The Nation Newspaper

Category: Labour

  • NSITF to extend coverage of compensation scheme to informal sector

    The Nigeria Social Insurance Trust Fund (NSITF)  has said  plans are underway to expand the scope of the Fund’s  Employees’Compensation Scheme (ECS) to the informal sector of the economy.

    Its Managing Director, Mr.  Adebayo Somefun, stated this at the just-concluded Art and Culture Expo organised by the National Council of Arts and Culture (NCAC) in Abuja.

    The NSITF boss explained that the move was intended to ensure that more workers benefit from the ECS coverage to execute their tasks without fear of occupational injuries.

    Somefun explained that though the informal sector  was difficult to organise, mechanisms would be put in place to organise them into groups for ease of administration.

    He urged  the sector to key into the social security scheme, saying: “The sector needs to understand, know and be convinced that the health insurance, contributory pension and employees’ compensation  scheme are all geared towards ensuring good life for all the workers. Integrating them into the scheme is a certainty if the country is desirous of covering most of its citizens, but the process has to be gradual.”

    He said  the  Fund was liaising with the Corporate Affairs Commission (CAC), State Boards of Inland Revenue, Federal Ministry of Labour and Employment, Federal Inland Revenue Service to get a comprehensive data of registered companies in the country.

    While the updating of records of existing organisations in its database is on going, he said the Fund has also put measures in place to encourage the 774 local government councils in the country to key into the scheme.

    According to Somefun, discussions and talks with non-treasury funded organisations and other agencies yet to key into the scheme are being pursued.

    Somefun, who decried  the high number of defaulting organisations, revealed that the management was already partnering with National Assembly committee with oversight functions on recalcitrant employers to enforce total compliance on defaulters.

    He explained that the urgent need for more companies and workers to join the scheme informed the decision of the Fund to participate in trade fairs and culture expos.

    “What we have been trying to do is to reach out to employers of labour and employees wherever they can be found. We know that a lot of people attend trade fairs and that presents an opportunity to meet them there.

    “The NSITF decided to attend the art and craft expo in Abuja because we discovered that a lot of foreign countries participate in the fair to showcase their cultural wares. At the expo, we were able to meet some embassies. The Indian embassy said it was not aware that employees’ compensation scheme exists in Nigeria. The embassy then invited us to their office to make presentation to their staff,” he said.

  • Unpaid arrears: Oyo trade union threatens to resume strike

    The Joint Action Committee (JAC) of all trade unions comprising ASUP, COEASU, SSANIP, SSUCOEN and NASU in the six Oyo State-owned tertiary institutions has issued a seven-day ultimatum to the state government over unpaid salary arrears.

    The JAC Chairman, Comrade Afees Adeniyi (For Chairmen of ASUP, COEASU, SSANIP, NASU and SSUCOEN) in a communique issued at the end of a meeting held in Saki area of the state, said the government should pay all the salary arrears of between three and 18 months.

    According to them,at the expiration  of  the ultimatum,  all workers in the six tertiary institutions will resume their suspended industrial action of Monday,January 14.

    It directed all the trade unions that belong to (JAC) and also affiliated of Nigeria Labour Congress (NLC) to align themselves with any actions embarked upon by the state chapter, as regard the struggles for the actualisation of national minimum wage and payment of three to 18 months accrued salary arrears of workers.

    The meeting reviewed JAC’s activities in the year 2018, especially the resolution that JAC will not hesitate to direct all the trade unions in the six institutions to resume their suspended industrial action and protest should the government fail to release adequate funds to defray the three to18 months owed backlog of arrears of salaries on or before the end of December, 2018 (the decision  was taken on December 20, 2018 at the meeting that was held at The Ibarapa Polytechnic, Eruwa).

  • Curb wastages to fund budget, govt urged

    The Nigeria Employers’ Consultative Association (NECA) has advised the Federal Government to block revenue wastages by putting an end to the yearly turnaround maintenance of the old refineries.

    Its Director-General, Mr. Timothy Olawale, who gave the advice at a stakeholders’meeting in Lagos, said the resources used to fund the maintenance of the refineries could be directed to fund this year’s budget.

