Minimum Wage: FG, Labour Reach Agreement

After days of intense negotiations, the federal government of Nigeria and the country’s labour unions have reached a deal on the implementation modality of the new minimum wage.

Disagreement over how the new minimum wage law signed by President Muhammadu Buhari in April would be implemented had lingered for months, with organised labour threatening to strike.

The Minister for Labour and Employment, Chris Ngige, disclosed news of the much-awaited agreement early Friday morning in Abuja shortly after a government team he led concluded a meeting with labour.

The meeting, which began at 8:24pm Thursday, ended 3am Friday.

The disagreement had centred around the consequential adjustments in salaries that must be implemented across board in line with the new minimum wage law.

Labour is demanding a 29 per cent salary increase for officers on salary level 07 to 14, and 24 per cent adjustment for officers on salary grade level 15 to 17.

But the federal government offered 11 per cent salary increase for officers on grade level 07 to14, and 6.5 per cent adjustment for workers on grade level 15 to 17.

New agreement

Speaking after the five-hour meeting, Mr Ngige said the consequential adjustment agreed upon are as follows:

“For COMESS wage structure Grade level 7 gets 23 per cent, Salary grade level 8 gets 20 per cent, Salary grade level 9 gets 19 per cent Salary grade level 10 -14 gets 16 per cent while Salary grade level 15-17 gets 14 per cent.

”For those on the second category of wages structure, CONHES, CONRRISE, CONTISS etc, Level 7 gets 22.2 percent, Level 8-14 gets 16 per cent , Level 15-17 gets 10.5 percent.

He said the third category of the country’s wage structure which are military and paramilitary officers were also factored in in the agreement.

“Since they are not in the civil service , theirs will be communicated through the appropriate channels. Their percentages of increase is confidential,” he said.

Minimum Wage

President Buhari signed the new minimum wage bill into law in April 2019. But its implementation has been stalled over salary adjustments disagreement between the labour unions and government representatives.

Specifically, the problem centred around the issue of relativity and consequential adjustments of salaries for various categories of workers.

On May 14, the federal government inaugurated the relativity and consequential adjustment committee, which set up a technical subcommittee to work out a template for the adjustment of salaries of public service employees in line with the minimum wage law.

BELOW IS THE FULL AGREEMENT REACHED BY BOTH PARTIES

MEMORANDUM OF TERMS OF SETTLEMENT REACHED AT THE END OF THE CONCILIATION MEETINGS ON CONSEQUENTIAL ADJUSTMENTS OF THE OTHER WAGES FOLLOWING THE NEW NATIONAL MINIMUM WAGE OF N30, 000 HELD AT THE INSTANCE OF THE HONOURABLE MINISTER OF LABOUR AND EMPLOYMENT (HML&E) BETWEEN THE FEDERAL GOVERNMENT OF NIGERIA AND ORGANISED LABOUR ON 9TH, 14TH, 15TH, 16TH ,17TH AND 18TH OCTOBER , 2019, AT THE CONFERENCE ROOM OF THE HONOURABLE MINISTER, FEDERAL MINISTRY OF LABOUR & EMPLOYMENT, ABUJA.

PRESENT

CONCILIATORS

1. SEN. (DR) CHRIS NGIGE, OON – HON. MINISTER OF LABOUR & EMPLOYMENT – CHIEF CONCILIATOR

2. FESTUS KEYAMO, SAN – HON. MINISTER OF STATE, FEDERAL MINISTRY OF LABOUR AND EMPLOYMENT – DEPUTY CONCILIATOR

JOINT NATIONAL PUBLIC SERVICE NEGOTIATING COUNCIL (JNPSNC)

GOVERNMENT SIDE

i. Dr. Folasade. Yemi- Esan – Ag. Head of the Civil Service of the Federation

ii. Mr. Ekpo Nta – Ag Chairman, National Salaries, Incomes and Wages

Commission (NSIWC)

iii. William Nwankwo Alo – Permanent Secretary, Fed. Min. of Labour & Employment

(FML&E)

iv. Sir Olusegun Adeyemi Adekunle – Permanent Secretary General Services Office (GSO)

