The Nation Newspaper

Category: Labour

  • NECA: economy still prone to recession

    NECA: economy still prone to recession

    •Fault NBS 2.19% growth

    The Nigerian Employers Consultative Association (NECA) has warned that the economy can relapse into recession unless urgent policy decisions are taken.

    It faulted the report by the National Bureau of Statistics (NBS) that Nigeria had exited recession, saying the economy was still in the woods.

    Speaking in Lagos at a briefing, its President, Larry Ettah, said major policy responses must be considered to ensure sustainable growth, as well as effective implementation of the Economic Recovery and Growth Plan (ERGP).

    Dissecting the report, Ettah observed that while it was positive that headline year-on-year inflation had moderated from 18.72 per cent to 16.05 per cent, largely due to base effects (high base occasioned by shock to energy prices in 2016), several components of inflation still remained high.

    He said other components that remained high include clothing and footwear at 15.8 per cent, education 15 per cent, imported foods 14.1 per cent, furnishings and household equipment maintenance 12.3 per cent, transport 11.7 per cent and health 10.3 per cent.

    He noted that the review of the NBS Gross Domestic Product (GDP) data showed that the marginal growth recorded in the second quarter (Q2) 2017 was weak and fragile, stressing that additional measures were required to ensure sustainable economic growth to the extent that the economy does not relapse into recession.

    “We recommend strong implementation of the ERGP to boost local and foreign investors’ confidence in the Nigerian economy and generate additional investments, which appear critical to building a sustainable recovery.

    “We note that against our population growth rate of 3.2 per cent, any GDP growth lower that two per cent makes no significant impact on poverty, unemployment and inequality and is insufficient to ensure business growth and profitability.

    “We urge economic planners to adopt measures to attain the growth targets stated in the ERGP. Already, we fear that the 2.19 per cent growth target in ERGP for 2017 appears unattainable,” Ettah said.

    He pointed out that the NBS report for Q2 confirmed the dire situation in most economic sectors including manufacturing, trade, telecommunications, hospitality, construction, real estate, transport and professional services. Ettah added that it also showed the poor state of the country’s social sector, as shown by the recession in education and health sectors. He stressed that it was clear that policy responses were yet to reverse these negative trends.

    “We are of the opinion that government needs to adopt specific, targeted and effective policies to attract and promote private capital investments in the Nigerian economy, especially infrastructure and industry.

    “So far, it does not appear as if the rhetoric in ERGP to make markets work and leverage private capital as the engine of growth has been matched by appropriate policy responses,” he said.

  • NUBIFIE urges Fed Govt to inject funds into banks

    The National Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE) has appealed to the Federal Government to inject funds into the banking sector to boost its activities.

    Its President, Mr Musa Danjuma, who spoke at the sixth Quadrennial Delegates Conference in Lagos, said the financial sector has gone through fundamental transformation in all areas of its activities.

    According to Danjuma, there have been policy interventions by the government, evolving innovations in ICT-driven operations and new employment system and its impact on economic and social status of workers among others.

    He said the government should put back some of the money realised from Treasury Single Account (TSA) with a proviso that it should be deployed to critical sectors of the economy.

    He said the financial sector has been under close watch for some years through various intervention measures by regulatory authorities and this has impacted on socio-economic development and issues in work place.

    The union leader said the issue of mergers and acquisitions also led to job losses as consequence of re-alignment and restructuring of banks and insurance industry weakened the capacity of the union to engage employers on the issue of condition of service.

    On TSA, Danjuma said the union supported its introduction, but the policy created liquidity challenges for financial institutions, which now relied on government funds to manage their business and generate income.

    He further said that government should ensure that it sustains the process of whistle blowing policy to ensure that it succeeds in the fight against corruption.

    “As a union we pledge our support for the policy and commend the National Assembly for a bill to institutionalise the war against corruption and discourage any attempt to abuse the policy for self seeking purpose,” Danjuma said.

  • ULC strike: NNPC cautions against panic buying

    The Nigerian National Petroleum Corporation (NNPC) has warned Nigerians against panic buying of petroleum products in compliance to the strike embarked upon by the United Labour Congress (ULC), stressing it has enough stock of products to meet national need.

