Contract staffing and outsourcing have been a feature of Nigeria’s labour market for decades, but it is more rife in the banking sector. This may, however, be a thing of the past as a new guideline for such staff recruitment has just been signed. TOBA AGBOOLA reports.
For Tony Umoh, a banker, climbing the corporate ranks of commercial banking in Nigeria has been a frustrating exercise.
Thirty-year-old Tony has worked as a teller with one of the biggest banks in Nigeria for close to 10 years.
Nine years on, he is at the same branch, working at the same entry-level, for the same meagre salary of N78,000 (about $100) a month. It is not Tony’s work ethic that is lacking, but the arrangement under which he works. He is not technically a full-time employee of the bank. The entire time he’s worked there, he’s been a contract staffer hired by an employment agency he has never dealt with directly.
Being a contract worker means Tony has no upward career path within the bank, or benefits such as insurance, a pension, or a severance package if he’s let go. If the bank’s management is not happy with his services, or they just want to cut expenses, they can let him go when his contract is due for renewal every two years.
However, the employment agency siphons off a portion of his pay each month as “commission”.
Tony often thinks of quitting his job as a bank teller and a contract staffer. But there are few prospects for him in the country as unemployment rate keeps surging.
For instance, recently, the official unemployment rate by the Nigeria Bureau of Statistic (NBS) rocketed to 33.3 per cent.
Over half of the country’s roughly 70 million-strong labour force was either jobless at the end of last year or not working a full-time job. Recent report by the NBS indicated that more than 75 per cent of bank workers in Nigeria were contract staffers as at the third quarter last year. The others are full-time employees with banks – roughly a third of whom are senior staffers.
In addition to Tony’s woes, Tony barely has the time to go in search of a job elsewhere. This is because after working 10 hours in the office, he has little time to even explore the few opportunities which may be available to him.
He leaves the house as early as 5am or 6am and gets back by 6pm or so. There is no way or time for him to search for jobs after getting home tired
Though unionists and government officials say the issues surrounding contract bank workers were being addressed, succour has been slow to come.
However, there seems to be light at the end of the tunnel for this set of workers. This is because after 10 years of intense discussions and negotiations among stakeholders, the Federal Government has released for implementation Guidelines on Labour and Administration Issues in Contract Staffing/Outsourcing Non-Permanent Workers in Banks, Insurance and Financial Institutions.
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The employment guidelines, a product of the Central Bank of Nigeria (CBN), Nigeria Employers’ Consultative Association, (NECA), Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI), National Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE), among others, provide in clear forms good industrial relations principles and key terms and conditions of employment to be observed by stakeholders in the banks, insurance and financial institutions.
The guidelines, signed into law on September 8, 2022 by the Minister of Labour and Employment, Dr. Chris Ngige, pursuant to the powers conferred on the Minister by Section 88 (i) (e) and (g) of the Labour Act, Cap L1, Laws of the Federation of Nigeria (LFN) 2004, was unveiled on September 29, at a ceremony in the Secretary to Government of the Federation (SGF) Conference room, Abuja.
At a joint briefing in Lagos, leaders of ASSBIFI and NUBIFIE, while unveiling the new guidelines to reporters, disclosed features of the guidelines including entry requirement and minimum pay for non-permanent employees, career path and development, the right to unionise and to collective bargaining, trade dispute resolution procedures, disciplinary procedure, compliance with standards and labour requirement and exit procedure and benefits for the workers.
Speaking on behalf of the two unions, the President of ASSBIFI, Comrade Oyinkanola Olasanoye, said the “employment guidelines will improve job satisfaction and staff performance, reduce incidences of frauds traceable to discontented casual workers in the financial sector and generally reduce exploitation and other unfair labour practices capable of escalating industrial conflicts and crises in the work place. Also, it will regulate conditions of employment and standardise non-permanent employment, especially in the areas of career progression, salaries and wages, disciplinary measures, health and safety, corporate performance and productivity.
“The request for a guideline to regulate conditions of employment of non-permanent employees in the financial sector started a decade back, and with the active participation of representatives of the CBN, the Nigeria Labour Congress, NLC, the Trade Union Congress of Nigeria, TUC, NECA, Federal Ministry of Labour and Employment, ASSBIFI and NUBIFIE. We are grateful to the Minister of Labour and Employment, Dr. Chris Ngige, for accelerating the process which culminated in what we are presenting to you today, Employment Guidelines on “Labour Administration Issues in Contract Staffing/Outsourcing Non-Permanent Workers in Banks, Insurance and Financial Institutions”.
“With the signing and approval of this Guideline by the Government, relevant stakeholders, especially employers in the banks, Insurance and Financial sector, are implored to cooperate and collaborate with focal agencies of Government and Unions concerned to achieve the objectives of this guideline and improve industrial relations practices and standards in Nigeria.
“Inferring from reliable but unempirical records available to us, most insider induced frauds, particularly in the banks are perpetuated by disgruntled casual employees. These employees do not have the training and orientations usually given to the regular employee, they do not have that sense of belonging because of their poor conditions of employment which open them to temptation.
“But today, with this guideline, the non-permanent employee can pursue a career line, unionise and draw from benefits of collective bargained agreements. Without doubts, the guidelines will bring fresh breath of life to many in the Sector, improve industrial relations, reduce incidence of fraud and increase productivity.”
Collaborating the ASSBIFI’s President, NUBIFIE’s President, Abakpa Anthony, among others, solicited the cooperation of stakeholders including the media for the publicity of the guidelines and bringing same to the knowledge of all operators in the Sector, adding “We struggled to ensure the formulation and put into operation of this Guideline to check unfair labour practices, exploitation and grievances in the sector.”