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FG, Labour Clash Over July Start Date for ₦70,000 Minimum Wage

The Committee on Consequential Adjustments in Salaries for Civil Servants convened on Friday to finalize discussions regarding the new minimum wage template. The committee agreed that the effective date for the implementation of the new minimum wage would be July 29, 2024.

This decision was outlined in a Memorandum of Understanding (MoU) issued after the meeting, which was reviewed by our correspondent in Abuja. The MoU also recommended that the wage award, previously discontinued by the government, be paid up until July 28, 2024.

The committee, led by the Head of Civil Service of the Federation, Didi Walson-Jack, emphasized that the government had considered the current economic situation before making its decision.

“The committee held four meetings and reviewed presentations from both the Federal Government and Trade Union sides,” the MoU noted. “It also took into account the government’s financial ability to sustain any consequential salary adjustments arising from the National Minimum Wage (Amendment) Act, 2024, as well as the broader impact on other employers.”

Additionally, the MoU recommended that the National Salaries, Incomes and Wages Commission (NSIWC) prepare appropriate salary templates for various consolidated salary structures. It suggested that the federal government should provide relief for federal workers impacted by the recent increase in petrol prices, potentially through tax waivers and other incentives. The NSIWC, alongside other stakeholders, would monitor the implementation in line with the Act’s provisions.

However, the Nigerian Labour Congress (NLC) has expressed its dissatisfaction with the government’s decision to backdate the implementation. NLC’s Head of Information, Benson Upah, voiced his concerns, calling the move unfair and unacceptable.

“The backdating to July is not fair. It is not acceptable,” Upah stated in an interview with journalists.

Timmy Etim, the National Vice President of the Trade Union Congress (TUC), also criticized the government for reneging on its earlier promise. He referenced a statement made by the Minister of State for Labour, Nkiruka Onyejeocha, who had announced during May Day celebrations that the new minimum wage would take effect from May 1, 2024.

“The Minister of State for Labour, during May Day, said that the new minimum wage would take effect from May 1st. It’s surprising that the government has backtracked on that, especially given the socio-economic challenges in the country,” Etim said. “The government should stick to its initial promise. Even if the wage implementation has been delayed, the ₦35,000 wage award should be paid until the new wage is fully implemented.”

Meanwhile, some civil servants have expressed frustration over the delay in the implementation of the ₦70,000 minimum wage. Workers in Ogun State criticized the government for its perceived insensitivity to the economic hardships faced by citizens.

Ms. Oladele, a public school teacher and single mother of three, lamented that her family has been struggling to cope with the rising cost of living. “It’s wickedness for the government to ignore the plight of the people, especially after removing fuel subsidies and floating the naira, which has led to skyrocketing prices,” she said.

Another worker, Adesola, described the government’s delay as “foot-dragging” and criticized the ₦70,000 wage as inadequate for an economy burdened by inflation. “The government has been slow in addressing this issue, and it’s the workers who are suffering,” he stated.

In Osun State, a civil servant from the Ministry of Water Resources argued that the delay amounted to cheating the workers. “The poor are becoming poorer due to the government’s actions, particularly with the rising cost of fuel,” the staff member said under the condition of anonymity.

In Port Harcourt, Rivers State, a National Identity Management Commission (NIMC) worker named Oyas said the wage delay had worsened living conditions. “With the rising fuel costs, our salaries mean nothing. I’ve resorted to public transport to make ends meet,” he explained.

As economic challenges continue to mount, many workers remain disheartened by the government’s handling of the minimum wage implementation, calling for immediate and effective action.