The Nation Newspaper

Category: Labour

  • ‘Late remittance of pension leads to loss of income’

    ‘Late remittance of pension leads to loss of income’

    Workers whose employers remit their pension contributions late stand the risk of losing their investment, the Regional Manager, Trustfund Pensions, Obafemi Arobadi, has  said.

    Arobadi, who spoke at the firm’s yearly employers/interactive session on regulatory compliance, said due to the late payment of their contributions to the Pension Fund Administrators (PFAs), most contributors might lose gains accruing to them.

    He said employers were expected to remit the monthly  contributions within seven days of paying their workers’salary.

    “When you don’t pay as at when due, your employee loses investment income. Seven days, that’s what the law says. We are organising this yearly event to update the employers as well as employees on the recent issues in the industry,” he said.

    About 50 per cent of the employers, he said, could be considered as complying with the seven days’ grace, pointing out that the most challenging in pension administration has been the non-remittance of workers’ contributors by the employers.

    He said most times, PFAs are reluctant to enforce the law because they do not want to endanger the workers’ interest, as such a measure could result in default companies being sealed up.

    He said: “Before exploring the law, we normally try to know the reason for non remittance. In the past, we’ve seen some, who were not complying and after our investigation, they paid all the outstanding. Should the premises be sealed, it will affect the workers.

    “Corporate governance issue has been our major challenge. For some employers,  it’s non-challance, why some employers see it as a burden, hence they fail to comply.”

    Arobadi said the non-payment of salaries in major states had made remittance in those states difficult, adding that the states normally remit when the backlog of salary areas were eventually paid. He said employers should ensure that the employees’pins were quoted correctly on the remittance schedule, as it would help in prompt update of members accounts.

    The Interactive session, which had Trustfund Pension Plc as the Pension Fund Administrator (PFA) and Zenith Pension Custodian as the Pension Fund Custodian (PFC), also highlighted some problems hindering access to the funds by the contributors after retirement.

    Speaking on behalf of the Custodian, Daniel Onatoye said the new scheme, backed by the Pension Reform Act, 2014, had been a success story. According to him, it is unlike the old scheme, which had no fund set aside to pay workers after retirement.

    He, however, cautioned against companies outside the scheme,  lodging their workers’contribution in the bank, as most of them would not be able to give appropriate information, should there be any error at the time of payment.

  • Firm to create 7000 jobs

    JUNO Food, an indigenous food processing company in Edo State, has signed a management agreement with Italy-based renowned management and consulting outfit, Stillwater Consults, to boast its production.

    In the agreement  signed by Head, Stillwater Consult, Mr Francis Onabis and Chairman Juno Foods Senator Victor Kassim Oyofo in Edo State, the firm targets about 7000 jobs in the next two years.

    Under the new management, JUNO Food will expand its product line from the conventional tropic cornflakes to include beans flour, yam flour, corn flour, cassava flour, wheat flour, and custard powder.

    Onabis said with the new agreement, the food firm will employ over 500 workers  at its  factory  on the Benin-Okene road, Agbede in Etsako West Local Government Area, Edo State.

    He added that another 3000 indirect jobs would be created with the restructuring of the food firm, while 5000 hectares of farm land will be cultivated for raw materials.

    Oyofo said the new partnership was to reposition the brand to be major manufacturer of corn flakes and staples flours in the south.

  • NECA: Businesses grappling with traumatic times

    NECA: Businesses grappling with traumatic times

    The Nigerian Employers Consultative Association of Nigeria (NECA) says businesses are grappling with extremely traumatic times, urging the government to look beyond the seeming good performance of a handful big businesses in gauging the state of the economy.

    Its President Mr Larry Ettah, in his address at the Association’s Annual General Meeting (AGM) in Lagos, said: “In recent times at our AGMs, we have variously described our operating environment as challenging, unpredictable, unstable and “energy sapping”.

    “These words are, of course, true and descriptive of what our members have experienced in keeping their businesses afloat. As I reflect on the events and situation of our economy in the past one year, I am truly short of appropriate words to capture the extremes of hardship and trauma businesses have had to contend with to remain standing. Suffice it to say congratulations to any enterprise whose head is still standing above the inclement weather of our operating environment”.

