COVER
New Minimum Wage: Crisis Looms as FG, Labour Unions Trade Blames
By Mathew Dadiya, Abuja
Following the inability of federal government and the organized labour union to agree on the final modality for implementation of the new national minimum wage, there is impending signal that the economy may suffer a setback if the issue is not resolved quick.
President Muhammadu Buhari had in April 2019, signed into law the N30,000 national minimum wage.
But the implementation of law is yet to be effected six months after presidential assent resulting in heated debates and bickering between the government and the labour union.
The labour union has given the government a two-week ultimatum to either meet their demands or face industrial action in which case the economy would suffer.
The bone of contention is not the payment of the N30,000 minimum wage but the inability of both government and the labour team to reach an agreement over the relativity or consequential for the implementation of the new minimum wage.
Labour has warned that government’s delay is an invitation for industrial action adding that workers were already engulfed in fear and agitations whether their accumulated arrears will be paid at the end of the agreement.
Daily Asset recalls that the federal government had step up from 9.5 percent to 11 percent for grade levels 7 to 14 and 6.5 percent from 5.5 percent for levels 15 to 17.
But the organised Labour, said, “workers stepped down to 29 from 30 percent for grade levels 7 to 14 and 24 from 25 percent for levels 15 to 17.” He added that the labour negotiating team has also resolved to write to the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) on their advice to consider an industrial action.
Recalled that at the end of the Joint Public Service Negotiating Council (JNPSNC) meeting which was chaired by the Head of service of the federation, Winifred Oyo-ita, our reporter learnt that both the federal government and the labour teams of the joint public service negotiating council only made minor adjustment to their earlier positions.
Minister of Labour and Employment, Dr Chris Ngige, has said that the demand of labour union over the implementation of the new minimum wage would cost the Federal Government N580 billion.
Ngige maintained that such adjustment in line with labour union demand was
not sustainable as the government would have to lay off some workers
to be able to meet their demand.
The Minister made government’s position known last Thursday in Abuja when the leadership of United Labour Congress (ULC), paid him a courtesy visit.
He said that the Federal Government was avoiding a situation where it would have to lay off workers, adding that this would add to the burden of the citizenry.
The minister however, begged the labour union to accept the consequential adjustment from levels 7 to 17, adding that the Federal Government had only three
months left to implement the new minimum wage.
He stated that the Federal Government would not tell the labour union
what it could not pay, stating that no workers deserved to be owe
salary.
Ngige disclosed that the Federal Government had so far paid the
arrears of N500 billion to workers including the Academic Staff Union
of Universities (ASUU).
He said that the implementation of the new minimum wage had commenced
from grade level 1 to 6, adding that this had helped those on the
lower rug of the leader in the civil service to move up.
The Federal Government had told the labour union that it could only
pay 9.5 per cent salary raise for employees on Grade Levels 07-14, and
five per cent for those on Grade Levels 15-17.
But the labour union is demanding 30 per cent for officers on Grade
Levels 07-14, and 25 per cent for those on Grade Levels 15-1
Mr Joe Ajaero, the President of UCL, appealed to the minister for
prompt payment of the new minimum wage, stressing that the private
sector must also be compelled to pay the N30, 000.
He said that there was need to review obsolete laws that were not in
tune with present reality, adding that a situation where some private
sectors paid their employees N10,000 and N15,000 was unacceptable.
The federal government has been basking on the international labour law of Collective Bargain Agreement which stipulates that employer can only accept what they can pay, insisting that the 25 percent consequential demand by labour may not be feasible.
ReplyForward |
COVER
CBN Reduces Banks’ Lending Rate to 50 Percent
By Tony Obiechina, Abuja
Central Bank of Nigeria (CBN) yesterday announced a review of the loan-to-deposit ratio (LDR) for banks from 65 percent to 50 percent to align with the current monetary tightening.
LDR is used to assess a bank’s liquidity by comparing its total loans to its total deposits.
An increase in the loan-to-deposit ratio allows banks to expand their credits to businesses and individuals, however, a decline in LDR reduces their ability to loan customers from depositors’ funds.
CBN disclosed the increase in a circular titled “Re: Regulatory Measures to Improve Lending to the Sector of the Nigerian Economy”, signed by Adetona Adedeji, CBN Acting Director, Banking Supervision Department.
“Following a shift in the b ank’s policy stance towards a more contractionary approach, it is imperative to review the loan-to-deposit ratio (LDR) policy to align with the current monetary tightening by the CBN,” the apex bank said.
“Accordingly, the CBN has decided to reduce the LDR by 15 percentage points to 50%, in a similar proportion to the increase in the CRR rate for banks.
