The president of the National Labour Congress (NLC), Joe Ajaero, has suggested that if the country’s inflation and other economic indicators continue to worsen, the new minimum wage proposal could potentially reach up to N1 million per month.
Ajaero made this revelation during an interview on Arise TV yesterday. He emphasized that the new minimum wage should accurately reflect the economic conditions of the country.
Additionally, Ajaero stated that as long as the Naira continues to weaken against the Dollar, the demand for a higher minimum wage will be unavoidable.
He also highlighted that the initial proposal of N200,000 for the minimum wage is no longer feasible due to the skyrocketing prices of food items and inflationary pressures in the economy.
“This N1 million may be relevant if the value of the Naira continues to depreciate; if the inflation continues to depreciate. The demand of Labour is equally dependent on what is happening in the society.
“You will remember that by the time we were contemplating N200,000, the exchange rate was about N900. As we talk today, the exchange rate is about N1,400 or even more.
“Those are the issues that determine the demand and it is equally affecting the cost of living and we have always said it that our demand will be based on the cost of living index.
“You’ll agree with me that a bag of rice is about N60,000 to N70,000. Foodstuff is getting out of reach. Now, are we going to get a minimum wage that will not be enough for transportation even for one week?
“We have to factor in all these issues. And that will determine the federal government commitment to these negotiations,” he said .
Ajaero mentioned that organized labor is currently in talks with the federal government to address the concerns raised by the NLC and TUC regarding the impending strike.
He further emphasized that the government has not fulfilled the majority of its commitments to the union, specifically regarding temporary wage increases for workers.
Ajaero stated that only one month’s worth of the N35,000 wage increase has been disbursed to the employees.
Only one month of the N35,000 naira was paid to civil servants. Also, there is no evidence of payment of any N25,000 paid as palliative to workers. That’s what led to what’s happening in the humanitarian ministry.
“No farmer has come to say that he received fertilizers from the government. I don’t know whether the fertilizers are for sale or for cultivation,” he added.
