•••says no respite for Nigerians since May 29
President of Nigeria Labour Congress, NLC, Joe Ajaero, in this chat with Vanguard after the Workers’ Day celebration, speaks on how workers have felt in the last one year, labour relationship with the present government, electricity tariff hike among others.
No breathing space
On May 29, 2023, the narrative changed by mere pronouncement of the removal of fuel subsidy. Everybody started running helter-skelter. Nigerians started lamenting, and the hardship and suffering became unbearable. The level of change in adjustment from N165 a liter to over N500 was such a dramatic shift that impacted on real wages.
NLC President, Joe Ajaero (left) and the Saturday Vanguard Editor, Onochie Anibeze, during the Labour leader’s homecoming visit to Vanguard on Thursday.
Within that time, how Organised Labour responded to it and how the Nigerian state responded to our reaction was a very big determinant in what was happening in the industrial relations space. Other byproducts like wage award, palliatives and so. Even our reaction and insistence that the refinery must work were all direct responses from the increase in pump prices of PMS (Premium Motor Spirit).
Ordinarily, I will tell you that the issue of deregulation or no deregulation could be an economic ideology, but it translated to increase in pump price which we have to confront on a daily basis.
We equally came up with other options like the issue of Compressed Natural Gas, CNG, as a viable alternative. At that point, some of the functionaries of government were asking us the meaning and we explained to them. They saw it as a likely option.
We argued that if we had discussed these options before the removal of subsidy, probably the CNG could have taken off. If it had taken off even when you remove subsidy, the pain and consequences would not have been much. We thought that they could have given it adequate attention and within three or four months, we could have gone far on the issue of CNG which could have drastically mitigated the effect on the increase in pump prices of PMS.
Within the year, the N30, 000 minimum wage expired. It expired on April 18. Ordinarily, a law that had a lifespan before its expiration, we had about four or five years to have amended it and have a new minimum wage. We would not say it came to us as a surprise if after five years and the new minimum wage was to take effect from April 18, but up until now, we have not concluded the matter.
These are some of the developments we have witnessed in the past one year. Within the same time, the Naira started crashing and inflation got to double digit. The cost of living hit the roof and the worker was at the receiving end. That was what transpired as far as industrial relations practice is concerned since the last May Day.
What actually took place in the economy and the policy direction of the state is indirectly impacting with the worker on how he lives, whether he goes to work or not, whether he is able to feed or not. Since that time we have been lamenting on how best to address these things. As we speak, there is no permanent solution and Nigerian workers have not breathed. Even though people are being given palliative, it is not a permanent solution. It is to cushion the effect.
Relationship with govt
A government will always be government. Every government in power has its own approach. But I would have preferred the approach of, this is the problem, how do we solve it? Solution could come from the union or government.
Or the government could say this is how we want it, what do you think about that? If it is done that way, it will affect us to a certain extent. There will be no problem if we have such interactions.
However, when there are fifth columnists who want to write banner headlines, then it is a problem. It is a problem to an extent that instead of you engaging there is a third force.
Nevertheless, we have made our case. For instance, the issue of electricity tariff, we have given a notice that it should be reversed in the next one week. The rules or laws should be followed. The rule set up for tariff increase should be followed. Now, the minimum wage has expired.
At this moment, we have no minimum wage, yet the labour movement will endure until the end of May. That is enough time to conclude the matter. However, you see a lot of interpretations.
Meanwhile, the president in his speech presented by either the Minister of Labour or the Vice President said a new minimum wage would take effect from this month (May). But we can harmonise it because it would not take effect from May but April 18th.
What it means is that the President is equally conscious that the N30, 000 minimum wage has expired. So, we will equally come up with something that is mutually acceptable for all parties and doable.
Electricity tariff hike
Apart from the unilateral nature of the action of Nigerian Electricity Regulation commission, NERC, of not consulting extensively with the relevant stakeholders, there are some other areas that are faulty. The Act is clear.
You have to do public hearing with labour. That did not take place. Having a discriminatory supply system makes it a suspect. The people on Band A will be given 20 hours power supply, and the people on Band C will get six hours, why?
Electricity is not stranded anywhere. If you can give somebody in Bayelsa 20 hours, you can give somebody in Lagos 20 hours and someone in Sokoto 20 hours. If the conveying machinery in the transmission line of the distribution network is in order, if it is not in order, it is your duty to produce a relieve transformer or to do line tracing to correct it.
To deliberately give certain numbers of people 20 hours of power and increase the money while giving the other people six hours is discriminatory and unacceptable. Apart from giving electricity for economic purposes, it is also for social services.
We feel that in Nigeria of today we cannot have apartheid, we cannot have discriminatory electricity supply. How did you come about such economic calculations? To go into price fixing in a deregulated sector that we have been told is driven by market forces, shows something sinister. Why would the minister say if Nigerians do not pay these tariffs they will have no electricity? It is a threat. I do not think it is part of his responsibility.
The Minister of power has no role to play in the present dispensation especially the tariff methodology. The NERC has a critical role. But even in the Act, there is a provision for consumer assistance fund. It is provided that those Nigerians who cannot pay for power, the consumer assistance fund will release certain amount for them to have supply.
As we talk today, there is no parameter to determine those Nigerians that cannot afford electricity, what their tariff should be and where they are located. You can see the confusion created by the regulatory commission. This is unacceptable to Nigerians. That is where we are today.
In the proposal we submitted in our demand for a new minimum wage, the provision for electricity was N20, 000 a month. After our submission, they increased the tariff. Go and check anywhere, if you buy a token of N20, 000 it won’t last one week. It has equally disorganised our calculation.
The modeling of the tariff structure or the ingredients that determine increase is also faulty. First, they say it is inflation. If there is inflation, those operating the power sector are free to go back to the regulatory commission to provide evidence of inflation and ask for an increase.
The second one is the currency. If the value of the Naira moves from N1, 200 to N1, 500 they are free to go and demand an increase in tariff. Now, you ask yourself is any these factors within our control? Any of these factors create inflation, and increase in tariff creates more inflation.
So, if there is an increase in tariff today in Nigeria, there will be more inflation. The same people that their actions and activities create inflation will use it as a justification for further increase. It goes on and on and we need to structure this thing very well.
Well, we have issued an ultimatum. Ordinarily, we don’t make empty threats. So, at the expiration of that one week, organised labour will take steps to ensure that the right thing is done.
Fuel scarcity
Fuel is central to our life because everything revolves around it. The demand for it is high. Countries particularly in Europe are shifting to renewable energy. They are paying more attention to green energy; solar, wind, hydro etc.
In Europe, UK and America, studies have proven that it is cheaper to use renewable energy than fossil fuel that we use. If we continue to use fossil fuels such as gas, fuel, the prices will continue to go high and there will be much pressure on PMS.
If we can embrace CNG, it will reduce our reliance on PMS. On the pollution that comes with fossil fuels, Nigeria government promised the whole world at the climate change conference that it would ensure zero emission policy in no distance future. But there is no effort being made to do that.
If we are generating electricity through hydro, solar, and turbans, there will be less pressure on PMS. If we have electric vehicles or CNG vehicles, there will be less on PMS because the demand also contributes to the scarcity.
Apart from that what led to the current situation is the removal of subsidy without creating alternatives. If the CNG policy had started, the demand for fuel would have reduced. If it costs one N50, 000 to fuel the car in a month, that person won’t spend more than N20, 000 on CNG in a month. CNG is also eco-friendly.
VANGUARD
