Minister Of Finance Advocates For Timely Wage-Negotiations After Nationwide-Strike

Minister Of Finance Advocates For Timely Wage-Negotiations After Nationwide-Strike

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has emphasized the importance of timely negotiations for a new living wage, urging the Federal Government, labour unions, and the Organized Private Sector to engage in discussions before the expiration of the current five-year minimum wage validity period. This call comes as the Organized Labour embarks on a nationwide strike demanding a new minimum wage for workers in Nigeria.

During his appearance on Channels Television’s Sunday Politics programme, Edun highlighted the significance of the wage negotiation process, acknowledging its complexity and difficulty but expressing hope for a favorable compromise.

“It is difficult because the worker deserves his wage and given what is going on, they deserve a change and in fact, by law, every five years. Maybe, we shouldn’t have to wait five years every time to set a new wage scale. The fact is that by law, it is a minimum wage,” Edun stated.

He elaborated on the implications of setting a minimum wage within a federation, noting that it sets a baseline figure that must be adhered to by states, local governments, the private sector, and small businesses alike.

“So, you are not setting a wage for Federal Government workers, for example. In a federation, you are setting a minimum figure that states must pay, that local governments must pay, that the private sector must pay, that small businesses must pay. It is a fixed figure, not a scale,” he explained.

Edun pointed out that the current method of determining the minimum wage, particularly the consequential adjustments, might be unaffordable across the board given the demands of the Labour.

“We have to focus on the fact that once it is enshrined in law, everybody that falls into the category of having to pay the minimum wage must pay it. Therefore, the affordability has to be taken into account. We probably have to also take into account the fact that there are other ways of supporting the cost of living of workers other than wage scale,” he added.

Edun’s comments come amid heightened tensions and ongoing negotiations, with stakeholders seeking a balance between fair wages for workers and economic sustainability for employers.