NLC STRIKE: LET'S DECENTRALIZED MINIMUM WAGE

NLC STRIKE: LET'S DECENTRALIZED MINIMUM WAGE
                     By:
         Nurudeen Dauda
        September 27, 2018                         
nurudeendauda24@gmail.com nurudeendauda24@yahoo.com
nurudeendauda.b'ogspot.com

In my view, our workers deserve not only to be well-paid, but also on time too. Workers deserve a "living"and not a "starvation wages". It is legimate for an employee to demand for a pay rise and or a better working condition from his employer. The Nigerian workers deserve higher pay from the existing one.

However, the best way to approach the issue of Minimum Wage is by Decentralizing the existing National Minimum Wage "ACT"whereby each state would be allowed to freely determine the Minimum Wage of its workers based on its financial capability and not the present Uniform system of Minimum Wage for all states despite having different financially capabilities.

The decision of the Labour Union to go on "National Warning Strike" comes as a result of Indefinite Adjournment by the Tripartite Committee (being the Federal, States and the Private sector) sets up by the Government in order to come out with an agreeable as well as an implementable "figure " to all parties as the New National Minimum Wage. The  Labour is demanding for a pay rise from N18,000 to N56,000 ( which is over 300%) .

The National Minimum Wage Act it is supposed to be reviewed after every five years based on the economic reality of the country . The last review was in 2011.

It appears that the Federal Government, in view of its financial muscle, has the capacity to implement the New Minimum with little or no problem. On the other hand, the bulk of the problem is with the state governments with which some of whom are yet to even implement the N18,000 Minimum Wage citing financially constraints, especially, at the Local governments level as the reason . Some state governments are still struggling to be up to date with their salaries and pensions payments, much less increament. 

In my observation, if we continue with the present Centralized Minimum Wage system, we would continue to have problem after every five years. Decentralization of the Minimum Wage is the best option for us as Federal state. It would lead to a permanent solution on the issue . Despite our claims of federalism, we are only theoretically so, but practically more of a Unitary state.

Federalism as a system recognizes that, there are economic differences among various federating units and or components . It recognizes the fact that, some states are economically strong while others are not. More so, Fedaralism as a system of government does not enforce things that do not suit its federating units whether financially or otherwise. 

In Nigeria for instance ,some states get extra allocations of 13% derivation while others do not. Some states have functional industries with huge commercial and marketing activitiess while others do not . Some states have high Internally Generated Revenue (IGR), and Seaports while others do not.

We need to decentralize our salary structure. As at now, Edo state due its financial strength is paying N25,000 at a time when some states are yet to implement the N18,000 Minimum Wage due to their financial position . If a state like Lagos due to its financial strength can afford N100,000 as its Minimum Wage so be it. On the other hand, if Zamfara state due to its low financial strength can only afford N30,000 so be it.

The argument is that, our states have different economic strengths . All fingers are not equal. Hey! Get me right our workers deserve a living wage not a starvation wages. 

May God bless Nigeria!

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