    According to Olawale, the Federal Government should not waste money on the old refineries; rather, it should encourage private investors in establishing modular refineries and deregulation of the downstream sector.

    He reviewed the 2019 budget and expressed worry about its capacity to take the economy out of the woods, create jobs and improve the human capacity potential of Nigerians.

    “As a matter of urgency, government must remove fuel subsidy, which has become a conduit pipe for misappropriation of funds. It is not sustainable and we cannot continue to fund inefficiency,” the NECA DG said.

    Olawale commended President Muhammadu Buhari’s timely submission of the budget to the National Assembly on December 19, 2018, but said the foundation on which it was built was worrisome.

    He said the budget was benchmarked against $60 per barrel of oil at 2.3 mili litres daily at an exchange rate of N305 to one dollar.

    “This is an inflation rate of 9.98 per cent and a Gross Domestic Product (GDP) growth rate of 3.01 per cent.

    “These assumptions negate the reality of oil price volatility. Oil industry experts had warned that the political dynamics of the Middle East might drive down the price of Crude.

    “Today, a barrel of crude sells for $54, $6 less than the benchmarked price and it is yet unknown how the government will increase the present 2.09 million barrels per day (mbpd) crude production to 2.3mbpd in 2019,” the NECA DG said.

    According to him, a cursory look at budgetary allocation to some critical sectors raises germane questions about the country’s readiness to address certain fundamental questions.

    He said, for instance, human capital development was critical to a nation’s development; therefore, that education was allocated N462.24 billion, less than six per cent of the entire budget was not good enough.

    “This is a far cry from the UNESCO’s benchmark of 26 per cent of the national budget. The N315.62 billion, which represents a meagre 4.1 per cent of the budget tends to negate this mantra.

    “This allocation also contrasts the pledge made by member countries of the African Union (AU) to commit a minimum of 15 per cent of their annual budget to their health sectors,” he said.

    Olawale urged the government to review the budget assumptions, especially since it would soon receive the attention of the National Assembly.

     

  • ASUP accuses govt of neglecting technical, vocational education

    The Academic Staff Union of Polytechnic (ASUP), has accused the Federal Government of neglecting technical and vocational education.

    Zone B Coordinator of the union, Mr. Abdullahi Yelwa, said this at a press conference in Jos.

    According to him, policy makers have over the years given little or no priority to technical education, hence the total neglect of the polytechnics in the country.

    “It is on record that no nation can develop above its educational system, particularly technological education; unfortunately, technical and vocational education has no space in the psyche of our policy makers.

    “This, among others, is responsible for the poor handling and misplacement of this sector by those concerned.

    “Instead of government doing the needful and ensure proper positioning of the sector, it has turned the other way,” he said.

    Yelwa also identified poor funding of polytechnics, shortfalls in personnel cost and withdrawal allowance, non-implementation of NEED Assessment Report, and poor condition of state-owned institutions as rationale for its ongoing strike.

    Other reasons, according to him, include non-release of CONTISS 15 migration arrears, delay in assenting to the amendment of the polytechnics Act, infractions in the appointments of rectors by state governments and continued victimisation of union leaders.

    The coordinator said the union was determined in raising the bar and ensuring an improved system in the polytechnics that would be the envy of all.

    He vowed that nothing would deter the union in pressing the government to set a good ground for an educational system that would advance technology.

    “ASUP has done its best to get the government’s attention to resolve the lingering issues raised with our renewed determination since 2017, but our efforts were treated with disdain.

    “We wrote series of memoranda and had consultative meetings with government, but were all unsuccessful and subsequently, it led to the current strike action.

    “It is unfortunate that we had to resolve to the last and this is the only option, and I assure you that we remain resolute in pursuance of these demands so that we can salvage the sector from further deterioration,” he said.

    Yelwa called on government to resolve the impasse soon, to enable academic activities resume to save the sector from collapse.

    ASUP had on December 12, 2018, in pressing home its demand, embarked on a nationwide industrial action that has crippled academic activities in most polytechnics across the country.

  • Strike fever over minimum wage

    Organised labour has said this year will be a challenging one for workers. They refer to issues, such as the minimum wage, unemployment and the debt burden, among others that would spark unrest. TOBA AGBOOLA reports.

