Blog

Yet another dialogue between the presidency and leaders of the Nige..rian Labour Congress (NLC), to forestall a planned nationwide strike today, has been deadlocked.

President Goodluck Jonathan who rushed down from Lagos yesterday to lead a high level delegation of government officials to meet with the leaders of the NLC could however not convince the congressmen to abandon their planned agenda of embarking on a three day working strike, starting today.

The N.igeria Labour Congress (NLC) had threatened to embark on a three-day warning industrial action, starting from November 10, demanding an increment in their minimum wage.

According to the acting president of the NLC, Promise Adewusi, the strike action will still continue, while the body holds consultation with the respective organs involved in the congress.

“We have heard the message of Mr. President, we are going to go back to our organ and the only thing we can say now is that the strike is on until called off by the organ that instituted it” Mr Adewusi told eagerly waiting pressmen.

He added that the congress will meet with its body at 3pm today to convey the presidents’ message.

With talks scheduled for yesterday night between Goodluck Jonathan and labour officials, uncertainty seems to reign supreme in the financial sector, with bankers saying they will close shop if the strike went ahead today...

The Nigeri..an Labour Congress had issued a three-day ultimatum to go on a warning strike today over the federal government’s refusal to secure legislative backing for a new minimum wage for workers in the public service.

“The bank workers are union members and their unions are also members of the participating unions in the planned strike,” said Sunday Salako, assistant national president, Association of Senior Staff of Banks, Insurance and Financial Institutions.

Bankers are, however, of the opinion that though there may be skeletal operations to keep ATMs and other things running, banks, customers, and the economy would be affected.

A banker at Intercontinental Bank said security is a strong issue that would put bank staff off, if the strike commenced.

“What would happen if they are attacked, who would take responsibility for that? That is why a lot people would keep away, though there has been no formal declaration. We would probably have to wait till 11:59 for confirmation,” he said.

A banker at First Bank said, “If the strike is real, then banks wouldn’t open for security reasons, but there would be skeletal activities. For instance, ATMs would work, and other minor activities,” he said.

Financial cost

The Intercontinental banker said he could not estimate the monetary loss to the banks during the strike.

“I can’t really say what this would cost the banking industry specifically or its corresponding effect on the economy, because in effect, it’s not as if the banks don’t want to render their services,” he added.

“There is no way it won’t hurt both banks and customers alike. For instance, taking only cheques as an example. No one would be able to drop cheques. You know, there are duties and charges for transactions, which would not be carried out if the strike actually begins,” he further said.

There was, however, no unusual surge of customers at banks randomly visited yesterday. Some customers said they do not believe that the strike would hold, while others said though they were aware, they have to make withdrawals. It is also risky for them to make large withdrawals in anticipation of the strike, because of the security state of the nation.

Setback on the economy

Akinbamidele Akintola, a research analyst at Renaissance Capital, an investment firm, said it is expected that the president would resolve the issue in due time.

“This is not positive, as it would cripple the entire system if we assume it would affect the banking sector, ports, airports, schools, oil and gas segment, transport, and a couple of other segments. We expect the government of President Jonathan to resolve the issue promptly with labour congress, as election campaigns and political activity pick up ahead of next 2011 elections.