At this time, why can't they simply ask for the salaries and allocations received by political office holders to be reduced by half?
We then move on with whatever minimum wage that goverment is offering, but on a condition.
Conditon being that, over the next 3 months, each state governor will take turn to present their finances in the last 1 year, at a public hearing to the national assembly.
It will be then be clear how many workers each state has in its employment and their total salaries, in comparison to money spent on political appointees, aides, overseas trips, pilgrimages, etc.
Once this basis is laid, Labour Union can then be in a position to engage in reasonable negotiations.
And you think if they asked that, then it will be reduced just like that? And I don't think you know what is meant by allocation. Allocation is the money shared to each state by the federal government. If it's reduced it will effect the states especially states that depend completely on it.
MomohMrMoore: Lol, government is not for civil servants alone. Civil servants account for less than 10% of the population. Who pays the rest? And the teeming unemployed graduates? Who pays the partisans? Its the civil servants that will resign if they cannot cope, just like company employees. The CEO cant resign, its the employee that will resign.
You have gotten it completely wrong. Governors are not like the CEO of a company,but people appointed or giving the position by the people of that state ,which includes the civil servants, to manage the affairs of the state.
If they're not able to manage the resources of their state so they can create jobs for others to earn salaries as well as paying minimum wage for the lowest paid,then it means they have failed and should be the ones to resign and not the people who put them there.
The public sector is not the same as the private sector and so don't conflate the two as one.Governors will come and go while civil servants remain. This doesn't happen in the private sector .Have you seen a business owner leaving his business after 8 years for a complete stranger to take over it? Yes or no
A governor is the number 1 civil servant of his state. He's there to serve the people.
Babysho: You're even worse than I thought. Me and you are not saying the same thing, stop gaslighting.
This is not a situation where the theory about human behaviour applies. What are you even talking about? I think you need to stop talking. When the wage increase takes effect and there's a corresponding inflation, I'll come back here to tell you I told you so.
The only situation where wage increase doesn't cause an inflation is if the political/biz elites cut down their own wages drastically. The economy is already bottlenecked. If you don't agree with this, then I pity for you.
Cheers
You said " inflation can and has been reduced everywhere" . I said it can "be managed" and asked for the difference between my statement and yours. Instead of responding critically to that you have deflected to name calling which are your personal opinion from you projecting your self.
If you struggle to see how the same thing can be described differently by others, then I'm afraid you're too slow for me to engage with.
And ,the emotional reaction you have come up with is to cover for your lack of practical experience about what you claimed to know so well. I'm not fooled . You're an arm chair critic who can't see beyond his nose .Like other morons around here, You only have a mono-causal explanation for inflation; minimum wage. and using it like a bot to telescope negatively into the future. SMH
casualobserver: You are entrenching yourself into the realm of stupidity with your repeated attempts to grab my attention, so if you don’t mindI’ll just take my leave here.
Gone on the defensive since you can't defend your very odd claims and lies.
You're negatively telescoping into the future based on limited information.
The minimum wage will be increased and we shall see about the adjustment and your lies about imaginary strikes concerning it.
casualobserver: Nobody is “guaranteed” consequential adjustment because there is no law that mandates it. It happens by normal practice or by implication that is why you often see other unions going on strike once a minimum wage has been approved.
You are contradicting yourself. I have stated it many times that Labour is not fighting for the Nigerian worker, they are fighting for Government workers. I have also stated that the majority of Nigerian workers will not be affected by the Law and that if they are forced to, many will lose their jobs because the real economy cannot afford it. I say forced to because who is obligated to implement the minimum wage is dependent on the wording of the new law. That the old law only included OPS above 25 staff does not means the new law will. Already Today NGF has stated 70k is their limit and OPS has said 60k is their limit.
Take a step to pause and think before you post because I don’t see what you are posting in all these multiple posts that is fundamentally different from what I posted.
The bottom line is our issue is low productivity. You cannot pay what you don’t have and your cannot live a life you have not earned. It will catch up with you. No food for lazy man is not just a joke we say, it is the reality of life. Either way you slice it. It is either the economy cannot pay the minimum wage increases even if a small section can or they mandate and enforce it and it leads to inflation and or job loses. It boils down to the fact that the GDP per capita which paints a picture of a people with low productivity.
