In an effort to combat rising poverty levels across the country, Organised Labour is actively working to expand the coverage of the upcoming National Minimum Wage (NMW). By advocating for more workers to be included under the NMW, labour organizations aim to improve the livelihoods of a larger portion of the workforce and ensure fair compensation for their efforts.
This push for broader coverage reflects Organised Labour’s commitment to addressing the needs of vulnerable workers and fostering greater economic equality.
The 2019 Minimum Wage Act, which has now expired, established minimum wage coverage for employers with a workforce consisting of at least seven employees.
This legislation aimed to ensure that a substantial portion of the workforce received fair compensation and benefited from the protection of a minimum wage. With the Act’s expiration, it is essential to consider new measures to maintain and potentially expand the coverage of minimum wage laws in order to promote economic stability and reduce poverty rates across the country.
According to a document obtained by newsmen, the Nigeria Labour Congress (NLC) and the Trade Union Congress of Nigeria (TUC) are working together under a unified platform to address key labour issues.
The document reads: “We must try as much as possible to get more Nigerians covered by the minimum wage act by insisting that rather than that which prescribes coverage for workplaces with 7 and more employees, all Nigerian workers wherever they may work, must enjoy this national minimum wage.
“The alternative may be to have a graduated national minimum wage that would cover the segment not captured by making theirs about 80 per cent of the agreed minimum wage. This may be better than leaving them out completely though the first option is preferable.
“It is time to insist that within the life span of the wage Act as agreed; it must be allowed to adjust upward according to the Central Bank of Nigeria, CBN, targeted rate of inflation and indeed, national productivity. This assures that real wages remain relatively constant over the period unlike what is now prevalent. This is based on the fact that most of the time; we calculate the minimum threshold anchored on indices from past experiences but future occurrences like increasing inflation which impacts CPI, CLI and others, are not factored into our demands.
“As average national income goes up, it is important that wage floor is raised by an agreed percentage of the increase to avoid increasing the inequality gap and have a more equitable and just national distribution of wealth. This ensures that workers have a fair proportion of the nation’s wealth which they created.
“It is important for us to ensure that the negotiated outcome i.e. the set minimum wage is realistic and within the capacity of the social partners to pay. This is part of the sustainability principle of wage setting and we must find ways to avoid the pitfalls of the last review.”
