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Minimum Wage and Organised Labour by Dr Charles Omole

by Dr Charles Omole

by DReporters
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The demand by Labour for over 400k minimum wage is outrageous and unhelpful. Asking for over 1000% increase in minimum wage is bad economics in many ways. How do you take seriously Labour leaders that seem to be living in their own imaginary world.

Their basis for their demand is not good economics. Listing average cost of transportation; food etc and coming to a figure is not the way to calculate minimum wage.

Firstly; prices go up and down all the time. So will the wages awarded be reduced if there is a sudden crash in prices of goods and services? Secondly; Minimum wage is not supposed to meet all your needs. It doesn’t anywhere in the world. If you can meet most of your needs with minimum wage; what is the incentive to get education and earn much more than minimum wage?

A minimum wage of over 400k will also mean similar increment for all wage levels above the minimum as well. So a director who earns 300k at the moment will now need to be paid over 1Million per month. As the minimum go up; all levels get increases as well.

Also, many in public service earn more than the basic salary. There is all manner of allowances and awards that is also paid.

Increase in minimum wage is not just increase for the lowest paid staff. All staff (including the Permanent Secretary) will also get an increase. This outrageous demand by Labour will bankrupt any economy and the government must resist their blackmail.

In saner climates; you don’t see labour going on strike over minimum wage. The government simply announces the percentage increases in minimum wage without much organised protest. The misuse of strike actions by the NLC and TUC has become damaging to the collective bargaining in this country.

The government should stand firm with the 100% increase in minimum wage it has offered. Anything more will just be playing to the gallery. Some states have not been able to pay the current 30k up until now. How do you expect them to pay 60k much less over 400k.

Minimum wage is not meant to be able to meet all your needs. Otherwise, what’s the need to advance and progress if I can meet most of my needs on minimum wage. It’s merely a starting point from which to advance and move up in the job market.

The organised labour need to stop playing politics and being recalcitrant. The government must stand firm and workers need to resist this needless strike called by labour in their name.

There are many tools the government can use to stop this nonsense and I am sure they will do the needful. Enough is enough.

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