PS: I never said I worked part time, what I said was I had 2 full time minimum wage jobs. 2) I got to know about which class of workers are covered under the minimum wage via a guest on TVC……video below. If you made such a post I never saw it. I don’t read every post on Nairaland only those who come to my attention because they appear on my mention. The only thing I will admit to is that as an employer myself, I didn’t actually know the full details of law until I saw her interview and checked.
Take this and rest whether you agree or not. I am tired of rehaarshi f the same thing over and over for the last week.
You say minimum wage will effect the economy negatively because you believe it's for nearly every worker in Nigeria.
I said not true because those to receive it are more in the public sector who like politicians depend on government revenue to demand for wage increase. They're less than 1% of the entire workforce in this country not enough to make any difference.
Now here's the truth about the private sector and minimum wage. Most of the workers in that sector are employed to work in either small or medium scale enterprises which constitute the largest employer of labour in Nigeria and they usually employ less than 25 workers and so exempted for now unless the law is amended . The ones that have 25% either lie about their staff strength or deliberately choose not to pay. Nigerians are both corrupt and lawless.
Large scale enterprises with the capacity to employ more than 25 staff have the means to pay even above minimum wage to their lowest paid staff. So it's not a problem for them and most have already increased their workers salaries without waiting for any minimum wage announcement from government.
So the question is who are those paying it in the private sector?
Almost nobody is the correct answer
If almost nobody is going to pay it in the private sector unless there is an amended, how can it affect the economy as you believe it would?
Please respond to this and ignore every other thing in my other replies before this.
casualobserver: Nobody is “guaranteed” consequential adjustment because there is no law that mandates it. It happens by normal practice or by implication that is why you often see other unions going on strike once a minimum wage has been approved.
You are contradicting yourself. I have stated it many times that Labour is not fighting for the Nigerian worker, they are fighting for Government workers. I have also stated that the majority of Nigerian workers will not be affected by the Law and that if they are forced to, many will lose their jobs because the real economy cannot afford it. I say forced to because who is obligated to implement the minimum wage is dependent on the wording of the new law. That the old law only included OPS above 25 staff does not means the new law will. Already Today NGF has stated 70k is their limit and OPS has said 60k is their limit.
Take a step to pause and think before you post because I don’t see what you are posting in all these multiple posts that is fundamentally different from what I posted.
The bottom line is our issue is low productivity. You cannot pay what you don’t have and your cannot live a life you have not earned. It will catch up with you. No food for lazy man is not just a joke we say, it is the reality of life. Either way you slice it. It is either the economy cannot pay the minimum wage increases even if a small section can or they mandate and enforce it and it leads to inflation and or job loses. It boils down to the fact that the GDP per capita which paints a picture of a people with low productivity.
PS: I never said I worked part time, what I said was I had 2 full time minimum wage jobs. 2) I got to know about which class of workers are covered under the minimum wage via a guest on TVC……video below. If you made such a post I never saw it. I don’t read every post on Nairaland only those who come to my attention because they appear on my mention. The only thing I will admit to is that as an employer myself, I didn’t actually know the full details of law until I saw her interview and checked.
Take this and rest whether you agree or not. I am tired of rehaarshi f the same thing over and over for the last week.
The 25 staff still stand unless it's amended. Are they making attempt to do so ? No. So what are you taking about.
Instead of accepting your mistake, you are doing everything to prove you are correct when you're not.
Provide evidence from the last minimum wage increment or any other one to support your claims that strikes usually due to consequential adjustment, or you just shut up
casualobserver: Nobody is “guaranteed” consequential adjustment because there is no law that mandates it. It happens by normal practice or by implication that is why you often see other unions going on strike once a minimum wage has been approved.
You are contradicting yourself. I have stated it many times that Labour is not fighting for the Nigerian worker, they are fighting for Government workers. I have also stated that the majority of Nigerian workers will not be affected by the Law and that if they are forced to, many will lose their jobs because the real economy cannot afford it. I say forced to because who is obligated to implement the minimum wage is dependent on the wording of the new law. That the old law only included OPS above 25 staff does not means the new law will. Already Today NGF has stated 70k is their limit and OPS has said 60k is their limit.
Take a step to pause and think before you post because I don’t see what you are posting in all these multiple posts that is fundamentally different from what I posted.