    Ettah, who is also the Group Managing Director/CEO of UAC of Nigeria Plc (UAC), said the  mortality rate of micro, small and medium scale (MSME) businesses is alarming, adding that if we are going to get a firm grip of the panacea to the high youth unemployment in Nigeria, then we must pay heed to the imperatives for sustainable enterprise.

    On the economy last year and the outlook for in the year, the President said: “With a growth rate of 2.79 per cent in 2015; the year recorded a dramatic slowdown from the five to six per cent growth, the Nigerian economy has become accustomed to recording.

    “The triple jeopardy of a stand-still in government as a result of the 2015 election; a new government grappling to settle down and the drastic fall in government revenue as a result of fall in the crude oil prices dealt a massive blow to the economy’.

    Ettah said the year had so far not been any better with multiple economic challenges: depleted foreign reserves from $ 29.9 billion in November, last year to $25.71billion on August 19, this year; naira depreciated by 31.7 per cent from N197/dollar in March 2015 to N330/dollar in August 2016; high capital outflow; upward trend of inflation from 8.5 per cent in March 2015 to 15.6 per cent in June 2016 and increased interest rates.

    “While there is no doubt that the past administration was profligate in its management of our commonwealth, it is quite evident that the lack of clarity about the economic agenda of the current government and some wrong policy choices have contributed to the current economic stagnation and recession.

    “We, therefore, welcome the thrust of 2016 budget of which recognises that meaningful GDP growth requires quality spending to reflate the economy. We need to invest in boosting our infrastructural stock; we need to reduce our domestic debt; and there is the need to spend to position our economy to be export oriented and less dependent on import. We hope this budget will be faithfully implemented as this is key to the revival of the economy from the current recession,” he said.

    Ettah said no sustainable growth can take place in the economy without effective implementation of the budget, saying that it is  a grave concern that year after year, the passage of the budget is subjected to a long period of delay.

    On the deregulation of the foreign exchange market, he said in the heat of the challenge of scarcity of foreign exchange, NECA conducted a survey among its  member-companies and discovered that only four to five  per cent  of members’ foreign exchange request for importation of raw materials and machinery were met by the banks.

    “This actually explained business’inability to import required raw materials for production to replenish exhausted inventory (stock).

    “ The implications of this, as it were, are: low productivity, low profitability, and staff rationalisation, which worsened the already unfortunate unemployment rate,” he said.

    He, however, praised the Federal Government for heeding the call for a deregulated foreign exchange market,which allows market forces to determine the naira rate of exchange.

    “Hopefully, this will improve supply of foreign exchange to the economy. It is hoped that in the medium term the policy will help improve and stabilise the value of the naira.

    “The issue, however, still remains that of ensuring adequate availability of targeted development finance to the real sector, which has enormous potentials for job creation in the economy.”

  • ‘Maritime loses 3,000 jobs to import ban’

    About 3,000 workers, have been sacked by shipping firms, terminal operators and logistics companies, the President-General, Maritime Workers Union of Nigeria (MWUN), Tony Emmanuel, has said.

    Emmanuel, in a statement in Lagos, said the sack was a fallout of the ban on importation of some commodities.

    He urged the Federal Government to review certain economic policies, especially those on importation of some items, saying that it was wrong to ban those items without alternatives.

    “As an import-dependent country, Nigeria cannot suddenly ban the importation of principal goods being generally consumed in the country,’’ he said.

    Emmanuel said the policy had sent 20 shipping firms out of the countrybecausev of dwindling balance sheets.

    He appealed to the government to lift the ban on items: such as wheat, vehicle spare parts and machineries, until the nation could  produce them.

    “As a remedy, the union, however, demanded for a review of the ban. Failure to do this, will encourage smuggling, diversion of ships to neighbouring countries, idle ports, retrenchment of workers, unemployment and general loss of revenue to government,” he said.

    He also spoke of revenue loss through under-declaration, attributing this to the sack of some dockworkers – tally clerks and on-board securitymen.

    Emmanuel said the position of the union was that tally clerks and on-board security men be recalled.

    According to him, when the union members were in-charge of tallying cargoes and securing the cargoes on board ships, there were no cases of loss of revenue.

    Apart from revenue leakages,  he said recalling the tally clerks and on-board security men would reduce unemployment.

  • Wabba warns against diverting NHIS fund

    Wabba warns against diverting NHIS fund

    Nigeria Labour Congress (NLC) President Comrade Ayuba Wabba has warned against diverting the Nigeria National Health Insurance Scheme (NHIS) funds to build  health centres.

