2015: A Tough Year For The Nigerian Workers?

2015: A Tough Year For The Nigerian Workers?

NLC President

The year 2015 will be a defining moment for Nigeria politics wise.  In the same manner, the country’s economy is not left out going by the continuous  slump in oil prices at the world market.  How will this fall in oil prices affect workers? This year is also a critical year for the Labour union in the country. MICHAEL OCHE writes 

“We urge workers to brace up for a tough year,” president of the Nigeria Labour Congress (NLC), Abdulwahed Omar stated in his 2015 New Year message to workers. This statement indicates that the leadership of the labour union isn’t unmindful of a challenging year.

However, when Omar directed “State Councils in states whose workers’ salaries are yet to be paid,   to serve ultimatums on their governments to settle the arrears of the unpaid salaries or face disruption of services”, it signaled a firm warning that the workers are ready to ensure that their rights are protected.

In the year 2014 which the NLC tagged as very “challenging” the federal government’s newly introduced austerity measures has already began to take its toll on the workers.

As at December 30th, 2014, records from the NLC show that 11 states were unable to pay their workers’ salaries a situation that hinders their joy of the Christmas/New Year celebrations. Three of the states, Benue, Plateau and Osun owed their workers arrears of salaries ranging from 3 to 8 months! Several MDAs were yet to pay their workers as well.

The union stated, “While we appreciate the difficulties brought about by the collapse in oil prices, we caution against the imposition of unselective austerity measures. Already, workers continue to bear the brunt of the savage devaluation of the Naira with possibility of collateral consequences. We also strongly advise against consideration for rationalisation of staff. We support government initiatives to tax the rich through luxury taxes. More importantly, we are convinced that the surest way to manage the budget under austerity is to reduce the cost of governance. Bloated prerequisites of political office holders must be cut. Prerequisites and comfort of politicians need to reflect the reality of the times. Mr President and the state house must lead in this regard. The size of the Presidential fleet, the cost of running the State House and the retinue of political jobbers can all be reasonably cut without reducing the effectiveness of the Presidency.”

In 2015, the government may clash with organized Labour on the following issues:

Cut in oil prices

The Nigerian Labour Congress, NLC, has requested the Federal Government to reduce the pump price of petroleum products in line with declining prices of crude oil in the global market as has been done by other importing countries of refined petroleum products.

There are fears in certain quarters that because Nigeria imports refined petroleum products, the devaluation of the naira may lead to increased pump price of PMS.

According to the General Secretary of the NLC, Dr. Peter Oso-Eson, “The area that worries us very seriously is that crude prices are falling. In order countries, what that is immediately translating to, is that the price of petroleum products and pump head is coming down. In the United States, in the last one month, the price of a gallon of petrol, has come down from $3 to $2, in response to this price adjustment. In our country, we are not allowed to enjoy that benefit. What government is doing is that in order to shore up its naira revenue, it has gone to devalue excessively, the naira; $13 devaluation in one day, and then a continuous process of depreciation.

“What that does, is that, because we import petroleum products largely, the gains from the falling price of crude which ought to translate to consumers, is prevented by that devaluation; because, by devaluing the cost of the head price, it might even increase.

“We say that that is wrong and the benefits of the falling price of crude, must be translated to Nigerians. Therefore, going forward, we want a situation in which the pump of petrol and other petroleum products should actually be adjusted downwards.”

Hike in Electricity Tariff

The new hike in electricity tariff is certainly one that will not go down well with workers. Since the privatization of the power sector, Nigerians say electricity supply has yet to improve, meanwhile the tariff has continually been on the increase.

NLC president, Omar stated, “We condemn the imposition of exploitative electricity tariff and urge caution in case this leads to some further unpleasantries. We note sporadic protests against these tariff hikes in cities across the nation including Benin, Enugu, Lagos and Kano.”

Upward review of minimum wage

The NLC said it had started preparations for a new minimum wage for workers following the inflation, devaluation and depreciation of the Naira.

NLC’s General Secretary Peter Ozo-Eson said that the implication of some of the government austerity measures, occasioned by the global fall in crude oil price, had started impacting negatively on workers.

“Giving when the last minimum wage was implemented, we should actually be preparing for a new regime.

“We have discussed this formally even before the austerity measures, but we took a position that we should wait before making formal demand for a review.

“We want to settle the issue of economic indices that determine what the minimum wage should be.

“Before we make a minimum wage demand, we do a thorough study on the basis of cost of living, inflation and what is happening to minimum wages in other countries,’’ he said.

President Goodluck Jonathan signed the N18, 000 minimum wage act in 2010 which is yet to be implemented in some states. It is expected to undergo a review every five years.

According to Ozo-Eson, the   prices of goods and services are already winding up and workers are already being impacted negatively by the present situation.

He urged the government to avoid every attempt to pass the burden of the current fall in oil revenue to the workers.

“We are opposed and we will resist every attempt to pass the burden of this present situation to workers.

“The union will oppose any form of retrenchment that government may contemplate as part of the austerity measures,’’ he said.

Ozo-Eson said that union would prepare for the new regime of minimum wage once the contentions of whether to remove wage laws from exclusive list to concurrent was put to rest.

Retrenchment of workers

Following the fall in oil prices, the government may be tempted to reduce its workforce, a situation the NLC has already warned will be resisted.

Omar in his new year message stated, “more importantly, we are convinced that the surest way to manage the budget under austerity is to reduce the cost of governance. Bloated prerequisites of political office holders must be cut. Prerequisites and comfort of politicians need to reflect the reality of the times. Mr President and the state house must lead in this regard. The size of the Presidential fleet, the cost of running the State House and the retinue of political jobbers can all be reasonably cut without reducing the effectiveness of the Presidency.”

Leadership change at NLC

Recently, the Nigeria Labour Congress (NLC) has been accused of not being vibrant as it used to be. Some Nigerians have tried to compare the leadership style of Comrade Abdulwahed Omar, the current NLC president and his predecessor, the current Edo state governor, Adams Oshiomhole.

Some Nigerians believe that Abdulwahed is too quiet compared to Oshiomhole who was very confrontational in his approach. Though, supporters of Omar believe that the current leadership with its ‘gentle approach’ has achieved so much. It would be recalled that the upward review of the minimum wage to N18, 000 under the tenure of the current leadership.

Source: Leadership News