The bottom line is our issue is low productivity. You cannot pay what you don’t have and your cannot live a life you have not earned. It will catch up with you. No food for lazy man is not just a joke we say, it is the reality of life. Either way you slice it. It is either the economy cannot pay the minimum wage increases even if a small section can or they mandate and enforce it and it leads to inflation and or job loses. It boils down to the fact that the GDP per capita which paints a picture of a people with low productivity.
PS: I never said I worked part time, what I said was I had 2 full time minimum wage jobs. 2) I got to know about which class of workers are covered under the minimum wage via a guest on TVC……video below. If you made such a post I never saw it. I don’t read every post on Nairaland only those who come to my attention because they appear on my mention. The only thing I will admit to is that as an employer myself, I didn’t actually know the full details of law until I saw her interview and checked.
Take this and rest whether you agree or not. I am tired of rehaarshi f the same thing over and over for the last week.
I have insider information. Consequential adjustment is a must for those to receive it. This is not the first time minimum wage is to be increased in Nigeria. Haba.
You like making baseless claims. Ask those who are civil servants around you they will informed you better.
theowane: That will be the job of the National Salaries Income and Wages Commission and it will depend on the Conolidated salary structure. The higher your Grade level, the lower the percentage increase. For example, in 2019, when the minimum wage was increased to 30K, the consequential adjustment for core civil servants ie Consolidated Public Service Salary Structure (CONPSS) was: GL 07 -23.2 per cent, GL 08 -20 per cent, GL 09 – 19 per cent, GL 10 – 14 is 16 per cent, while GL 15-17 is 14 per cent
casualobserver: I suggest you take your own advice and read the minimum wage act. If you did you would realize that the law Doris not even apply to the majority of Nigerian workers in the first place. Labour is fighting for government workers and even in that space they are really only fighting for federal workers.
Again read the law. I have posted the relevant sections numerous times over the last few days. The law does not apply to majority of workers and is not enforceable by law to the majority of employers.
Either way the SGF is right or at least is sending a message about the real Nigerian situation. He has 4 drivers because the government is paying for it. Government workers represent only 0.6% of the population. If he were a private citizen he wouldn’t employ that many drivers.
Either way whether as a public official or as a private citizen, nobody needs 4 drivers. This is the point I have been making that we are unproductive and many people owe their jobs to lack of productivity and low wages. If we are forced to be productive or wages are forced to rise, many jobs will go because there simply isn’t the money In the economy in both the private and public sector.
You're just confused. Which in either way? The SGF is referring to his personal driver he employed himself and not the ones employed and assigned to him by the government. Is the government is personal business for him to complain if they were the ones that employed them. You can only deceive yourself not me.
I already made references to the minimum wage act , and even posted some section of it on this forum long before you did, and I remembered informing you of it and asking you to Google it when I read you making some ignorant statement concerning the minimum wage law in a thread where you claimed to have worked in part-time in the UK. But you forgot and now lying you knew all about it when you never did.
casualobserver: That will come later through consequential adjustment. They usually have to fight their own seperate battles for that.It is usually backdated.
That said all this we are talking both minim wage and consequential adjustment only applies to certain workers. I would say only federal workers are guaranteed. Many states will not pay. As for private sector, many will lose their jobs as a result or it won’t apply to them in the 1st place.
See the picture below (section 3:1)to know those who all this noise will definitely not apply to.
Another misinformation. Every worker in the public sector both at the federal and state level is guaranteed consequential adjustment. Did you not read in the minimum wage act that no other employer apart from the federal government has the right to negotiate minimum wage with their employees once it's signed into law?
In the private sector, a lot of businesses are exempted to the extent that only a very few are left paying it ,and those ones are large scale enterprises who have the capacity to pay their lowest paid staff more than minimum wage.
So in the private sector it's almost like nobody is paying it Most small and medium scale enterprise in Nigeria have less than 25 staff in their payroll and because of this are exempted. Many will not lose their jobs as you assume.
casualobserver: Exactly, everybody will start going on strike for what is called consequential salary adjustments. Those on 100k now will want N300 etc. Doctors will strike, ASUU will strike eventually by the time this is over everybody’s salary except the 99’% who do not work for the govt. but they will have to deal with the inflation caused by the less than 1%
By the time the dust settle the N100k can’t buy what it can buy today.
