Home News Reviewing the unrealistic minimum wage demands – An open letter to the NLC, TUC and FRN – Dr. Taiwo Olubanwo

Reviewing the unrealistic minimum wage demands – An open letter to the NLC, TUC and FRN – Dr. Taiwo Olubanwo

by Taiwo Olubanwo

The agitation on the need to improve the standard of living is acknowledged. More focus seems to be on the need to increase the standard of living of the working class through salary increases of the civil servants with limited to no attention on the farmers, artisans, business owners and market men and women. No doubt, the need for an increased minimum wage is long overdue. Its demand needs to be explored systematically as what is currently being proposed may be looked at as a joke.

Understandably, the politician Jombo package – salaries and allowances is an eyesore. Unnecessary government spending needs to be checked. The current cost of living despite a dwindling income, fuel subsidy removal, Fx issues and economic downturn may have predisposed the current sentiment around the proposed minimum wage figure. In reality, no one needs rocket science or a seer to know that an increase in the minimum wage from 30k to 615k is far from realism. Firstly, it is unlikely that the government will increase the wage by 300% let alone an increase of over 1000% Of note, an unrealistic increase in the minimum wage will increase the inflation rate, and reduce purchasing power and hardship in the land. As we all know, any increase in the fuel price, dollar value and minimum wage immediately impacts the price of goods and services.

Rather than demanding an unrealistic increase In minimum wage, a demand for a veritable enabling environment and structure that enhances the business environment to thrive is essential. A reasonable increase in the minimum wage, a better labour welfare package, improved artisans’ operational capacity, improved basic amenities and a reduction in government recurrent expenditure seem more reasonable at this time. Demanding and emphasizing the improvement in the cost of living at par should be prioritized. In simple terms, government spending should be directed at social and human capital investment.

All the tiers of government should prioritize spending on improving areas where an average person would ordinarily spend their money to achieve basic needs. For example, there should be a good welfare package for all working class; retirees should get a reasonable monthly allowance at par; fathers should be encouraged to produce at a reasonable cost; market women should be supported with reasonable operational capacity; there should be free education up till secondary school level; basic healthcare should be covered under a health insurance scheme; all children under the age of 12 should receive free healthcare with no out of pocket expenses; all older adult-persons aged 65 and older should receive old age welfare package.

It is expedient that political office position should not be monetized – the cost of participating in politics should be reasonably affordable whilst the remuneration of the politicians should be reasonable and not outrageous; an improved transportation system at a subsidized rate. unemployed citizens should get some sort of support within a specific period that they actively look for jobs; decent housing should be affordable and accessible to everyone just to mention a few. A significant increase in minimum wage will be counterproductive:

The voice of the concerned

Dr. Taiwo O. Olubanwo is a writer based in Regina, Canada.

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