Showing posts with label National Economic Council. Show all posts
Showing posts with label National Economic Council. Show all posts

Thursday, June 9, 2016

Thoughts On New Minimum Wage

By Oye Eribake   
A wage is monetary compensation or remuneration paid by an employer to an employee in exchange for work done. Payment may be calculated as a fixed amount for each task completed or at an hourly or daily rate, or based on an easily measured quantity of work done. On the contrary, salary is a fixed regular payment made by an employer, often monthly, for professional or office work done as opposed to manual work.
(pix: businessday)
The term “minimum wage” implies minimum legislated remuneration of an employee whether in public or private sector. In Nigeria, we find that the organised private sector (OPS) is usually just guided by the minimum wage because their compensation packages reward employees fairly adequately and in excess of the minimum wage. On the other hand, the public and informal private sectors regard it like the doctor’s life-saving prescription i.e. not to be varied. Some would rather go below it if they know that they can get away with it. That is why many states shout on roof tops that they cannot afford Federal Government determined minimum wage. The extravagant life styles of the governors, however, belie such assertions.
Like it or not, fresh negotiations must start soon given the current harsh economic realities; a higher minimum wage is inevitable. It is only Federal Government that has the constitutional responsibility to legislate it; of course that does not mean that the state governors do not have a say. The National Economic Council will drive the process culminating in enactment of an act by the NASS.
One would like to see a situation where the economic well-being of the states is taken into adequate consideration alongside the welfare of their workers in determining the new minimum wage. We have states that are agrarian while some are commercial/metropolitan just as some are rich in mineral resources especially oil and gas. The proverbial saying that all fingers are not equal sums it up! Were the state governments to behave like the organised private sector, the South-South and Lagos states should have been rewarding their unskilled workforce more than agrarian states like Benue.