Decentralised Minimum Wage Negotiations Advocated by Former Governor Fayemi

Insistence on decentralized minimum wage negotiations has been restated by Kayode Fayemi, former Governor of Ekiti State.

He has stressed the significance of allowing individual states to hold wage discussions with labor unions independently from the Federal Government.

During an interview on Channels Television’s Politics Today program on Friday, Fayemi, a former chairman of the Nigerian Governors Forum, made this assertion.

According to Fayemi, “The Nigerian Governors Forum’s standpoint, when I served as governor and forum chairman, and even up till the recent negotiations, is that we should diversify minimum wage discussions and empower states to negotiate with their labor unions, while the Federal Government conducts its negotiations because not all states have equal financial capacities.”

Noting the resource inequality among states, Fayemi highlighted, “The salary of the Lagos State governor should not be on par with that of the Ekiti State governor. Lagos has more resources, but we all receive salaries based on rank. Governor Sanwo-Olu earns the same N600,000 that I do in Ekiti.”

Expressing his views on the centralized minimum wage, he added, “I don’t think we are being realistic with ourselves. This decentralization should occur, and each state should collaborate with its labor union transparently, providing all necessary data to the union, indicating, ‘This is our financial capacity.'”

Fayemi elaborated on the broader impact of a centralized minimum wage, highlighting that only a small fraction of the populace directly benefits from these negotiations.

“You represent only five or ten percent of our population. We also have to cater to the remaining 90 percent of the citizens. Yes, you are a minority and perhaps manage for four to five months in your households. However, there are communal obligations that must be financed to serve the overall welfare of all the state or national residents,” Fayemi remarked.

He criticized the current rigid stance on minimum wage negotiations as dogmatic.

“Labor unions are not open to the idea of a decentralized national minimum wage. Decentralization does not imply that state-level wages would be lesser than the federal level. Back in the 50s and 60s, civil servants in the western region earned more than federal civil servants,” he pointed out.

Proposing a comprehensive approach to constitutional reforms, Fayemi suggested that the president should consolidate all previous works such as the 2005 political reform committee report, the 2014 committee report under the President Jonathan administration, and incorporate the APC true federalism committee findings, presenting them collectively to the National Assembly for legislative action and constitutional inclusion.

Fayemi also highlighted the urgency of a national referendum on constitutional outcomes, stressing, “I think this is the missing element in the current constitution.”

“A national referendum is required for any decision stemming from National Assembly deliberations,” Fayemi emphasized.