A NEW pay structure, which will consider the effects of the global financial crisis, is on the way.
The National Minimum Wage Committee has broken into four consultation groups to produce a Living Wage structure.

The committee, headed by a former Chief Justice of the Federation, Justice Alfa Belgore, may adopt Ghana’s model by putting in place a Permanent Wage Policy, it was learnt at the weekend.

But in implementing the new wage structure, the government is considering either staff review or employment embargo to be able to cope with the cost.

The committee and other stakeholders agreed in October to change the present wage structure.
The committee decided to break into four groups, headed by some ministers, to work out modalities for the new pay structure.

A source, who spoke in confidence, said: "The four groups are already consulting many stakeholders on the way forward.

"One of the options being weighed is the payment of a Living Wage to workers so that they can have a fulfilled career.

"We are also looking at the Ghanaian model which requires putting in place a Permanent Wage Policy without having to go through industrial crisis to secure wage increase.

"The warlike manner being adopted by labour on wage increase does not speak well of us as a nation.
"Once we put a wage policy in place, negotiation will always be on percentage increase because the policy would have regulated the period. For instance, if we have a policy to review wages every four or five years, it would be a permanent thing and such a system will be less rancorous.

"Recently in Ghana when it was time to increase wages, the workers demanded 800 per cent increase but after negotiation, in line with economic realities, the parties agreed on about 15-16 per cent increase.

"In our own case, Labour is asking for about N52,000 minimum wage, which is about 650% to 700% increase, depending on whether you are a Federal or State worker."

Asked if the government will be able to accommodate a wage increase in 2010 budget, the source, who is a member of the committee, said: "There are two options which the Belgore committee would have to choose to make this possible.

"There will be wage increase but with two costs of either staff review (retrenchment) or a temporary employment embargo.

"These two alternatives will form the last segment of the Belgore Committee’s assignment."
It was, however, not clear as at press time when the committee will complete its assignment.

The source added: "Certainly, it will be next year but I cannot tell you the time. The Office of the Secretary to the Government of the Federation is coordinating the wage issue."

The Federal Government and the Nigeria Labour Congress (NLC) agreed in October that there is need to jack up the minimum wage, which is between N5,500 and N6,500.

The minimum wage came about eight years ago following the passing of the National Minimum Wage Act 2000 into law. ;

Although the Act allows a 12.5 to 15 per cent wage adjustment, the NLC said the percentage increase is no longer realistic because of the biting effects of the global financial downturn on workers. ;

Based on the agitation, the House of Representatives proposed a N30,000 minimum wage.

A bill on the N30,000 wage has been read in the House of Representatives. A committee is examining it.
President Yar’Adua is said to have rejected the N30,000 minimum wage proposal.