In a last-minute effort to avert the planned nationwide strike, the organised labour and the Federal Government have signed a 15-point Memorandum of Understanding (MOU). The agreement addresses key issues, including the withdrawal of subsidy on Premium Motor Spirit (PMS), wage increment, suspension of Value Added Tax (VAT) on Diesel, provision of high-capacity Compressed Natural Gas (CNG) buses, tax incentives, and more.
The key points of the MOU include:
1. **Wage Award:** The Federal Government grants a wage award of N35,000 to all Federal Government workers starting from September, pending the enactment of a new national minimum wage.
2. **Minimum Wage Committee:** A minimum wage committee will be inaugurated within one month from the date of the agreement.
3. **VAT on Diesel:** The Federal Government suspends the collection of Value Added Tax (VAT) on Diesel for six months, starting from October 2023.
4. **CNG Buses:** The Federal Government commits to providing N100 billion for high-capacity CNG buses for mass transit in Nigeria. An auto gas conversion programme will be initiated, and pilot projects will commence by November.
5. **Tax Incentives:** Various tax incentive measures for the private sector and the general public will be implemented by the Federal Government.
6. **Labour Leadership Matters:** The Federal Government commits to handling labour matters in line with relevant International Labour Organization (ILO) Conventions and Nigerian Labour Acts. The resolution of the leadership crises in the NURTW and the purported proscription of RTEAN is expected by or before October 13.
7. **Outstanding Salaries and Wages:** The issue of outstanding salaries and wages of tertiary education workers in federal-owned educational institutions is referred to the Ministry of Labour and Employment for further engagement.
8. **Cash Transfer:** The Federal Government commits to paying N25,000 per month for three months, starting from October 2023, to 15 million households, including vulnerable pensioners.
9. **Fertilizer Distribution:** The Federal Government will increase initiatives on subsidized distribution of fertilizers to farmers across the country.
10. **State Government Commitment:** The Federal Government urges state governments, through the National Economic Council and Governors Forum, to implement wage awards for their workers, including local government and private sector workers.
11. **MSMEs Funding:** The Federal Government commits to providing funds for Micro and Small Scale Enterprises (MSMEs) as announced by the President on August 1, 2023.
12. **Refinery Rehabilitation:** A joint visitation will be made to the refineries to ascertain their rehabilitation status.
13. **Social Dialogue:** All parties commit to abiding by the dictates of social dialogue in all future engagements.
14. **Strike Suspension:** The NLC and TUC agree to suspend the planned indefinite nationwide strike scheduled to begin on October 3, 2023, for 30 days.
15. **Legal Filing:** The Memorandum will be filed with the relevant court of competent jurisdiction within one week as a consent judgment by the Federal Government.
The signing of the MOU follows extensive negotiations between the organised labour and the Federal Government to address concerns related to the withdrawal of subsidy on PMS and other economic issues.
