Given the delay by the Federal Government in handling the issue of the new minimum wage decisively, opposition Peoples Democratic Party (PDP) has taunted the Presidency, urging it to fulfill its promise to workers in the country.
Minimum Wage: Our Patience Wearing Thin – Labour tells Federal Government
The PDP said the APC led Federal Government must be ready to pay what it described as a living wage to the Nigerian worker.
Speaking to correspondents of Punch Newspaper, the National Chairman of the opposition party, Prince Uche Secondus, however, urged workers not to rush into strike over the issue of minimum wage.
He said;
“We want to ask the Federal Government to fulfil its promises to workers.
We know that we have a government that does not bother and it is not worried about fulfillment of promises. However, we want to appeal to the government to look at the workers and consider that N18,000 is too small to take our workers home.
I also want to appeal to the sensibilities of our workers not to rush into taking decision on strike. They should explore all means of communication and negotiations. We just want to beg them to endure this government till February. Genuine change is coming their way soonest.”
Meanwhile it was discovered that disagreements on the actual amount of the new minimum wage was the reason action on it was being delayed.
According to a source within the Presidency who spoke to Punch Newspaper;
“There is still no agreement. There has to be an understanding between all the parties before the bill can go successfully to the National Assembly.
This is one of the setbacks as we speak. But, when things are sorted out, definitely, the bill will go to the National Assembly and the passage should be smooth.”
Apparently, the governors are the major cog in the wheel of progress for the passage of the minimum wage as they have stuck to their guns, insisting they cannot pay more than N22, 500.
What’s better than raising the minimum wage by $X/week? A punitive #VacancyTax / #VacantLandTax, which property owners are so keen to *avoid* that it reduces *rents* by $X/week. Why is this better? Because:
(1) When you allow for income tax (and income-tested welfare, where applicable), a dollar *saved* is worth much more than a dollar *earned*.
(2) By definition, the benefit of lower rents, unlike the benefit of higher wages, isn’t competed away in higher rents. Indeed, if landlords know that wages have risen by $X/week, they may try to raise rents by the whole $X/week, not allowing for what is clawed back through the tax-welfare system.
(3) Nobody says lower rents will price workers out of a job! On the contrary, the scramble to avoid the vacancy tax will *create* jobs; and lower rents by themselves create jobs, because jobs can’t exist unless (i) the employers can afford business accommodation, and (ii) the employees can afford housing within reach of their jobs, on wages that the employers can pay. (Note the implication that the tax should apply to both commercial and residential property.)
(4) Why should employers pay for a problem caused by land-hoarders?
(5) The economic activity driven by a vacancy tax broadens the bases of other taxes, allowing their rates to be reduced, so that the rest of us get lower taxes!
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