proposed. However, the same government knew our determination to go ahead with that action. This is the first time a government would get a court order and still call you to come for negotiation. It was as a result of not knowing our next line of action. Despite the court order we still had an agreement. Whether I am satisfied with the agreement, yes. Whether it will be implemented, that is where the fight is for another day,” he said.
According to Ajaero, successive governments covered up corrupt behavior for three decades by enacting subsidy regimes.
He claimed that ceasing subsidies will put an end to the culture of corruption that pervades the management of gasoline subsidies.
Ajaero continued, saying: “For over 30 years, it has been the issue of increased pump price of petrol. Now the issue of subsidy has become a reoccurring decimal. We have been asking ourselves, what do we do? Can’t we do things differently? That was how we came up with a module of having a Compressed National Gas (CNG) based on the fact that Nigeria has a large natural gas deposit. The way things stand today, Nigerians do not have an alternative. It is either petrol or nothing. The availability of CNG as a source of energy will open the system up for competition.”
“That is the only time we can talk about removing petrol subsidy that will not have adverse effects on the ordinary Nigerians.”
Ajaero forewarned that those who have benefited from the subsidy scheme will fight back and make an effort to thwart the adoption of CNG to power homes, businesses, and transportation systems.
He stated: “We are not deceived because there is going to be a fight. The powerful force behind the subsidy that has fought us all these years would make sure that CNG does not see the light of day. That is when Nigerians should come together for us to look at this alternative and see that it works.”
He stated that it is crucial for the Nigerian government to expose individuals responsible for the subsidies and look into the funds spent on its administration during the last eight years.
In order to increase product availability, Ajaero also argued for the expansion of modular refineries in the nation.
The NLC also emphasised that the government must ensure that granted projects are completed as soon as feasible in order to put the Warri and Port Harcourt refineries back in operation.
