Labour, Ogun Govt Agree On Immediate Payment Of N1.5billion Cooperative Deductions, Other Demands - THE ENCOUNTER NEWS


Monday, July 4, 2022

Labour, Ogun Govt Agree On Immediate Payment Of N1.5billion Cooperative Deductions, Other Demands

ABEOKUTA - Following the abrupt end of industrial strike action by the Organized Labour in Ogun state on Friday, the Joint Negotiating Committee (JNC) and the state government have agreed on the immediate payment of the workers 21 months unremitted deductions by Governor Dapo Abiodun administration.

The Organized labour had last week Tuesday embarked on industrial strike action over 21 month unpaid deduction, dysfunctional contributing pension among others.

Although, the strike action has been suspended following an MoU signed between the government and the organized labour in the state, but misconception has continued to trail the labour unions decision to call off the strike as agreement with the state government remain sketchy. 

However, the government has agreed to pay N1.5billion in July, 2022 as the first tranche of N6.1billion unremitted deductions, while the balance will be spread concurrently till December 31, 2022.

The labour unions also agreed with the government on the immediate payment of Cooperative deductions to the appropriate Pension Fund Administrators (PFAs).

According to the labour leaders, the state government has agreed to commence payment of gross salary from July, 2022, while the labour union has urged the government to expunge the existing contributing pension scheme.

THE ENCOUNTER NEWS reliably gathered that, Governor Dapo insisted that expunging the Contributory Pension Scheme would negate the existing law that established it.

The government, therefore, agreed to set up a committee comprising of the labour unions representatives to formulate on the modalities within two weeks, whilst the committee will revert to OGHA to give it legislation back up.

On the payment of leave allowance, the government has considered paying leave allowance alongside salary from January 2023.

The labour leaders equally enjoined the government on consequential adjustment on minimum pension. 

But Governor Abiodun and the labour leaders have agreed to set up a committee comprising of government officials, labour leaders and pensioners to agree on a review of the current N5,000 and come up with a new amount that payable by the government.

The state government has also agreed to the increase in the quarterly release of N500m on gratuity, from the Third quarter of 2022.

Meanwhile, the state government has agreed to discuss the 2021/2022 promotion exercise with the labour unions at their next meeting in August this year.

Confirming the development, Association of Senior Civil Servants of Nigeria (ASCSN), Ogun state chapter has disclosed that, this was part of the various demands in the Memorandum of Understanding (MoU) signed by the organized labour with the state government which seeks to improve the welfare of the State Civil and Public Service workers.

ASCSN disclosed this on Monday in a press release jointly by its Chairman, Isa Olude, and Secretary,  Adebiyi Olusegun.

The association said it's confident that fairer deals have been secured with close monitoring and implementation.

The release further read, "We are confident that a fairer deal has been secured whilst we keep a close and sustained watch on its implementation. Matter of fact, each of the issues has been drawn to be achieved within a time limit.

"Gross Salary payment starts this month, July 2022 whilst the sum of #1.5billion is to be released, within 30 days, as the first tranche, to offset part of the arrears while the balance is to be paid, not later than December 2022.

"In all our doggedness has paid off much as we salute members' perseverance and dedication to the strike action indeed, the experience has provided us the impetus that collectively, much could be achieved. We are pained over the loss of Comrade Sunday Ogunjimi."

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