Who Pays Workers During A Strike In Nigeria?

By

Babatunde Ajayi

I often wonder how Nigerian workers are treated financially when they embark on strike action. During my years of living and working in Nigeria, employees were often paid their full salaries while on strike, or at least received payment soon after the strike was resolved.

That system made striking relatively easy for unions and their members. In some cases, unions could call workers out without even seeking the direct mandate of the majority. Ideally, unions should hold a “strike vote,” where members decide whether or not to withdraw their services. Such procedures, however, need to be clearly spelled out in the union’s collective agreement with the employer.

When workers are assured of full pay, the decision to strike is less difficult. But if striking means losing wages, then members must weigh the financial cost of walking out against the potential benefits. This reality also explains why some workers choose to cross the picket line rather than forfeit their income.

In countries like Canada and the United States, striking employees do not receive wages from their employer. Instead, they may qualify for “strike pay” from their union. This money comes from union strike funds built up from member dues. Often called “picket pay,” strike pay is designed to provide limited financial support during a work stoppage. It does not replace regular wages and is usually non-taxable. To qualify, union members must participate in picketing or other union-assigned strike duties for a minimum number of hours.

The amount of strike pay varies by union and by collective agreement. For example, in Ontario:

• CUPE (Canadian Union of Public Employees) members can earn up to $300 per week for at least 20 hours of picket duty.
• OPSEU (Ontario Public Service Employees Union) pays $150 weekly for the first three weeks, plus dependent support.
• Unifor, Canada’s largest private-sector union, provides $300 per week (or $42.86 per day) starting from day one.
• CUPW (Canadian Union of Postal Workers), representing over 55,000 workers, pays $281 weekly for at least four hours of daily picket duty.

These examples show how strike pay differs widely depending on union policies and national strike fund regulations. But one constant remains—strike pay does not fully replace wages. Living on strike pay is very difficult, which is why many strike votes fail to win the support of the majority.

This brings me to the current strike threats by PENGASSAN. One can’t help but ask: will members still receive full salaries from their employer while they down tools? Nigeria’s labour law may require urgent re-evaluation to reflect present-day realities. A refinery costs enormous sums to maintain and keep operational. If union members continue to receive salaries while the refinery is shut down, then they lose nothing—while the investor bears the entire cost.

No one should have to borrow billions of dollars and put in personal funds in the billions, only for a union to call out staff and halt operations. We do not want to discourage investment, nor should we take undue advantage of a situation. The union must carefully consider the massive investment that has gone into establishing the Dangote Refinery. Civility and responsibility should guide its dealings with management.

The prospects in this refinery are huge, and the opportunities it presents for Nigeria and its people are tremendous. It is in our collective interest to ensure that labour disputes are handled in a fair, balanced, and forward-looking manner.

-Babatunde Ajayi, Ottawa, Ontario, Canada