    He said this when NHIS Executive Secretary Prof Usman Yusuf visited the Labour House in Abuja.

    According to Wabba, the Congress had written several times against using the fund to build primary health care centres.

    He said: “We are still on our position that those funds should be used strictly as applied in line with the provision of the mandate of the law establishing the National Health Insurance Scheme.’’

    He argued that any attempt to divert the fund would be wrong, as the cash came from the earnings of workers to provide health service for members.

  • Wabba: strip governors of immunity

    Wabba: strip governors of immunity

    Nigeria Labour Congress (NLC) President Comrade Ayuba Wabba has said governors should be stripped of immunity because nobody is above the law.

    Speaking with The Nation, Wabba said all citizens are equal before the law, adding that the fact that governors are privileged to provide leadership did not mean they are above the law.

    He pointed out that the issue of immunity was absurd. “Criminal proceedings should, therefore, not be allowed to be deterred by immunity. For civil cases, it may be allowed. This is to strengthen our democracy.

    “If you look at most of the cases that have festered in courts for years, you will see that the immunity granted these public officials contributed a great deal to delaying them.

    “On the fight against corruption, every Nigerian must subject himself to the rule of law and while in office, criminal proceedings should be allowed to be initiated, irrespective of the person involved,” Wabba said.

    He said labour had submitted a formal letter to all the tiers of government, especially the executive, to address these issues.

    According to him, if immunity is removed, having specialised courts for the quick dispensation of justice would advance administration of justice.

    His words: “We will not relent in lending our voice through advocacy, and at the end of the day we should be able to have a result.

    “We call on Nigerians and the media to join us to advance these issues together because those that are enjoying the immunity are not likely to make a move. They are benefiting from the system and so they won’t be happy if for the immunity removal.

    “There is going to be a memorandum, because we will provide an opportunity for organisations and individuals to submit memorandum and be part of the process. Law is about the people and we are the people”.

    On minimum wage, he said discussions had been on for a long time; what is left is for the government to announce the composition of the constituted committee earlier set up and inaugurate it.

  • ‘Retrenchment is affecting unionism’

    ‘Retrenchment is affecting unionism’

    Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) Deputy President and Chairperson of the Trade Union Congress (TUC) Women Commission Comrade Oyinkansola Olasanoye has condemned the retrenchment of workers. The exercise, she said, was taking a toll on the union as most of its members are affected.

    Speaking with The Nation, Olasanoye said the strength of any union is the women, who constitute more than 55 per cent of members.

    She said ASSBIFI has over 20,000 members, with 55 per cent of them women.

    In the past, she said, people believed  that for a woman to be a unionist, she must have been a layabout. “Even  in my organisation, anytime my Managing Director called for a  meeting, he would come with the union’s file.

    “On a particular day, he was talking  and I tried to offer some ideas, he just banged the table and said ‘who  are you to chip in an idea?’

    “Jokingly, I said, ‘sir, I have the same  qualification as you,’ and he opened my file and said ‘well, I have  a Diploma in Theology, but you don’t have.’

    “So, I went back to a Bible College and the day I got the certificate I went back to him and said ‘Sir, I’ve also got it.’ What I’m trying to say in essence is that for us to be union leaders in this modern day, you must be hardworking,” she said.

    The unionist counselled members who need additional qualification to go and get it “because the management and the government would always see you from what you present to them. So, because the economy is more on the shoulders of women these days, we don’t  want additional responsibility.”

    Pointing out that 55 per cent of workers, especially in the financial sector are women, she said it meant that financially and numerically, women are the strength of the union.

  • NASME seeks ‘friendly policies’

    The Nigerian Association of Small and Medium Enterprises (NASME) has urged regulatory agencies to adjust or fine- tune some of their policies that retard business growth and job creation.

    NASME President  Prince ‘Degun Agboade, who gave the charge at a forum in Lagos, also advocated cordial relationship between Micro, Small and Medium Enterprises (MSMEs) and the agencies to achieve sustained economic growth and development.

    This, he said, was necessary because of the World Bank’s report, which placed Nigeria 169 out of 189 countries on the ranking index of ease of doing business.

    A communiqué issued at the end of the forum said NASME should collaborate with the agencies to enhance the ease of doing business in Nigeria.

