Poor wages lead to migration, affect national security - Oshiomhole - NEWS FRONTIER DAILY

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Wednesday, October 30, 2024

Poor wages lead to migration, affect national security - Oshiomhole






Adams Oshiomhole, former Edo State governor and labour leader, has criticized wage exploitation in Nigeria, warning that poor compensation negatively affects national security and economic productivity. 

Speaking at the Distinguished Personality Lecture organized by the National Institute for Security Studies (NISS) in Abuja, he highlighted how inadequate wages create a cycle of economic hardship, making workers vulnerable to manipulation and radicalization.

The lecture, titled 'National Minimum Wage: Reward System and Productivity in Africa,' was part of the Executive Intelligence Management Course (EIMC) 17, aimed at fostering a deeper understanding of the relationship between wages, security, and productivity

Oshiomhole argued that fair wages are essential for boosting worker motivation, efficiency, and overall economic growth. He emphasized that while some private sector employers offer better wages than the government, job security remains an issue, as private sector employees can be easily dismissed. 

According to him, public sector jobs, though offering more stability, are plagued by inefficiency and overemployment, leading to unsustainable compensation structures.

Drawing from his personal experiences as a factory worker and union leader, Oshiomhole underscored the historical struggle between labour and market forces, noting that trade unions and collective bargaining rights were hard-won victories. 

He warned that in regions with high unemployment, workers remain trapped in exploitative conditions, as employers exploit the abundance of job seekers.

He stressed that the minimum wage, though intended to protect vulnerable workers, often fails to meet the rising cost of living, leaving many workers poorer over time. 

Comparing Nigeria’s wage structure to other African countries, Oshiomhole highlighted the stark disparity, noting that minimum wages in nations like Seychelles and South Africa are significantly higher.

Oshiomhole also linked poor wages to the rise in migration, pointing out that many Nigerians, including unskilled workers, are drawn to countries like the U.S. and Canada, where higher wages enhance quality of life. He argued that inadequate pay limits workers' purchasing power, creating a vicious economic cycle that stifles demand and growth.

The Senator, representing Edo North District in the National Assembly, said: "Workers face fluctuating salaries and job insecurity, as employers can easily hire and fire employees.

"Despite paying union dues, workers often receive minimal support from trade unions, leading to questioning their effectiveness.

"Historically, the right to organize was suppressed, which limited workers' ability to negotiate collectively. Industrial sabotage emerged as a form of protest against poor conditions.

"Collective bargaining and the right to strike are essential tools for negotiating fair wages and working conditions. Workers often resort to 'work to rule' when rights are restricted.

"Significant disparities exist between minimum and maximum wages across sectors, leading to dissatisfaction among workers. The wealthy often benefit from state protection, while the poor struggle.

"The minimum wage is designed to protect vulnerable workers but is often not enforced. Setting minimum wages too high can risk job losses, while setting them too low can lead to exploitation.

"Inflation severely impacts purchasing power, making it difficult for workers to maintain a decent standard of living. Historical comparisons show that many workers are poorer now than in the past, despite nominal wage increases.

"Comparisons with other African countries reveal that Nigeria’s minimum wage is low. Countries like Seychelles have significantly higher minimum wages, prompting calls for Nigeria to reassess its wage policies.

"Adequate wages are vital for enhancing purchasing power, which drives demand in a market economy. Underpayment leads to a vicious cycle of limited economic growth.

"The private sector generally offers better compensation than the public sector, but job security is often more stable in public employment.

"There is a need to revise economic strategies to foster job creation, improve infrastructure, and reduce inefficiencies within government agencies to combat poverty."

The Director-General of the Department of State Services (DSS), Adeola Oluwatosin Ajayi, echoed Oshiomhole’s concerns, noting that better wages reduce workers' vulnerability to abuse and promote national stability.

"What is the nexus between better wages and national security? It seems clear to me that when workers receive an adequate wage to meet their basic needs, they are less vulnerable to abuse, radicalization, and manipulation," he said. 

Joseph Obule Odama, Commandant of NISS, lauded Oshiomhole's long-standing commitment to labour advocacy, emphasizing the importance of fair wages in ensuring sustainable development.

According to him, "the national minimum wage is a pressing issue in our economic discourse today, affecting millions of Nigerians and influencing both individual lives and national productivity.

"A well-designed reward system can drive worker motivation, improve efficiency, and promote economic growth, while poorly structured policies can demoralize the workforce.

"To aim for a more equitable society, it is essential to understand the complex relationship between wages, rewards, and productivity." 

The 92 participants of the EIMC 17, drawn from public agencies in Nigeria and other foreign countries, were urged to leverage the insights shared to address the economic challenges facing Nigeria and explore policy solutions that balance fair compensation with sustainable economic growth.

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