The Nation Newspaper

Category: Labour

  • Labour, Deli Food reach agreement

    After hours of intense negotiations, the management of Deli Food and labour unions, under the aegis of the National Union of Food Beverage and Tobacco Employees (NUFBTE), have reached an agreement over what the union described as anti-labour practices in the company.

    The union accused Deli Food management of not paying gratuity to the workers since 2012, adding that there had been a lot of anti-labour practices in the company.

    Speaking with reporters after the meeting with the management of the company, the union’s Deputy General Secretary, who led the protest, Comrade Mike Olanrewaju, said the management of the company promised to resolve the issues raised by the union, adding that there was no cause for alarm.

    He confirmed that all issues have been resolved.

    Specifically, the protest  centred on the alleged plan of the company to sack over 300 workers without compensation in a ploy to sell the company without considering the fate of the workers.

    Earlier, the union threatened to shut Deli Foods over the alleged plan. The union’s President, Comrade Lateef Oyelekan,  said: “It was our members working in the company that came here on Friday to alert us. According to them, all the plans had been concluded.

    “The company is owned by foreigners and what they are doing is to sell the company secretly and run away without settling the workers.

    “I wondered why foreigners will want to maltreat and shortchange Nigerians in their country. Whereas they cannot do such things in their countries.”

    The NUFBTE President said the best practice, according to labour law, is for the company to call the union for negotiation that will determine the exit package for workers.

    Oyelekan noted that the company had stopped paying gratuity for the workers since 2012.

    “There is supposed to be a process to shut down. The management has to discuss with the union, pay workers entitlement before handing over to any buyer and the buyer must be ready to take over the liability,” he said.

    He, however, warned that the union would not allow any new buyer to take over the company, if Deli Foods fails to settle the union workers.

  • Job automation puts workers under pressure to up skill

    Automation is fast changing the world of work. Most jobs in the real sector and allied services are being taken over by new technologies. This has created fears in workers and their unions. It has also forced them to prioritise the need to expose workers to trainings to cope with the new technologies. TOBA AGBOOLA reports.

    It’s a clear and present danger. Globally, workers are increasingly at the risk of losing their jobs to new technologies, such as robots, automated machines and Artificial Intelligence (AI). And the only viable option to fend off this looming danger, according to experts and employers, is to expose workers to required training that will make them catch up with the new technologies.

    Expectedly, this has put Nigerian workers and their unions on their toes to remain relevant in a world of work driven by automation. Already, most of the unions have taken it upon themselves to drum it into the ears of their members that there is need to come to terms with the fact that new technologies will sooner or later take over most of the jobs in the real sector and other allied services.

    They have, therefore, stepped up their campaign to encourage workers to be updated with the new technologies and practices of their profession through regular and rigorous training. The Trade Union Congress of Nigeria (TUC) and the Association of Senior Staff Union of Banks, Insurance and Financial Institution (ASSBIFI) appear to leading this new charge.

    Both unions have called on the government and employers in the financial sector to expose their workers to the required training that will be commensurate with the new technologies in the workplace. For instance, TUC President Comrade Quadri Olaleye was emphasised that technology will soon take over jobs from workers.

    Olaleye, who spoke at a forum in Lagos with the theme, “Threat to job security and work-life balance in a digitalised environment- A legal perspective,” however, said there should be due consultation with labour unions and payment of severance allowance to those that would lose their jobs.

    At the forum, which was organised by ASSBIFI, the TUC president said: “In an environment enabled by technology and digital devices, job opportunities are usually affected. In Nigeria, automation is still developing, but we must not pretend as if it will not get to us soon, it is here already.”

    He added that it was important for the unions and workers to realise the trend and  prepare for the challenges ahead. He noted that with the advent of new technologies, there was need for workers to strike a balance between career and family.

    According to him, this has become a challenge for workers, as schedules are getting busier and tighter, thereby posing serious threat to lives and family. He reiterated that studies have shown that employees who have a positive work life balance do better at work.

    Olaleye pointed out that promoting this balance is beneficial to the individual and the organisation. He, however, reasoned that it is very important for employers and government to train workers for them to catch up with developments in the workplace.

    According to the labour leader, one of the excuses employers give to lay off workers is purchase of new technology. “As technology becomes more fine-tuned and widespread, I wonder how many people will still have job in the nearest future. As it stands, even the high earning CEOs are under constant pressure, especially those who have no culture of saving,” he said.

    Stressing the need for workers to think outside the box to remain relevant, Olaleye added that there was the need to put more pressure on government, especially the Ministry of Labour and employers to ensure decent work.

