WAKE UP: Just before the minimum wage increase
By BASHIR ADEFAKA
“Of whatever use is fat salary with less value when it comes to purchasing power? So, it should be sounded into the consciousness of that category of people in the society who produce, sell goods and render services to wages earners, as their effort at indiscriminate increase in prices and charges can only lead to inflation, and in situation of inflation, no one is at ease; not even those who jack up their prices especially the transporters.”
Sometimes it can be extremely worrying when the organized labour in our country, Nigeria, do things like they are less concerned about the two-side effect of what they do or demand for. The new minimum wage being canvassed and demanded for, on my mind.
“Who no like better thing?” to mimic one of the Nollywood actresses in a paid advert, Funke Akindele. Wage increase should be a thing that every human element wants to jump at, because it is a source of wealth increase for working class in the labour sector.
But how much of wealth increase has upping of wages offered to Nigerian workers in the history of doing so? I think the National Bureau of Statistics (NBS) can assist in providing the answer to this.
While we can continue to recline in wait for possible such answer from the NBS, let me take a shortcut to announce that the more minimum wage increase we have embarked upon in this country, the higher the level of poverty the working class, particularly those among them within what we can call lower and middle levels, have been subjected to.
It therefore should interest any of the stakeholders to consider the failure of minimum wage increase in fulfilling the aspiration for doing so in the past and then tarry a while with a view to finding out why. And the reason is not far-fetched.
All market men and women, most of whom are either illiterates or literates but just being selfish, inconsiderate, believe that increase in wages of workers should automatically mean increase in prices of the items they sell in the market, which is the destination of use for the money the workers earn. This way, it is more or less like nothing has changed. The the labour will have to return to the table, carry their placards again and start telling the government their fresh demands for another wage increase. How can a serious society move forward that way?
The question again should be asked, what does a market woman lose if she does not increase the price of her item upon announcement of new minimum wage? In actual fact, she loses nothing; except for the mere fact and irresponsible notion that it is by price increase that she too enjoys her own wealth increase.
There is no correlation between ‘wage’ and ‘price’. This should be taught into the consciousness of the market men and women through the National Orientation Agency (NIA) and the Non-Government Organisations (NGOs), first before government and labour venture into talking about minimum wage at all, talk less of the more devastating attempt at embarking on strike as a way of demanding for same.
And the labour make things worse by forcing artisans and market people who do not have relationship with minimum wage except that they stay tune hopeful for an increase in sales resulting from workers now earning well. Those artisans you force to go on strike with you, while you still earn your salary after the strike action has ended, who fills the gap created by that non-trading activity and then pays them to take care of their own living after you have achieved your aim and are now smiling to banks? I think the organized labour should always be mindful of these realities before they talk of strike and by, extension, force artisans and traders not in paid jobs to join them. It is selfish not to be so considerate.
Like I said earlier, there is no correlation between ‘wage’ and ‘price’ except that whereas wage increase, which is salary earned after 30 days of serious labour or a period adopted by given employers of labour, can always positively affect market men and women as their sales will rise in the market. The attitude of the market people at news of minimum wage increase, hiking their prices, that is costs of items or services the wage is used to acquire, does no less than economic havoc to the working class. This is the basic fact that both the organized labour and the government should agree upon in making demands and decisions, respectively, for minimum wage increase in the context of Nigeria.
It is therefore imperative that both sides of the stakeholders embark on serious education and resounding enlightenment to the public if they really want to achieve results from minimum wage increase.
But, as far as I am concerned, there is no need for minimum wage increase after the many failed ones we have had. What we should do is simple. Just do one of two suggestions I will give here before concluding this article and whichever of the two options that is picked is the responsibility of government.
One, you can force down the prices of items and services in the market and this way you carry along manufacturers and importers including farmers who respectively provide those marketed items. You make them see the evil in indiscriminate hiking of prices of the items they sell to largely salary earning Nigerian public which is one way they contribute to the rise in poverty level in the country. It is saddening how price stability has been in flight and never ever have to return since a very long time now in Nigeria. In some countries of the world, it takes up to 12 to 13 years before slight change is noticed in market prices. Why is Nigeria’s different? Of whatever use is fat salary with less value when it comes to purchasing power?
So, it should be sounded into the consciousness of that category of people in the society who produce, sell goods and render services to wages earners, as their effort at indiscriminate increase in prices and charges can only lead to inflation, and in situation of inflation, no one is at ease; not even those who jack up their prices especially the transporters.
Before the current wage increase in the workings is concluded, the government should consider forcing down the prices of items in the market and charges for services including cost of transportation of wares from farm or other source of production to market centres and fares charged to commuters who move around for their daily activities particularly those workers who go to and from work daily. Those sellers and service providers should be made to realize the huge benefits awaiting them in not causing hardship for workers over their wage increase as buying their items and acquiring their services cannot be the only thing they want to use money for in their individual lives.
Two, if government cannot force down the existing prices of items and charges for services including the cost of transportation, the only other option that is open to me right now (and today is Sunday September 30, 2018) is for them put a price control mechanism in place, which makes it difficult for indiscriminate price increase in the market and service charges among service providers including transporters.
This is my patriotic contribution to the government and organized labour, if the intention about the new minimum wage increase is genuinely for the love of country and betterment of the people. Also, it is the only way that minimum increase can be of huge benefits to not only the workers, who will now have more to save for future purposes from their monthly earnings, but also even the petty traders in the market centres will make more sales and artisans and transporters, tour or metropolitan, will smile daily as people will happily embark on spending without cry of scarcity of fund or fear of inadequacy of earning.
Wishing the Federal Republic of Nigeria and entire peoples of Nigeria a Very Happy 58th Independence Anniversary!
