On Friday, the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) declared an indefinite nationwide strike starting Monday, June 3rd, 2024, due to the failure of the tripartite committee to agree on a new minimum wage for Nigerian workers.

This decision, announced by Festus Osifo, the President of TUC, during a joint press conference with NLC leadership in Abuja, follows an ultimatum given to the Federal Government to conclude negotiations by the end of May.

The federal government had proposed a new minimum wage of N60,000, but this was rejected by organized labour, which demanded a minimum wage of N494,000. Osifo stated that industrial action was necessary due to the government’s failure to address the workers’ demands, including the reversal of the electricity tariff hike and the cessation of consumer categorization into bands.

“In light of this persistent inaction, we, the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), hereby issue a notice of commencement of an indefinite nationwide strike to the Federal Government,” Osifo stated.

Government’s Appeal

In response, the Minister of State for Labour and Employment, Mrs. Nkeiruka Onyejeocha, appealed to organized labour to be considerate, citing the ongoing recovery of the nation’s economy from the effects of the pandemic and other economic challenges.

She stressed that the government was committed to ensuring a fair wage for Nigerian workers but also had to consider the broader economic implications.

“We appeal to organised labour and indeed, other relevant stakeholders to be considerate and patriotic in their demands, recognizing that our economy is still recovering from the devastating effects of the pandemic and other global economic shocks,” Onyejeocha said.

Despite the government’s appeal, various labour unions have begun mobilizing their members for the strike. The Judiciary Staff Union of Nigeria (JUSUN) and the National Union of Petroleum and Natural Gas Workers (NUPENG) are among the unions that have issued directives to their members to prepare for industrial action.

NUPENG’s participation is particularly significant as it involves the shutdown of operations in the distribution and marketing of petroleum products, potentially leading to fuel shortages.

Background to the New Minimum Wage Negotiations

The ongoing dispute over the national minimum wage has a protracted history. In 2019, former President Muhammadu Buhari approved a minimum wage of N30,000. Recently, discussions resumed between the federal and state governments, organized labour, and the private sector, with the NLC and TUC initially proposing N615,500 as the minimum wage, citing the high cost of living.

The federal government’s subsequent offers of N48,000, N54,000, and finally N60,000 were all rejected by labour unions as insufficient. The proposed N494,000 minimum wage from organized labour, the government argues, would result in an unsustainable N9.5 trillion annual bill, a 1,547% increase on the current wage bill.

Minister of Information Mohammed Idris highlighted that while the government aims to ensure adequate remuneration for workers, it also must consider the economic stability of the country. He pointed out that the proposed wage by organized labour could lead to massive job losses, particularly in the private sector.

“The federal government’s new minimum wage proposal amounts to a 100% increase on the existing minimum wage,” Idris stated. “Labour, however, wanted N494,000, which would increase by 1,547% on the existing wage. The sum of N494,000 national minimum wage which labour is seeking would cumulatively amount to the sum N9.5 trillion bill to the Federal Government of Nigeria.”

Interestingly, the organized private sector has shown agreement with the government’s proposal of N60,000 as the new minimum wage. Segun Ajayi-Kadri, Director General of the Manufacturing Association of Nigeria (MAN), mentioned that ongoing negotiations were more focused on establishing a sustainable minimum wage rather than a living wage.

Tinubu’s Economic Policies, the Genesis of the Wage Increase Demand

The push for a substantial increase in the minimum wage by organized labour is significantly influenced by the economic policies implemented under President Bola Tinubu’s administration. Two major policy shifts have had profound impacts on the cost of living: the removal of the fuel subsidy and the floating of the forex market.

The removal of the fuel subsidy, a long-standing practice in Nigeria, has led to a sharp increase in fuel prices. While the subsidy kept fuel prices artificially low, its removal has exposed consumers to the full cost of fuel, leading to increased transportation costs and, consequently, higher prices for goods and services across the board.

This policy was intended to reduce government expenditure and redirect funds to other sectors, but it has significantly burdened Nigerian workers, who now face higher living costs without a corresponding increase in wages.

