Why Adams Oshiomhole Call for a review on New National Minimum Wage.

The Edo state Governor Adams Oshiomole has called for a review of the new National Minimum Wage Law, and also advised the Union to take a close look at organizations which employment ranges from 30 to 50 workers, as some of this organization production of goods and services, are technologically oriented and does not need too many man power, for its operations.

The Governor drew the attention at the International Trade Union Congress Africa (ITUC-Africa) Regional Congress on
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“I think there is need to revisit some of the assumptions that informed the drafting of the Nigerian National Minimum Wage Law when it was enacted. I think it was at a time when big corporations dominated the economy.

“This is particularly true in the organised private sector where I come from; they had about 4000 workers and some were even bigger than that.

“So, the law simply looked at the informal sector characterised by people employing 20, 40, 50 less than 100 and the current minimum wage law allows for exemption enterprises that are employing less than 50.

“But now, our businesses are contracting. With the aid of technology, those employing more than 50 are increasingly fewer and those employing fewer than 50 are increasing.

“So, if the essence of the minimum wage is to provide protection for those who cannot organise, then that has been lost”, he said.

 “ We should look at removing the exemption clause of people who employ less than 50, because with 30 workers now and with modern technology, you can generate so much.

“So, the old assumption ‘that employ 50 and be a small player’ is no longer valid.

“If we are going to protect domestic workers, we have them in millions; you have to remove those assumptions of those below 50 in the law.

“If the movement cannot as it is today enforce N18, 000 minimum wage, then asking for higher numbers would appear laughable because if you cannot enforce the 18,000, how can you ask for more?”
He said the reality of the cost of living right at the moment suggested that those who were on N18, 000 would be said to be on survival wage.

He also made comment on State government who could not pay salaries due to low revenue generation, and owing 5 to 7 months arrears.  

“Employers simply do not have the revenue to pay. They have over borrowed, and the naira has come under pressure and is going through devaluation and it is expressing itself in high cost of living which will put more pressure on workers.

“That is why most of them are calling for the abolition of the national minimum wage”, he said.
The president of NLC Mr. Ayuba Wabba, also said the Union have been talking issue of nonpayment of salaries, as some of the workers have said they do not have the means to go work, so they will not go, he also praised State government that have state paying salaries, and also encouraged workers who salaries are not paid to withdraw their services.

According to Vanguard News the conference was organized by the ITUC-Africa in collaboration with Nigerian Labour Congress.

This news was first reported by Vanguard news.

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