Don't comment on things that you're in the dark about and misinform the public .
Nobody or group of workers can just demand what they want as consequential adjustment. It's always the responsibility of the federal government to provide a template for the adjustment immediately the new minimum wage is signed into law for everyone in the public sector to follow. And it's has never led to any strike.
Babysho: I apologize that I called you names but you came in hot saying I was giving wrong analysis when I was actually backing my arguments with real economic theories. Whereas you were just making your theories out of thin air.
You're gaslighting saying I am agreeing with you somewhere which is false. The one place I agreed you was 2 mentions ago where you said the govt must cut their salaries.
But now, you're even forming new theories in a bid to win an argument in an issue that's so dire. Why not listen to my own theories by known philosophists, you can even Google it and then counter with your argument.
"Cost of living cannot be stopped from rising" - Triplechoice. My answer - Inflation can and has been reduced everywhere in the world time after time! When Supply is higher than Demand, you stop inflation. Interest rates, Good investments/Infrastructure and Productivity are ways to improve supply.
"Inflation is normal" - Triplechoice My answer - When Supply = Demand which is equilibrium, that is what is normal.
"If you're have no experience doing business in Nigeria and have employed anyone to work for you, then you still have a lot to learn before teaching anything" -Triplechoice. My answer - Business is not Economics. Maybe don't argue about economics with actual Economists?
1. I said cost of living or inflation cannot be stopped from rising. You have just replied with, "Inflation can and has been reduced " But I said it can only be managed. Did I not say so? So tell me, what's the difference between "it can only be managed" and what you just replied with?
2. When I say inflation is normal, I'm referring to the rise in the cost of living as something to be expected in any country where economic activities are going on and there's a government to influence things, and not what you think.
3.Economics theory are founded on human behavior which is very difficult to predict. That's why they're not as reliable as those of the exacting sciences like chemistry or physics.
And so, using your brain as a file card for such economic theories or principles and rehashing them in your head in order to give predictions about the future can become like guess work sometimes. What you're saying now about minimum wage and inflation in Nigeria,, was the same others , (you included, I suspect so) said 5 years ago when Buhari was about to signed a new minimum wage of 30k: "It will lead hyperinflation, and the economy will collapse, Nigerian will turn to Zimbabwe" blah blah. But here we are again, 5 years after,the same predictions are being made everywhere , and in another 5 years you will still come up with same talk . Is the current economic climate due to the expired minimum wage of 30k? No. But the economic policies of the current government.
4. Finally, you may not need to own a business or employ anyone, but at least have some practical experiences working with businessess in order to put to practice what you have learnt so you can fully understand it better if not you're no different from a trained marriage counsellor who's never married trying to counsel those who are married or about to, on how best they can make their own marriage work. That's pure nonsense
opeldavid: 4 drivers? Why so u need 4 drivers? Let me guise, 2 drivers for oga, one for madam one for the kids. Omooo ..see wastage. Can you start your own company and employ 4 drivers to yourself.
Don't mind him. He's lying to ridicule labour. As a private individual he is exempted from paying minimum wage to that number of drivers.
If he doesn't know the law , then he doesn't deserve that position he's occupying.
casualobserver: This is exactly what I have been saying.
1) many people have jobs only because wages are low, if they rise they will lose their jobs. It is one thing for government to pay it is another for individuals, small businesses and even large companies in the private sector to pay.
2) salaries are low because several people do the job of one person. Our productivity is very low. If one person did the job well as he is supposed to do, a man wouldn’t need 4 drivers and his only driverwould earn the wages that he is currently sharing with 4 people. A man does not need 4 drivers. I don’t care who you are. Worst case he employs 2 instead of 4 and doubles both their salaries as it should be.
I have said it many times in the last few days the problem of wages I. Nigeria is a problem of lack of productivity where it takes 2,3,4,5,6 people to do the job of 1 person. I have said it also that when all is said and done many people will lose their jobs and they will realize Labour wasn’t fighting for them.
Instead of joining other ignorant people to spread misinformation,why not tell people the truth as it concerns minimum wage in the private sector in Nigeria .