    This was even as the strike purported to have commenced on Monday failed to make any impact on the masses and businesses as Nigerians went about their activities without any disruption.

    The ULC President, Joe Ajaero, however, said the strike in its first day recorded huge success in the target the centre set for it to achieve.

    The NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, in a statement in Abuja, said the corporation had sufficient Premium Motor Spirit (PMS), otherwise called petrol, in stock to serve the nation for 48 days.

    He said: “Similarly, there is in stock, sufficient quantity of Automotive Gas Oil (AGO), Dual Purpose Kerosene (DPK) as well as Aviation Turbine Kerosene (ATK) to serve the country.

    “Motorists are further enjoined to report any challenge they may have in the course of purchasing any of these products to the Department of Petroleum Resources (DPR).

    “The DPR is statutorily empowered to deal with such issues and has offices located in all parts of the country.”

    NNPC assured that the government was working to arrive at an amicable resolution of outstanding issues with the industry unions.

    The ULC had threatened the Federal Government that it would go on strike from Monday, if its 11-point demand was not met. It demanded, among others, that the Federal Government stopped stationing soldiers and policemen in its workplaces.

  • Labour to organise rallies in states owing salaries, others

    Labour to organise rallies in states owing salaries, others

    The Nigeria Labour Congress (NLC) is poised to organise rallies in states that have failed to use the bailout funds and the Paris Club refunds to pay workers’salaries.

    At the end of its Central Working Committee (CWC) meeting in Abuja.

    NLC President, Ayuba Wabba, said the “Name and Shame rallies” would  draw attention to the  suffering of workers who have not been paid for several months.

    The CWC meeting urged President Muhammadu Buhari to direct the Minister of Finance not to release the third and final tranch of the Paris Club refund until the governors make a commitment to pay the backlog of salaries and pensions.

    The CWC directed all workers, pensioners and their families to support governors that have used their funds judiciously.

    On the persistent lack of electricity, despite that power companies received about N740 billion since 2015, Ayuba said he found it difficult to rationalise why the government was planning to give N39 billion more to the Electricity Distribution Companies (DisCos) for metering.

    “Given that one of the conditions before the privatisation by the last administration was that the new owners would provide meters for customers within 24 months, CWC said the defaulting DisCo ought to face sanctions and not additional bailout,” Ayuba said.

    The union also condemned Morocco’s request to become a member of the Economic Community of West African States (ECOWAS).

    “CWC feels that on account of Morocco’s continuing defiance of the United Nations (UN) and the African Union (AU), by continuing to occupy Western Sahara, the Kingdom should not be allowed into ECOWAS.

    “The CWC, therefore, resolved to mobilise Nigerians and all its stakeholders to ensure that the National Assembly does not support the admission of Morocco into ECOWAS,” it said.

    The NLC also hinted that it would engage in public discussions on major national issues, geared towards sensitising Nigerians and directing the government’s and citizens’ attention to the task of nation-building and inclusive development, during this year’s Independent Day celebrations.

    It also bemoaned the non-composition of the National Minimum Wage negotiation committee even after labour had submitted the names of its representatives to the committee.

    It urged the Federal Government to kick off negotiation, as the negotiating committee should have  been put in place long ago in line with the 2011 Collective Agreement.

    Congress stressed that the government and its partners should fast-track and conclude the negotiations on  time.

  • Workers vow to tackle govt over promotion arrears

    Frustrated by the Federal Government’s unfulfilled promises to pay promotion arrears, outstanding salaries, and allowances owed federal officers,  the Association of Senior Civil Servants of Nigeria (ASCSN) has resolved to shut government’s agencies, if the debts are not paid on or before,  September 18.

    In a statement in Lagos, the association’s Secretary-General, Comrade Alade Bashir Lawal, said the union regretted that, for more than two years, the Federal Government had been promising to pay federal officers their outstanding entitlements.

