Harsh Economy: FG to declare position on workers’ salary increment in 2023
..Increase understandable in view of inflation, high cost of living – Ngige
…Expresses hope of increment by 2023
…Says Presidential Committee on Salaries, NSIWC working on salary review
…Laments 2022 labour union actions of NMA, ASUU, others
Following demands on the need to increase salaries to provide succour for government workers in view of recent harsh economic downturn, the Federal Government has said it will soon make a pronouncement on salary increase for civil servants.
Minister of Labour and Employment, Dr Chris Ngige, made this known while fielding questions from State House correspondents in Abuja.
According to the Minister, the Presidential Committee on Salaries had embarked on a review of salaries of workers in the Country.
He disclosed that the committee is expected to come up with salary adjustment in 2023.
The Minister had recently hinted that the government would adjust workers salaries to cushion the effect of rising costs of living and inflation in the Country.
“Yes, I am saying that the Presidential Committee on Salaries is working hand-in-hand with the National Salaries Incomes and Wages Commission.
“The commission is mandated by the Act establishing them to fix salaries, wages, and emoluments in not only the public service.
“If you want their assistance and you are in the private sector, they will also assist you. They have what is called the template for remuneration, for compensation.
“So, if you work, you get compensated, if you don’t work, you will not be compensated.
“So, they have the matrix to do the evaluation. They are working with the Presidential Committee on Salaries chaired by the Finance Ministry and I am the co-chair to look at the demands of the workers.
“Outside this, I said discussions on that evaluation are ongoing,” he said.
On whether a timeline has been fixed for implementation of new salary increase, Ngige said, “As we enter the new year, government will make some pronouncements in that direction.”
Describing 2022 as a year of “industrial dispute” over several agitations of different labour unions, Ngige said: ”It’s a year we can call a year of industrial dispute, starting from the February’s Academic Staff Union of the Universities (ASUU) strike which was joined by other sister unions in the university system and even the people in the research institutes.
“And thereafter, threat from various unions, including the medical doctors association (Nigerian Medical Association) and its youth wing, the National Association of Resident Doctors (JOHESU) which is also the Joint Health Sector Union – all were asking for a wage increase.
“And asking for wage increase can also be understandable because of what inflation had done in the economy and the attendant cost of living for people who have to be workers in the public sector.”
According to him, in the private sector employers have managed their affairs better, saying this may be due to efficient management of their finances.
He added that the management could also do collective bargaining very easily with their workers.
“The banking sector, food and beverages and finance insurance (are) everywhere. So, there is calm there. We didn’t have the desired calmness on the government’s side because of the government’s finances.
“However, we are doing some review within the Presidential Committee on Salaries, and discussions are ongoing.
“The doctors are discussing with the Ministry of Health, insurance people in the public sector (are) discussing and there is a general calmness.
“Hopefully, within available resources, the government can do something in the coming year,” he said.
On the position of government on the payment of the eight and half months of outstanding salaries the Academic Staff Union of Universities (ASUU) is demanding for the period they embarked on strike, Ngige said, “For now, the matter is in court for proper interpretation of the Trade Dispute Act as it concerns ‘no-work-no-pay’ policy invoked by the government during the strike period.
“ASUU has not pronounced anything on their salaries anymore because it’s one of the issues that was referred to the National Industrial Court for determination on whether a worker who is on strike should be paid in violation of section 43 of the Trade Dispute Act.
“The Act says when you go on strike, the consequences are these: number one, you will not be paid, you will not be compensated for not going to work to enable your employer keep the industry or enterprise afloat.
“That money should not be given to you, and that compensation should not be given. It’s there in Section 43 (1).
“There is a second leg to Section 43. It also said that the period you were on strike will not count for you as part of your pensionable period of work in your service.
“That leg, government has not touched it, but the leg of no-work-no-pay has been triggered off by that strike. So, we are asking the court to look at it.”
Recently, harsh economic conditions have propelled agitation of labour unions, particularly as hyperinflation continue to erode the purchasing power of workers, especially those under the employment of the government.
Mid December, the National Bureau of Statistics (NBS) disclosed that Nigeria’s inflation rate rose for the 10th consecutive month in November to 21.47 per cent from 21.09 per cent recorded a month earlier amid a continuing increase in food and energy prices.
The statistics office said the prices of goods and services, measured by the Consumer Price Index, increased by 21.47 per cent in November 2022 compared to the rate in November 2021.
The figure is 6.07 per cent points higher than the rate recorded in November 2021.
