Government and Labour Unions Reach Agreement on Wage Increase, Strike Likely to Be Suspended

The Federal Government on Sunday said the provisional wage increase announced by President Bola Tinubu for all low-income workers for six months would cut across all treasury-paid workers.

The Chief of Staff to the President, Femi Gbajabiamila, revealed this to State House correspondents at the end of a four-hour marathon emergency meeting with the leaders of Organised Labour.

The compromise was reached to avert the proposed indefinite nationwide strike declared by the organised labour.

Following the development, the Nigeria Labour Congress and the Trade Union Congress were expected to suspend their planned strike slated to commence on Tuesday after discussing the resolutions with their state chapters and affiliates on Monday (Today).

The meeting came hours after the President in his Independence Day broadcast announced the approval of a N25,000 provisional wage increase for certain category of federal workers for the next six months.

Briefing journalists on the meeting outcome, Gbajabiamila said, “There was a lot of chatter on Twitter about the issue of low-income workers only falling into the category of the provisional wage increase. And we did communicate with the President and he quickly did say and agreed that all categories of workers will be given the wage bill. There is nothing like low income, median income or high income.” ⁣

He expressed optimism that the labour unions would backtrack on their planned strike.

“Hopefully, we expect that Labour will call a meeting of their various branches and executive tomorrow to present the agreements that have been reached, and we pray and we believe and we hope that the strike will be called off on Tuesday,’’ he noted.⁣

However, The PUNCH gathered that labour leaders rejected Tinubu’s N25,000 provisional wage increment for low-grade workers. ⁣

They also rejected the government’s proposed six-month period the provisional increase covers and insisted that it should run until a new minimum wage is approved. ⁣

Unconfirmed sources at the meeting also said the unions insisted that the wage increase should be reviewed upwards to N35,000.

As a result, the Federal Government raised the wage award to N35,000. ⁣

But the Minister of Information and National Orientation, Mallam Mohammed Idris, in a statement disclosed that the parties resolved that the issues in dispute could only be resolved when workers were at work and not when they were on strike.

The statement read, ‘’Labour unions argued for higher wage award and the Federal Government team promised to present Labour’s request to President Bola Tinubu for further consideration.

“A sub-committee (is) to be constituted to work out the details of implementation of all items for consideration regarding government interventions to cushion the effect of fuel subsidy removal.

“The lingering matter of the Road Transport Employees Association of Nigeria and National Union of Road Transport Workers in Lagos State needs to be addressed urgently and Lagos State Governor, Babajide Sanwo-Olu, who participated virtually, pledged to resolve the matter.

‘’NLC and TUC will consider the offers by the Federal Government with a view to suspending the planned strike to allow for further consultations on the implementation of the resolutions above.’’

He added, “The Federal Government is committed to fast-tracking the provision of Compressed Natural Gas buses to ease public transportation difficulties associated with the removal of PMS subsidy.

“The Federal Government commits to the provision of funds for micro and small-scale enterprises. VAT on diesel will be waived for the next six months.

“The Federal Government will commence payment of N75,000 to 15 million households at N25,000 per month, for a three-month period from October-December 2023.”

Speaking on behalf of the Nigeria Labour Congress, NLC President Joe Ajaero said the union would table the FG’s offer before its organs reach a resolution.

“We’ve looked at almost all the issues, all the promissory notes from the government and we’ll look at how to translate them into reality and workable.

“Then we’re going to take those promises to our organs. We’re hopeful that our organs will have a look at them and give us a fresh mandate on what next to do. So it’s a simple one,” Ajaero said.

Turning to his comrades, he added, “Of course, you know these people here cannot just wake up and review and call off the (strike) action.”

Echoing Ajaero’s comments, Tommy Etim Okon, who spoke on behalf of the Trade Union Congress of Nigeria, said, “We’ve had series of conversations surrounding the issues raised and we do hope that by tomorrow (Monday), we are going to get across to our organs so that we can also look at it and cross-fertilise ideas and see the way forward. I’m sure we’re coming back again tomorrow for that.”

The Chairman of the Nigeria Governors Forum, Governor Abdulrazak Abdulrahman of Kwara State, Governor Dapo Abiodun of Ogun State, participated virtually.