    “As workers’ body, we must encourage our employers to train and re-train the workers for productivity. We must make them understand that we are in a symbiotic relationship for a common good,” he said.

    Olasanoye also added her voice to the growing concern over the danger posed by automation to job security. She reiterated the need for employers to train their workers.

    According to her, the theme of the seminar was intended to examine the impact of Information and Communications Technology (ICT) tools, robots, automated machines and artificial intelligence on work life balance and occupational hazards.

    She said: “Employers are now spending more money on automated machines and if one individual is laid off work, it would affect 20 dependants. Advances in technology are certainly allowing us to work in new ways that weren’t possible in the past without such constraints as location.

    “At the same time, it has changed how we work and who we work with. Jobs are now assigned outside normal working hours, weekends and holidays with expectation of prompt delivery. The implication of this technology trend on work life balance, occupational hazards is predictable.”

     

  • Civil servants to govt: reverse tenure extension of perm secs

    The Association of Senior Civil Servants of Nigeria (ASCSN) has appealed to President Muhammadu Buhari to reverse the tenure extension for seven permanent secretaries in the federal civil service who are due for retirement.

    The union emphasised the need for the tenure extension to be reversed so that the affected permanent secretaries could exit the service quietly, in order not to trigger other breaches of the public service rules with attendant negative consequences for the federal and states civil service.

    The ASCSN, which condemned the extension of tenure granted permanent secretaries, recalled that in 2016, when the Federal Government extended the tenure of the then Permanent Secretary, Federal Ministry of Petroleum Resources, Mrs Jamila Shu’ara, and despite all pressure by the union to the decision reversed, her tenure was again extended in 2017.

    ASCSN Secretary-General, Alade Lawal, argued that the illegal extension was taking a toll on the morale of workers at the directors’ cadre, whose prospects of reaching the peak of their careers had been circumscribed, while deputy directors and other senior officers are affected.

    He said: “As we speak, the service is bleeding profusely as a result of the injuries sustained from this unwarranted attack on its fabric. A collateral damage has been done to the system, and the only way out is to quickly reverse the extension.

    “It is imperative for the government to develop the capacity to adhere to rules not only because we live in a modern world where democratic ideals prevail, but also because it enhances stability in the system.

    “It is our hope that Mr President will do the needful by directing the Office of the Head of the Civil Service of the Federation (OHCSF) to reverse the extension and allow the permanent secretaries retire peacefully.

    “If this is not done, it is likely to dent your esteemed image, apart from acting as a bad precedent not only in the federal civil service, but also in the entire 36 states civil services of the federation.”

    The labour union, which said other officers billed to retire soon were warming up to submit extension requests, added that if the practice was not halted, it might create credibility problem for the present administration.

    Such a scenario, ASCSN said, could be avoided if the affected permanent secretaries were allowed to retire in line with extant public service rules.

    “Moreover, some unpatriotic elements who do not mean well for this country may come up years later when this administration would have left the scene, to cite what is happening now, as a reason to do something untoward, which may in the final analysis do collateral damage to the system and the country as an entity.

    “A bad precedent is, therefore, being laid, and the earlier the illegal extension is reversed, the better for the continued growth, development and stability of the civil service,” the union said.

  • NECA cautions Fed Govt on re-introduction of toll gates

    Stories by Toba Agboola

    •Advises sealing off of Nestle

    The Nigeria Employers Consultative Association (NECA) has cautioned the Federal Government over the planned re-introduction of toll gates on federal roads.

    It warned that for the toll policy to work, no additional burden, in the form of any tax or levy, should be placed on businesses/individuals to fund the construction of roads.

    Speaking with The Nation, NECA Director-General Mr. Timothy Olawale called for an efficient policy, on the part of the ministry, without neglecting other means of transportation. He noted that businesses/individuals are paying numerous taxes, adding that the government was proposing to introduce mobile tax, and increase Value Added Tax (VAT).

    He said: “All these and many more would reduce the purchasing power of consumers with dire consequences for business. The private sector operators should be attracted through Public-Private Partnerships (PPPs) in the construction, maintenance and management of the toll systems as done successfully in other climes like Egypt and South Africa.”

    Olawale explained that it is evident that road transportation plays a significant role in  national development, as major proportions of its economic activities are largely dependent on good motorable roads and an efficient road network/systems.

    “The responsibility for providing the transport network is the obligation of government, which includes the construction and maintenance of all roads as enshrined in the 1999 Constitution,” he said.

    To perform these functions efficiently, the NECA boss said the initiative of the  administration to re-introduce tolls on some federal roads and bridges was commendable. He, however, said it should not be done on the  dilapidated roads across the country.