    Minimum Wage

    There is anxiety in government circles over Labour’s plan to go on strike. The action is to push the demand for a new minimum wage.

    The Federal Government has invited workers’ representatives to a meeting  in a move to avert the impending industrial action.

    Labour is angry that the Presidency is yet to transmit the New National Minimum Wage Bill to the National Assembly.

    Labour has demanded N30, 000 for the least paid worker.

    Speaking with The Nation, the President, Nigeria Labour Congress (NLC) Comrade  Ayuba Wabba, said government’s dilly-dallying on the issue has strained its relationship with Labour and left it with no option other than a major national strike.

    The protest, according to the NLC president, is to express anger and total disatisfaction over the delay by the Federal Government in transmitting, enacting and implementing the new national minimum wage of N30,000.

    Wabba said the strike has become the last option for the workers, adding that labour craves the understanding and support of all Nigerians and businesses.

    The tripartite committee which comprised representatives of the federal and state government, the organised private sector and the organised labour, had reportedly reached a compromise on N30, 000.

    Labour had initially demanded N66,500, Federal Government N24, 500 while state governors proposed N22,500.

    Governors under the platform of the Nigeria Governors Forum (NGF) have declared that states were not in financial position to pay.

    According to chairman of NGF, Governor Abdulaziz Yari, no attempt to impose the sum would strangle the states.

    The president of TUC, Bobboi Bala Kaigama and Ozo-Eson, who said they might attend, however, said the meeting would not change the labour position on the proposed nationwide protest and strike.

    According to Kaigama, TUC would only attend the meeting as a matter of formality.

    “Of course when they invite us, we will attend. We do not believe in any technical committee, we’ve gone past that. During the tripartite committee sittings, we set up technical committee.

    ‘’If the technical committee they want to set up is on minimum wage, we’ve gone beyond that.”

    He maintained that organised labour only suspended its strike on the wage in November last year and would no longer give any notice on its proposed strike.

    “The three centres are going to meet any moment from now, we will not give any date, but (we would) just commence the suspended strike,” he said.

    But President of ULC, Joe Ajaero said labour has no reason to meet with the minister or Federal Government anymore since President Buhari had made it known in his budget speech that he wanted to set up a technical committee

    “How can Ngige send us such an invitation, we’ve made it known to him that we will not be attending the meeting.

    “Ngige can meet with his staff and aides. Labour had made it clear to the government that no other submission would be accepted except what was recommended by the tripartite committee.”

    Ajaero said the meeting was diversionary and labour would not be distracted.

    “The December 31 deadline given to the government to send the bill to the National Assembly has passed; our next step is to meet and harmonise our next move any moment from now,” he said.

    NLC General Secretary, Dr. Peter Ozo-Eson said Labour will not embark on an industrial action secretly.

    According to him, the workers’ union has asked its state councils to hold rallies in city centres beginning from January 8 to sensitise Nigerians on the looming action.

    Ozo-Eson said: “We (labour) have approved that the protests should hold in all state capitals and the Federal Capital Territory (FCT), Abuja on January 8, 2019, and mandates all industrial unions and state councils to fully mobilise workers and coordinate with other labour unions for this mother of all protests.

    “The excuse that the National Assembly is on break does not hold water as the report of the tripartite committee has been with the President for about two months.

    “Was the National Assembly on recess when the report was submitted? Didn’t the House of Representatives adopt a resolution calling on the President to transmit the bill?

    “The notice expired on December 31, 2018. When it was given, was the National Assembly on recess?’’

     

    Budget

    While reviewing the 2019 budget assumptions of the Federal Government, the organised Labour expressed apprehension about the capacity of the budget to move the economy out of the woods, create jobs and improve the human capacity potential of Nigerians.

    Sharing his view with The Nation, the Director-General, Nigeria Employers’ Consultative Association , Mr Timothy Olawale  who commended the President for submitting the Budget to the National Assembly on Wednesday, December 19, 2018 ,  however noted that the foundation on which the budget was built is worrisome.

    He said the budget was benchmarked against $60 per barrel of oil at 2.3m litres daily, an exchange rate of N305 to $1, an inflation rate of 9.98 per cent and a GDP growth rate of 3.01 percent.