You already know what's contained in the minimum wage act which has exempted people like him with only 4 drivers in his employ from paying minimum wage in Nigeria.
So why trying to live in denial here
The SGF is either ignorant of the law or his lying to ridicule labour. That's it.
Babysho: Why's everybody blood so hot on this thread 😂😂 I even started laughing at you at some point. Which one is "as a result of increase in purchasing power of their regular customers". Abi are you actually a genius in hiding who's introducing unprecedented Economic philosophies greater than Adam Smith and Karl Marx's or you got the advice from a madman? Stick to known economic philosophies.
And you also contradicted yourself at the end. If it's less than 5% that'll benefit from the wage increment, why will there be an increase in productivity all over the economy? And it goes to show that you don't even know how wage increment works if you think it'll not mirror in the private sector.
And as for productivity, it is the increase in output with lesser inputs that increases productivity. It just simply means that your govt must themselves begin to work and reduce their own salaries and by so doing will put the people to work. Adding more input(salaries) to an already high input (leader's salaries + large workforce)will reduce productivity. This is economics 101. We have to cut the input but that introduces class warfare because your govt believe it is us the citizens that should cut our input more and instead work more like slaves to meet the required productivity just like they did with subsidy. I was telling another clown on here that if you leave a Capitalistic entity alone, they're ready to give you 1 spoon of soup as monthly salary if you don't join unions and request maximum wage(not minimum wage).
Some of you don't understand the junction Nigeria is at. It's so dire that an increase in your wages will cause an almost immediate increase in inflation because nobody in Nigeria is actually working. Everything is imported. The companies are leaving. Even the farmers are not working. Demand is way higher than supply.
You're actually due for a political revolution but you're busy arguing 100k salary 😂😂😂
@ the bolded you are "the another clown".
Wage increase for an insignificant few, you ended up agreeing, will cause problem for the economy. But you said I contradicted myself when I talked of the benefits from the same thing. It's only in countries were a significant number of workers receives minimum wage that you can expect a dramatic shift in inflation . In Nigeria it's less than 5% . So, what are you talking about?.
Inflation is normal. I said so before. Cost of living cannot be stopped from rising. It can only be managed.
And please learn to respect the people you engage with, and a stop referring to anyone as a clown. You only have in your head theoretical knowledge of certain economic theories and principles and just think it must always apply in real life situation all the time.
If you're have no experience doing business in Nigeria and have employed anyone to work for you, then you still have a lot to learn before teaching anything.
Mvnster: You dont get my point, offcourse it would cut accross board but that isnt the point, increasing it much more than 60k would only encourage laziness and worsen inflation, it is counterproductive. Like i said earlier, those on minimum wage are not supposed to rely on only one source of income.
Every salary earner shouldn't rely on their salary alone,not only those earning minimum wage.
And how does increasing it beyond 60k going to make them lazy?
How you aware that the lowest paid worker in some companies in Nigeria, especially those in the oil and gas, are earning above that? Why are they not lazy?
And you do you know it will also cause inflation? We're already experiencing hyperinflation and you're talking of inflation. Inflation is normal. As long as economic activities are going on in any country ,cost of living will continue to rise . It cannot be stopped but only managed so it doesn't result in hyperinflation.
77up: All are still bad , having employment without giving anything to do and refusing to go to work you are been paying for all because you don't do anything.
It's all part of the bad system.
Yes It's all part of the bad system and that's why you shouldn't blame most of the civil servants for not doing anything. Nothing for them to do because the people who employed them don't really care.
Most of the employment into the civil service in Nigeria at the moment is " come join us chop free government money" ,and that's why if you're not connected to those in power, you won't get the job easily.
Only very few are civil servants and those ones were employed when things were not as bad as it's now.
The rest are friends and family members of political office holders given the appointment to receive salaries and do nothing.
Babysho: I know they'll not be paid in cash but it's just an economic expression to make people understand what I mean.
it was in the past when workers were paid in physical cash that such expression was commonly used by economic experts to warn of the consequences of printing more to pay salaries. But not anymore . We are almost operating cashless economy everywhere . What you receive as money these days is reflected as computer figures in your bank account , not physical cash.
Basically, the money in circulation will increase without productivity to match it. Demand will pass supply and that's an inflation.
This is very poor analysis. How do you know productivity will not increase? Are you a business man with some experience?
