MINIMUM WAGE: HOW SACRED?!

With the characteristic nature of how the government foot-drags whenever the term ‘minimum wage’ is mentioned, one can’t help but put pen to paper to share opinion as it relates with the survival means of the average Nigerian worker. Given how increasingly difficult it has become to get commensurable wage in the country, perhaps one wouldn’t be chastised for saying that the generality of workers are now to join their teaching counterparts in getting their rewards in heaven– as suggested by the old saying– even though the latter have insistently preferred getting it here on earth, at least, to be able to afford a reasonable livelihood before answering the inevitable call of death.

On one hand, I ask, isn’t it time the leadership of the organized labour stopped deluding itself and the generality of workers with a myopic demand for a better minimum wage, while at the same time always ready to settle for less? Oh no! This is not to cast aspersion on the good fight of keeping hope alive, but to question if Labours’ meetings and the basis for these agitations have been properly tuned up with issue-based content prior to dueling it out with government on the table of discussion. In the midst of several other pertinent issues which I believe Labour’s agitations should be about, I think Labour should play Oliver Twist for once and ask for more than a minimum wage. The demand for a rejuvenation of the failing economy could be the start point, which of course, would be more beneficial in the long term as even the minimum wage will become more meaningful both in magnitude and in economic value. As with the ongoing scuffle about minimum wage, if what the government is offering is anything to go by, then I think the juice is not worth the squeeze. I feel so disappointed that Labour reneged on its initial stance. An absolute showdown and a standstill at the initial demand for N56,000 (or what is it N65,000?) would have been a better fight. Sure, there would be dire consequences if Labour dared to go down that route, but shouldn’t that be the aim in the first place? Well, except if this struggle is not geared towards extricating the workers from the shackles of penury as spelt out by the ridiculousness of the nation’s minimum wage. My point here is that the fight should be worth it, even if it means getting transfused with the blood of the Arabs to fire up the needed resilience to get it done.

On the other hand, the government should stop its trademark lackadaisical attitude towards handling essential issues as it has to deal with the welfare of workers, especially the one (issue) workers hinge their survival on. This shows nothing but to portray a government without empathy, will and the commitment towards genuinely alleviating the plight of the average Nigerian worker. How could government be contending N56,000 with Labour even with our position as the biggest exporter of crude oil in Africa? I don’t even want to mention that paltry sum of pain (N30,000) which Labour is inflicting on itself, it’s appalling and quite shameful that government can even dare to argue that figure. Oh please… don’t mention that hogwash about government’s inability to pay, for all we care, the Nigerian government should be able to afford N100,000 minimum wage if not for the failures of the people managing the affairs of government. Okay, I wouldn’t want to laden this article with political undertone, so I will hold my peace about the ineptitude of the government for now. Let’s deal with the matter objectively as it concerns workers and what their clamour should be about.

As we know, nations are built upon several economic principles, and the whole essence of good governance is to ensure that these underlying principles are sound enough to keep almost all the economic sectors of a nation in very good shape. Minimum wage is one economic principle that directly affects the Nigerian workers, and there’s no repudiation to the fact that the government has failed in holding onto its own end of the bargain as it has to do with a better welfare package for the teaming workers. The usual sabotage (by the government) of the will to exercise its proverbial ‘church-mind’ in the negotiations with the organized labour by citing the provisions of ILO Convention 131 (referring to the ‘capacity-to-pay’ clause) is nothing to go by, at least from the perspective of our rich nation. Wait, did I say rich nation? Yes… by all standards! Pardon me, but with the right government and better economic-management, my assertion would be clearer even without explicit allusions to how the poor nation has (and is still) been looted black and blue in many guise. By the way, let me quickly mention here that the much talked about government’s ‘capacity-to-pay’ is rather implicitly captured in Recommendation 3(f) of the ‘Minimum Wage Recommendation, 1970 (No. 135)’ and not in the ‘Minimum Wage Fixing Convention, 1970 (No. 131)’ as usually erroneously quoted by the representatives of government.

