Fuel Subsidy: NLC proposes wage award to deal with the effects of removal

• The Nigeria Labour Congress (NLC) has proposed a wage award to the Federal Government as a measure to mitigate the impact of subsidy removal on Nigerians, according to NLC President Mr. Joe Ajaero.
• The wage award, which is separate from the minimum wage, could be implemented immediately and is intended to provide relief without waiting for the statutory period or expiration of the minimum wage law.
• The NLC emphasizes that the wage award proposal does not negate the upcoming review of the minimum wage, which is scheduled for next year. The NLC aims to ensure the statutory review of the minimum wage while addressing the effects of subsidy removal.

The Nigeria Labour Congress (NLC) has proposed a wage award proposal to the Federal Government in an effort to alleviate the impact of subsidy removal on Nigerian citizens.

NLC President, Mr. Joe Ajaero, made this announcement during the 111th Session of the International Labour Conference (ILC) held in Geneva, Switzerland.

The NLC has disclosed that the wage award proposal is among several suggestions being presented to the government as part of ongoing discussions on palliative measures.

Proposal

Ajaero noted the agreement they have with FG is not minimum wage. The agreement is a wage award and it must be understood clearly, he added:

• “We have proposed to them a wage award, which could be implemented immediately without waiting for the statutory period for the minimum wage law or for it to expire.
• “What we are going to do is to look at the rate at which this wage award will be, whether it will be N100,000 or N20,000.

 Minimum wage

He also noted that this will not stop the minimum wage reviews which are due next year, he said:

• “This will not stop the review of the minimum wage which will be due by early next year. It is good we draw this demarcation.
• “We will ensure to review minimum wage statutorily because they have taken action by removing subsidy without providing anything. That is why they are talking about minimum wage.”

He revealed that earlier this year the federal government awarded some of their workers a kind of wage award of about 40% that had nothing to do with minimum wage to cushion the effects of COVID-19 and others.

• “Now that we are having the effect of this subsidy removal, we will look at an award that will cushion it.
• “In this country even in the 70s, we had the Udoji award and others. So, that is the purpose, whatever we are going to come up with at our next meeting with the government, but not minimum wage.

Subsidy

He acknowledged that the upcoming meeting of June 19 is to give life to the agreement earlier signed with the government on fuel subsidy removal and include a technical committee to give life to the implementation of that agreement.

• “We did not even want to go into the politics of subsidy because we knew that as far as NLC is concerned, we do not know the people that are receiving the subsidy.
• “We do not know people importing and exporting. So, it is exclusive to them.
• “But we have asked them to investigate the subsidy regime because it is not enough to say subsidy is gone and we cover it up. Let us know those involved, let us know what they did or what they are doing.”

Modular Refineries

He revealed parties discussed the   modular refineries which are already functioning in some states in the South-South, he said:

• “There are areas in Akwa Ibom today where diesel sells about N300 or N400 from modular refinery there. While we buy diesel in Lagos and Abuja for N800, they buy between N300 and N400.
• “So, if you have all these modular refineries, it will bring down the cost.
• “And we have all insisted that the Warri and the Port Harcourt refineries that they have awarded contracts must be concluded as soon as possible.
• “So if you have these options, things will go well but if you allow one individual to supply PMS, it is going to be difficult.”