Against the backdrop of the organised labour’s agitation for wage increase, candidate of the Social Democratic Party (SDP) in the 2023 presidential election, Mr Adewole Adebayo, a lawyer, speaks with SUBAIR MOHAMMED on the raging issue of salary increase, suggesting that beyond the demand of labour, the federal government should concentrate more on social security investments.
WHAT is your opinion on the proposed wage increase by the organised labour?
With respect to increase in wages, the dialogue between the organised labour and the government, in economics, it is economics of a farm. They are behaving in a micro-economic way. They are talking within their industry alone. Both sides have their negotiating tactics, with some of the numbers they are throwing around may appear to them unrealistic.
But my message to them is to let them know that this debate arose not from the adequate of wages but the problems of purchasing power. When you listen to the president of the TUC and all the comparatives he was given, even though he was talking micro-economics in terms of what his members need to get from their employers, they are not talking about economy overhaul.
What is causing price instability for them is the purchasing power of the naira. There are two ways to help the purchasing power of the naira. One, you can do stabilisation of the currency itself so that you kill hyperinflation and inflation so that the naira from January to December can maintain its purchasing power.
The second thing you can do is to come from the welfarist point of view to realise what the workers worried about? What exactly do they spend their money on? If an average worker has access to housing say at 7 percent of his salary, has access to medical care of 5 percent of his salary, has access to education of four to five children at 6 percent of his salary and now deal only with food and issue of transportation by virtue of you having employment, you have access card which I grew up to know in Lagos State during the Lateef Jakande administration, that is LSTC(Lagos State Transport Corporation).
So, if you have all these things packaged, say, 25 to 35 per cent of your salary, then, you won’t worry too much about this argument about figures because N615,000 will give you, if you have a million workers out of over 200 million people, if 37 governments will need up to a million workers to run the services, so, you will be spending N615b every month. In a year, you will be spending about N8 trillion to pay minimum wages; it doesn’t make any sense.
Now, if they cut it by half, it still doesn’t make any sense. If they cut by one-third, one-quarter, it still makes no sense. At the end of the day, let us say there is a magical space where you are just printing money. The way N615,000 sounds today is not the way it will sound in four years. The TUC president or his successor will come back to say N615,000 is a joke. It can’t take us anywhere.
So, the intervention we are making is that you are solving the problem at the pricing of labour. You cannot solve the problem there, because it is too narrow a space. Where you can solve the problem is the amount of social investments you need to make in the economy, such that be it the employed, semi employed and unemployed, skilled, highly skilled and low skilled, there is a minimum floor below which you cannot fall.
Do you think President Tinubu’s administration is on the right path for re-engineering the social security and welfare of the people?
We don’t share the same ideology. The fact is they are throwing money on non-existent products; that is our point of disagreement.
Whether you pay salary or allowance or you pay grants like we did during the Udoji award, you give loans and all that, what is that loan chasing? Remember during the Udoji award, where once you get it, everybody runs to UTC to go and buy bicycles, and the price of bicycle skyrocketed. Meanwhile, in China, if you join the civil service, they will not give you any Udoji award, they will give you bicycles because the bicycles come with the job.
If you were in the colonial government and you are an assistant district officer, school officer, health officer, forest rangers, or PWD [Public Works Department], all these things are tools. When you are getting the job, they will direct you to the staff quarters, this is the school your child should go to.
(Cuts in) So, how do you guarantee those basic supply of education, shelter, and healthcare that people scamper to get?
We have to organise our politics and government around them. What we are doing now is that we are organizing our politics and government around sharing money. In Abuja, the states go there to share money. The local governments under ALGON also go to Abuja to share. The TUC and Labour also go to collect their own share. It is still the principle of sharing money, not sharing value, and not creating anything.
Remember, if you are talking about stakeholders in the country, labour is superior and senior to the government of the day. I can be president tomorrow and I will still meet labour there, because it is continuity and the social services, everything you want to run to make life easy for labour is to be done by labour members themselves.
If this government is to start on a note that is sustainable, what would you say is the best and practical step to start from?
It is social investments. First, stop worrying about who is a worker and who is not. They have to first look at Chapter Two of the Constitution and say if by virtue of this constitution I have been given a mandate to come and govern Nigeria, what are the promises inside the constitution? What is the minimum that Nigerians should have, and do we have the resources to put them there?
By that, you know that you need new hospital beds and roads. During the Second Republic, all the governors understood this social investments elements and that is why all the state governments had their own school board, scholarship board, water resources such that water gets to houses even in rural areas. What we are doing now is monetary government where we share money. And we assume, for example, Mr Osifo, the TUC president, an important person in Nigerian leadership, is assuming that because you are collecting three times the money in FAAC now than in 2019 there is availability, not knowing that seven times the cost now is not up to what you were collecting before. This is the illusion of money because it is not the amount of money you collect, it is the purchasing power of the money and the allocative efficiency in the economics of that money. So, you will see that a state in the North with 20 percent of revenue of the states in the Niger Delta is making more progress with its allocative efficiency while the other state may be spending its own money on politics and things like that.
Are you saying the social investments must come as a package to workers at the point of employment?
The way our constitution is crafted, it is not related to your job. It is related to your being a citizen. While I was growing up, I schooled in Lagos and Ondo: Jakande and Ajasin respectively. I was too young to be employed by anybody. I was about five years old in primary school, and as such, I was not employable, but the government was interested before we started class whether I had eaten or not. When we got to school, the first thing they would give us is bread, beans, and milk. When they were chasing you around in primary school to give you that inoculation, it wasn’t that you were going to be employed by them, it was required that the government made sure you were not blind or crippled.
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