Indications emerged at the weekend that the N170 billion meant for
disbursement to workers of the Power Holding Company of Nigeria (PHCN)
as settlement benefits to cover gratuities and pension of workers as
agreed by both parties in negotiation for the transfer of ownership of
the PHCN successor companies to their eventual owners is ready.
The Federal Government and the labour unions in PHCN finally resolved
lingering issues that were threatening the progress of the power reform
programme when they struck a deal late on the thorny issues of severance
pay and pension for electricity workers after a late Tuesday night
meeting at the office of the Secretary to the Government of the
Federation (SGF) in Abuja.
But speaking Saturday at the fifth national power summit organised by
the Federal Ministry of Power in Lagos, the Permanent Secretary at the
ministry, Dr. Dere Awosika disclosed that the funds for the settlement
were ready and the Bureau of Public Enterprises (BPE) was already
working out total cost.
Awosika explained that letters notifying the workers to forward details
of their Retirement Savings Account (RSA) for onward transfers of their
benefits will be issued out to the workers within next week.
She also hinted that training was being organised by the Federal
Government for top officials of the successor companies on labour issues
and modalities for winding up before the eventual hand over to the
preferred bidders, adding that a consensus on the date to wind up the
companies would have to be reached.
“The senior officials are going to be trained to be equipped to provide
needed leadership and direction to the labour in the sector. It will
equip them to be able to negotiate employment terms with the new
owners. We need to have a consensus on the winding up date for hand over
to the new owners (preferred bidders),” Awosika said.
Also in her presentation, former permanent secretary in the Ministry of
Labour and a member of the Federal Government negotiation team with the
labour unions, Dr Timi Agary said the agreement reached last week
provided that 20 percent of all accrued benefits are to be paid to the
workers as gratuity while 25 percent of all accrued benefit are to be
paid as pension.
Agary stated that the Federal Government would soon approach the
National Pension Commission (PenCom) for a forbearance package to be
able to pay staff of the utility company their pension, adding that the
2004 Pension Act provides that only workers who opened their RSA before
2007 are eligible for pensions but that a clause provides for a
forbearance granted by the PenCom.
She urged Chief Executive Officers (CEOs) of the successor companies to
stop rejecting staff posted from the headquarters to their stations
considering that the Multi Year Tariff Order (MYTO-2) did not make
provision for their salaries.
She said: “I plead with the CEOs to accept the headquarters staffs that
are on transfer to them to allow them access the pension. They will
find it difficult to get their salaries if you refuse to accept them.”
Agary further warned the preferred bidders who are expected to take
ownership of firms not to be averse to labour unions, saying the Nigeria
laws provide for a vibrant labour unionism.
“Our laws provide for labour unionism. What we want is responsible
unionism. I know the private sector is averse to unionism. Even as
government, we will protect them,” she saidSource
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