You have ignored the fact that we're already experiencing hyperinflation due to some of the policies introduced by the current government which has not only drastically reduced the purchasing powers of workers,but as also led to the shutting down of several businesses that can no longer keep up with the ever increasing high cost of production and the inability to sell as they used to.
But once minimum wage is increased reasonable enough,it will help stimulate economic activities once again and favour local businesses, especially manufacturers who will then increase productivity to meet up with the surge in demand as a result of the increase in the purchasing powers of their regular customers .
Increase in productivity means more supply to the markets. And this, coupled with competition from others producing the same kind of goods will result in price reduction in the long run and everyone benefits.
Inflation is normal occurrence everywhere in the world and it's not caused by just one thing. There are other factors involved , not only minimum wage. It's hyperinflation that's not normal. And there's nothing to suggest minimum wage increase will lead to that or further fuel it since the number of workers to benefit from it in Nigeria according to the law is less than 5% or about that of the entire working force in this country which is not enough to result in too much money entering the system.
AbuTwins: The Black Sorcerers worshipped baby Jesus! On coming to the house, they saw the child with his mother Mary, and they bowed down and worshiped him. Then they opened their treasures and presented him with gifts of gold, frankincense and myrrh. Matthew 2:11
The Magi are Sorcerers or Magicians from the east! They came to worship Jesus! Again Sorcerers worshipped Jesus and gave him gifts!
Then after Jesus's family called him "out of his mind" the teachers of the law accused him of practicing demonism!
Mark 3:21-22 When His family heard about this, they went out to take custody of Him, saying, “He is out of His mind.” And the scribes who had come down from Jerusalem were saying, “He is possessed by Beelzebul,” and, “By the prince of the demons He drives out demons.”
The key is why sorcerers or magicians (people who were supposed to be killed under Deuteronomic laws) could have worshipped Jesus!
Somebody once said that Jesus Christ is the head of all principalities and powers . If that's true , then it could explain why they came to worship their Grand Master magician who later magically turned water into wine, walked on water, raise people from the dead .
Babysho: I hate to say it but I think he's right. The initial cause of the inflation was clearly from our leaders but the increment of wages MIGHT also add to the inflation especially if the govt borrows/prints more money to pay.
And I also agree with you that the right way to go is for those in power to cut on wasteful spendings to accommodate the improved salaries.
In fact, a wiser approach would be to introduce maximum wage. And that maximum wage should not be 10X more than the minimum wage. Therefore even at 30k, our leaders take home will be capped at 300k. You'll be surprised how immediately minimum wage will rise to 300k without striking 😁.
I don't understand why someone of you keep mentioning printing of money to pay as if civil servants will be paid in cash.
The physical money in circulation is already enough to go around . Most people have embraced Internet banking for making transactions, and the money transferred reflects in the recipient 's account as computer figures, not raw cash.
And every worker we not withdraw physical cash on the same day salary is paid. Most of my transactions these days are through bank transfer and it's so for many others.
Majesty7: They care less about that. They are only interested in their selfish fight that would still boomerang heavily on them. If you are being paid #100k, I see no reason not to increase my house rent for a room self contain to #1m.
The #100k is just the basic salary. I also have the right to increase my house rent
Then your tenants we vacate your house for those of . more understanding landlords who won't increase their rents just because minimum wage has been increased for just a few workers in the country.
Majesty7: If the #100k is approved, that is when you will know the real inflation. Everybody will want to take a bite. Even private schools won't be left behind. They will also claimed they have increased their teacher's package. Let's all brace ourselves up.
Labour don't know what to do. Instead of fighting high cost, they are busy fighting rubbish. If government pays then the needed salary, why should the government subsidies fuel price again? Hyperinflation is knocking seriously and the idiot nlc dwarf and tuc thinks they are fighting for living wage? What a senseless humans.
Landlord will increase their rents. Foodstuffs will increase because everyone now knows they are being paid high.
What a useless union
So it means you're more sensible than Tinubu who has now decided to pay above 60k?
Mvnster: This is why nigeria is backward, minumum wage is for unskilled labour, i.e cleaners, gatemen, messengers, you should ask yourself why should someone want to limit himself/herself to just being a cleaner/gateman and want a decent life on that alone? Those are supposed to be part-time and temporary jobs, but...what do you think would happen to the economy when gatemen begin to earn high as 200k monthly up suddenly from 30k and maybe professors would be paid 15million monthly.
