The organised labour in Nigeria has agreed to suspend its planned indefinite nationwide strike, which was scheduled to begin on Tuesday, October 3, 2023. This decision came after about five hours of deliberation between the labour unions and the federal government at the Presidential Villa in Abuja.
The Minister of Labour and Employment, Simon Lalong, announced the outcome of the meeting, stating that the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) have accepted to suspend the strike for 30 days. The memorandum of understanding (MoU) reached during the meeting also mandates the Minister of Labour to address the withheld salaries of university staff.
One of the key agreements reached is the approval of a wage award of N35,000 for all federal government workers, starting from the month of September, until a new national minimum wage is enacted. Additionally, the federal government has suspended the collection of Value Added Tax (VAT) on diesel for six months, beginning in October 2023. Other agreements include provisions for high-capacity CNG buses for mass transit, plans for tax incentives for the private sector and the public, and initiatives to support farmers.
The organised labour had initially threatened to proceed with the nationwide strike due to the removal of fuel subsidy and the increase in the price of Premium Motor Spirit (PMS). However, this suspension follows the negotiation and agreement with the federal government to address these issues.
The memorandum of understanding (MoU) outlines various commitments from the federal government, and the labour unions have agreed to revisit the strike issue if the government fails to fulfill its promises.
See details 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.