    It also agreed that a harmonised commission should be put in place to cater for regulatory and certification needs of MSMEs.

  • TUC rejects proposed 9% telecoms tax

    TUC rejects proposed 9% telecoms tax

    The Trade Union Congress of Nigeria (TUC) has urged the Federal Government to drop its planned introduction of Communication Service Tax (CST). When passed into law, CST will automatically place a nine per cent tax charges on phone calls, Short Message Services (SMSs), Multi-Media Services (MMSs), data packages and other telecoms transactions.

    In a statement jointly signed by TUC President Comrade Bobboi Bala Kaigama, and the acting Secretary General Simeso Amachree, the union described the proposed tax as an exploitation of the already-impoverished masses.

    “We call on the Federal Government and the National Assembly to suspend the bill immediately because the masses are already overburdened with multiple taxation. It makes no sense for the country to initiate policies that would stifle businesses when it seeks to woo more investors.

    “If we sufficiently understand the minister, we wonder how he expects such tax to be paid by any worker in a country where the national minimum wage is N18, 000 and at a time when workers’ take-home pay no longer takes them home. Apart from exploiting the already impoverished masses, the policy would also discourage investment and lead to loss of jobs,” the union stated.

    The Minister of Communication, Mr. Adebayo Shittu, at a private sector dialogue session organised by the Lagos Chamber of Commerce and Industry (LCCI), in Lagos, last week, hinted that the planned tax, which has passed first reading at both chambers of the National Assembly, was conceived to help the Federal Government develop the ICT sector and implement its policies and plans in an integrated manner.

    He claimed that Nigeria would earn as much as N20 billion monthly if the bill is passed into law, adding that it would also help to cushion some of the country’s economic challenges and fund budget deficits in no small measure.

    But the union said: “While we appreciate the minister’s concern on how to fund the budget, should the government’s focus not rather be on ensuring more judicious use of revenue derived from Value Added Tax (VAT), Pay-As-You-Earn (PAYE), stamp duties, vehicle license, passport fees, customs duty, petroleum profit tax (PPT) and other taxes collected from the masses and companies?

    “And would it not be more appropriate for the desired additional taxes to be imposed on the GSM operators and other players in the communications industry rather than the poor masses?”

    Expressing concern over the issue, the group wondered why the common people should always be at the receiving end of government policies. “Most government officers rarely pay for anything, including their children’s school fees and utility bills. The cost is on us the masses,” Kaigama said.

    Kaigama stated that the country was in economic difficulty and needed to generate more revenue to deliver on government promises did not mean that obnoxious laws which adversely affect disposable incomes and gross domestic product (GDP) should be promulgated.

    He said stakeholders were not consulted before the meeting where the decision was taken, adding that various tiers of government that aimed to increase their revenues must do so by looking inward to the vast deposits of natural resources within their respective jurisdictions.

  • Union decries minimum wage review panel’s pace

    the Amalgamated Union of Public Corporation Civil Service Technical and Recreational Services Employees (AUPCTRE), Federal Capital Territory (FCT) council, has expressed worries over the slow pace of work by the committee on review of the new minimum wage set up by the Federal Government.

    This was contained in a communiqué issued after the meeting of the State Governing Council  (SGC). It was signed by the President, Comrade Benjamin Anthony, in Abuja.

    AUPCTRE urged the committee to hasten up its work.

    The union condemned “the factionalisation” of the Nigeria Labour Congress (NLC), pledging its unalloyed loyalty to Comrade Ayuba Wabba. It urged other unions and Nigerians to support the NLC.

    It called on the  Federal Government to save the ailing economy and to rescind its suspension of the tenure policy of the Federal Civil Service,  because of its  stagnation tendency.

    “The SGC-in-session commends the Federal Government for setting up the Integrated Personnel Payroll Information System (IPPIS), but observed that much is still desired to sanitise the system so as not to use it as a conduit pipe to syphon government money and urges government to take necessary steps in this direction,’’ it said.

    The union condemned the move by the Minister of Power, Works and Housing, Mr. Babatunde  Fashola,   to privatise the Federal Housing Authority (FHA)  and change its name to Federal Housing Company.

    “The implication is that Nigerians would not have access to affordable houses. The union, therefore, calls on the Federal Government to appoint a substantive management team and Board to run FHA for effective operational activities,” it said.