FRI JUNE 07 2024-theGBJournal| The Nigeria Governors’ Forum (NGF), argued Friday that the N60,000 minimum wage proposal is not sustainable and can not fly.
”It will simply mean that many states will spend all their FAAC allocations on just paying salaries with nothing left for development purposes.
In fact, a few states will end up borrowing to pay workers every month. We do not think this will be in the collective interest of the country, including workers,” NGF further argues.
The Forum’s position against the N60,000 minimum wage proposal creates a complex challenge for labor negotiations, with potential for increased industrial actions, pressure on the federal government, and broader economic and social impacts.
A balanced and strategic approach will be required to address the concerns of all stakeholders involved at this point,” analysts tells theG&BJournal.
Besides, the federal government may face increased pressure to find a compromise that satisfies both the labor unions and the governors. This could involve finding alternative funding mechanisms, subsidies, or phased implementation plans to alleviate the financial burden on state governments.
The FG might also need to explore policy adjustments to support state governments in meeting the new wage requirements.
This could include increasing federal allocations, providing grants or loans to states, or initiating reforms to enhance states’ revenue generation capacities.
The ongoing dispute and delays in implementing a new minimum wage is already affecting workers’ morale and productivity, insiders say.
”Workers may feel undervalued and demotivated if they perceive that their demands for a living wage are not being met,” one analysts said.
The prolonged disputes and industrial actions have broader economic and social consequences, including disruptions to business operations, loss of income for workers, and potential impacts on social stability.
We reckon that a balanced and strategic approach will be required to address the concerns of all stakeholders involved.
Meanwhile, the Forum urges all parties to consider the fact that the minimum wage negotiations also involve consequential adjustments across all cadres, including pensioners.
The NGF also cautioned parties in ”this important discussion” to look beyond just signing a document for the sake of it; saying ”any agreement to be signed should be sustainable and realistic.”
While sympathizing with the labour unions in their push for higher wages, they appealed that all parties involved consider all the socioeconomic variables and settle for an agreement that is sustainable, durable, and fair to all other segments of the society who have legitimate claim to public resources.
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