According to the NBS, on a month-on-month basis, headline inflation rate in November 2022 was 1.39 per cent, 0.15 per cent higher than the rate recorded in October 2022 (1.24 per cent).
“This means that in November 2022, the general price level was 0.15 per cent higher relative to October 2022.
“The percentage change in the average CPI for the twelve months ending November 2022 over the average of the CPI for the previous twelve months period was 18.37 per cent, showing a 1.39 per cent increase compared to 16.98 per cent recorded in November 2021,” it said.
The report noted that the increase in the monthly inflation rate can be attributed to the sharp increase in demand usually experienced during the festive season, the increase in the cost of importation due to the persistent currency depreciation and the general increase in the cost of production, such as increase in energy cost.
Food inflation rate in November stood at 24.13 per cent on a year-on-year basis, which was 6.92 per cent higher compared to the rate recorded in November 2021 (17.21 per cent).
The bureau said the rise in food inflation was caused by increases in prices of bread and cereals, oil and fat, potatoes, yam and other tubers, Food products n.e.c, and fish.
The report added that all items less farm produce or core inflation, which excludes the prices of volatile agricultural produce, stood at18.24 per cent in November 2022 on a year-on-year basis; up by 4.39 per cent when compared to 13.85 per cent recorded in November 2021.
The NBS said the highest increases were recorded in prices of gas, liquid fuel, passenger transport by air, vehicles spare parts, and solid fuel.
Lingering fuel scarcity in recent times with hike in price as worsened the narratives. The shortage has seen transport cost on the rise, thereby affecting goods and commodities.
In its Selected Food Prices Watch Report for November 2022, released in Abuja on Monday, the NBS said that prices of selected food items increased in November.
The report said that the average price of 1kg bonelessbeef on a year-on-year basis, increased by 29.00 per cent from N1,812.03 recorded in November 2021 to N2,337.46 in November 2022.
“While on a month-on-month basis, 1kg boneless beef increased by 3.14 per cent from N2,266.24 recorded in October 2022.”
It showed that the average price of 1kg rice (local) increased on a year-on-year basis by 18.95 per cent from N421.02 in November 2021 to N500.80 in November 2022.
“On a month-on-month basis, the average price of this item increased by 2.73 per cent from N487.47 recorded in October 2022.”
The report said the average price of 1kg of tomato on a year-on-year basis rose by 30.18 per cent from N350.15 in November 2021 to N455.13 in November 2022.
“Also, on a month-on-month basis, 1kg of tomato increased by 0.15 per cent from N454.46 recorded in October 2022.”
Also, the report showed that the average price of 1kg brown beans (sold loose) rose by 18.03 per cent on a year-on-year basis from N490.19 recorded in November 2021 to N578.55 in November 2022.
“While on a month-on-month basis, the price rose by 2.45 per cent from N564.69 recorded in October 2022.”
The NBS said the average price of Palm oil (1 bottle) increased by 29.87 per cent from N775.11 in November 2021 to N1,006.64 in November 2022.
“On a month-on-month basis, the item grew by 3.91 per cent from the N968.76 recorded in October 2022.”
Also, it said the average price of Vegetable oil (1 bottle) stood at N1,142.99 in November 2022, showing an increase of 30.41 per cent from N876.47 in November 2021.
“On a month-on-month basis, it rose by 3.34 per cent from N1,106.08 recorded in October 2022.”
The report said the average price of a yam tuber stood at N421.08 in November 2022, showing an increase of 29.25 per cent from N325.78 in November 2021.
“On a month-on-month basis, 1 tuber of yam increased by 2.74 per cent from N409.86 recorded in October 2022.”
The NBS said the average price of white garri (sold loose) stood at N325.82 in November 2022, showing an increase of 7.79 per cent from N302.28 in November 2021.
“On a month-on-month basis, the item increased by 2.49 per cent from N317.90 recorded in October 2022.”
The report said at the state level, the highest average price of rice (local, sold loose) was recorded in Rivers at N632.05, while the lowest price was recorded in Jigawa at N378.81.
It said Ebonyi state recorded the highest average price of beans (brown, sold loose) at N868.33, while the lowest was recorded in Kebbi state at N365.71.
Also, the report said Ekiti recorded the highest price of Vegetable oil (1 bottle) at N1,584.31, while Kwara recorded the lowest price at N693.08.
The hyperinflation reflects eroding the purchasing power of workers, amid challenges of devaluation of the Naira.