Office of the Secretary To The Government Of The Federation

v. Mr. B.O.C. Omogo – Director Organisational Development & Design (ODD) representing Permanent Secretary of OHSCF

Service Policy & Strategy Office (SPSO)

vi. Mr. Olusanya Ajakaye – Secretary, National Assembly (NASS) Service Commission

vii. Mr, Bassey E. Bassey – Secretary Federal Judicial Service Commission (FJSC)

viii. Gideon Mitu – Director (Expenditure)- Social, Budget Office of the

Federation (BoF) representing Director General, Budget

ix. Mr. Olusegun Olufehinti, (FCA) – Director, Integrated Personnel Payroll Information System

(IPPIS) representing Accountant General of the Federation

LABOUR

x Com. Simon Anchaver

xii. Com. Lawal Alade Bashir

xiii. Com. Yahaya Y, Yashi

xiv. Com. John O, Ushie

xv. Com. T. A. Shettima

xvi. Com, Bobboi B, Kaigama

xvii. Com. Biobelemoye J. Josiah

xviii. Com. Amaechi Lawrence

IN ATTENDANCE

ORGANISED LABOUR

Nigeria Labour Congress (NLC)

i. Com. Ayuba Wabba, mni

ii. Com. Ameachi Asugwuni

iii. Com. Emma. Ugboaja

iv. Com. Ibrahim Khaleel, mni

v. Com. Marwan M, Adamu, mni

vi. Com. Issa Aremu, mni

Trade Union Congress (TUC)

i. Com. Quadri A, Olaleye

ii. Com. Musa Lawal M. Ozigi, mni

iii. Com. Musa M. Abbas

iv. Com. Nuhu Toro

3. Following the threat by Organized Labour not to guarantee industrial peace after Wednesday, October 16, 2019, as a result of the deadlock in the ongoing negotiation on the Consequential Adjustment of emoluments in Federal Government Ministries, Departments and Agencies (MDAs) arising from the New National Minimum Wage of Thirty Thousand Naira (N30, 000.00) as imbued in the National Minimum Wage Act, 2019, the Honourable Minister of Labour and Employment in exercise of his powers under the Trade Dispute Act, CAP T8, Laws of the Federation of Nigeria (LFN) 2004, apprehended the trade dispute and called the parties to conciliation meetings. He met each of the JNPSNC separately on Wednesday, 9th October and Monday 15th October, 2019, Thereafter, joint meetings were held on 16th, 17th and 18th of October, 2019, after which the following Terms of Settlement and Agreement pertaining to the Minimum Wage Consequential Adjustments in the Public Service were reached:

THE CONSEQUENTIAL ADJUSTMENTS/INCREASE

Group 1 (CONPSS)

• GL 07 = 23.2%

• GL 08 = 20%

• GL 09 = 19%

• GL 10 – 14 = 16%

• GL 15¬- 17 = 14%

Group 2 (CONHESS, CONRAISS, CONTISS II, CONUASS II, CONMESS. CONTEDISS & CONPCASS)

• GL 7/Equivalent = 23.2%

• GL 8-14/Equivalent = 16%

• GL 15-17/Equivalent = 10.5%

JOINT NATIONAL PUBLIC SERVICE NEGOTIATING COUNCIL

GOVERNMENT SIDE

Dr, Folasade Yemi- Esan, Ag. Head of the Civil Service of the Federation

Mr, Olusegun Olufehinti, (FCA), Director IPPIS, OAGF, (Fed. Ministry of Finance, Budget & National Planning)

LABOUR SIDE

Comrade Simon Anchave, Chairman JNPSNC

Comrade Lawal A. Bashir, Secretary General JNPSNC

WITNESSES

William Nwankwo Alo, Permanent Secretary, Federal Ministry of Labour & Employment

Comrade Ayuba Wabba, mni, NLC President

Sir Olusegun Adeyemi Adekunle,

Permanent Secretary, GSO

Com. Quadri A. Olaleye , TUC President

CONCILIATORS

Festus Keyamo, SAN

Hon. Minister of State of Labour& Employment

Sen. (Dr) Chris Nwabueze Ngige, OON

Honourable Minister of Labour & Employment

Dated in Abuja, today 18th Day of October, 2019

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