The decision to float the forex market aimed to stabilize the naira by allowing market forces to determine its value. However, this policy has led to a depreciation of the naira, increasing the cost of imported goods and services. For a country heavily reliant on imports, this has resulted in a surge in inflation, affecting everything from food prices to the cost of electronics and other consumer goods.

The increased cost of living has made it challenging for workers to maintain their standard of living, fueling the demand for a higher minimum wage.

Organized labour’s demand for a minimum wage of N494,000 is a direct response to these economic pressures. The unions argue that the current wage structure is no longer tenable in the face of escalating living costs. The proposed wage is seen as a necessary adjustment to ensure that workers can meet their basic needs and maintain a reasonable quality of life.

The NLC and TUC argue that the removal of the fuel subsidy and the floating of the forex market have disproportionately affected low- and middle-income workers. They contend that the government must take immediate steps to mitigate these impacts by implementing a new minimum wage that reflects the current economic realities.

“We reiterate that since the National Minimum Wage negotiation exercise has not been concluded and the agreed wage passed into law; the hike in electricity tariff has not been reversed and the categorization of consumers into Bands has not stopped as demanded; Nigerian workers are compelled by these failures to embark on an indefinite nationwide industrial action beginning on Monday, the 3rd of June, 2024 to press home our demands,” Osifo stated.

Apple and OpenAI have successfully concluded a deal to integrate OpenAI’s generative AI technology into Apple’s software ecosystem, marking a significant milestone for both companies.

This development was reported by The Information, citing a source familiar with discussions between OpenAI CEO Sam Altman and Apple.

According to The Information, Altman has long aimed to secure a partnership with Apple, envisioning substantial benefits for OpenAI. “Now, [Altman] has fulfilled a longtime goal by striking a deal with Apple to use OpenAI’s conversational artificial intelligence in its products, which could be worth billions of dollars to the startup if it goes well,” stated the source.

This collaboration is expected to bring generative AI capabilities to a broad range of Apple products, potentially transforming user experiences with advanced conversational AI features.

Despite the promising prospects, the deal has faced internal opposition within Apple. John Giannandrea, Apple’s head of machine learning, has reportedly been resistant to integrating large language model-driven chatbots into Apple’s products. Giannandrea’s stance stems from a belief that AI chatbots might not align with Apple’s user-centric design philosophy. He was quoted telling Apple employees, “the last thing people needed was another AI chatbot.”

However, this does not entirely rule out AI’s integration into Apple products. There are multiple ways to incorporate large language models without necessarily creating standalone chatbots. For instance, Apple has been experimenting with OpenAI’s API to enhance Siri, enabling it to respond to a broader array of queries. The plan is to clearly indicate when responses come from a third party like OpenAI, akin to how Siri currently refers users to Google for certain searches.

Concerns from Microsoft

The deal has also raised concerns at Microsoft, a major investor in OpenAI. Microsoft CEO Satya Nadella reportedly expressed apprehension about what the Apple deal could mean for Microsoft’s existing relationship with OpenAI. Microsoft has invested $13 billion in OpenAI, securing a portion of its profits and incorporating its technology into various Microsoft products.

Nadella recently met with Altman to discuss the implications of the Apple agreement. The nature and outcomes of these discussions have not been disclosed, but they highlight the concern of Microsoft over OpenAI’s partnerships within the tech industry.

Interestingly, Apple is also rumored to be in talks with Google for a similar AI integration deal. This could lead to Apple offering users a choice of AI chatbot providers, mirroring its approach to search engines and default browsers. Such a move would emphasize Apple’s commitment to providing flexible and user-oriented solutions while leveraging the best technologies available.

The successful negotiation with Apple is one of several recent achievements solidifying Sam Altman’s leadership within OpenAI, especially following an attempted ouster. Altman’s influence has been further reinforced by ongoing discussions about restructuring OpenAI.

OpenAI operates under a unique structure, with a for-profit entity controlled by a nonprofit organization. However, Altman and his allies are reportedly advocating for a shift to a more conventional structure, such as a traditional for-profit corporation or a benefit corporation (B-Corp). B-Corps are designed to balance profit with social and environmental goals, providing legal protection for corporations to pursue objectives beyond shareholder returns. This change could offer a compromise between the current setup and a full for-profit model.