    Olawale advised that the Federal Government, through the Ministry of Works and Housing, should engage relevant Professional and Business Membership Organisations (BMOs) in putting in place policies that would guide its operations.

    He said: “We are conscious of the numerous benefits that the economy can derive from tolling. However, we are concerned over the past failures that characterised the management of the toll system across the nation, which were marred by revenue leakages and unmet maintenance of the tolled roads.”

    Olawale reiterated that not all roads were viable for tolling, especially subsidiary roads and roads with low traffic volumes.

    He added that effort should be made to reclaim and sell out the properties acquired in foreign countries. “It makes no sense stealing from the country and investing elsewhere, while agencies of government are in a rented apartment and Nigerians homeless,” he said.

    At a related event, NECA expressed concerns over the sealing of the premises of Nestlé Nigeria Plc by officials of the National Lottery Regulatory Commission (NLRC), stating that the approach was counter-productive to the efforts to improve ease of doing business, and could roll back progress on attracting investments.

    Olawale said the association rejects allegations in news reports that Nestlé Nigeria owes N65.1 million to the NLRC as unpaid lottery fees.

    He stated that this matter was pending at the Court of Appeal and that the officials of the NLRC, fully aware of this situation, invaded the premises of Nestlé Nigeria accompanied by cameras, forced the management to sign an undertaking to pay the claimed sum within four days as a pre-condition for unsealing their premises.

    “NLRC’s recent action in sealing the premises of a company and forcing them to sign an undertaking to make payment in a matter pending in court raises concerns about the ease of doing business in Nigeria. The rule of law requires that parties in a court case should respect the rule of law and maintain status quo until the final determination by the court,” the DG said.

    Olawale noted that this is not the first time that the NLRC unduly pressured its members. He called on the Federal Government to impress on the NLRC the imperative of respecting the rule of law as well as promoting dialogue and engagement to resolve issues the amicably.

  • Minimum wage: States divided over sack of workers

    The Federal Government has threatened to sack workers if it must pay the N30,000 National Minimum Wage. While some states say they are willing to pay without laying off workers, others say they are waiting for the outcome of the Federal Government’s negotiation with the organised labour. Yet, others are pushing for review of the revenue sharing formula, reports TOBA AGBOOLA.

    The Minister of Labour and Employment, Chris Ngige, stirred the honest nest last week. At a meeting with labour leaders, he announced that the Federal Government would have to lay off workers to meet a wage bill of N580 billion for the new National Minimum Wage of N30,000 demanded by labour.

    Ngige, however, explained that the Federal Government was avoiding a situation where it would have to lay off workers, noting that throwing workers into the employment market would add to their burden.

    The minister, therefore, pleaded with labour to accept the consequential adjustment from levels 07 to 17, adding that the government had only three months left to implement the new wage.

    He stated that the government would not promise labour what it could not pay, noting that no worker deserved to be owed salary.

    It will be recalled that the government had told labour unions that it could only pay 9.5 per cent salary raise for employees on grade levels 07 to14 and five per cent for those on grade levels 15 to17.

    But labour is demanding 30 per cent raise for officers on grade levels 07 to 14 and 25 per cent for those on grade levels 15 to 17.

    However, the Federal Government’s threat to sack workers if it had to pay the minimum wage has been recieved with mixed feeling by state governments. While many states say they are willing to pay without sacking workers, others say they are waiting for the outcome of the Federal Government’s negotiation with the organised labour.

    Ogun awaits Fed  Govt/labour resolution

    The Ogun State Government, last Friday, said it was not considering sacking workers to pay the new wage. The Dapo Abiodun-led administration said it was only waiting for the Federal Government to conclude negotiations with the organised labour before taking any further action.

    The governor’s Chief Press Secretary, Kunle Somorin, said: “We are waiting for the Federal Government to do what it needs to do; we’ll also do what we need to do. This is a federation. Let the Federal Government conclude with the national body, then we’ll take it from there.”

    Benue may rationalise workforce

    Benue State Governor Samuel Ortom said he was discussing with the organised labour to downsize  workers in the state to enable him pay the N30,000 minimum wage.

    Besides, the governor called for an upward review of the revenue sharing formula to make more money available to states and local governments for greater development.

    He said it was no longer feasible for states to cope with development realities and the new national minimum wage using the current revenue sharing formula.

    The Chief Press Secretary to the Governor, Mr. Terver Akase, said: “I’m discussing with labour on the matter, but beyond that, you will recall that governors are demanding that the revenue sharing formula be reviewed to enable states to have more funds to pay the N30, 000 minimum wage and this is the position of Governor Ortom.”

