Regional Variations Solution To Minimum Wage Negotiations
YAQOUB POPOOLA
A security expert, Mr. Adeolu Oyebode, has called for the implementation of Cost-of-Living Adjustments (COLA),.
He also called on the Federal Government and the labour unions to look for reasonable alternatives that could help to bridge the gap in the new minimum wage crisis in the country
Oyebode, said given the substantial gap between the Federal Government’s offer of ₦62,000 and organized labour’s revised demand of ₦250,000 for the new national minimum wage, several reasonable alternatives could help bridge this divide.
He suggests the COLA should be reviewed annually, by ensuring that the minimum wage keeps pace with inflation and economic changes.
” One approach could be to set a wage range between ₦100,000 and ₦120,000, which, while significantly higher than the government’s proposal, remains considerably lower than labour’s demand, aiming to balance sustainability with workers’ needs.
He noted that another solution might involve an incremental approach, starting with an immediate adjustment to ₦80,000 – ₦100,000, and gradually increasing to ₦150,000 – ₦200,000 over the next 3 to 5 years, allowing for economic adaptation.
Additionally, the security expect said implementing Cost-of-Living Adjustments (COLA), starting at ₦80,000 and reviewed annually, would ensure that the minimum wage keeps pace with inflation and economic changes.
“The sector-specific adjustments could recognize the varying capabilities across different industries, beginning with a general minimum wage of ₦80,000 – ₦100,000 and higher rates for more profitable sectors”.
He also recommend the introduction of regional variations, “with higher wages for urban states at ₦120,000 and lower economic states at ₦80,000, could reflect the diverse cost of living across the country”.
He pointed out that considering these options, he recommend that government should consider developing a long term framework where Labour would be paid per hour and not monthly salary. This will ensure maximum productivity and grow the economy.
“As a policy and holistically enforced, the government should provide regulatory measures to curb excessive price mark-ups and enforcing anti-hoarding laws, so as to prevent artificial inflation of essential goods prices. This will help reduce the high cost of living across the country”.
