Labour has reached an agreement with Oyo State Government that the total monthly allocations be devoted to salary payment.Workers are excited; government is also at peace. BISI OLADELE looks at the possible threats to the Memorandum of Understanding (MoU)
When organised labour issued a seven-day ultimatum to Oyo State Government last March 29 over salary arrears, it set the stage for a possible showdown over the matter.
The ultimatum was issued in Ibadan the state capital, by the Nigeria Labour Congress (NLC), the Trade Union Congress (TUC) and the Joint Negotiation Council (JNC).
The NLC Chairman, Comrade Waheed Olojede, announced the ultimatum at a press briefing, warning that government workers would down tools if the government fails to dialogue with them within the given period.
He said the unions had considered the prevailing condition of workers and pensioners, who were being owed five months salaries then and the government’s alleged failure to accede to previous requests.
Olojede said the situation had pauperised workers, adding that their productivity, diligence and commitment would be hinged on how they are treated.
“If government fails to meet the leadership of the labour movement in the state, we may not be able to guarantee continued industrial peace beyond the stipulated time,” he said.
But while sympathising with workers, the government, in a quick response, decried the ultimatum, saying it ran contrary to last year’s agreement signed by both parties on how salaries would be paid.
A statement by Mr Yomi Layinka, the Special Adviser on Communication and Strategy to Governor Abiola Ajimobi, said: “To say the least, the unfortunate situation (of inability to pay salaries) foisted on the country by the dwindling accruals from oil, the country’s major source of revenue, is a major concern to all and it is highly regrettable.
“While the government empathises with workers and pensioners over the attendant inability to pay salaries and other emoluments as it usually did in the past, we solicit continued understanding of labour over the matter.
“Meanwhile, it is important to note that leadership of the labour unions and the state government have had a very robust understanding on this matter long before now, following which an agreement was signed on the modality for the payment of salaries as finances are available.
“Indeed, the options of reduced salaries and reduction in an otherwise bloated workforce were considered but deferred in concession to the workers; instead a staggered salary payment strategy was proposed by labour and acceded to by government.
“To this end, it was agreed that about 90 per cent of income accruing from the state’s monthly allocation from the Federation Account should be dedicated to the workers while the remaining 10 per cent would be deployed to the running of other aspects of governance.
“Till date, the state government has not reneged on the letter and spirit of that agreement. The ultimatum issued by labour is, therefore, not only surprising but also unnecessary and uncalled for in the prevailing circumstance.”
The following day, the two parties met to iron out their differences.
After the meeting, the leader of the government team, Mr Olalekan Alli, explained that both parties were already reaching a truce, adding that labour leaders had apologised for acting in ways that breached last year’s agreement.
Alli, who is a former Secretary to the State Government (SSG), advised labour leaders to refrain from threats and ultimatum that run against the spirit and letter of the agreement to use about 90 per cent of federal allocation accruing to the state for salaries.
Alli said: “At the meeting (on Friday) the state government re-affirmed its compliance with the subsisting agreement with labour whereby 90 per cent of allocation from the Federation Account is devoted to payment of salaries and wages of workers on monthly basis.
“The government also observed that the present conduct of labour was at variance and in total disregard for due process, labour law and practice. In view of the foregoing, the government believes that labour is being insensitive and confrontational.
“However, the labour leaders denied the allegations and apologised accordingly. It further assured the government of its co-operation and maintenance of industrial harmony in the state.”
The former SSG said the apology has been accepted by the government and the governor has consequently directed that the subsisting agreement be adhered to pending the exploration by the government and labour of further avenues to improve the revenue of the state.
Alli added that the Friday meeting reached a consensus that the 10-month old agreement between labour and government subsists and that the government had no intention of reneging on any term of the said agreement.
In the spirit of collective responsibility, he stated that both parties also agreed to collaborate and evolve ways of blocking all financial leakages in the system with a view to jacking up the internally generated revenue (IGR) of the state.
“That all financial leakages need to be jointly and urgently plugged by employing strategies including elimination of ghost workers from the salary bill of our workers as well as identification, arrest and prosecution of fraudsters within the system.
“That a more positive and creative disposition is critical for turning around these times of adversity. It was resolved that all concerned should have learnt some lessons after this brief period of unnecessary and avoidable altercation,” the former SSG said.
But the meeting could not placate workers. They insisted on meeting with the governor before the expiration of the ultimatum.
Ajimobi finally joined them on Thursday for a final meeting during which a review of the former agreement was undertaken. The new agreement that evolved from the meeting ceded 100 per cent of the state’s federal allocation to payment of workers’ salaries.
The state government, however, declined request by the labour leaders that the IGR also be used to complement the federal allocation where there is a shortfall.
But the governor agreed to the setting up of the Joint Revenue Mobilisation Committee which will draw membership from both labour and government. The committee is to identify areas of wastages and plug them with a view to increasing the state’s IGR.
It was further agreed that incremental difference in the future would be shared by both the government and labour to shore up funds for salaries.
The committee is to be supervised by the Office of the Secretary to the State Government.
It was also agreed that the MoU would be reviewed time and again as situation demands.
Addressing reporters on the outcome of the meeting, Olojede said: “In our critical review, we discovered that devoting 90 per cent of Federal Government allocation to payment of salaries could not stand the test of time, because salaries kept running into arrears. We then agreed that henceforth, the entire 100 per cent of whatever comes from Abuja as federal allocation would be spent to pay workers salaries.”
The new deal has been hailed by workers, according to Olojede as it raised their hope of getting salaries more regularly.
The labour leader also revealed that the Central Bank of Nigeria (CBN) had offered states with salary issues a moratorium of 20 years, meaning that deductions from allocations of those states would be stopped or reduced to the minimum to allow them a lease of life for the moment.
