Decentralizing Minimum Wage May Weaken Labor
Written by Kelvin Ebiri, Port Harcourt
Nigeria Guardian Sunday Magazine
THE seemingly harmonious industrial relation between Rivers State Government and the trade unions might rupture if the State House of Assembly accedes to the constitutional amendments that intend to remove the issue of minimum wage from the Exclusive to the Concurrent List.
The Deputy Speaker of the Rivers State House of Assembly, Leyii Kwanee, told The Guardian that when the issue comes up on the floor of the House for deliberation, the lawmakers would pragmatically analyse the issue and come up with the best possible option.
Kwanee is, however, of the opinion that it would be preposterous for anyone to dictate to an employer of labour, for instance, a state government, what will be appropriate to pay its workers. He insisted that states should be saddled with the responsibility of determining what they pay their workers, especially as the living condition of each of these states varies. To buttress this, he observed that the rent paid for a three-bedroom apartment in Oyo State is different from what is obtainable in Port Harcourt.
The lawmaker noted that it would be wrong for the Federal Government that is already overburdened to stay in Abuja and dictate that the minimum wage for the entire nation. He stressed that the society is dynamic and in an era when Nigerians are clamouring for the federal government to shed some of its responsibilities, it would only be fair to allow the federating units negotiate and pay according to their strengths.
“ A state like Lagos has no business with the so-called Federal allocation. But if you put all of these issues, variables, cost of living and all of that together, states have to negotiate with those they employ on what best they can pay. All of these will also help the states to sit up,” said Kwanee.
On the threat of industrial action by Nigerian workers, the lawmaker said their reaction is natural because it is an issue that affects their general wellbeing. He, however, charged the trade unions to take into cognizance the resources available to each state of the federation.
The Rivers State Commissioner for Employment and Empowerment, Dr. Ipalibo Harry, told The Guardian that the State government was yet take a definite stance on the issue.
The chairman of the Trade Union Congress in Rivers State, Chika Onuegbu, alleged that salaries paid across states are not uniform. But he explained that the minimum wage is the minimum salary that a worker should earn in Nigeria. He contended that the essence of a minimum wage, which is a global practice, is to provide basic social protection for the least paid workers, to be able to take care of their basic needs.
Onuegbu described the initial contemplation to remove Labour from Exclusive to Concurrent list as ill informed. He observed that one of the prime reasons for that might be the desire of some government officials to weaken the Labour movement in Nigeria, which has been in the vanguard of opposing all feudalist and anti people policies of the State.
“It is the first step to deregulate Labour, which is a very dangerous thing. Right now, Labour is in the Exclusive List. If you are deregulating minimum wage to the concurrent, what it means is that you are bringing labour to the Concurrent List, and the moment that happens, you would have killed Labour completely; you will then have a situation where each state will register their own trade unions, which will bid goodbye to Labour movement in Nigeria,” he said.
The TUC leader argued that, should the amendment be successful, it would adversely weaken the labour in Nigeria and the workers. He noted that it would not be in the interest of workers across the federation if state houses of assembly are now saddled with the constitutional responsibility of determining what an average worker should earn in their respective states.
Onuegbu, who pointed out that the state governors have been in the forefront of the campaign to remove minimum wage from the Exclusive List, will have no difficulty swaying their respective state houses of assembly to accede to the amendment. He, however, warned that the legislation would brew instability in Labour; there is going to be heightened oppression of workers, particularly by Indians, Koreans and the people, who, on daily basis, exploit Nigerian workers.
“The state governors have been fighting for that. Their argument is that the cost of living in Lagos, Port Harcourt and Bauchi, for instance, is not the same, and the revenue available to each of them is also not the same. Again, they think they are in a federation and don’t want the Federal Government to negotiate salary for them. But the issue here is not paying the same salary structure that federal government pays their workers. Already, the salary paid across the states are not the same, but the minimum wage is the minimum salary that a worker should earn in Nigeria and it is usually national minimum wage. And the essence is to provide basic social protection for the least paid worker, that somebody earning it should be able to take care of the basic needs. Even in the case of Nigeria, we know that N18,000 will not be able to do that.
Onuegbu argued that allowing states to determine what should be the minimum wage in their respect domains would pave way for fraudulent companies, especially in this era of contract staffing, to capitalise on the waiver that exempts companies with less than 50 employees from paying the minimum wage. According to him, should the amendment be ratified, it would make industrial practice more complicated, because companies establishing offices in different states would have to study the minimum wage laws in each of them.
