Bowing To Labour’s Demand On Minimum Wage Will Cause Retrenchments, Says Ngige

The Minister of Labour and Employment, Dr Chris Ngige, announced
on Thursday that the Federal Government would have to lay off
workers to be able to meet a wage bill of N580 billion needed to
meet labour’s demand on the new wage.

Ngige told labour leaders in Abuja that the sum was what would
be needed by government to pay the consequential adjustments as
demanded by labour.

The News Agency of Nigeria (NAN) reports that the minister’s
announcement is the latest in the increasing drama over payment of
the new wage.

A Bill for the New Minimum Wage was signed into law by President
Muhammadu Buhari on April 18.

Ngige was speaking when the leadership of the United Labour
Congress (ULC), paid him a courtesy visit in his office.

Government and labour have been locked in an endless tussle over
modalities for the payment of the new wage, long expected by
workers.

Ngige said that Federal Government was avoiding a situation
where it would have to lay off workers, noting that throwing
workers into unemployment would add to their burden.

The minister pleaded with labour to accept the consequential
adjustment from levels 7 to 17, adding that government had only
three months left to implement the new wage.

He stated that government would not promise labour what it could
not pay, noting that no worker deserved to be owed salary.

Ngige disclosed that the Federal Government had so far paid
arrears of N500 billion to workers, including the Academic Staff
Union of Universities.

He restated that implementation of the new wage had since
commenced for workers on grade level 1 to 6, adding that the
development had helped those on the lower cadre in the civil
service to move up.

It will be recalled that government had told labour unions that
it could only pay 9.5 per cent salary raise for employees on grade
levels 07 to14 and five per cent for those on grade levels 15
to17.

But labour is demanding 30 per cent raise for officers on grade
levels 07 to 14 and 25 per cent for those on grade levels
15-17.

Public sector workers in Nigeria receive some of the lowest pay
cheques in the world, although political office holders receive fat
salaries, according to analysts.

The President of UCL, Mr Joe Ajaero, appealed for
payment of the new wage, stressing that the private sector should
also be compelled to pay the N30, 000 minimum wage.

He said there was need to review obsolete laws that were not in
tune with present realities, noting that a situation where some
private sector employers paid their employees N10, 000 and N15, 000
was unacceptable. (NAN)

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