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NLC Demands 52,000 Naira Minimum Wage Or They Will Strike - Politics - Nairaland

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NLC Demands 52,000 Naira Minimum Wage Or They Will Strike by earTHMama: 8:20pm On Dec 20, 2008
Prepare for nationwide strike from January - NLC - Demands for N52,200 minimum wage - NPA sacks 9,000 workers
From Soji Eze-Fagbemi and Dele Aderibigbe
Friday, December 19, 2008

WORRIED by the Federal Government’s alleged refusal to increase workers’ salaries as demanded during the May Day celebration, the Nigerian Labour Congress (NLC) on Thursday threatened to confront the President Umaru Yar’Adua led-government to obtain a significant wage increase.

The congress gave an indication during its National Executive Council (NEC) meeting in Kano that it was set for a nationwide strike to get the government to increase workers’ salaries, eight years after the present minimum wage was fixed by the then President Olusegun Obasanjo government with a signed agreement that there would be a yearly increase of 12.5 per cent and 15 per cent respectively.

Already, the NLC has called on all workers to be prepared for a long strike in the new year to get a desired salary increase, even while they were waiting for the government to respond to their demand.

“While awaiting the Federal Government’s response to our demand for negotiations on these, we call on workers all over the country to be prepared for a sustained struggle to obtain these wage increase,” the NLC President, Comrade Abdulwahed Omar, said at the opening of the NEC meeting, held at Mambayya House, Kano.

The congress has also demanded for N52, 200 as the new minimum wage for workers, saying that the 2008 increase in the compensation of political office holders has further aggravated the disparity between the workers’ salaries and of political office holders.

In a report by the NLC Secretariat to the NEC meeting released late last night, the congress said: “Based on the foregoing explanation and justification, congress wishes to demand for a new national minimum wage of N52, 200, which is the approximate average derived under the three approaches used.

“Our demand is for the Federal Government to set up as a matter of urgency, a tripartite committee to negotiate and agree on this, so that the National Minimum Wage Act 2000 will be amended to reflect the new amount. The National Minimum Wage Law should apply to any establishment employing 20 or more workers instead of the 50 workers currently stipulated by law.”

According to the President, “the Congress has recently submitted to the Federal Government a comprehensive memorandum on our collective demand for the review of the national minimum wage and general salary review.

“To us, the minimum wage fixed eight years ago is no longer tenable nor have the 12.5 per cent and 15 per cent wage adjustments sufficiently shielded the worker from spiralling inflation and ever poorer standard of living.”

He added: “We do not doubt that parts of the elite would want to use the global economic downturn as an excuse to deny workers their rights. But workers cannot be held responsible for the profligate nature of our elite who in the last nine years have squandered the country’s unimaginable income from oil which they fritter away in the name of ‘excess crude’.”

On the prices of petroleum products, Comrade Omar said the Federal Government should also consider reduction in pump prices due largely to the sharp reduction in the price of crude oil at the international market.

He pointed out that the government had, whenever the price of oil went up at the international market, placed the argument before Nigerians that the international market price would always determine the local price of fuel, and thus always on such occasion, increase the prices.

The NLC President said: “Against the background of the current economic meltdown and the collapse of oil prices, the government has adopted a tone of austerity measure without saying so. We hope that the burden of this policy would not be shifted onto the shoulders of Nigerian workers.

“It is important to note that whenever oil prices go up, government raises the prices of petroleum products under the guise of removing so-called subsidy, but now that the prices have gone down, it is not considering a similar decrease in the prices of the petroleum products in the Nigerian market.”

He said the congress received the news of Alhaji Rilwanu Lukman’s coming back to the Ministry of Petroleum Resources with mixed feelings, adding, “while we do not doubt the depth of Alhaji Lukman’s experience in the petroleum sector, we are concerned that he is bringing into the ministry the stale tale of the deregulation of the petroleum sector.

“The massive collapse of market forces globally ought to have persuaded our policy makers to look at other alternatives for our developmental aspirations. We in the labour movement are convinced that as long as we are not willing to do what our other OPEC colleagues are doing, and doing successfully, we will not get out of our economic and energy crisis.”

In another development, the Nigerian Ports Authority (NPA) may have sacked no fewer than 9,000 staff members in order to realise the nation's dream on ports' concessioning, NPA Managing Director, Mallam Abdul Salamm Mohammed, has revealed.

Addressing an audience of experts in Djibouti, Lesotho, in respect of the nation's efforts towards bringing the country's ports industry to compete favourably with its peers elsewhere, the NPA boss said the figure was not inclusive of about 13,000 dock workers who were also disengaged and paid severance benefits, in a bid to ensure industrial harmony, before handing them over to the new terminal operators.

Mr. Mohammed, who indicated that the re-organisation was on the strength of the 2001 World Bank initiative and the Federal Government advice, based on diagnostic studies by Royal Haskonning/Dynamar and Challenge groups, said that the country also expended not less than $400 million on severance packages.