You don't understand it. Minimum wage benefits all category of workers . Once a new minimum wage is signed into law, it will lead to a consequential adjustment in the salaries of those at the top .
77up: Honestly, something has to be done on this because staff like that are every government organization. I wish staff like that can be fish out and get in people that are ready to work.
I also know people that normally goes to work twice or trice in a week. They resume to their business instead of where they are collecting salary.
It's not their fault as you think. The people who employ them haven't given them any job to do. When you replace them you will get to know there's nothing to do. Just sit down and wait till 4 pm and go home and resume the next day. After some time boredom will set in and you don't like going everyday especially when you know that nobody will query you.
casualobserver: The point I was trying to make and I hope I succeeded is that the Nigerian worker is poorly paid because he is inherently unproductive. That is the root cause of his poor wages. If you like use 10 workers to produce a barrel of oil, if you like use 2. The price of oil is the same in the market. Common sense dictates that the country where it takes 10 cannot earn as the country or company where it takes 5. In both cases the rice seller does not give discounts.
But there are some of them who are highly productive but unfortunately find themselves stuck somewhere receiving very low wages and can't resign due to lack of Jobs elsewhere.
One thing I failed to mention in my previous reply is that civil servants are looking at government revenue to demand for pay increase. Truth be told, the civil servants aren't different from our political office others whose only concern is to share from the national cake. So you can't blame them for lack of productivity. Civil servants are like the wives of government. They have insider information concerning what Nigeria is actually earning that's for the most part kept from the public.
And because they know, is why they are asking for what they're currently demanding for. But most don't understand.
So maybe we should have 2 minimum wage law. One for civil servants who you say aren't productive and another one for those in the private sector where productivity should determine what you're paid,if not, the same scenario will play out in another 5 years time.
Yet some of the listed states are still paying N18k as minimum wage oo
I hope you know understand that corruption and wickedness is the reason some have refused to pay minimum wage and not because they don't have the capacity to pay
casualobserver: Like I said it is a chicken and egg situation. It is robbing from Peter to pay Paul.
Let me give you an example to illustrate: You have a farm of 1 acre with 10 workers. Your competitor farms the same 1 acre with 3 workers. The yield and therefore the income from 1 acre is the same. The farmers in farm1 are naturally poorly paid because there are 10 of them doing the job of 3 people in farm 2 for the same output, let us assume 1 acre of land can only produce a fixed amount of maize. Don’t forget the price of the maize for both farms is the same in the market….. a customer is not going to pay the farmer a higher price because he has 10 workers, if anything the price of the products in farm 2 will be cheaper because his costs are lower but for the sake of this example let us assume they both get the same price.
Remember I mentioned GDP earlier? The Output per worker (productivity) in farm 1 is lower than farm 2. If the both sell maize for N100,000, Farm 1 with 10 workers has an output per capita or productivity of N10,000 per worker whereas in farm 2 it is N33,000 per worker.
Therefore it makes sense that a worker in farm 2 is paid N20,000 for his work totaling N60,000 in salaries, let’s say materials cost N30,000 leaving a profit of N10,000 for the farmer. He is happy to earn just 10,00 from that farm because he knows his workers are efficient and do all the work. In contrast farm 2 has the same materials and input costs of N30,000, all he has left to pay the 10 workers is N70,000. Assuming he doesn’t even make a profit, the worker in farm 1 cannot earn more than N7,000. Now the farmer must make a profit otherwise he will shut down the farm. So he takes a lower profit of N5,000, meaning all that is available to pay his workers is N65,000, meaning the income of the farm 1 worker based on his productivity is N6,500. Imagine farm 1 workers saying they want a salary increase to N10,000, what will happen if he agrees? The farm will close down because the output or GDP of the farm cannot sustain that level of income due to their low productivity. It will mean they have costs of N130,000, income of N100,000 and loss for the farmer!!!