    “It is rather unfortunate that the same Federal Government that has given state governments bailouts up to three times to settle the entitlements owed their workers, takes delight in punishing its own employees by denying them their legitimate benefits,” the union stated.

    According to ASCSN, the debts owed by the Federal Government include outstanding salaries, promotion arrears, first 28 days allowance on transfer from post, mandatory training allowance of OHCSF 2010, repatriation allowances, burial expenses, and death benefits.

    It recalled that the union had written several letters to the Presidency to settle the debts owed federal officers, but the government has been dilly dallying.

    “Although the Federal Government had issued two different circulars directing the Ministries, Departments and Agencies (MDA’s) to compile the names of their staff that are affected which they did, yet, no payment was made.

    “Even when the government directed the Budget Office to raise virement last year for the payment of the outstanding entitlements, there was no cash backing until the virement lapsed,” the Union lamented.

    It said two months ago, the Federal Ministry of Labour and Employment informed the union that N10 billion had been earmarked to kick- start the payment, but nothing has happened.

    The union emphasised that the patience of the workers has been exhausted on the matter and that if not for the trade union skills being employed by the leadership of the association, the entire federal public service would have been engulfed by strike.

    “Workers have come to agree that the Federal Government is not in any way serious about paying them their outstanding entitlements.

    “In view of the foregoing, the ASCSN has given the Federal Government a seven-day ultimatum with effect from September 8, 2017 within which to settle all the debts owed federal officers failing which a three-day warning strike will start in all the federal MDA’s throughout the country,” the Union said.

    It urged prominent citizens, monarchs, religious leaders and other stakeholders to prevail on the Federal Government to pay the debts owed federal officers.

     

    and not wait until the strike action starts before they begin to plead with the Union to call it off.

  • No wage increase, no recovery, says Aremu 

    No wage increase, no recovery, says Aremu 

    There can be no meaningful economic recovery until the Federal Government addresses productivity and wages matters, the General Secretary, National Union of Textile, Garment and Tailoring Workers (NUTGTW), Comrade Issa Aremu, has said.

    In a reaction to a report by the National Bureau of Statistics (NBS) that Nigeria, with a Gross Domestic Product (GDP) growth of 0.55 per cent, is out of recession, he noted that the economy has the potential for faster recovery and not just exiting recession.

    According to Aremu, this could have been possible if the government had put an end to the persistent crisis of compensation of the working class, manifesting in what he termed as “criminal” non-payment and delayed payments of salary by many states, despite several Federal Government bailouts of trillions of naira.

    On the  the NBS positive growth numbers of 0.55 per cent, compared to the negative contraction of  1.6 per cent in 2016, Aremu said Nigeria could only recover from economic recession with enhanced purchasing power, which is only possible through prompt and adequate payment of over 10 million employed workforce.

    The labour leader, who likened Nigeria’s economy to a big, blind economy, which gets excited with a dimmed ray of eye sight, said it was time Nigeria got right its growth and development numbers.

    He noted that the Federal Government’s Economic Recovery and Growth Plan (ERGP) (2016-2020), launched last year, envisaged 4.6 per cent real GDP growth in the year, adding that this makes the recent token positive growth of 0.55 per cent a far cry from the planned target.

    Aremu, a labour representative on the National Wages and Salaries Commission, said the key to sustainable development has improved labour productivity in both public and private sectors, which could only happen with motivated pay and quality pensions.

    He advised the Federal Government to address the crises of compensation in all sectors, notably education, and setlle with unions, such as the Academic Staff Union of Universities, which is on strike, by paying all outstanding allowances and ensure service delivery on the part of the workforce.

    “Nigeria’s economic recovery is elusive, with constant avoidable work stoppages and loss of man hours in an economy trying to exit recession,” Aremu added.

  • ‘Multiple taxation affecting businesess’

    The National Union of Food, Beverage and Tobacco Employees (NUFBTE) has said  multiple taxation is hindering business development and reducing employment opportunities.

    In an interview in Lagos, its President, Mr. Lateef Oyelekan, spoke on the implication of multiple levies to water business operators.

    He decried the use of private companies by state governments  to collect taxes.