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| Nigerian workers have increased militant demands in recent months. |
Nigeria Guardian Sunday Magazine
THE seemingly harmonious industrial relation between Rivers State Government and the trade unions might rupture if the State House of Assembly accedes to the constitutional amendments that intend to remove the issue of minimum wage from the Exclusive to the Concurrent List.
The Deputy Speaker of the Rivers State House of Assembly, Leyii Kwanee, told The Guardian that when the issue comes up on the floor of the House for deliberation, the lawmakers would pragmatically analyse the issue and come up with the best possible option.
Kwanee is, however, of the opinion that it would be preposterous for anyone to dictate to an employer of labour, for instance, a state government, what will be appropriate to pay its workers. He insisted that states should be saddled with the responsibility of determining what they pay their workers, especially as the living condition of each of these states varies. To buttress this, he observed that the rent paid for a three-bedroom apartment in Oyo State is different from what is obtainable in Port Harcourt.
The lawmaker noted that it would be wrong for the Federal Government that is already overburdened to stay in Abuja and dictate that the minimum wage for the entire nation. He stressed that the society is dynamic and in an era when Nigerians are clamouring for the federal government to shed some of its responsibilities, it would only be fair to allow the federating units negotiate and pay according to their strengths.
“ A state like Lagos has no business with the so-called Federal allocation. But if you put all of these issues, variables, cost of living and all of that together, states have to negotiate with those they employ on what best they can pay. All of these will also help the states to sit up,” said Kwanee.
On the threat of industrial action by Nigerian workers, the lawmaker said their reaction is natural because it is an issue that affects their general wellbeing. He, however, charged the trade unions to take into cognizance the resources available to each state of the federation.
The Rivers State Commissioner for Employment and Empowerment, Dr. Ipalibo Harry, told The Guardian that the State government was yet take a definite stance on the issue.
The chairman of the Trade Union Congress in Rivers State, Chika Onuegbu, alleged that salaries paid across states are not uniform. But he explained that the minimum wage is the minimum salary that a worker should earn in Nigeria. He contended that the essence of a minimum wage, which is a global practice, is to provide basic social protection for the least paid workers, to be able to take care of their basic needs.
Onuegbu described the initial contemplation to remove Labour from Exclusive to Concurrent list as ill informed. He observed that one of the prime reasons for that might be the desire of some government officials to weaken the Labour movement in Nigeria, which has been in the vanguard of opposing all feudalist and anti people policies of the State.
“It is the first step to deregulate Labour, which is a very dangerous thing. Right now, Labour is in the Exclusive List. If you are deregulating minimum wage to the concurrent, what it means is that you are bringing labour to the Concurrent List, and the moment that happens, you would have killed Labour completely; you will then have a situation where each state will register their own trade unions, which will bid goodbye to Labour movement in Nigeria,” he said.
The TUC leader argued that, should the amendment be successful, it would adversely weaken the labour in Nigeria and the workers. He noted that it would not be in the interest of workers across the federation if state houses of assembly are now saddled with the constitutional responsibility of determining what an average worker should earn in their respective states.
Onuegbu, who pointed out that the state governors have been in the forefront of the campaign to remove minimum wage from the Exclusive List, will have no difficulty swaying their respective state houses of assembly to accede to the amendment. He, however, warned that the legislation would brew instability in Labour; there is going to be heightened oppression of workers, particularly by Indians, Koreans and the people, who, on daily basis, exploit Nigerian workers.
“The state governors have been fighting for that. Their argument is that the cost of living in Lagos, Port Harcourt and Bauchi, for instance, is not the same, and the revenue available to each of them is also not the same. Again, they think they are in a federation and don’t want the Federal Government to negotiate salary for them. But the issue here is not paying the same salary structure that federal government pays their workers. Already, the salary paid across the states are not the same, but the minimum wage is the minimum salary that a worker should earn in Nigeria and it is usually national minimum wage. And the essence is to provide basic social protection for the least paid worker, that somebody earning it should be able to take care of the basic needs. Even in the case of Nigeria, we know that N18,000 will not be able to do that.
Onuegbu argued that allowing states to determine what should be the minimum wage in their respect domains would pave way for fraudulent companies, especially in this era of contract staffing, to capitalise on the waiver that exempts companies with less than 50 employees from paying the minimum wage. According to him, should the amendment be ratified, it would make industrial practice more complicated, because companies establishing offices in different states would have to study the minimum wage laws in each of them.
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