The Nigeria Labour Congress (NLC) has formally accepted the government’s offer of N70,000 minimum wage.
According to a communique signed by NLC President Joe Ajaero, the union made the decision at its emergency National Executive Council meeting on Friday.
Mr Ajaero said the Labour Union “accepted the president’s offer of N70,000…as the new National Minimum Wage and the 3-yearly tenure for its review.”
The labour union also gave reasons for accepting the government’s offer.
“…this decision, though challenging and far from our initial demand, was made in the spirit of solidarity and sacrifice for Nigerian masses…”
PulseNets reported the protracted negotiation between the government and labour over the new minimum wage.
Negotiations commenced last year after the Tinubu administration removed subsidies on petrol, leading to astronomical increases in the prices of goods and services.
Initial government proposals
President Bola Tinubu, after several meetings with Organised Labour, initially promised a N35,000 wage award until the new minimum wage took effect, replacing the N30,000 which expired on 18 April.
He also established a 37-member tripartite committee to ensure a decent living wage, in line with the National Minimum Wage Act of 2019.
Labour union demands
The Organised Labour initially demanded a minimum wage of N615,000, citing economic challenges and the rising cost of living. This demand was a result of extensive consultations between the NLC and the Trade Union Congress (TUC).
Unions rejected proposals
In May, the NLC and TUC walked out of negotiations when the government proposed a N48,000 minimum wage.
The Labour Union gave the government until the end of May 2024 to make a decision.
Subsequent proposals from the government, including N54,000 and N60,000, were also rejected by organised labour.
Resumed negotiations and new proposals
President Tinubu then instructed the Minister of Finance, Wale Edun, on 5 June to formulate a new minimum wage and its cost implications within two days for presentation at subsequent meetings with labour.
After resuming negotiations, the Tripartite Committee on the National Minimum Wage comprising the presidential team, Nigerian Governors’ Forum and the Organised Private Sector recommended N62,000 as the new minimum wage.
Governor Hope Uzodimma of Imo State announced that this recommendation would be forwarded to President Tinubu for action. Meanwhile, organised labour had reduced its demand to N250,000.
Presidential intervention
Following consultations with organised labour and state governors, President Tinubu approved the N70,000 minimum wage, as announced by the Minister of Information and National Orientation, Mohammed Idris, during a briefing with State House correspondents.
Confirmation by labour leaders
Messrs Ajaero confirmed the unions’ positive stance on the new wage.
However, he indicated that they would convene their NEC meetings to discuss the proposal further.
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Mr Idris stated that President Tinubu had a successful meeting with the organised labour, which was adjourned for further discussion.
“They did those consultations and have come back today to meet with Mr. President.
“We’re happy to announce today that both the federal government and organised labour have agreed on an increase to N70,000. The new National Minimum Wage that we expect to present to the National Assembly for legislation is N70,000,” he added.
