BREAKING: Private sector agrees with FG on new N60,000 minimum wage – MAN DG

Segun Ajayi-Kadir-DG Producers Association of Nigeria.

The Director General of Manufacturers Association of Nigeria (MAN), Mr. Ajayi Kadri, has confirmed that the organized private sector has agreed with the Federal Government that the new minimum wage should be N60,000.

Ajayi disclosed this information during an interview with Channels TV on Saturday in Abuja.

MAN’s CEO explained that ongoing negotiations between the government and the private sector with workers are not about a living wage, but about the minimum wage – the lowest amount that can be paid to any worker in the country.

According to Kadri, the economic environment is challenging for both workers and private companies, making it almost impossible for them to pay the wages demanded by the union.

“First of all, negotiating the minimum wage is very difficult for everyone. From the perspective of government, workers and the organized private sector, we operate in an environment where there is widespread acceptance that macroeconomics is not right, even the global economy is experiencing many shocks and fallout from necessary government reforms.

“From the beginning of the negotiations on the trilateral minimum wage – that is, the government, workers and the organized private sector – it was obvious that we would be operating in difficult terrain.

“By the way, the organized private sector and the government have offered ₹60,000 as the minimum wage and I think it is very important that we understand that what we are talking about is the minimum wage.

“This is what some people call upfront pay. This is the amount we will pay the least to employees in the country. We are negotiating a minimum wage, not a living wage.” Said Ajayi.

Restrictions placed on the government and private sector in meeting labor needs

Speaking further, Ajayi noted that there are huge constraints from both the government and the private sector to meet the proposed demand for a living wage of N419,000.

He said the private sector, for example, is facing economic challenges and inflation, making it impossible to pay such an amount.

He also made clear that this is not the best time for organized labor to negotiate a new minimum wage, but to work with other involved stakeholders to build the economy together.

“Everyone in the tripartite – government, workers and the private sector – we all knew that we were operating in very difficult conditions. The government itself realized that it had limited payment options. The private sector is constrained by microeconomic, infrastructure and security challenges. Therefore we are forced to pay.

“Labour, for its part, is under intense pressure from its constituencies to demand higher pay as inflation has peaked and the operating environment is difficult.

“During the negotiations, we made it clear that this was not the best time to negotiate the minimum wage. It’s time for us to agree with the people behind the government and grow the economy in such a way that we bake a bigger cake and then we can share it.” added the CEO.

History

On Friday, the National Labor Congress (NLC) and the Trade Union Congress (TUC) announced an indefinite strike over the federal government’s newly proposed minimum wage.

According to union leaders, the decision follows the expiration of an earlier request to the federal government to end all negotiations on a new minimum wage before the end of May.

Since the subsidy was removed, union leaders have introduced several measures, including a new minimum wage, alternative transportation options and others, to ease the impact of the subsidy’s removal.

The government later established a committee of labor leaders, government officials, and the organized private sector to negotiate a new minimum wage.

Despite several meetings, the committee failed to reach a consensus.