He identified some of the benefits that the country was currently reaping as a result of ports concessioning to include improved revenue base arising from reduced vessel waiting time; reduced cargo dwell time, improved berth occupancy, improved security, especially on cargoes, as well as a general increase of cargo through-put.

“Twenty five numbers of amortised projects are presently at various stages of completion; with a total value of the projects now at over $496.11 million,” he stated, adding that areas covered by the projects included road construction, berthing facilities, dredging of channels and storage facilities.

Emphasising that those who were sacked were made to realise that they were making a national sacrifice, the NPA boss observed that the effort had also attracted a Build Operate and Transfer (BOT) project from the Port and Terminal Multiservices Ltd (PTML) to developing a green field of Roro Berth on a two-year arrangement with a total value of $87, 400,000, with the main project costing $62.4 million and the rest being spent on additional work of dredging and land reclamation, on a second phase basis.
http://odili.net/news/source/2008/dec/19/600.html
Re: NLC Demands 52,000 Naira Minimum Wage Or They Will Strike by Muza(m): 8:30pm On Dec 20, 2008
i think this is very selfish on the part of NLC,
wat they should be asking for is light,road,good transport,affordable food stuffs,healthcare. . .etc
but even if the govt increases their salary to N100,000 ,it wont solve their problems cos everything will increase too.

and now that the govt is complaining about the price of oil i wonder. . .
Re: NLC Demands 52,000 Naira Minimum Wage Or They Will Strike by Nobody: 8:46pm On Dec 20, 2008
N52,000? shocked

For most of those lazy government workers?

Truth is wage increase is useless . . . prices of goods will simply skyrocket, inflation will increase and N52,000 will have no greater purchasing power than N7,500. NLC is pursuing the wrong cause here.
Re: NLC Demands 52,000 Naira Minimum Wage Or They Will Strike by earTHMama: 8:51pm On Dec 20, 2008
N52,000? 

For most of those lazy government workers?

Truth is wage increase is useless . . . prices of goods will simply skyrocket, inflation will increase and N52,000 will have no greater purchasing power than N7,500. NLC is pursuing the wrong cause here.

They want to start there so as to negotiate down to about N15k. They want govt to pay corpers 52K per month? That will make some people default in NYSC and overstay their service by 2 years. grin grin
Re: NLC Demands 52,000 Naira Minimum Wage Or They Will Strike by Nobody: 8:52pm On Dec 20, 2008
I see some people are just waking up. NLC na propaganda. They all have political ambitions. Their motto is to fight unreasonable/unjust causes and call for as many strikes as possible. I believe Adams Oshiomole is currently a Governor!!!!!!!!!!Case closed
Re: NLC Demands 52,000 Naira Minimum Wage Or They Will Strike by bawomolo(m): 9:14pm On Dec 20, 2008
its time the NLC got broken up.
Re: NLC Demands 52,000 Naira Minimum Wage Or They Will Strike by idiopathic: 12:21pm On Dec 21, 2008
Why are criticising the NLC. Where were you when members of the house are being paid astronomical emoluments. In nigeria, prices will rise whether salaries are increased or not.
Please, let them pay the workers a living wage.
Re: NLC Demands 52,000 Naira Minimum Wage Or They Will Strike by Nobody: 12:31pm On Dec 21, 2008
While it is understandable that a raise is needed, it is also important to note that there is no proper regulatory body.
Let's assume tomatoes cost 20 naira now. As soon as minimum wage is increased to 50 K, the tomato sellers will increase their prices to140 naira. At the end of the day, all you get in INFLATION and no appreciable change in standard of living.
I mean, where is the 1naira note now. I don't even think it exists. 5 naira is also going extinct.
Re: NLC Demands 52,000 Naira Minimum Wage Or They Will Strike by texazzpete(m): 1:09pm On Dec 21, 2008
I thought all of you guys here were Nigerians. Because every Nigerian knows that government sabi price well well. If you start from N15k, they will only settle for \n5k. Start from an unreasonable amount in the hope that Government will beat it down to a reasonable amount.
That said, N52k is extremely unreasonable angry
Re: NLC Demands 52,000 Naira Minimum Wage Or They Will Strike by diasporian: 1:13pm On Dec 21, 2008
I am surprised at the responses, I thought the American Nigerians, who always think to know more than everyone else, will rise in support of the call by NLC, and as usual deride the country as being in shambles etc.
Re: NLC Demands 52,000 Naira Minimum Wage Or They Will Strike by chidichris(m): 4:53pm On Dec 21, 2008
i have said this even in the days of the most celebrated chairman of nlc-oshomole, the nlc is not informed.
to start with 1 million strikes and none of the main objective achieved at the end of the day.
don't they look at their counterparts in the western world.
the nlc has never fought issues that will affect a trader or okada man and this accounts for reasons for their failures.
they shld be informed that everyday demand for increased salary.
this is a time to know what the workers really need and that is a better welfare packages.
they shld be asking for housing allowances, car allowances, insurances, health care and other relative issues without talking about the monthly salary.
if i have my way, i will not increase their salary and for any day of strike, they will loose reasonable amount of their salaries.
on the other hand, it could be a give and take situation between the nlc and the fg because the next news will be the pump increase of fuel price.
this same nlc will call us for another strike in february when the prices of crayfish and tomatoes go high.
Re: NLC Demands 52,000 Naira Minimum Wage Or They Will Strike by PapaBrowne(m): 9:06pm On Dec 21, 2008
earTHMama:


