Labor Unions Suspend Nationwide Strike as Government Grants Wage Award
In a significant development, labor unions in Nigeria have decided to suspend their planned nationwide indefinite strike action for the next one month. The decision came after a meeting between the federal government and the leaders of the unions. A memorandum of understanding was signed by the representatives of both parties, including the President of the Nigerian Labour Congress (NLC) and the President of the Trade Union Congress (TUC).
According to the memorandum, the strike, which was scheduled to begin on the 3rd of October, 2023, has been suspended for a period of 30 days. This move follows the federal government’s announcement of a wage award of N35,000 (thirty-five thousand Naira) to all federal government workers, effective from the month of September. The wage award will remain in effect until a new national minimum wage is signed into law.
The strike was originally called in response to the government’s removal of fuel subsidies, which led to an increase in the price of Premium Motor Spirit (PMS). The labor unions had issued a strike notice and were preparing to embark on an indefinite nationwide strike. However, after extensive discussions with the government’s representatives, an agreement was reached, leading to the suspension of the strike.
In addition to the wage award, the federal government has made several other commitments to address the economic hardship caused by the fuel subsidy removal. These commitments include the suspension of Value Added Tax (VAT) on Diesel for six months starting from October 2023, the allocation of N100 billion for the provision of high capacity CNG buses for mass transit, and the implementation of various tax incentive measures for the private sector and the general public.
Furthermore, the federal government has pledged to address the leadership crises in the National Union of Road Transport Workers (NURTW) and the purported proscription of the Road Transport Employers Association of Nigeria (RTEAN) in accordance with relevant labor laws and international conventions. The government has also committed to resolving the issue of outstanding salaries and wages of tertiary education workers in federal-owned educational institutions.
To mitigate the impact of the fuel subsidy removal on vulnerable households, the federal government has announced a monthly payment of N25,000 to 15 million households, including vulnerable pensioners, for a period of three months starting from October 2023. Additionally, the government plans to increase its initiatives on subsidized distribution of fertilizers to farmers across the country, while urging state governments to implement wage awards for their workers.
The memorandum of understanding also emphasizes the importance of social dialogue in all future engagements between the government and the labor unions. It has been agreed that a joint visitation will be made to the refineries to assess their rehabilitation status.
Overall, the decision to suspend the nationwide strike and the commitments made by the federal government aim to address the concerns of the labor unions and alleviate the economic hardship faced by the Nigerian people. The next month will provide an opportunity for further negotiations and discussions on the key issues, including the new national minimum wage.
The suspension of the strike will undoubtedly bring temporary relief to the Nigerian people, as it will allow the government and the labor unions to engage in constructive dialogue and find lasting solutions to the challenges at hand.
