Unions Demand Indefinite General Strike Amid Minimum Wage Impasse

In the ongoing struggle for a decent minimum wage, a robust and indefinite general strike is deemed essential by many advocates. The current negotiation deadlock sees the Federal Government and private sector fixed at a proposed ₦62,000, while state governors claim they cannot afford this amount. Meanwhile, the Nigeria Labour Congress (NLC) remains steadfast in their demand for a ₦250,000 minimum wage, causing delays as their leaders attend the International Labour Organisation (ILO) annual conference in Geneva, which has sparked uncertainty and frustration among workers.

It is increasingly apparent that both government and private sectors possess the financial capacity to provide a reasonable minimum wage, despite their claims to the contrary. Nigeria’s economy has shown significant growth over the years, with the World Bank noting an average annual growth of over 7% between 2000 and 2014, and 3.4% in the past three years. This consistent economic expansion implies the nation’s ability to support higher wages.

The Nigerian Stock Exchange is at unprecedented levels, nearly double from the previous year. While some international firms are exiting Nigeria, this is attributed to issues such as insecurity and the naira’s devaluation, rather than high labor costs. Comparatively, Nigeria’s minimum wage is lower than neighboring countries, with South Africa’s set at ₦250,000 and Niger’s at ₦100,000.

The federal budget has seen a significant increase, from ₦8.92 trillion in 2019 to ₦27.5 trillion currently. Case studies, such as that of Katsina State, suggest that even states with lower internal revenues can afford a minimum wage of at least ₦150,000. Oil-producing states and those with higher local incomes should manage much more comfortably than the proposed ₦62,000.

The stark reality of extreme poverty, as defined by the UN, is a significant concern. For a family of six, the survival threshold is $387 or N580,500 per month at the current exchange rate. The NLC/TUC’s revised demand of ₦250,000 still falls short of alleviating poverty, emphasizing the need for ongoing annual increases to truly support working families.

Despite the recent indecisiveness of union leaders, it is clear that only the collective strength of trade unions can achieve these demands. Civil society efforts, while important, lack the extensive organizational power of the trade unions. A unified approach, with trade unions at the forefront, is crucial for sustained and effective action.

The presence of union leaders at the ILO conference, while critical, has been mistimed given the crucial stage of the minimum wage fight. The ILO’s emphasis on partnership between trade unions, governments, and the private sector often leads to protracted negotiations without tangible results. Nigerian governments have repeatedly failed to implement agreed-upon measures, demonstrating a lack of good faith.

Although the ILO supports annual minimum wage increases, a practice seen in countries like South Africa, Ghana, and Cameroon, the current system in Nigeria of infrequent adjustments is inadequate. To maintain wage value, regular annual increments are vital.

With President Tinubu unlikely to meet the NLC/TUC’s ₦250,000 minimum wage demand, an immediate resumption of the suspended general strike is imperative. Delay risks demoralizing workers and diminishing campaign momentum.

Workers and trade unionists must urgently pressure their leaders at all levels to act. An outpouring of letters and motions demanding immediate strike action is necessary to secure the minimum wage demands in full. Only through unified and decisive action can the desired change be achieved.