Labour to demand wage review amid sliding oil prices

As the economy continues to receive the negative impact of the dwindling oil prices typified by introduction of austerity measures and devaluation of the naira, the labour movement may be warming up to demand an upward review of the national minimum wage from the current N18,000, Business Day can authoritatively reveal.

The thinking of labour is that the austerity measures have wittled down the purchasing power of workers and the only way out is for government to increase workers salaries.

Besides, they say their demand which will be made by the first quarter of next year, is in line with the collective agreement reached with government, which stipulates that the wage will be subject to review after five years.

Peter Ozo-Eson, the general-secretary of the NLC, told BusinessDay in a telephone interview that the current minimum wage is due for a review in 2015 when it would have been in operation for five years.

“We are gathering our information on the cost of living in the country. The recent devaluation of the naira by the Central Bank to help the government cope with the falling oil prices in the international market is no doubt impacting negatively on Nigerian workers and their purchasing power.

“All these will form part of our negotiation next year for the review of the minimum wage,” said Ozon-Eson.

But some analysts are querrying the rationale of the demand and asking if that will solve the problem, without fundamental change in the structure of the economy.

They are further querrying the sincerity of labour, which is also opposed to deregulation, which would ordinarily free governemtn of some spending and divert same for investment in employment generationg ventures.

“I have no problem with labour asking for wage incease, but they have to be objective in their demand. We should rather be thinking of how we can make the economy productive and not rely solely on revenue from oil,” said Friday Ameh, energy analyst.

The analysts see the development trickling down to the states, as the recent move to remove labour issues, especially minimum wage, from the exclusive legislative list, to the concurrent list, may have suffered a setback at the National Assembly.

In fact, some of the state governments are currently struggling to pay their bills, including salaries, as their purses are getting leaner, owing to falling oil prices in the international market.  Some state governments, including Lagos, had before now, vowed that they would no longer pay federally negotiated minimum wage, insisting they must be allowed to negotiate wages with their workers.

The Federal Government has had to review the 2015 national budget benchmark twice, from $78 to $73 and later $65 per barrel, in response to the oil price slide, with analysts predicting a further slide in 2015.

The subsisting N18,000 minimum wage was signed by president Goodluck Jonathan in 2011, and  comes due for  review in 2015. Ahead of the expected review, the Nigeria Labour Congress (NLC) is gathering data on the cost of living in the country, particularly the impact of the naira devaluation on the purchasing power of an average Nigerian worker.

BusinessDay further gathered that this, among other economic dynamics, would form the document labour hopes to approach the Federal Government with, in their demand for a review of workers’ wages next year.

JOSHUA BASSEY