The President of the National Labour Congress (NLC), Joe Ajaero, suggests that the Federal Government should consider a monthly minimum wage of N1 million if inflation and other economic indicators worsen.
Ajaero made this assertion during an interview with Arise Television on Sunday.
He emphasized that the new minimum wage should accurately reflect the economic conditions of the country. Ajaero noted that as long as the value of the dollar continues to rise against the naira, the demand for a higher minimum wage will persist.
Ajaero reiterated that the initial proposal of N200,000 for the minimum wage is no longer feasible, pointing to the escalating prices of food items and inflationary pressures in the economy.
He mentioned that organized labor is scheduled to meet with the Federal Government on Monday to address the resolutions surrounding the strike notice issued by the NLC and Trade Union Congress (TUC).
“This N1 million may be relevant if the value of the Naira continues to depreciate; if the inflation continues to depreciate. The demand for Labour is equally dependent on what is happening in society.
“You will remember that by the time we contemplated N200,000, the exchange rate was about N900. Today, the exchange rate is about N1,400 or even more.
“Those are the issues that determine the demand, and they are equally affecting the cost of living, and we have always said that our demand will be based on the cost of living index.
“You’ll agree that a bag of rice is about N60,000 to N70,000. Foodstuff is getting out of reach. Now, will we get a minimum wage that is insufficient for transportation, even for one week?
“We have to factor in all these issues. And that will determine the federal government’s commitment to these negotiations,” he said.
He stressed that these factors should guide the commitment of the federal government in the ongoing negotiations.
It’s worth noting that organized labor had issued a 14-day nationwide strike notice last week. However, President Bola Ahmed Tinubu’s administration appealed to workers not to proceed with the strike, citing concerns about the country’s economic conditions.