Subsidy Removal: TUC calls for N200,000 new minimum wage

The Trade Union Congress (TUC) has called on the Federal Government (FG) to withdraw the new pump price of Premium Motor Spirit (PMS) also called petrol and return to old price, while discussion between it and the Organised Labour body continues.

The call is contained in a press statement issued Monday and jointly by the Union’s National President, Comrade Alex Usifo and Secretary, Nuhu Abba Toro, urging the government to increase the minimum wage of workers.

Specifically, TUC demanded that the minimum wage should be increased from the current N30,000 to N200,000 before the end of June 2023 with consequential adjustment on Cost of Living Allowance (COLA), like feeding, transport, housing, and others.

The unionists articulated that a representative of state governors will be party to the proposed resolution, while all the governors must commit to implement the new minimum pay.

The statement reads in part: “Tax holiday for employees both in government and private sector that earn less than N200,000 or $500 monthly whichever is higher.

“PMS Allowance to be introduced for those earning between N200,000 to N500,000 or $500 to $1,200 whichever is higher.

“The Exchange rate for retailing PMS in the country must be kept within a limit of +- 2 per cent for the next ten (10) years where the fluctuation is more than 2 per cent, the minimum wage will automatically increase at the same rate.

“Setting up an intervention fund where the government will be paying N10 per liter on all locally consumed PMS. The primary purpose of this fund is to solve perennial and protracted national issues in education, health and housing. A governance structure that will include labour, civil society and government will be put in place to manage the implementation.

“Federal government should provide mass transit vehicles for all categories of the populace. 

“State Governments should immediately set up a subsidized transportation system to reduce the pressure on workers and students. The framework around this will be worked out.

“Immediate review of the National Health Insurance Scheme to cover more Nigerians and prevent out of stock of drugs.

“Visitation of the refineries that are currently undergoing rehabilitation to ascertain the state of work and Setting up a timeline for its completion”.

TUC also directed President Bola Tinubu to direct his Labour Minister to immediately constitute the National Labour Advisory Council (NLAC), adding the platform would be used by government, Labour and employer to discuss issues and policies of government that may affect workers and all other mandates as specified in the law. 

”Provision of subsidy directly for food items, the 800million dollars could be a first step.

“The existing National Housing Fund (NHF) should be made accessible to genuine workers; the framework on this must be discussed and agreed” TUC added..

On medium term stated that there should be deployment of Compressed Natural Gas (CNG) across the country in line with the earlier promise made by the government, while the framework and timeline will be developed and agreed by both parties. 

TUC advised that Labour and government should design a framework that will be geared towards the reduction of cost of governance by 15 per cent in 2024 and 30 per cent by 2025.

Other terms include: “A framework should be immediately put in place to maintain the road and expand the rail networks across the country.

“Government must design a framework for social housing policy for workers through the Rent to Own System.

“The state of electricity in the country must be appraised and an action plan should be defined with time lines on how to get this fixed”. 

The Union recommended that a strong monitoring team of all parties should be constituted.