On Monday, the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) announced the suspension of their intended nationwide strike following a tripartite meeting with the Federal Government.
The postponement, which will last 30 days, provides the government time to honor its commitments as outlined in a signed memorandum of understanding. Yet, concerns remain regarding arrangements for state and local government employees who comprise a significant portion of the civil service.
The dispute between labor unions and the federal government began with the removal of the fuel subsidy by President Bola Tinubu’s administration. This policy change led to increased living costs and inflation. To counter these effects, the Federal Government committed to distributing a N5 billion palliative to each state, including the Federal Capital Territory. However, labor unions viewed this measure as insufficient.
In response, the NLC held a 2-day warning strike. While initially, the TUC refrained, both entities eventually united, planning an indefinite strike. The potential of this strike led to Monday’s meeting and the subsequent 30-day suspension.
Key representatives at the meeting included NLC President, Comrade Joe Ajaero, TUC President, Comrade (Engr) Festus Osifo, and several federal government officials. The memorandum dictates an N35,000 wage increase for all federal government workers starting in September. It also promises the creation of a minimum wage committee within a month and a six-month suspension of the Value Added Tax (VAT) on Diesel from October 2023. Furthermore, N100 billion will fund high-capacity CNG buses for public transport.
Yet, state and local government workers seem to have been somewhat overlooked. The NLC has since urged its State Councils to discuss wage awards and other reliefs with their respective State Governments.
On Tuesday, Comrade Joe Ajero, NLC President, released a statement applauding affiliates and State Councils for their determination and commitment, as reported by Daily Post. However, he emphasized the need for further negotiations with employers regarding wage awards and reliefs, particularly due to the increase in fuel prices.
Several state NLC chairpersons voiced their concerns, with the NLC chairman from Enugu State, Comrade Barrister Fabian Nwigbo, expressing anxiety about the fate of state workers and the potential for new negotiations or refusal by states to honor the N35,000 wage award.
Anambra State’s NLC Chairman, Humphery Nwafor, emphasized that all states and even the private sector should align with the labor agreement made with the federal government. This sentiment was echoed by the NLC chairman from Edo State, Comrade Odion Olaye, who expressed satisfaction with the agreement.
On another note, Mr. Wale Oyerinde, the Director-General of Nigeria Employers Consultative Association (NECA), praised the private sector for its proactive response to the fuel subsidy removal, highlighting the sector’s wage adjustments and allowances to support employees.
