*Grants Six-Month VAT Exemption on Diesel and Offers Additional Benefits to Labor
*As Labour To Consult Organs
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“The meeting between the Federal Government and Organized Labour ended in a deadlock yesterday, as leaders of the Nigeria Labour Congress (NLC) and their counterparts from the Trade Union Congress of Nigeria (TUC) rejected the government’s offers. However, the meeting is set to reconvene at 4 p.m. today.
Sources at the meeting informed our correspondent that the labor leaders rejected President Bola Tinubu’s proposal of a N25,000 provisional wage increase for low-grade workers aimed at cushioning the impact of petrol subsidy removal. The labor leaders even told Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, SAN, to be prepared for their arrest, as the government had threatened them with a court order, which they found unacceptable.
Recall that during his nationwide broadcast on Nigeria’s 63rd Independence Anniversary, President Tinubu had stated, “Based on our discussions with labor, business, and other stakeholders, we are introducing a provisional wage increment to enhance the federal minimum wage without causing undue inflation. For the next six months, the average low-grade worker shall receive an additional Twenty-Five Thousand naira per month. Commencing this month, the social safety net is being extended through the expansion of cash transfer programs to an additional 15 million vulnerable households.”
However, Organized Labour rejected the N25,000 provisional wage increase during their meeting with the Federal Government team at the Permanent Conference Room, Presidential Villa, Abuja. Instead, they demanded a 200% increase in the current minimum wage. Furthermore, Labor insisted that the provisional wage increase should apply to all workers until a new Minimum Wage Act is enacted next year, and it should not be limited to just six months.
The labor leaders also emphasized that the conditional cash transfer for the poorest and most vulnerable people should be increased to N25,000 for 15 million vulnerable Nigerians, as opposed to the N5,000 that was paid during the previous administration.
After several hours of negotiations, the Chief of Staff, Femi Gbajabiamila, who led the government’s delegation, adjourned the meeting for the government team to consult with the President regarding the new demands. Gbajabiamila was accompanied by the Minister of Labour and Employment, Simon Lalong.
Other issues raised by the NLC and TUC leaders included tax rebates for low-income earners, the removal of Value Added Tax (VAT) on diesel for the next six months, and the provision of Compressed Natural Gas (CNG) and buses within the next two months.
The meeting, which began at approximately 3:25 pm, concluded around 7:15 pm and is scheduled to reconvene at 4 pm today.
It has been reported that labor leaders will also hold their National Executive Council (NEC) meeting today to brief NEC members on the government’s offers. The NEC is expected to make a decision and provide the leaders with a new mandate to take to the government.
But in a statement the Chief of Staff to the President and leader of the government team, Femi Gbajabiamila, announced that President Tinubu had accepted Organized Labor’s demand for a wage increase that applies to all workers, not just low-income ones.
Gbajabiamila stated, “We’ve been in a closed-door meeting with labor and government representatives since three o’clock, which has lasted for about four hours. Numerous issues related to Nigerian workers and the average Nigerian worker were addressed during the meeting. I cannot enumerate them all here, but I am pleased to announce that after four hours, we have reached several agreements that will benefit Nigerian workers. These agreements cover the wage bill, salary increment committees, CNG buses, and several other matters. I believe that both labor and the government are satisfied with the outcomes.
“Hopefully, we expect that labor will convene meetings with their various branches and executives tomorrow (today) to present the agreements that have been reached. We hope and believe that the strike will be called off tomorrow.
“I would like to once again thank Labor for taking time out on a Sunday, a day when they should be with their families, to come and discuss matters related to workers’ interests. Thank you very much.”
Gbajabiamila also clarified the issue of the N25,000 provisional wage award, stating, “There was a lot of discussion on Twitter about the issue of only low-income workers benefiting from the provisional wage increase. We communicated with the president, and he quickly agreed that the wage bill should be extended to all categories of workers. There is no distinction between low-income, medium-income, or high-income workers. I believe it is important to clarify this tonight.”
The President of NLC, Joe Ajaero, said, “I don’t have much to add to what the Chief of Staff has said. We have been in meetings, and we have reviewed almost all the issues and promises made by the government. We will now focus on how to translate those promises into reality. Then we will present these promises to our organs. As you know, the leaders present here cannot unilaterally change decisions or call off actions. So, as Gbajabiamila said, we hope that our organs will review the agreements and provide us with a new mandate on the next steps. It’s a straightforward process.”