At this point, it also becomes worthy to recall that the ‘Minimum Wage Fixing Convention, 1970 (No. 131)’ (Articles 1 through 6) propounds the dynamics of wage fixing, and by its composition, it is largely to the benefit of workers. Hence, whoever cites ILO Convention 131 as a bargaining-chip is only but watering the grass on Labour’s side of the fence. In fact, the averseness of government in putting up a sound control-mechanism that self-addresses the issue of minimum wage from time to time has become so worrisome that one can’t help but allude to the obvious fact that the case of the average Nigerian worker is akin to the evergreen lyrics (of the late Afrobeat maestro) ‘suffering and smiling’. Isn’t it counter-productive as a nation to always have to go through series of endless round-table discussions and incessant strike-actions before pegging a new minimum wage? Even when Article 4 (of same Convention 131) specifically mentioned the need for wage fixing mechanisms to be adjusted from time to time, sadly, it is only when Labour embarks on the ‘fast-becoming-irrelevant’ strike actions that the subject of wage adjustment is grudgingly broached by the government. Yes! You read that correctly, our own (Nigerian) method of strike action is fast becoming irrelevant. Of course, we know this is Nigeria, a place where government acts only at critical-points, but, isn’t it rather a waste of time, effort and purpose to deploy a nuclear weapon when a simple revolver can do the job? Whenever a nuclear weapon is deployed, there’s bound to be colossal damage. This is the reason countries that own nuclear weapons are widely respected in the comity of nations. Labour should adopt this approach with its use of strike-actions, and not always playing its joker even to its own disadvantage. Whenever deployed, there should be colossal economic-damage enough to bring the government to its knees. This way, our government would move to forestall a re-occurrence (which we know a sane government would do). For now though, I think the once-upon-a-time very powerful tool in the arsenal of our dear Labour’s fortress is fast losing its efficacy. They (government) are already pushing for a stiff implementation of the ‘no-work, no-pay’ policy… wait for it! Is this government sensitive at all… how about Labour implementing the ‘no-pay, no-work’ policy first? So much for government of the people! Now, wouldn’t you agree with me that it’s high time the leadership of organized labour re-strategized the dynamics of their agitations? Remember, there’s long-term profit in learning how to roar than to readily be a professional at barking!

Meanwhile, since the discussion still appears to be a tug-of-war between Labour and government over what the benchmark wage should be, government is offering (in its capacity) N24,000 and Labour is cheaply negotiating for N30,000. In retrospect, let us assess the brief chronicle of minimum wage in Nigeria and compare some of its underlying indices with the current proceedings. In 1981, Labour moved for N300 per month, which led to an eleven-day strike action. Labour and government eventually settled at N125 as prescribed by the National Minimum Wage Act of 1981. Before this time there was no proper structure in place for minimum wage. This was revised in 1991 to N250 per month, which suggests an upward review of 100 per cent. In year 2000, another round of negotiations led to the adoption of N7,500 per month for Federal workers and N5,500 per month for State workers, which suggests an upward review of 2900 per cent and 2100 per cent respectively. How ridiculously astronomical! The year 2011 ushered in the now moribund N18,000 per month, which suggests a hike of 140 per cent (and 227.27 per cent in the case of N5,500).

Now, with a careful assessment of the foregoing, one would deduce that it takes an average of about 10 years (plus the whole brouhaha that comes with it) to get the minimum wage reviewed in Nigeria. If you’re still wondering why that should be a headache, quickly compare that with the ‘distinguished’ leaps in the yearly budget of the National Assembly alone (just to mention one financial recklessness of our government). Isn’t that a clear case of making the rich richer and the poor poorer?

Another deduction you would notice from the chronicle above and perhaps, one that should be more worrisome is the astronomical percentage of increments. One may easily be fooled to think that the unusually gigantic increments are in the best interest of the vulnerable workers, but truthfully, it should be regarded as an economic-abomination. Even with the huge leaps in the remunerations, the minimum wage is still loudly synonymous with penury. This simply mirrors how degenerated the Nigerian economy has become over the years. This is the same country (in 1981) whose currency exchanged for about N0.61 to $1. Imagine how untrue it sounds that the naira was once stronger than the almighty dollar. Please what is the exchange rate as at today… about N360 to $1? Can you see how the Purchasing Power Parity (PPP) of the naira has fallen like London Bridge? Ah! The situation is worse than it seem o! Whatever happened between then and now is what Labour (in collaboration with a wider range of other stakeholders) should seek to address. After all, the whole essence of minimum wage is to overcome poverty and to ensure the satisfaction of the needs of all workers and their families (Minimum Wage Recommendation, 1970 (No. 135)).

While not disregarding in totality the estimable good fight which labour has put up in a bid to secure a better pay for the average Nigerian worker, I particularly think there’s more to be done than just the fight for minimum wage. Since the organized labour is representing a larger mass of the vulnerable, we implore them to exhibit more depth and firmness to their discussions with the government. Yes… minimum wage is sacred, but in the context of the Nigerian nation where the economy has been in constant competition with the free-fall of gravity, it’s not as sacred as it appears. Of what use would it be if minimum wage is, say, N200,000 when all it can purchase is a loaf of ‘agege’ bread? In my opinion, Labour’s agitations should transcend the minimum wage. For the short term, securing a reasonable minimum wage is good, but the long term clamour should center more on fundamental issues that can birth a revolution to refocus the directions of our macro-economic indices towards achieving a very vibrant economy.

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Picture credit: CAObis Obilonu