By John Ikani
Two major Nigerian labour unions, namely the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), have decided to halt the nationwide strike initially slated to commence on Tuesday.
The strike was intended to exert pressure on the government to address the challenges resulting from the removal of the petrol subsidy.
The contentious issue of the subsidy removal, which was announced by President Bola Tinubu during his inauguration speech on May 29, has been a focal point of disagreement between the labour unions and the federal government.
Since the removal of the subsidy, the price of petrol at the pump, once below N200 per litre, has skyrocketed to over N600 per litre. This has led to a surge in the cost of transportation, food, and essential services that millions of Nigerians rely upon.
The decision to suspend the strike was formalized through a Memorandum of Understanding (MoU), jointly signed by representatives from the labour unions and the federal government on Monday.
In accordance with the MoU, both labour unions have agreed to suspend their strike for a period of 30 days. Furthermore, the agreement emphasizes a commitment to adhering to the principles of social dialogue in all future engagements.
“The NLC and TUC accept to suspend for 30 days the planned Indefinite Nationwide strike scheduled to begin, Tuesday, the 3rd of October, 2023,” states the MoU shared with newsmen on Monday.
The MoU also outlines that the document will be submitted as a “consent judgment by the Federal Government” to a relevant court of competent jurisdiction within one week.
Signing on behalf of the NLC were its president, Joe Ajaero, and secretary, Emmanuel Ughoaja, while the TUC was represented by its president, Festus Usifo, and general secretary, Emmanuel Ugboaja.
On the government’s side, signatories included the Minister of Labour and Employment, Simon Bako Lalong; the Minister of State for Labour and Employment, Nkeiruka Onyejeocha; and the Minister of Information and National Orientation, Mohammed Idris.
The MoU contains several agreed-upon terms and conditions, including a wage increase of N35,000 for all federal government workers starting in September. Additionally, it stipulates the formation of a minimum wage committee within one month from the date of the agreement.
Notably, the federal government has also agreed, under the agreement, to temporarily suspend the collection of Value Added Tax (VAT) on diesel for a six-month period commencing in October 2023.
READ THE FULL MOU BELOW:
MEMORANDUM OF UNDERSTANDING REACHED BETWEEN THE FEDERAL GOVERNMENT OF NIGERIA AND THE NIGERIA LABOUR CONGRESS (NLC) AND TRADE UNION CONGRESS OF NIGERIA (TUC) AS A RESULT OF DISPUTE ARISING FROM WITHDRAWAL OF SUBSIDY ON THE PRICE OF PREMIUM MOTOR SPIRIT (PMS) ON MONDAY, THE 2ND DAY OF OCTOBER, 2023
Arising from the withdrawal of subsidy on Premium Motor Spirit (PMS) by the Federal Government and the resultant increase in the price of the commodity, the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) issued a strike notice which had elapsed and they were poised to embark on a strike billed to commence on Tuesday, the 3rd of October, 2023.
Consequently, a meeting was called by the Federal Government to avert the strike and after much discussion, the following agreements were reached:
1. The Federal Government grants a wage award of N35,000 (thirty-five thousand Naira) only to all Federal Government workers beginning from the month of September pending when a new national minimum wage is expected to have been signed into law.
2. A minimum wage committee shall be inaugurated within one month from the date of this agreement.
3. Federal Government suspends collection of Value Added Tax (VAT) on Diesel for six months beginning from October, 2023.
4. Federal Government accepts to vote N100 billion for the provision of high capacity CNG buses for mass transit in Nigeria. Provisions are also being made for initial 55,000 CNG conversion kits to kick start an auto gas conversion programme, whilst work is ongoing on state-of-the-art CNG stations nationwide. The rollout aims to commence by November with pilots across 10 campuses nationwide.
5. The Federal Government plans to implement various tax incentive measures for private sector and the general public.
6. On the leadership crises rocking the NURTW and the purported proscription of RTEAN, the Federal Government commits to handling Labour matters in line with relevant ILO Conventions and Nigerian Labour Acts. A resolution of the ongoing impasse is expected by or before October 13.
7. The issue of outstanding Salaries and Wages of Tertiary Education workers in Federal-owned educational institutions is being referred to Ministry of Labour and Employment for further engagement.
8. The Federal Government commits to pay N25,000 per month for three months starting from October, 2023 to 15 million households, including vulnerable pensioners.
9. The Federal Government will increase its initiatives on subsidized distribution of fertilizers to farmers across the country.
10. The Federal Government should urge State Government through the National Economic Council and Governors Forum to implement wage award for their workers. Similar consideration should also be given to local government and private sector workers.
11. The Federal Government commits to the provision of funds as announced by the President on the 1st of August broadcast to the Nation for Micro and Small Scale Enterprises. The MSMEs beneficiaries should commit to the principle of decent jobs.
12. A joint visitation will be made to the refineries to ascertain their rehabilitation status.
13. All parties commit to henceforth abide by the dictates of Social dialogue in all our future engagements.
14. The NLC and TUC accept to suspend for 30 days the planned Indefinite Nationwide strike scheduled to begin, Tuesday, the 3rd of October, 2023.
15. This Memorandum shall be filed with the relevant Court of competent jurisdiction within one (1) week as consent judgment by the Federal Government.
Signed:
NLC:
Comrade Joe Ajaero Comrade Emmanuel Ugboaja, mni
President NLC General Secretary
TUC
Comrade (Engr) Festus Osifo Comrade Nuhu A. Toro
President Secretary General
Federal Government:
H.E. Simon Bako Lalong
Honourable Minister of Labour and Employment
Hon. Dr Nkeiruka Onyejeocha
Honourable Minister of State for Labour and Employment
Mallam Mohammed Idris
Honourable Minister of Information and National Orientation.
