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Home»News»Proposed Minimum Wage law: Defaulting states’ll risk forfeiting assets, LG allocations – Source
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Proposed Minimum Wage law: Defaulting states’ll risk forfeiting assets, LG allocations – Source

Daily News HubBy Daily News HubJune 15, 2024Updated:June 15, 2024No Comments
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National Assembly may be considering stringent measures and sanctions against states, local governments, and the Organised Private Sector that may want to default in the payment of the approved minimum wage, it has been learnt.

Senate and the House of Representatives, in enacting the laws for the full compliance of concerned entities with the new minimum wage, a source told Punch that allocations of states and local governments that fail to comply with the new minimum wage may be recommended for seizure and forfeiture in the proposed legislation.

This is coming on the heels of the announcement by the National Assembly of plans to include a clause that will provide clear sanctions for defaulters of the new minimum wage bill that will be passed after receiving the Wage Award Bill from President Bola Tinubu.

Senate spokesperson, Yemi Adaramodu, had on Friday told newsmen in Abuja that lawmakers would expedite the passage of the Wage Award Bill once sent to them by President Tinubu.

Adaramodu also dropped the hint that Tinubu would send the bill after the National Assembly resumed from the Sallah recess.

The President had in his Democracy Day broadcast on Wednesday, promised to forward a bill on the new minimum wage to the National Assembly soon.

Federal Government and labour unions have been at loggerheads over the new minimum wage, with union leaders demanding N250,000, while Federal Government and the OPS countered with an offer of N62,000. But state governors maintained that they could not sustain a minimum wage higher than N60,000.

Labour unions have consistently dismissed the government’s offer, labelling it a “starvation wage”.

NLC Assistant General Secretary, Chris Onyeka, warned that Organised Labour would not accept the latest offer of N62,000 or the N100,000 proposal suggested by some individuals and economists.

Minister of Information and National Orientation, Mohammed Idris, who expressed concern over the labour leaders’ demands and the potential economic repercussions, warned on Wednesday that the N250,000 minimum wage proposal could destabilise the economy, lead to mass sack of workers and jeopardise the welfare of Nigerians.

Despite labour’s firm stance on the N250,000 minimum wage, the President emphasised that the government would pay workers what it could afford.

The Senate spokesman while addressing concerns about compliance, especially given that some states still pay the old N18,000 minimum wage, while others comply with the current N30,000, gave the assurance that the new bill will be “watertight”.

According to him, “We will ensure it is strictly adhered to as law. The bill will include provisions for sanctions against non-compliance.

“We are going to produce a watertight bill that we are proposing for the President to sign to ensure that it is strictly adhered to as law. For now, let’s not speculate on the details that the Federal Government will include in the bill to be submitted to the National Assembly.

“But, when it comes, whatever is there and whatever is not, we will ensure that it’s watertight and obeyed by all.”

Adaramodu further stated, “When we talk about the minimum wage, is it just about the Federal Government? It seems like it’s a fight between the Federal Government and labour. That’s the way everybody is looking at it. We keep mentioning the Federal Government, President Tinubu, and labour. We don’t even talk about the Organised Private Sector or the sub-nationals. The NLC, which recognises the workers in the organised private sector and the sub-nationals, needs to advocate for them.

“The issue of some states still paying N18,000, though I don’t know because I don’t suspect that to be happening. If some states are paying that, what have the labour unions in those states done to ensure compliance with the N30,000 minimum wage? We need to ask them too. But, like I said, the National Assembly will make this law seriously watertight, with sanctions for non-compliance, whether at the state, sub-national, or organised private sector level.”

The Senate spokesperson added that if such measures were not taken in the past, the 10th Assembly would ensure sanctions for defaulters of the newly agreed minimum wage, stressing, “That’s how it’s going to be done this time around. But the labour centres also need to protect the welfare of their members, not only with the Federal Government.”

On the possibility of sanctioning state Governors, Adaramodu noted, “The National Assembly makes laws for Nigeria, not just for President Tinubu.”

When asked about the specific sanctions to expect, the Senate spokesperson said it would be premature to give a definitive answer before the President sends the bill.

“When the executive bill comes and we sit in the chamber during plenary, there will be opinions. The bill, when passed, will progress to the public hearing stage where we will invite not only legislators but also organised labour to contribute to making the law. When that time comes, we will decide on the appropriate sanctions for non-compliance, because we believe that the committee meeting to arrive at an acceptable minimum wage for Nigerian workers includes all necessary stakeholders, including the government, organised labour, and the organised private sector. Whatever result they come up with, we’ll make it law, and nobody will come and speak ambiguously,” he said.

He, however, stressed the urgency and commitment to ensuring Nigerian workers received an improved wage package. “If the bill is presented right after Sallah, we will handle it with lightning speed. It will be passed, because it benefits Nigerian workers,” the legislator affirmed.

Addressing concerns about the timeline for the bill’s passage, the legislator stressed the efficiency of the legislative process. “Even if it is possible within 30 minutes, we will do that. The bill will go through all necessary stages, but we aim to avoid any unnecessary delays.

“So, it depends on the content of the bill, because it will go through the necessary stages of passage. We are not going to sit down and just say the Bill has been passed.

“Once the bill gets to us at the National Assembly, we will go through the processes without delay and make sure that Nigerian workers get their due.”

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