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Sunday, July 8, 2007

Yar'Adua's Litmus Test

The strike action successfully paralysed business activities in the country and brought about huge losses in money to several business establishments. However the Yar’Adua administration survived it.By successfully resolving the five-day strike and reaching agreement with labour, Yar’Adua’s administration has established the fact that it is able to negotiate with labour and civil society groups without making undue or unnecessary concessions.

On the other hand the suspension of the strike action by labour even when the government did not reduce the pump price of petrol to N65 per litre, calls to question why in the first place the strike action was embarked upon. This is so when viewed against the fact that government had before the strike made some allowances which reverted the N75.00 price of petrol to N70.00, while kerosene and diesel assumed their previous prices. The government also reversed the VAT rate to its status quo and resolved that it would implement the 15 per cent salary increase for federal workers.

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