    Ortom stated that states were willing to pay N30,000 but would do better if the revenue sharing formula was reviewed upward.

    Imo: no plans to sack workers

    The Imo State Government said it had no plans to sack workers to pay the new wage.

    According to  the its Commissioner for Information, Hon. Felix Ebiliekwe, such consideration will not arise and has not even been hinted at, either through body language or at the state executive council meetings.

    He, however, noted that, earlier in the life of the administration, a committee was set up to look into complaints of employment racketeering from 2015 to date.

    He said: “Beyond the recommendations of that committee, Imo State is not considering sacking workers over minimum wage. The committee submitted its report last Wednesday and the governor is studying the recommendation and may arrive at a decision soon. Outside that, Imo is committed to promoting the welfare and job security of civil servants so as to build a very motivated workforce that will deliver value and productivity to the state.”

    Ebiliekwe said Imo was committed to rebuilding the state and its people and not to sacking workers.

    “If there is any state planning to sack workers in Nigeria in line with the pronouncement of the Federal Government, I can assure you it is not Imo. We place great premium on the welfare and job security of our workforce,” the commissioner said.

    ‘Delta ’ll not sack workers’

    Delta State Government said it would not reduce its workforce to  enable it pay N30,000 minimum wage. The state maintained that workers on its payroll had dropped from 65,000 when Governor Ifeanyi Okowa assumed office in May 29, 2015, to about 47,697.

    The Commissioner for Information, Mr. Charles Aniagwu, in Asaba, the state capital, said the biometric system had fished out ghost workers, absconded workers and those involved in age-falsification, compulsory retire them.

    “We inherited the ongoing biometric exercise. It was not designed to witch-hunt anybody. It is to determine the total number of genuine workers on our payroll, fish out ghost workers and pay genuine ones for work done.  Governor Ifeanyi Okowa has no plan to sack any worker as a result of the minimum wage hike. More persons have even been employed into the state’s civil service in recent time,” Aniagwu said.

    He urged workers to remain calm and go about their duties for a stronger Delta.

    ‘Plateau not thinking of sacking workers’

    Plateau State Governor and Chairman, Northern Governors’ Forum, Simon Lalong,  said his administration was not thinking of sacking workers to pay the minimum wage.

    Lalong, while speaking through Director of Press and Public Affairs, Dr. Macham Simon Makut, recently, said he had repeatedly said he would pay the new minimum wage once negotiations were concluded.

    “Governor Simon Lalong has never mentioned anything about sacking workers in the state,” he said.

    Lalong was among the first governors to agree to pay the N30,000 new minimum wage after negotiations with labour leaders in the state.

    Adamawa: no plans to sack workers

    In  Yola, the Adamawa State capital, sacking workers to implement the new minimum wage is not in sight.

    Adamawa State Government said it had no plans or intention to lay off civil servants, adding that workers should feel free to go about their duties.

    The Director-General (DG), Media and Communications to Governor Ahmadu Umaru Fintiri, Solomon Kumanga, said the governor had promised to pay the minimum wage.

    According to him, a committee was set up by the governor for the effective implementation of the National Minimum Wage, promising that when the report was submitted, action would be taken to that effect. He called on civil servants to remain calm as none of them would be sacked.

    Kano: ready to pay

    The Kano State Government is ready to pay the N30,000 minimum wage without retrenching workers.

    The Head of Service, Dr Kabiru Shehu, said they would pay the new minimum wage as soon as all discussions were completed. He said there was no basis for retrenchment in Kano because of the new minimum wage.

    “We have put out workers’ lists  on the table and analysed them and we equally have several options, but certainly the issue of retrenchment is out of it,” Shehu assured workers.

    Kano has the largest workforce in the entire federation of over 200,000 while the state is paying over N9.3 billion wages monthly.

    Ekiti: still in discussion with labour

    Commissioner for Information in Ekiti State, Mr. Muyiwa Olumilua, said Ekiti was yet to take a decision on the matter. He said the state was  in talks with labour unions and whatever came out of the discussion would be made known to the public.

    Olumilua said: “In Ekiti State, we have not come up with a resolution on that; we have been speaking with labour unions in the state on the issue and our decision shall be made known to the public.”

    Bayelsa: we ’ll pay

    The Bayelsa State Government  has agreed to pay the amount agreed upon by the Federal Government.  According to the Special Adviser to Governor Henry Seriake Dickson on Media and Publicity, Dan Alabra, the state government has  promised that Bayelsa State would not sack any worker.

    He said: “No, not at all. Bayelsa State Government is not going to sack any staff to pay N30, 000 minimum wage agreed by the Federal Government.”