    This assumption, according to him, negates the reality of oil price volatility, adding that the oil industry experts had noted that the political dynamics of the Middle East might drive down the price of crude.

    “True to prediction, a barrel of Crude today sells for $54, $6 less than the benchmarked price and it is yet unknown how government will increase our present 2.09mbpd crude production to 2.3mbpd in 2019 and with OPEC’s resolution on cut in oil production, Nigeria’s daily production should now be 1.7mbpd.

    “A cursory look at the allocation to some critical sectors raises some germane questions about our readiness as a nation to address certain fundamental questions. Human capital development has been noted as critical to a nation’s development. It is, therefore, worrisome that education was allocated N462.24 billion, which is less than six per cent of the entire budget. This is a far cry from the UNESCO’s benchmark of 26 per cent of the national budget. A healthy nation is a prosperous nation. The N315.62billion, which represents a meagre 4.1 per cent of the budget tends to negate this mantra. This allocation also contrasts to the pledge made by member countries of the African Union (AU) to commit a minimum of 15 percent of their annual budget to their health sector”.

    While proffering a way out of the seeming quagmire, Olawale called for the elimination of resources wastages, perpetrated through the never-ending turnaround maintenance on the old refineries, encouragement of private investor in modular refineries and a total deregulation of the downstream sector.

    “As a matter of urgency, we must remove fuel subsidy which has become a conduit pipe for misappropriation of funds. It is not sustainable and we cannot continue to fund inefficiency,” he said.

    Olawale also expressed fears at the continuous and increasing debt profile of the nation following the release of the third quarter report of the Debt Management Office (DMO) and the 2019 budget assumptions.

    He said: “Figures released by the DMO showed that the Federal Government’s domestic debt profile rose to N15.814trillion in September, 2018 from N15.629trillion in June, 2018 (1.19 per cent increase). This figure becomes more worrisome when we look at the total public debt stock, comprising the external and domestic debt of the FGN, the 36 states and the FCT hitting the US$73.208billion (N22.38 trillion) recorded in June, 2018”.

    While discussing the implication of government’s huge borrowing in the domestic market, he stated that: “The size of government borrowing in the domestic financial market also continues to be a major source of concern as this has in no small measure, affected the chances of the real sector to access funding at a reasonable cost.

    Proposing a way out, he advised that the federal and state governments, as a matter of urgency, must take deliberate steps aimed at cutting the cost of governance and recurrent expenditure.

    He said government also needs to start paying serious attention to workable investment schemes, collaborating strongly with the private sector which is the engine room for economic growth.

    The NECA DG concluded that government has to recognise the important role of the private sector in building a robust economy, as oil revenue alone is not enough to place the country on the path of sustainable development. Government must therefore, make commitment to facilitate a favourable environment with policies that will attract private investors.

     

    Unemployment

    The organised labour has expressed serious concern over the recent report by the National Bureau of Statistics (NBS) which stated that the number of persons unemployed in the country has increased by 3.3million year on year from 17.6million in Q3 2017 to 20.9 million in Q3 2018. They are worried that the unemployment rate is likely to increase in 2019.

    The NLC charges Federal Government to create more jobs to reduce poverty rate.

    Ayuba Wabba, President, Nigeria Labour Congress (NLC) called on the Federal Government to ensure sustainable jobs to reduce the rate of poverty in the country.

    He said government must implement the Sustainable Development Goals (SDGs) to improve the lives of the people and develop the country.

    He said sustainable jobs would only be available if the government created conducive environment for industries to thrive.

    ”We cannot be importers and consumers of what we do not produce. There is the need to resuscitate closed factories such as textile and make business environment competitive and attractive,” he said.

    The NLC president said government should also reduce electricity tariff to boost production and make businesses thrive.

    Similarly, Dr. Mohammed Yinusa, President, Nigeria Employers’ Consultative Association (NECA), who spoke on the nation’s poverty index, said government needed more interventions to raise the living standard of the people.

    Yinusa commended government’s pro-poor policies, but said government at all levels should pay attention to the development of critical indices of the Human Development Index (HDI).

