Nigerian Government Cautions Labour Ahead of Industrial Action, Says Nationwide Strike Will Worsen Economy

As the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) mobilise their members for the nationwide industrial action that will commence on Monday, the federal government has warned that embarking on such action at this critical period will worsen the country’s economy.

It also argued that the N494,000 national minimum wage being demanded by the organised labour is unsustainable as the wage bill cumulatively amounts to the sum of N9.5 trillion, which is capable of destabilising the economy and jeopardising the welfare of over 200 million Nigerians.

NLC and TUC said they have commenced mobilisation of all their affiliates nationwide to shut down the country as from midnight on Sunday.

The two apex labour groups, which expressed disappointment with the government’s handling of the negotiation on new minimum wage, had declared an indefinite nationwide industrial action effective from Monday, June 3, 2024.

But the Minister of State for Labour and Employment, Hon. Nkeiruka Onyejoecha, on Saturday warned that the planned action is not in the best interest of the country and its people.

In a statement signed by the minister’s media aide, Emameh Gabriel, she cautioned against declaring a strike in the middle of ongoing negotiations, saying it would not only compound the economic woes but also exacerbate the suffering of millions of Nigerians who are already struggling to eke out a living from their daily endeavours.

However, on a conciliatory note, Onyejeocha urged the unions to reconsider their decision and continue engaging in constructive dialogue to find a solution that benefits all, adding that organised labour should continue to respect the principles of social dialogue.

She said any strike at the moment would disproportionately harm the most vulnerable segments of the society.

The minister also sounded a note of warning that any new minimum wage must not lead to widespread job losses, particularly in the Organised Private Sector, which employs the bulk of the nation’s workforce

Onyejeocha expressed disappointment that organised labour abruptly exited the negotiations on Friday, despite the government’s flexibility in rescheduling the meeting from Monday to Friday, May 31, to accelerate the talks.

“Labour unions have remained adamant in their demand for a staggering 1,547 per cent wage increase, after the government’s proposed 100 per cent increase, accompanied by various incentives for workers.

“It is widely acknowledged that the labour unions’ demands are unrealistic, given the country’s current economic position. The government takes into account the nation’s fiscal constraints and the need for sustainable economic growth. In contrast, labour’s demands seem disconnected from the economic realities, potentially jeopardising the very gains they seek to achieve,” the minister added.

Barring any last-minute intervention by the government, the nationwide strike by NLC and TUC will commence by midnight on Sunday.

The Assistant Secretary of the NLC, Comrade Chris Onyeka, told THISDAY that all the affiliate unions nationwide had been directed to mobilise their members to ensure the commencement of the Industrial action.

Also speaking on the planned industrial action, the Minister of Information and National Orientation, Mohammed Idris, insisted that the N494,000 national minimum wage being demanded by the organised labour, which cumulatively amounted to the sum of N9.5 trillion, is capable of destabilising the economy and jeopardising the welfare of over 200 million Nigerians.

Speaking on Saturday at a press conference in Abuja, the minister also stated that the offer of N60,000 minimum wage by the federal government, which translates to a 100 per cent increase on the existing minimum wage of 2019, had been accepted by the organised private sector, which is a member of the tripartite committee of the negotiations team.

“The sum of N494,000 national minimum wage which labour is seeking would cumulatively amount to the sum N9.5 trillion bill to the federal government of Nigeria.

“Nigerians need to understand that whereas the FG is desirous of ample remuneration for Nigerian workers, what is most critical is that President Bola Ahmed Tinubu will not encourage any action that could lead to massive job loss, especially in the private sector, which may not be able to pay the wage demanded by the organised labour,” Idris said.

He added that the federal government was concerned with the welfare of over 200 million Nigerians based on its guiding principles of affordability, sustainability, and the overall health of the nation’s economy.

He urged the union leaders to return to the negotiating table and embrace reasonable and realistic wages for their members.

Olawale Ajimotokan, Onyebuchi Ezigbo and Wale Igbintade

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