    “A newly-established water factory or business is not supposed to be taxed for one year, to allow such a business to develop and gain its market share,’’ he said.

    The union chief said rather than make taxes a burden for local investors, state governments should encourage manufacturers to stabilise their businesses to attract more customers.

    Oyelekan also urged officials of  the Association of Table Water Producers of Nigeria (ATAWAP), Lagos State Chapter to collaborate with the union to ensure business growth and the protection of their workforce.

    On recession, Oyelekan hailed the President Muhammadu Buhari-led administration for ensuring the country got out of it.

    He, however, urged the government to ensure that the people felt  the impact by negotiating a new minimum wage for workers to boost their livelihoods.

    “Nigerians should be able to benefit and feel the impact that recession is over. States owing workers should pay up-to-date. This is the only way to show that recession has ended,’’ Oyelekan said.

    Last month, ATAWAP members threatened to relocate to Ogun State over multiple taxation, which its officials said was suffocating their members’ businesses.

    The 2,600 table water producer-group, therefore, urged the government to reduce taxes and rates in the sector.

  • NLC urges Buhari to reshuffle cabinet

    NLC urges Buhari to reshuffle cabinet

    The Nigeria Labour Congress (NLC) has called on President Muhammadu Buhari to reshuffle his cabinet and relieve some ministers who under-performed of their duties.

    Speaking with The Nation on the expectation of Labour from the President Buhari, NLC President Comrade Ayuba Wabba said  Buhari should reshuffle his cabinet because many ministers had not performed to expectation.

    Wabba said there were high expectations from Nigerians, when the President returned from his medical vacation.

    The expectations, according to him, range from the need to rejuvenate the economy, address the issues of security and insurgency, kidnapping, corruption, hunger, minimum wage and the constitution of the boards of many agencies.

    Specifically, he pointed out that it was high time for Buhari to assess the performance of his ministers and other political appointees, adding that there is the need to inject new and fresh ideas.

    “There is high expectation in how to rejuvenate the machinery of government, especially looking at the performance of the ministers and some political appointees. I think, usually in the life of any administration, halfway down the line will be a enough time to assess their performance and then assess the impact that they put into the system.

    “Most Nigerians expect that there is the need to add impetus to governance and looking at key sectors and ministries, there are few that have done well, but many have not done well. So, there is expectation that the cabinet be reshuffle and be able to inject new ideas.”

    “Two years down the line of any administration is enough to do a kind of assessment, and looking at a very genuine assessment, there is still much to do, to get to the promise land.

    “Even in the fight against corruption, you can see that a lot of cases have been thrown up, but I think none of them has been concluded. There is the need for those cases to be completed, get conviction and declare how much was recovered and then, those recoveries can be put into the system to make tangible impacts.

    “So, those are clearly some of the high expectations of Nigerians as well as organised labour and the workers. In this circumstance, President Buhari will have more than enough at his hands to be able to drive the process of governance.”

    On security, he said “There are needs for some steps to be taken. This is because progress was made, but it can be reverted if they are not sustained. So, there is the need to sustain some of those interventions, especially around the Northeast.

    “The insurgency has actually come up with new strategies and tactics which has made the Acting President to direct the Service Chiefs to move their offices to the Northeast. So, I think this also is an area that we do not expect the reversal of the gains that has been made, everything need to be done to sustain the momentum, to ensure that we are able to clear all the remnants of the insurgency because without peace, there cannot be development anywhere around the world.’’

    He added: “We also heard of new elements like kidnapping in some states, this is very strange to us, this is new, but also this clearly are signals that there are challenges in accommodating our youths and the issue of employment is  very important.”

  • Don’t interfere in pension contributions, PENGASSAN warns

    Don’t interfere in pension contributions, PENGASSAN warns

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has cautioned the Joint Tax Board ((JTB) and some state boards of internal revenue against interfering in the voluntary Contributory Pension Scheme as entrenched in the Pension Reform Act of 2014  and the 2015 amendment.

    PENGASSAN said such steps by the JTB and some state boards of internal revenue could jeopardise the relative industrial peace in the country.