    “The United Nations Development Programme (UNDP) report is an indication of a country’s quality of life. The report measures national achievement in health, education and income,” he said.

    He added that adequate and sustainable attention must be paid to the indices to lift the citizens out of poverty.

    Yinusa also urged government to work towards prioritising the creation of enabling environment for large, small and medium enterprises.

  • NRC warns against eviction of officials from quarters

    National Association of Nigerian Railway  Senior Staff has asked the Presidency to compel the Nigerian Railway Corporation (NRC) and  Federal Ministry of Transportation officials not to evict its members from the staff quarters in defiance of a court order.

    At a media briefing in Lagos, its President, Emmanuel Leshi, decried China Civil Engineering Corporation (CCEC) ploy to acquire the Railway compound under the guise of constructing railway lines in Lagos.

    He described the NRC’s deliberate disregard for court orders as an affront on the rule of law and the anti-corruption crusade of the present administration.

    He said: “With the deal entered with the Chinese government by the Ministry of Transportation in collaboration with the management of Nigerian Railway, the Nigerian Railway compound situated at Lagos in Ebute Metta, may finally lose its century-old status to be known as China Town, as they are cohabiting with railway staff, occupying about half of the land area.

    “The ministry, without recourse to the judgment of National Industrial Court of Nigeria, which was delivered regarding the Railway quarters in favour of the Railway staff on January 6, 2016, and the on-going trial at the Court of Appeal, has allegedly used the Nigerian Railway staff quarters in the compound as a collateral to enable the Federal Government to access the Chinese government’s loan of undisclosed sum from the China Exim bank.

    “The Managing Director, on December 6, 2018, directed relevant departments to commence demolition of the so called illegal structures in the contentious Railway staff quarters, this is a ploy to further strip the workers of their legitimate rights on the staff quarters, which is still a subject of litigation before trial and appellate courts.”

    The senior citizens, however, appealed to the Presidency to quickly intervene by calling all stakeholders to order, asking the relevant authorities to obey the court judgment.

    “We demand that the NRC management desist from harassing the occupants of Railway quarters under the guise of census enumeration, intruding into appurtenances, comply with the judgment of the court and begin the process of monetisation policy of July 20005,” he added.

  • Low wages stall economic recovery, says Aremu

    The recovery of the economy is slowed because of low wages, Nigeria Textile Union (NTU) Secretary-General  Issa Aremu has said.

    Aremu urged President Muhammadu Buhari to use his weight to speed up the legislation to back up the proposed N30,000  minimum wage.

    According to him, prompt payment of salaries and urgent wage increase in the private and public sectors were the smartest and quickest ways to stimulate the  economy.

    Aremu said to overcome the current economic crisis in Nigeria, workers whose wages buy basic goods and services must not only be paid on time, but must be increased.

    “Nigeria cannot overcome recession with the existing miserable pay of workers and pensioners. Wage-led economic recovery is smart economics,” he said.

    He said Nigerian workers were poorer than their predecessors some 40 years ago when the minimum wage was N125, which was equivalent to $240 in 1981, noting that $240 of 1981 equalled to N70,000 and that in real and nominal terms, workers in 1981 earned more than the current N18,000 minimum wage.

    Aremu said: “With naira devaluation, it has unacceptably fallen to less than $45 in 2018, a quarter of its nominal value in 2016 and less than one per cent of its value in 1981, about 40 years ago, worsening income poverty.

    “For Nigerian economy to recover there must be massive public spending in reconstruction and significantly mass spending by working people through improved wages.”

    He said Central Bank of Nigeria’s (CBN’s) communiqué issued after its Momentary Policy Committee, MPC, meeting recently, believed that the proposed increase in the national minimum wage would stimulate output growth due to prolonged weak aggregate demand, arising from salary arrears and contractor debt.

    He hailed the CBN’s reports on the economy, noting that the reports of National Bureau of Statistics (NBS), have shown that weak demand for goods and services is one factor responsible for low capacity utilisation of many private sector firms.

  • How to share N8b allowance, by NASU

    The Non-Academic Staff Union of Educational and Associated Institutions (NASU) has praised the Federal Government for its release of additional N8 billion as  part payment of the outstanding arrears of earned allowances to non-teaching staff. It called for speedy action on its disbursement.