    Oyo: we’re waiting for talks to end

    The Oyo State Chief Press Secretary to Governor Seyi Makinde, Mr. Taiwo Adisa, said: “The minimum wage is a Federal subject as of now. When discussions are concluded in Abuja, the states can take positions. Not now.”

  • Minimum Wage battle shifts to states

    With the enactment of the National Minimum Wage Act and take-off of implementation, the battle for the new wage has shifted to the states, TOBA AGBOOLA reports.

    The presidential assent given to the minimum wage bill may have laid to rest several months of agitations and controversies over a new national minimum wage. However, another floodgate of struggles may have opened over its implementation by state governments. That is, the new minimum wage may not realise full-scale implementation without some disappointments.

    While some governors are ready to pay the N30,000 minimum wage,  some have spoken of low funds and opted to increase tax.

    For instance, Enugu State Governor Ifeanyi Ugwuanyi said the state lacked the funds to pay the new wage, uring workers to pray for an improvement in the economy to boost the Internally Generated Revenue (IGR) of the state.

    Ugwuanyi said: “In as much as the government will remain true to its obligations, I will tell you the nation’s economy is not robust.

    “I have taken notice of the new national minimum wage as signed into law, but workers should pray for improvement in financial resources of the state.

    “We will ensure that these issues are comprehensively and satisfactorily addressed in concert with other relevant government agencies and departments.”

    Similarly, Ebonyi State Governor David Umahi said he would neither be the first nor the last to pay the new wage.

    He said workers should prepare for an increase in tax, if they wanted to receive the new minimum wage.

    “You see, this issue of minimum wage, I will not be the first nor the last to pay it, but I will pay. Civil servants and others should be prepared to pay tax in Ebonyi State,” he said.

    It will be recalled that the Chairman,  Nigerian Governors’ Forum, Governor Abdulaziz Yari of Zamfara State, who canvassed the position of his colleagues in response to the report of the tripartite committee on minimum wage, said the governors were against the N30,000 minimum wage. According to him, the states are going through difficult times and, therefore, lacked the capacity to implement the new wage for workers.

    He said the payment of N30,000 was impracticable and may lead to retrenchment of workers in the states.

    Yari, however, said the states could only take up the challenge of paying the minimum wage, if Labour would agree to downsizing of the workforce across the country or Federal Government itself acceded to the review of the national revenue allocation formula as well as other measures that would boost the revenue profile of state governments.

    The governors, in the heat of negotiations with the Labour movement, set up a committee headed by Kebbi State Governor, Atiku Bagudu, to assess the state of finances of most state governments.

    The agitation by the Labour is being spearheaded by the Nigeria Labour Congress (NLC), which rejected the governors’ position, insisting that states are capable of paying the new minimum wage if only state chief executives would allow the prudent management of resources.

    However, analysts believe that the real hurdles facing the governors over the implementation of the N30,000 National Minimum Wage are more of political issues than economic.

    They said governors should be ready to reduce their large number of political aides, cut down the amount spent on servicing political machinery and ignore certain political considerations to implement the new wage.

    A Professor of Political Science at the University of Nigeria, Nsukka, Jonah Onuoha, said lawmaking in Nigeria had been bedevilled by poor implementation.

    Onuoha said: “Otherwise, how can you explain the fact that even the N18,000 that was approved many years ago has not been implemented and you are approving N30,000? While we commend the President for assenting to the bill to become law, the question is: how do you implement it?

    “There must be a way to compel the state governments to implement the law; there must be a way the Federal Government will prevail on the states to implement the law. The institution is so weak that every governor behaves the way he wants without regard to the law.

    “The Federal Government cannot compel the states to employ anybody but when you employ people, pay them according to the law. That is what we are saying, even if it means cutting down on their (governors’) lifestyles,” said Onuoha.

    Executive Director, Socio-Economic Rights and Accountability Project, Adetokunbo Mumuni, said state governments had failed to set their priorities right.

    Mumuni said: “Let me say straight away that at any level in the Nigerian polity, if priorities are ordered right, if we put our focus where it should be, there is no basis for any government not to be able to pay the new minimum wage. Look at what they pay their political hangers-on.

    “You cannot say any of those governors do not pay more than N30,000 to political hangers-on. So, I believe that it is a question of cutting our coat according to our cloth and ordering our priorities right, then everything will be okay

    He added, “The reason they (governors) will say they cannot pay is because monies are diverted for inanities and frivolities, rather than meeting the needs of the people of Nigeria. I don’t even know what they say they spend on security, especially when, from state to state, there are security challenges.