    Reacting to the advertisements  by the tax bodies in some national dailies, threatening to impose taxes on withdrawals by workers from their voluntary contributions, the senior staff association in the oil and gas industry stated that this was contrary to the Pension Reform Law.

    In a statement signed by the National Public Relations Officer of PENGASSAN, Comrade Fortune Obi, the union said it was the responsibility of the National Assembly to amend any section of the Act as deemed fit, and that of the Judiciary to provide interpretations where necessary.

    “Hence it will be provocative for the JTB or state tax boards to unilaterally usurp the powers of the legislature and the judiciary by its planned and illegal move to tax such withdrawals. The tax authorities should be reminded that tax avoidance is the arrangement of one’s financial affairs to minimise tax liability within the scope allowed by law and is distinct from tax evasion which implies the illegal non-payment or underpayment of tax due,” he stated.

    Obi cited Section 4(3) of the PRA 2014, which provides: “Any employee to whom this Act applies may, in addition to the total contributions being made by him and his employer, make voluntary contributions to his retirement savings account”.

    “Section 10(4) of the Act further provides that “… Any Income earned on any voluntary contribution made under Section 4(3) of this Act shall be subject to tax at the point of withdrawal where the withdrawal is made before the end of five years from the date the voluntary contribution was made”.

    He noted that with these clear provisions, it is obvious that the tax authorities are over-stepping their bounds by attempting to place restrictions on withdrawals against the express provisions of the law.

    The PENGASSAN spokesperson said the association had concerns with some aspects of the law, but it has not taken the law into its hands by resorting to self-help as the tax authorities are attempting to do.

    “As a law-abiding association, we are waiting for a time when the National Assembly will initiate an amendment process so that we can make our inputs into the process and we hope that all stakeholders will toe the part of peace and honour.  On the other hand, if they cannot wait for such a time, then the appropriate thing is to approach the law courts to determine the legality or otherwise of the current provisions.

    He restated the PENGASSAN’s commitment to defend workers should the tax authorities go ahead with their threats to deprive workers from accessing fully their voluntary contributions as and at when needed.

    He added:  “However, we remain committed to dialogue to resolving whatever differences may exist between our association and other stakeholders.”

  • Union lauds private employment agencies for jobs enhancement

    The Human Capital Providers Association of Nigeria (HuCaPAN) has said private employment agencies have enhanced jobs and development of businesses.

    HuCaPAN Presdent Mr Remi Adegboyega said while addressing reporters in Lagos.

    HuCaPAN with 150 companies was established to provide an interface through which government and its relevant authorities can consult and relate with providers of outsourced personnel.

    According to Adegboyega, global economic challenges and the need for greater efficiency in businesses have led to increase in dynamic business models.

    He said employers believed that companies that would be sustained must be lean, efficient and responsive because rising wage bills and skills deficit are huge risks to investment.

    ‘’Many workers choose agency work because of their circumstances and the greater flexibility PEAs provide. For some workers, agencies act as a gateway to securing permanent work.

    ‘’While other workers choose temporary work because it allows them to best balance their work with commitments such as self-development, entrepreneurship interests, sports or farming,’’ Adegboyega said.

    He said the market of private employment agencies have grown significantly as business operators in a bid to face their core competencies have adopted the “do what you do best and outsource the rest” model.

    He, however, said employment agencies should recognise the right of workers to belong to a union and ensure that workers contributed to issues that affect their employment.

    ‘’An employers should ensure that he or she will not stop workers from joining the union. The employer must negotiate regularly with union leaders on how to improve workers condition of service,’’ he said.

    The HuCaPAN chief further said members were encouraged to pay the stipulated minimum wage to any person recruited, and tax and pension deducted must be remitted.

    “Every Nigerian irrespective of  their work should be proud of what they are doing and be treated fairly in their jobs. They should attain the basic rights of dignity at work.

    “It is in doing this that the economic value of each and every one of our teeming population would be shored up,’’ he said.

    HuCaPAN is a body that get owners of business of private employment together to enable them improve the operations and comply with statutory requirement.