FG has set aside N315bn for a six-month allowance, causing Labour to postpone their strike for a period of 30 days.

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admin October 4, 2023
Updated 2023/10/04 at 8:53 AM

According to findings by The PUNCH, the Federal Government is projected to accumulate an additional N315bn in wage expenses over the next six months due to the introduction of a new allowance for federal workers.

This development comes as Organised Labour has agreed to postpone its proposed nationwide strike for a period of 30 days. The decision was reached after a lengthy meeting between the Federal Government and Labour, which concluded late on Tuesday night.

The Minister of Labour and Employment, Simon Lalong, announced the outcome of the meeting, stating that “The NLC and TUC have agreed to suspend the planned Indefinite Nationwide strike, originally scheduled to commence on Tuesday, the 3rd of October, 2023.”

Lalong stated that the memorandum should be submitted to the appropriate court within a week as a consent judgment by the Federal Government. Nevertheless, Joe Ajaero, the NLC President, mentioned that if the FG does not meet their demands, the unions will review the agreement.

As per the agreement, the Federal Government shall provide a wage award of N35,000 exclusively for all Federal Government employees “starting from September until a new national minimum wage is enacted into law.”

The agreement also stated that a minimum wage committee will be established within one month from the date of the agreement.

“The Federal Government has agreed to allocate N100 billion towards the funding of high capacity CNG buses for mass transit in Nigeria. Additionally, plans are being made to provide 55,000 CNG conversion kits as a part of an auto gas conversion program.

State-of-the-art CNG stations are also being developed nationwide. The rollout of these initiatives is scheduled to begin by November, starting with pilot programs on 10 campuses across the country.

The Federal Government should encourage state governments, through the National Economic Council and Governors Forum, to implement wage increases for their workers.

Similar considerations should also be given to workers in local government and the private sector. A joint visit to the refineries will be conducted to assess their rehabilitation status.”

In the meantime, the Federal Government announced on Sunday that the temporary wage increase, proposed by President Bola Tinubu for a six-month period, will apply to all treasury-paid workers, including low-income workers.

In a four-hour emergency meeting with the leaders of Organised Labour, Chief of Staff to the President, Femi Gbajabiamila, disclosed to State House correspondents that a compromise has been reached to prevent the proposed indefinite nationwide strike.

This meeting took place shortly after the President announced a N25,000 wage increase for a certain category of federal workers in his Independence Day speech. However, it was reported that labour leaders rejected the proposed N25,000 increase for low-grade workers.

Consequently, the Federal Government has now increased the wage award to N35,000 for all treasury-paid Federal Government workers for a period of six months after further consultations with President Bola Tinubu.

The Minister of Information and National Orientation, Mallam Mo, released a statement confirming the new provisional wage award.

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