Labour rejects July date for payment of New minimum wage

 

From Editor

The Committee on Consequential Adjustments in Salaries for civil servants has agreed that the new minimum wage will be implemented from 29 July 2024.

This was stated in a Memorandum of Understanding issued at the end of the committee’s meeting, which was seen by our correspondent in Abuja on Friday.

The committee also recommended that the wage award, which was discontinued by the Federal Government, should be paid until 28 July 2024.

The committee, headed by the Head of Civil Service of the Federation, Didi Walson-Jack, noted that the government considered the economic situation in the country before making its decisions.

The MoU read, “The committee held four meetings and considered all presentations from the Federal Government and Trade Union sides. It also took into account the economic situation and the ability of the Federal Government to pay and sustain any consequential adjustment in salaries arising from the implementation of the National Minimum Wage (Amendment) Act, 2024, as well as the effects on other employers.”

Stating further, the MoU recommended that “the NSIWC will generate the appropriate salary templates for other consolidated salary structures for implementation; that the effective date of the implementation should be 29 July 2024; that the payment of the wage award issued via NS/WC Circular SWC.04/T/33 dated 19 October 2023 should continue to be paid until 27 July 2024;

“that the Federal Government should take appropriate measures to alleviate the plight of Federal workers as a result of the recent increase in PMS, including consideration of tax waivers and other incentives; and

“that the NSIWC, in collaboration with other stakeholders, should commence monitoring of the implementation in line with the provisions of the Act.”

The committee was established to implement the provisions of the National Minimum Wage Act 2024, which raised the national minimum wage from ₦30,000 to ₦70,000.

The committee consists of 16 members.Its terms of reference include negotiating and agreeing on consequential adjustments in salaries and developing a template for the implementation of the approved minimum wage.“

The Committee held four meetings and considered all presentations by the Federal Government and Trade Union Sides. It also considered the economic situation and ability of Federal Government to pay and sustain any consequential adjustment in salaries arising from the implementation of the National Minimum Wage (Amendment) Act, 2024 as well as the effect on other employers.”

The MOU further recommended that, “The NSIWC will generate the appropriate salary templates for other consolidated salary structures for implementation: that the effective date of the implementation should be 29th July 2024, that the payment of the wage award issued vide NS/WC Circular SWC.04/T/33 dated 19th October 2023 should continue to be paid until 28th July 2024.

“That the Federal Government should take appropriate measures to alleviate the plight of Federal workers as a result of the recent increase in PMS, including the consideration of tax waivers and other incentives; and that the NSIWC in collaboration with other stakeholders should commence monitoring of the implementation in line with the provisions of the Act.”

But reacting in an interview with Saturday PUNCH, the Head of Information of the Nigerian Labour Congress, Benson Upah, faulted the decision of the government, describing it as unacceptable.

“The backdating to July is not fair. It is not acceptable,” he said.

Also, the National Vice President of the Trade Union Congress, Timmy Etim, criticised the government’s move.

He said since the Minister of State for Labour, Nkiruka Onyejeocha, had told workers on May Day that the new minimum wage would take effect in May, it was unfair for the government to renege on the promise.

“The Minister of State for Labour, during the May Day, said that the payment of the new national minimum wage would take effect from May 1st. I am surprised if they have changed and I don’t know the parameter they used for the change. But it will be unfair for the government to do that taking cognizance of the socio economic challenges. {The Punch}