The Federal Government on Sunday said the provisional wage increase announced by President Bola Tinubu for all low-income workers for six months would cut across all treasury-paid workers.
The Chief of Staff to the President, Femi Gbajabiamila, revealed this to State House correspondents at the end of a four-hour marathon emergency meeting with the leaders of Organised Labour.
The compromise was reached to avert the proposed indefinite nationwide strike declared by the organised labour.
Following the development, the Nigeria Labour Congress and the Trade Union Congress were expected to suspend their planned strike slated to commence on Tuesday after discussing the resolutions with their state chapters and affiliates on Monday (Today).
The meeting came hours after the President in his Independence Day broadcast announced the approval of a N25,000 provisional wage increase for certain category of federal workers for the next six months.
Briefing journalists on the meeting outcome, Gbajabiamila said, “There was a lot of chatter on Twitter about the issue of low-income workers only falling into the category of the provisional wage increase. And we did communicate with the President and he quickly did say and agreed that all categories of workers will be given the wage bill. There is nothing like low income, median income or high income.”
He expressed optimism that the labour unions would backtrack on their planned strike.
“Hopefully, we expect that Labour will call a meeting of their various branches and executive tomorrow to present the agreements that have been reached, and we pray and we believe and we hope that the strike will be called off on Tuesday,’’ he noted.
However, labour leaders rejected Tinubu’s N25,000 provisional wage increment for low-grade workers.
They also rejected the government’s proposed six-month period the provisional increase covers and insisted that it should run until a new minimum wage is approved.
Unconfirmed sources at the meeting also said the unions insisted that the wage increase should be reviewed upwards to N35,000.
As a result, the Federal Government raised the wage award to N35,000.
But the Minister of Information and National Orientation, Mallam Mohammed Idris, in a statement disclosed that the parties resolved that the issues in dispute could only be resolved when workers were at work and not when they were on strike.
The statement read, ‘’Labour unions argued for higher wage award and the Federal Government team promised to present Labour’s request to President Bola Tinubu for further consideration.
“A sub-committee (is) to be constituted to work out the details of implementation of all items for consideration regarding government interventions to cushion the effect of fuel subsidy removal.
“The lingering matter of the Road Transport Employees Association of Nigeria and National Union of Road Transport Workers in Lagos State needs to be addressed urgently and Lagos State Governor, Babajide Sanwo-Olu, who participated virtually, pledged to resolve the matter.
‘’NLC and TUC will consider the offers by the Federal Government with a view to suspending the planned strike to allow for further consultations on the implementation of the resolutions above.’’
He added, “The Federal Government is committed to fast-tracking the provision of Compressed Natural Gas buses to ease public transportation difficulties associated with the removal of PMS subsidy.
“The Federal Government commits to the provision of funds for micro and small-scale enterprises. VAT on diesel will be waived for the next six months.
“The Federal Government will commence payment of N75,000 to 15 million households at N25,000 per month, for a three-month period from October-December 2023.”
Speaking on behalf of the Nigeria Labour Congress, NLC President Joe Ajaero said the union would table the FG’s offer before its organs reach a resolution.
an indefinite strike with effect from Tuesday to protest the alleged failure of the Federal Government to provide post-subsidy palliatives for workers and implement policies that could alleviate the sufferings of the masses after the removal of the fuel subsidy.
The unions had also directed their state chapters and affiliates to mobilise for the shutdown of critical facilities and infrastructure, including airports, seaports, electricity grids and fuel supply across the country.
However, the Attorney-General of the Federation, Lateef fagbemi, SAN, in a letter addressed to the counsel to the NLC and TUC, Femi Falana, SAN, reminded them about a subsisting injunction from the National Industrial Court restraining them from declaring a strike action.
Fagbemi said irrespective of their disposition on the matter, the court order must be obeyed unless it is vacated and advised Falana to advise the labour leaders to abide by the court judgment to protect its integrity.
But the unions waved off the FG’s objection as it continued mobilising its various affiliates and branches for the strike which was expected to cripple economic and commercial activities across the country.
But in a bid to woo the labour unions, the President in his Sunday morning broadcast explained that the wage increase would be paid to low-grade workers for the next six months just as he acknowledged the sufferings of Nigerians since the scrapping of petrol subsidy on May 29.
He said it gave him no joy to watch citizens shoulder burdens that would have been shed a long time ago.
According to him, the decision followed negotiations with the labour unions and other stakeholders in the business community to increase the federal minimum wage without triggering undue inflation.
“For the next six months, the average low-grade worker shall receive an additional N25,000 per month,” Tinubu announced during his maiden Independence Day address to Nigerians.
He said the reforms were necessary to rid the system of the grip of those he called “a select and greedy few.”
“I am attuned to the hardships that have come. I have a heart that feels and eyes that see. I wish to explain to you why we must endure this trying moment.
“Reform may be painful, but it is what greatness and the future require. We now carry the costs of reaching a future Nigeria where the abundance and fruits of the nation are fairly shared among all, not hoarded by a select and greedy few. A Nigeria where hunger, poverty and hardship are pushed into the shadows of an ever-fading past.
“There is no joy in seeing the people of this nation shoulder burdens that should have been shed years ago. I wish today’s difficulties did not exist. But we must endure if we are to reach the good side of our future,” he explained.
The President affirmed that his government is doing all that it can to ease the load.
He then outlined the path his administration was taking to relieve the stress on families and households, saying, “We have embarked on several public sector reforms to stabilise the economy, direct fiscal and monetary policy to fight inflation, encourage production, ensure the security of lives and property and lend more support to the poor and the vulnerable.”
He added that “Based on our talks with labour, business and other stakeholders, we are introducing a provisional wage increment to enhance the federal minimum wage without causing undue inflation.”