The Federal Government and Labour leaders have reached an agreement, ending the nationwide strike that began on May 3, 2024.
The agreement in a communique signed by NLC and TUC Presidents, Comrades Joe Ajaero and Festus Osifo, the labour unions include a commitment to a higher national minimum wage, creating an ambiance for negotiations, reversing the electricity tariff hike to N66/kWh, and abolishing the discriminatory classification of electricity consumers into bands.
The labour unions expressed hope that the Federal Government will commit to a concrete and acceptable National Minimum Wage, reverse the electricity tariff hike to N66/kWh.
The labor unions have given the government a one-week ultimatum to meet their demands.
While the agreement is a step forward, concerns remain about the effectiveness of a salary review in the face of rising commodity prices.
The government must monitor prices in open markets to ensure that the increased wages are not rendered useless by inflation.
Price control measures, like the Price Control Act of 1977, can help stabilise prices and prevent hoarding.
Recently, the National Assembly urged the Federal Government to re-establish a Price Control Board in all states.
The Federal High Court has also ordered the government to fix prices of certain goods, including petroleum products, under the Price Control Act.
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Consequently, a meeting between the Minister of Works and cement manufacturers resulted in a resolution to peg cement prices.
Nigeria's inflation rate continues to rise, reaching 29.9% in January 2024.
The removal of petroleum subsidies and foreign exchange volatility have led to rapid increases in the cost of goods and services.
While the salary review is a positive step, it may not adequately address the high cost of living unless those Unions in the local markets are ready to lay down their influence on the price of commodities.
The chain in every farm produce brought for sale is influenced by unions in our local markets. For instance, if you are not a member of the tomato sellers association, you are not permitted to trade your farm produce.
Since the new minimum wage is being addressed, the local association's leaders in the market are also finetuning every step to jack up prices.
This is where the government would have to take stiff measures to curtail the aftermath of their balkanization
Effective price control measures, guided by the Price Control Act, can help curb inflation and create a fair market.
The government must not allow associations to becloud the new minimum wage as this may hinder all considerations and extend workers' continuous lamentations despite their plights being resolved.