    “You then ask yourself what the security monies they collect are used for. I believe that the issue of security votes is another nomenclature for mismanaging resources and I don’t think it is needed in the current dispensation.”

    But a Professor of Political Science at the University of Lagos, Derin Ologbenla, warned that defaulting governors would have to brace for industrial actions with the attendant consequences.

    Ologbenla noted that rather than depend on federal allocations to meet the workers’ remuneration, states must be innovative to increase their internally generated revenue.

    The don explained: “The idea behind the N30,000 is that the prices of goods have gone up, the naira has been devalued and the workers are suffering in penury. Therefore, something has to be done.

    “The government, Labour and owners of businesses met and negotiated the N30,000. Having been signed into law by President Muhammadu Buhari, it is a law at the federal, state and local government levels.

    “Now, any governor that refuses to pay will have himself to blame in the sense that there will be labour unrest in that state and the governor will not be able to achieve his aims and objectives. The N30,000 minimum wage is not even adequate for the workers.

    “The prices of things have gone up; the governors who say they cannot pay must find a way of generating ideas, they must attract investors to their states.”

    Ologbenla said the new minimum wage law had provided an opportunity for the governors to reduce their spending and channel their security votes to people-oriented purposes. He supported the call for the revenue sharing formula review.

    “The security votes of each state can be better applied. How are the security votes utilised? They are not monitored or accounted for; they are spent anyhow.”

    Also, responding to some of the comments by state governments on their inability to pay the new wage, Comrade Agnes Funmilayo Sessi, Lagos State Chair of NLC, said any governor that said he could not pay the new wage had failed the people and should resign.

    She said: “Any governor that cannot pay the salary of the workers should resign. That means they have failed in their duties and they are incapable of holding that position.

    “If they can reduce corruption and bogus spending, there is no state that will not be able to pay the workers the new wage. When they are electing them, did they promise the people that they will starve them?”

    NLC President Ayuba Wabba  punctured the excuses of the governors that their revenue profile cannot support the implementation of the minimum wage. He accused them of being extravagant.

    Speaking with The Nation, Wabba, said governors who were not ready to implement the new national minimum wage should brace for confrontation with organised labour.

    Wabba said governors should remember that they swore an oath to abide by the laws, adding that the national minimum wage is a law which they must implement.

  • NUPENG accuses IOCs of flouting labour laws

    The Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) has decried the imposition of indecent work condition by International Oil Companies (IOCs) and their labour contractors in the country.

    Lamenting that the situation was getting worse daily, the union alleged that the statutory institutions and agencies saddled with protecting workers’ interests were twiddling their thumbs.

    NUPENG canvassed a stop to the trend in the interest of industrial peace and harmony.

    In a communiqué issued at the end the union’s Central Working Committee (CWC) meeting in Lagos, NUPENG President Williams Akporeha urged institutions and agencies saddled with protecting workers’ interest to address the exploitation of workers.

    He noted that the unhealthy contract cycle in the industry could further impoverish workers.

    Among other issues critical to the sector, the oil workers said, is the granting of contracts without recruiter’s licence. The union expressed worry that it has impacted negatively on the conditions of work of those being recruited.

    He said it was obvious that many labour contractors being engaged by oil and gas companies were not registered as recruiters in violation of the laws.

    According to him, there is a massive exploitation and abuse of workers’ rights to the extent of eloping with contract workers’ severance benefits by the contactors to these oil companies.

    Akporeha noted that the union has resolved to activate the instrument of the law and other legitimate means as recognised by the labour laws and conventions to fight inhuman treatments of workers.

    “Some of these cases include Virtual Travel Network that eloped with terminal benefits of 48 NAOC contract workers since 2015 and Logistics Facility Affairs (LFA), a contractor with Chevron Nigeria Limited that also ran away with workers’ final entitlement.

    “A Nigerian would work under harsh and hard conditions for several years receiving peanuts and yet when the contract ends, the worker’s severance benefits are stolen away by contractors and hired by an international oil companies.

    “Most times when confronted, these IOCs feign ignorance of the whereabouts of these portfolio contractors and recruiters,” he said.

    On the deplorable state of roads across the country, NUPENG called on the Federal Government to expedite action on repairing bad roads within the six geo-political zones to assuage the sufferings of Nigerians, who are use the dilapidated roads.

  • Discordant tunes over minimum wage

    After several months of foot-dragging, the new N30,000 minimum wage implementation has begun. TOBA AGBOOLA writes on the economic implications of the new wage.

    Following the implementation of the new minimum wage any moment from now, the debate on whether it will enhance workers’ living condition and favour the economy has continued to occupy the front burner of national discourse.