The acting President of TUC, Tommy Etim Okon, added, “We hope to meet with our organs tomorrow.”
Sources at the meeting revealed that the government’s team had wanted Organized Labor to announce a suspension of the indefinite strike, but this was declined.
In a statement issued at the end of the meeting, the Minister of Information and National Orientation, Mallam Mohammed Idris, stated, “The Federal Government has announced a provisional wage increment of N25,000 for all treasury-paid Federal Government workers for six months. The Federal Government is committed to expediting the provision of Compressed Natural Gas (CNG) buses to alleviate public transportation difficulties stemming from the removal of PMS subsidy. The Federal Government will also provide funds for micro and small-scale enterprises and waive VAT on diesel for the next six months. Additionally, the Federal Government will begin payments of N75,000 to 15 million households at N25,000 per month for a three-month period from October to December 2023.”
The meeting concluded that the issues in dispute can only be resolved while workers are at work, not during a strike. Labor unions argued for higher wage awards, and the Federal Government team pledged to present labor’s request to President Bola Tinubu for further consideration. A sub-committee will be constituted to work out the implementation details of all items related to government interventions aimed at mitigating the impact of fuel subsidy removal. The longstanding issue between the Road Transport Employees Association of Nigeria (RTEAN) and the National Union of Road Transport Workers (NURTW) in Lagos State will be urgently addressed. Lagos State Governor Babajide Sanwo-Olu, who participated virtually, pledged to resolve the matter. NLC and TUC will review the offers made by the federal government to consider suspending the planned strike, allowing for further consultations on the implementation of the resolutions mentioned above.
Those present at the meeting included Governor Abdulrazak Abdulrahman of Kwara State and Chairman of the Nigeria Governors Forum (NGF), Governor Dapo Abiodun of Ogun State (participating virtually), the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the Minister of Information and National Orientation, Mohammed Idris, the Minister of Labour and Employment, Simon Lalong, the Minister of State, Labour, Nkeiruka Onyejeocha, the Minister of Budget and Economic Planning, Abubakar Atiku Bagudu, the Minister of Humanitarian Affairs and Poverty Alleviation, Betta Edu, the Minister of Industry, Trade and Investment, Doris Uzoka-Anite, the Head of Service of the Federation, Dr. Folasade Yemi-Esan, and the National Security Adviser (NSA), Mallam Nuhu Ribadu.
The labor delegation was led by NLC President Joe Ajaero, Deputy President of TUC Dr. Tommy Etim Okon, NLC General Secretary Emma Ugboaja, TUC Secretary Nuhu Toro, among others.
Furthermore, Organized Labor has instructed state councils and affiliates to ensure full compliance with the nationwide strike directive. In addition to this, Organized Labor has established a strike zonal coordinating committee to ensure the success of the indefinite nationwide strike.
In a circular issued by the Nigeria Labour Congress (NLC) General Secretary, Emmanuel Ugboaja, to all 36 state councils and the Federal Capital Territory, Abuja, the NLC directed state councils to hold joint meetings with the Trade Union Congress of Nigeria (TUC) and work together to ensure complete compliance with the strike directive.
The circular, titled “Indefinite Nationwide Strike,” reads: “In furtherance of the notice of the indefinite nationwide strike scheduled to commence on Wednesday, October 3, 2023, all chairpersons of NLC state councils are kindly requested to take the following steps immediately to ensure a successful outcome:
- Send an immediate circular notifying all affiliate unions and workers in their states of the need to comply with the strike.
- Ensure that their respective compliance teams leave no stone unturned in fulfilling their responsibilities, particularly in areas of strategic importance for the overall success of the action.
- Hold joint meetings with TUC and work together to ensure complete compliance with the essence of the action.
- Continue providing progress reports of their activities to the national secretariat and other platforms as the action unfolds.
The success of this action is critical for the survival of workers and the masses. Whether it succeeds or not depends on our collective determination and commitment. No one else can achieve it for us.”
Similarly, NLC and TUC have inaugurated zonal strike coordinating committees to collaborate with state councils, affiliates, and other allies to effectively carry out the strike. These coordinating committees were inaugurated on Saturday.
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