That is why I keep emphasizing the importance of our GDP per capita of N150,000, I.e the average output of all Nigerian workers from the lowest to the highest…it cannot sustain a minimum wage above N70k without a drastic increase in productivity. Increasing purchasing power without increasing productivity is just kicking the can down the road. If you increase the purchasing power of the 10 workers in farm 1 and they are still only producing 100,000 worth of maize you are just going to induce inflation because their output is still the same and the prices of the things they buy will go up because those workers have more money but you the farmer will incur debt or go bankrupt and so in the end you will be forced to close down the farm. More money in the hands of workers and same level of goods (output) = inflation.
The solution is either 1) to reduce the number of workers for the same output if that is the only farm you have 2) leave salaries as they are for the same output or 3) find another acre of land and move 5 workers to the new farm in which case you can double their wages because their productivity has doubled.
Bottom line Nigeria has a worker productivity problem not a purchasing power problem. The poor purchasing power is a result of low productivity. Increasing purchasing power for the same level of productivity is a recipe for inflation. But most importantly, just as the farmer cannot increase salaries beyond the income of his farm, you cannot increase salaries in a country beyond the output of your country. Again this is why I keep emphasizing the importance of our GDP per capita, it is the value of the output of the average Nigerian. You can’t give what you don’t have!!!
If 3 workers can produce N100,000 in farm output at another farm, you solve the salary problem of the 10 workers by sacking 5 and creating another farm for the sacked 5. The output increases to N200,000 and you can pay all better wages. The problem is the same workers in farm 1 who want salary increase will down tools at the farm if you suggest it.
Very good what you explained, but you should know that in Nigeria most business owners are not knowledgeable enough to know the exact number of workers to employ. They don't like consulting experts because they see it as a waste of money. And so, because of that the person that needs only 3 to maximize profits may employ more than that and end up not gaining much from his farm without understanding why . While the one that needs more than 3 ,may just employ 4 and also end losing in the long run.
Coolestguy2023: No wahala, let us see if every state will be able to pay including the private sector and domestic workers. There are down sides to this which many ignorant people don't know. 1. Most private companies or even government will downsize which would lead to massive loss of jobs. 2. Those that don't downsize will increase the cost of there products and services rendered.
Last last, inflation will skyrocket and that 100k will just be like 30k in the hand.
.1 No. They won't downsize after minimum wage increase .It doesn't make sense for them to do so.,and this is why.
They will need to step up productivity in order meet up with the increase in demand of their products as result of the increase in the purchasing powers of their regular customers who will now buy more from them. Increase in productivity can only occur if they have enough workers to do so. An increase productivity will lead to increase in supply and we all know that as supply continues as increases prices will drop in the long run.
2. They'll step up production to gain from the increase in the purchasing powers of workers. If they downsize, then they'll not be able to increase productivity and sell more and make more profits.
I can assure you that most business owners in this country whose businesses are on the verge collapsing due to low patronage are eagerly anticipating the increase minimum wage so they can have their regular customers back again. There will be some increase but not enough to make your negative prophecy see the light of day.
DeOTR: So how's this minimum wage increase supposed to force those organizations to pay? You should ask yourself if they've complied with the current wage before thinking of the new one. Is the labour union even concerned about enforcing the minimum for private organizations to start with? You probably don't know what you're talking about.
People with conscience who also want to hire and retain the best hands will pay.
And I believe you're aware that some private sector employers have already increased the salary of their workers during this period without waiting for government to ask them to. Those ones understand what their workers are going through and have done what is right, but others haven't. See what I mean?
My focus on the minimum wage act is not about the issue of payment but the reason for having the law in the first place which is to protect workers from exploitative employees. Nigerian business owners are very notorious for underpaying their workers.
Yes, if you feel exploited you can resign the job, but how many people know what they are worth,? Only a few, and business owners are aware of this fact ,hence the exploitation.
Let's discuss the benefits of minimum wage or disadvantage of it before any thing eise.
So tell me why are you against the government fixing minimum wage?
Modified. The responsibility for enforcing minimum wage lies with the government and not labour. Labour are not policemen that enforces the laws of the land.
Employees in the private sector should be aware of what the law says concerning minimum wage and report any one paying shortchanging them.
However, not everyone in the private sector in Nigeria is paid minimum wage. There are not of exemptions there.
Politics › Re: Minimum Wage: Resign If You Can’t Pay, Labour Tackles Governors by triplechoice(m): 11:50am On Jun 09, 2024