    The union made the call at the end of an emergency meeting of NASU universities and inter-university centres trade group council in Abuja.

    In a resolution after the meeting, NASU urged government to observe the principles of equity and fairness in the sharing of the allowance to universities and inter-university centres and consider centres that did not benefit from the earlier released N23 billion.

    The union warned that if the issue  is not resolved soon, it may be forced to go on strike.

    NASU expressed shock that the Senior Staff Association of Nigerian University (SSANU) could order a three-day protest on the disbursement of the allowance and the implementation of the staff school judgment without carrying along NAAT and NASU.

    It noted that the Academic Staff Union of Universities (ASUU) strike was on the revitalisation of university education and other issues bordering on staff welfare. It  reiterated  its commitment to the struggle for proper funding of education with particular emphasis on university education.

    It added: “We also reaffirm our demand for the payment of the outstanding arrears of the earned allowances as well as the continued payment of same by ensuring the inclusion of all the needed funds for the payment in the 2019 budget.

    “Council-in-session, therefore, calls on the Federal Government in the spirit of fairness to deal with the issue of payment of Earned Allowances and sustenance of same by consciously including the non-teaching staff of universities and inter-university centres in the next release of fund for payment of same.”

  • Invest in aviation infrastructure, govt told

    The Federal Government has been urged to ensure massive investment in infrastructural development in the aviation sector this year.

    National Union of Air Transport Employees (NUATE) President, Ben Nnabue, made this submission in Lagos, while commenting on expectations of players in the sector from the government this year.

    He insisted that the expectations of the industry’s unions from the government in 2019 are high, stressing that without investment in infrastructure, the sector cannot be at par with its counterparts.

    It was necessary, he said, for the government to improve on the current infrastructure in the system and canvassed for development of electronic-airport terminals to enable it be synchronised with global trends as-well-as development cargo terminals (perishable and non-perishable) especially at airports with low passenger traffic to boost activity and increase Internally Generated Revenue (IGR).

    Nnabue also called for the installation of air field lighting at the 18Left runway of the Murtala Muhammed Airport (MMA), Lagos within the New Year, as well as the building of a new runway at same airport to complement the growing traffic at the airport.

  • NLC seeks alternative economic model for job creation

    There is need for an urgent alternative model of economic growth to address unemployment and under-employment, the Nigeria Labour Congress (NLC) has said.

    The congress was commenting on the National Bureau of Statistics (NBS) report for the third quarter, which stated that the number of unemployed increased by 3.3million year on year from 17.6million in Q3 2017 to 20.9 million in quarter three of 2018.

    The report also showed that underemployment, which decreased from 13.20 million in quarter three of 2015 to 11.19 million in quarter three of 2016, rose to 18.21 million in quarter of 2018.

    Also, the combined rate of unemployment and underemployment increased from 40.0 per cent in quarter three of 2017 to 43.3 per cent in quarter of 2018.

    In a statement, Comrade Ayuba Wabba said: “Beyond the increase in the size of the labour force as a possible cause of the unemployment, we are worried that the increasing pool of graduates, skilled and semi-skilled youth in the unemployment market,  is an indication of the sluggishness of the economy to actively diversify beyond oil, extractives and primary agricultural production.

    “It is more worrisome that as unemployment/underemployment increase so is the general increase in social vices and criminalities around the country where the youth are the most common perpetrators.

    “The congress is also concerned that the number of women in the unemployment/underemployment, which is currently 6.6 per cent higher than that of men, is partly an indication of the increasing vulnerability of families as poverty and cost of living increase and the economy is yet to fully recover from recession.

    “This situation not only worsens the vulnerability of women in the socio-economy, but further exacerbates the gender dimension of social vices and criminalities in the country.”

    Wabba said the combination of unemployment and underemployment coupled with inflation and a high cost of living put additional pressure on workers, who by traditional expectation will have additional responsibility to cater for some of the needs of relatives and friends.

    “This reality further justifies the need for an urgent implementation of a new minimum wage, which organised labour will keep its struggle until it is fully implemented without further delay,” he said.