“All DMBs are required to maintain this level and are further advised that average daily figures shall continue to be applied to assess compliance.”At the last monetary policy committee (MPC) meeting on March 26, the CBN retained the CRR at 45 percent and the liquidity rate at 30 percent.
COVER
EFCC, Police, Guards in Battle of Supremacy over Yahaya Bello
By David Torough, Abuja
Gunshots rented the air as officials of the Economic and Financial Crimes Commission (EFCC) yesterday invaded the Abuja residence of the immediate past governor of Kogi State, Yahaya Bello in a bid to arrest him.
The plot is at 9 Bengazi Street, Zone 4, Wuse District, Abuja.
Officers of the Nigeria Police Force and armed men dressed in black with the inscription “Special Forces” prevented operatives of EFCC from picking up the former governor of Kogi State, saying he had secured a court injunction against arrest by EFCC.
EFCC arrived Bello’s home at about 9:30am.
After hours of failed attempt to arrest Bello, the security operatives reinforced with backup support from the police and Department of State Services (DSS).
They were about seizing Bello when the governor of Kogi State, Usman Ododo arrived the premises.
Ododo spent few minutes and was zooming out when it was reported that he was driving out with Bello in his (Ododo’s) car.
Quickly, operatives opened fire causing protesters, journalists, onlookers and passers-by to scamper for safety.
Ododo and some security personnel as well as supporters showed up at Bello’s house around 2:30pm to voice their opposition to the invasion of Bello’s house.
Operatives blocked the roads leading in and out of the street causing traffic jam around the area.
Ododo arrived at Bello’s residence at about 2:30pm alongside several security operatives and youth supporters protesting against the siege to the ex-governor’s place.
EFCC has always had it rough while on mission to prosecute highly placed individuals especially formers governors.
While some of them resist arrest, some run to court to secure perpetual injunction against arrest.
Former Governor Peter Odili got a perpetual injunction against arrest.Rabi’u Kwankwaso, Abdul’aziz Yari, Bello Matawalle and others got restraining orders against EFCC.
COVER
Ayu Withdraws Suit against Removal as PDP Chairman
The National Executive Council (NEC) meetng, the National Working Committee (NWC) of the Peoples Democratic Party (PDP) has passed a vote of confidence on its Acting National Chairman, Umar Damagum.
The party’s spokesman, Debo Ologunagba announced in a statement that the NWC took the decision at the end of its 584th meeting on Tuesday in Abuja.
He said the decision was reached in commendation of the efforts and commitment of Damagum’s ability to stabilize and reposition the PDP as the main opposition party in the country.
The party’s national executive meeting was slated for Thursday and the purpose of the meeting was to either affirm or replace Damagun.
“The Deputy National Chairman (South), Amb. Taofeek Arapaja presided over the motion for the Vote of Confidence on the Acting National Chairman, which was moved by the National Vice Chairman (South East) Chief Ali Odefa and seconded by the National Treasurer, Hon. Yayari Mohammed,” Ologunagba said.
Earlier, attempt to pass a vote of confidence on Damagun during the party’s caucus meeting in the House of Representatives on Tuesday met stiff resistance.
Lawmakers loyal to the party’s Acting National Chairman and FCT Minister, Nyesom Wike attempted to pass a vote of confidence on Damagun but were blocked.
The meeting convened by the Leader of the Caucus and House Minority Leader, Hon. Kingsley Chinda was held for about two hours at the National Assembly, Abuja ahead of today’s NEC meeting.
Last week, a group of 60 PDP federal lawmakers threatened to quit the party if the doctored list of Caretaker Committees in Rivers and 10 other states which was filled with members and loyalist of the All Progressive Congress (APC) is not nullified.
The group under the aegis of Opposition Lawmakers Coalition also demanded the resignation of the Acting National Chairman to pave way for a north-central person to emerge as Acting National Chairman of the party pending the conduct of convention as required by the party’s constitution.
Damagum was appointed the Acting National Chairman in 2023 following the suspension of the former chairman Iyorchia Ayu.
Ayu yesterday withdrew his appeal suit against the PDP and Terhide Utaan who took Ayu to court restraining him from parading himself as the National Chairman following his suspension by his ward.
The Withdrawal of Appeal was contained in Appeal No: CA/MK/88/2024 before the Court of Appeal in Makurdi dated April 15, 2024.“Take notice that the appellant in pursuant herein intends and does hereby wholly withdraws his appeal against all the respondents filed on 27th day of June 2023 vide notice of appeal dated the 26th day of June 2023,” the document reads.