    While some people say an increase in the minimum wage will boost the economy, others disaggree. Those who say the economy will do well with the wage increase believe that it is a stimulant that the government must quickly inject to attack the downturn in the economy.

    They say the best thing for the government to do is to increase its spending, especially in areas where the purchasing power of the people will be enhanced.

    To some, an increase in minimum wage is not the best approach to help workers or the economy. They say any increase in the minimum wage is usually accompanied by a rise in the cost of commodities in the market because traders will want their share of the pay rise. They said what the government needs to is to provide the enabling environment for businesses to thrive.

    They also argue that there is high inflation rate and any further increase in the minimum wage will increase the level of money supply, thus, worsening the problem.

    An economic expert, Prof. Uche Uwaleke, who is also the head of Department, Banking and Finance, Nasarawa State University, Keffi said the new minimum wage would not lead to inflation contrary to speculations by some people.

    “I do not agree that it will lead to inflation and this is because our aggregate demand is still weak.

    “Recall that the last economic recession was caused by weak aggregate demand when many state governments could not pay salaries due to reduced FAAC allocations from dwindling oil prices.

    “The economy has been making a slow recovery since the exit from recession. So, the associated economic expansion from implementing the new minimum wage will be salutary for the economy having negligible impact on the general price level,’’ he said.

    Uwaleke recalled that the monthly reports by the National Bureau of Statistics (NBS) had shown that inflation in Nigeria, against the backdrop of low economic activities, was more of cost-push than demand-pull.

    This, he said, was driven more by high cost of fuel, electricity and transport.

    To him, historical evidence does not also support the claim that the new minimum wage would worsen inflationary pressure.

    “In 2011 for instance, when the minimum wage was increased from N7,500 to N18,000, inflation rate actually dropped from over 13 per cent the previous year to less than 11 per cent.

    “So, with increased output and a focus on capital spending, inflation spike arising from this development becomes a non issue,’’ Uwaleke added.

    For the Secretary, Council of Academic Staff Union of Osun State Owned Tertiary Institutions, Olusegun Lana, the increment of the national minimum wage is one of the legal mechanisms through which the purchasing power of the people can be enhanced. When their purchasing power is enhanced, it will have a positive effect on the economy.

    “Artisans, traders and other segments of the society will feel the impact and through that, the economy will come alive. In fact, this increase is long overdue,” he said.

    Chairman, Nigeria Labour Congress (NLC), Bayelsa State chapter, John Bipre-Ndiomu  said the need to increase the minimum wage of workers in Nigeria is long overdue considering the skyrocketing prices of goods and services in the country.

    He said the argument on whether or not an increase will help the economy is untenable, misplaced and unthinkable.

    He said: “I will also want to know if the wages of senators and members of the House of Representatives is helping the economy. Is it only the workers’ income that will be a problem to the country? Nigerians know too well that the salaries of workers cannot take them home. Whether anybody likes it or not, there is the urgent need to increase the minimum wage of Nigerian workers. The current inflationary trend in the country has rubbished workers’ salaries. So, it has become a necessity, not a luxury, to increase workers pay.

    “You can imagine a worker buying a bag of rice for N18,000 and the salary of that man (worker) is N18,000. How do you want such a person to cope with life? Such a worker, no doubt, will be like a living dead.

    “Sometimes, in a situation like this, the best way to help the economy is to pump money into the system. If workers have no money to go to the market, production will definitely not take place.”

    To the Chairperson, Transition Monitoring Group, Dr Biola Afolabi-Akiyode, an increase in minimum wage is not the best approach to helping workers or the economy of Nigeria.

    “If you look back at the history of wage increases, you will discover that any increase in the minimum wage is usually accompanied with a rise in the cost of commodities in the market because traders will want their share of the pay rise.

    “We already have a high inflation rate and any further increase in the minimum wage will increase the level of money supply, thus worsening the problem,” he said.

    To him an increase in the minimum wage will put pressure on private companies and state governments that cannot even pay the present minimum wage.

    “Don’t forget, when prices of commodities go up as a result of wage increase by the Federal Government, both the private and the public workers will bear the brunt because we all shop from the same market.

    “So, what the government should do is, rather than increasing the minimum wage, it should create an enabling environment for the people, through investment in massive infrastructure and other basic amenities, to drive down cost of production,” he said.

    Tope Fasua, an Abuja -based economist and chief executive of Global Analytics Consulting Limited, said a bit of inflation, although not significant, should be expected if workers’ salaries are increased.

    “Naturally if there is a wage increase, a bit of inflation should be expected. But, whatever rise in inflation should not discourage the government from increasing the salaries of workers.

