Construction workers have increased their charges in response to the sharp rise in the cost of commodities following the rise in petrol and food prices by as much as 60 percent.
Some skilled workers, such as carpenters and masons, have increased their charges from N3000 to N5000 per day representing an increase of 66.6 percent and unskilled workers who were paid N1000 to N1500 a day now charge a minimum of N2000. “The artisans wages have gone up by between 25 and 60 percent based on which of them you want. We have skilled labour and unskilled labour; now, a labourer who is not skilled will take about N2,000 instead of the normal N1,500 or N1000,” said Mr. Olatunde Jaiyesinmi, a former Chairman of the Nigerian Society of Engineers, Lagos State Chapter.
This increase in charges can be attributed to the rising cost of transport and food. Sharp rises in the food and energy sub indices drove Nigeria’s inflation to a record high of 15.1 percent this month and artisans are demanding that their incomes reflect the rising cost of living in the country. These price changes have had knock on effects introducing fluctuations in businesses leading to subsequent wage re-negotiations with contract staff.
However, the price hike is not as a result of efforts by the ‘workers union,’ but rather as a result of individual action taken in response to economic conditions. “Basically, it is not an agreed increment but a spontaneous reaction to the economy and the general inflationary trend. Transport fares have gone up; fuel prices increased; so, invariably, everything else has also increased, even the price of the food that artisans eat on site has equally increased,” said Mr. Kunle Awobodu, Vice President of the Nigerian Institute of Building. Also, this is notably against the backdrop of a 70 percent drop in overall construction activities within the last few months.
The General Secretary of the Lagos State Bricklayers Association, Mr. Akinmoladun Olaniyi, commented that the association had not agreed to increase it’s fees because it anticipates that the economy will stabilise itself in the near future and recognises that prices will be sticky once they are officially increased. “We know that our fees should be increased but we are watching the economy; but if we want to consider the way the government is neglecting us, we should increase the fees but that will affect everyone,” the secretary added.
The rising cost of living in Nigeria has been a cause for concern since the drop in oil prices last year, thereby leading to calls for an increment in the national minimum wage. The national minimum wage of N18000 is not enough to realistically accommodate the daily needs of the average worker and in the absence of a national review, individuals are taking negotiations into their own hands. Artisans have been able to charge higher prices as the dearth of these workers leave employers with little choice. However, for the average worker it may be difficult to renegotiate the wages given the vast number of workers in the unemployment pool.