“Our demand is for the Federal Government to set up as a matter of urgency, a tripartite committee to negotiate and agree on this, so that the National Minimum Wage Act 2000 will be amended to reflect the new amount. [b]The National Minimum Wage Law should apply to any establishment employing 20 or more workers instead of the 50 workers currently stipulated by law.”




This NLC people sef, them no go school?

Can't they tell that an increase in minimum wage at this magnitude or even lower would crumble the already crippled manufacturing and services industry, then all the workers they were trying to fight for would lose their jobs?

To all those that support this nonsense without understanding the impact, let me explain in layman terms.

Lets take for example a small company- A Bakery. Production level= 4000 loaves/day. Turnover per day= N400,000, which is = 12,000,000 per month.
Let's assume they employ 60 workers with an average wage bill of N12,000/month  each, given the minimum wage of N7500.
This would amount to a total monthly wage bill of 60 workers X  N12,000 = N720,000.

With a turnover of N12 million/month, lets give them a healthy profit of 20%.This would mean a N2.4 million profit per month.

Fast forward to NLC increase of N52,000 Minimum.

Since N52,000 is the minimum, lets safely assume that N70,000 is the new average wage in the Bakery.
That sounds beautiful. All the workers would be so happy. N70,000 for a guy that was averaging 12,000 per month! Thats marvellous. The country would be better! Poor people now have a decent income! Nonsense, Nonsense, Nonsense.

Lets see what happens to the Bakery.
The bakery will now have a new monthly wage bill of N70,000 X 60 workers = 4.2 million Naira.
That is more than the profits the bakery usually makes. Thats a loss of about 1.1 million Naira in just the first month after applying the new minimum wage.

The bakery has just two choices. It will either close up shop or increase the price of it's bread exponentially to cover up for the new losses.

Now this will happen across all bakeries, hotels, bottled water factories,media houses and every other company that employs over 20 workers.

Prices of Goods would become unbearable, companies would have to shut down, and there would be no taxes for the government to pay workers salaries, pensions, contracts, etc. The economy would crumble.

NLC is deceiving gullible Nigerians. And sadly, that's more than 90 percent of the population.


P.S
I had to make this long and layman-like explanation to help those "gullible" folks to get at least an understanding!
The things NLC should demand for is the creation and implementation of a reliable infrastructural development policy.
The things NLC should demand for is creation of credible environment for companies to invest from whence good paying jobs would emerge.
Re: NLC Demands 52,000 Naira Minimum Wage Or They Will Strike by Nobody: 9:20pm On Dec 21, 2008
you nailed it papabrowne. I think its time those NLC officials saw their position as something more than just a demand for salary increase every time.
Re: NLC Demands 52,000 Naira Minimum Wage Or They Will Strike by earTHMama: 10:20pm On Dec 21, 2008
Can you guys tell us the appropriate minimum wage FG should mandate employers to pay?
Re: NLC Demands 52,000 Naira Minimum Wage Or They Will Strike by lucabrasi(m): 10:23pm On Dec 21, 2008
they are suspiciously silent in the face of gross injustice e.g corruption in leadershipgovernorship tribunial fraud,efcc inaction e.t.c,and have become little more than toothless bulldogs untill they have to make their selfish demands not thinking of the impact it ll have on the average nigerian,the rich will always get enough fuel same as the politicians
Re: NLC Demands 52,000 Naira Minimum Wage Or They Will Strike by Nobody: 10:26pm On Dec 21, 2008
earTHMama:

Can you guys tell us the appropriate minimum wage FG should mandate employers to pay?

minimum wage is not the problem. The value of the naira is. If the economy (non oil sector) booms and inflation rate drops, minimum wage will fix itself.
Re: NLC Demands 52,000 Naira Minimum Wage Or They Will Strike by earTHMama: 10:30pm On Dec 21, 2008
But they increase min wage in the US all the time, why should Nigeria's case be different?. If the economy is bad and inflation can hardly be controlled, should an avegrage Nigerian worker be suffering and waiting till they fix it or demand for an increase in wage?
Re: NLC Demands 52,000 Naira Minimum Wage Or They Will Strike by bawomolo(m): 10:40pm On Dec 21, 2008
earTHMama:

But they increase min wage in the US all the time, why should Nigeria's case be different?. If the economy is bad and inflation can hardly be controlled, should an avegrage Nigerian worker be suffering and waiting till they fix it or demand for an increase in wage?

actually it took years for minimum wage in the US to be increased. isn't it better to control inflation rather than increasing minimum wage.

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