    “In other words, you cannot say the proposed increase in workers’ wages will trigger a five per cent increase in inflation or thereabout,” he said.

    According to Fasua, one of the economic myths in Nigeria is people believing there is more money in the hands of everybody when a certain group of people gets a pay raise.

    Therefore, everyone tends to increase prices faster than the effect of inflation, trying to cover up, mindless of the people in the private sector who might not benefit from the proposed increase in public servants’ wages.

    “To a large extent, many private sector people cannot be forced to increase their workers’ wages along with the public sector,” he said.

    For the Lead Director, Centre for Social Justice (CENSOJ), Eze Onyekpere, whoever says a new minimum wage will spike inflation has no basic understanding of what inflation really means.

    “Whoever says the proposed increase in the minimum wage will spike inflation is an economist without a school. They have no understanding of what inflation is. When the National Assembly announced jumbo allowances for its members’ in 2017, what effect did it have on the country’s economy?” he asked.

    Rather than increasing inflation, the CENSOJ boss said an increase in the minimum wage would be a great thing to happen to the Nigerian economy, as workers would have more disposable income at hand.

    “Buying more will stimulate demand from industries that are producing as well as a lot of inventory in their warehouse,” he said.

    He said the benefits of an increased income for the workers will not be limited to salary earners, but also others in the economy (their dependents, relations).

    At the end of the day, he said, it will be a win-win scenario for everyone and will also motivate them to improve service delivery.

    However, the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, during a debate on the new minimum wage said he does not believe the proposed increase in the minimum wage will spike inflation. Rather, he says the increase will stimulate output growth in the economy.

  • Advans La Fayette MfB gets CEO, others

    Advans La Fayette Microfinance Bank (MfB) has announced some executive appointments to drive its ongoing transformation.

    The Managing Director/Chief Executive Officer is Gaëtan Debuchy while Obinna Ukachukwu becomes  the Deputy/Chief Executive Officer.

    Jean-Luc Nzoubou was also appointed as a Deputy/Chief Executive Officer. Nzoubou is backed with solid experience in the launching and rapid growth of affiliates, in Cameroon and Ivory Coast, with an absolute knowledge of the Advans Group, and comes to Advans LaFayette with a proven expertise in people management and microfinance operations.

    He will strengthen and accelerate the commercial activity and drive the national expansion of the bank’s network in the coming years. This represents the increased importance of innovation to the company’s growth plans.

    This is a building block in Advans La Fayette MfB transformational journey, as the organisation is moving quickly to structure for faster growth and also to ensure they are positioned to respond to the needs of small and medium scale enterprises (SMEs), customers, and partners focusing on strategy, governance and vital strategic initiatives.

    “We are pleased to announce the appointment of Gaëtan Debuchy who will be replacing me as the new MD/CEO of Advans La Fayette MfB, he brings great banking and microfinance experience on board, with over 20 years’ experience in the finance sector creating innovative products, says former MD/CEO, Guillaume Valence.

    Ukachukwu noted that the reinforcement of the bank’s leadership is just an indication of our commitment to keep investing in this space and grow our financial inclusion objectives nationwide. After much success in the southwest, we are well-positioned for accelerated growth across Nigeria.

    The bank also got the nod from CBN to change its name to Advans- La Fayette MfB, a move to reinforce the bank’s international affiliation and brand.

  • NECA lauds Buhari over Economic Advisory Council

    Nigeria Employers’ Consultative Association (NECA) has praised the Federal Government for constituting the Economic Advisory Council.

    Its Director-General, Mr. Timothy Olawale, lauded President Muhammadu Buhari for overhauling the management of the economy.

    He described the composition of the council as very robust, with seasoned professionals with expertise in areas, such as fiscal policy, monetary, industrial policy, trade and energy economics.

    He said: “At a time like this, the country needs to fight head on the ills of poverty, unemployment and achieve significant economic growth. As a nation, we have never been short of ideas or policies. The crux is necessary reforms and implementations of the policies in the country, especially in creating enabling environment for businesses to thrive and contribute their quota to National Development through job creation, among others.

    “With the council reporting directly to Mr. President, this will allow them (the Council) to focus on execution and achievement of targets set by the Presidency”.

    However, Olawale said in previous administrations, the Economic Advisory Council of this type usually had consultations regularly with the Organised Private Sector in Nigeria (OPSN) on sectoral issues.

    “We will implore this Council to embrace the consultative fellowship in achieving the desired goal of economic development,” he said.

    Olawale called on the government and Nigerians to give the council the needed support to effectively deliver on the assignment.