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Tue. 3rd November, 2009
Labour Today

We will embark on full-scale strike - Labour threatens over deregulation, minimum wage, Uwais report

By Soji-Eze Fagbemi, Abuja - updated: Monday 02.11.2009


Nigeria Labour Congress President, (NLC)
Comrade Abdul Wahab Omar (left),
President of Trade Union Congress,
Comrade Peter Esele (middle) and NLC
Secretary-General, Comrade John Odeh,
during the NLC Rally on deregulation of
petroleum products in Abuja, on Thursday.
Photo by Mac Davis Ajibade and
Sunday Osunrayi.
LAST Thursday in Abuja, the Nigeria Labour Congress (NLC), the Trade Union Congress (TUC) and the Labour and Civil Society Coalition (LASCO) concluded the last phase of the series of their rallies across the six geo-political zones of the country.

The rallies were to protest certain issues being dragged with the Federal Government for years. At the end of the rallies, they presented a letter to President Umaru Musa Yar’Adua, through the Minister of Federal Capital Territory, Senator Muhammad Adamu Aleiro, on why they held the national rallies.

The letter was jointly signed by the NLC President, Comrade Abdulwaheed Omar, the TUC President Comrade Peter Esele and Co-Chairman LASCO, Comrade Dipo Fashina.

The letter read: “On behalf of the Nigeria Labour Congress (NLC); Trade Union Congress (TUC); and Labour and Civil Society Coalition (LASCO) we bring you warm greetings. Today is the culmination of nationwide rallies we began holding from May 13, 2009 with the rally and procession in Lagos.

“The three primary issues that necessitated the rallies and processions are the: Planned deregulation of the downstream sector of the oil industry; fast- tracking negotiation of a new national minimum wage and wage review and non-implementation of the Justice Uwais Electoral Reform Report.

“Permit us to acknowledge sir that prior to today’s rally, we, on October 16, 2009, held preliminary discussions with Government’s Committee on Reform of the Downstream Petroleum Sector, led by the Finance Minister, Dr. Mansur Mukhtar.

“The meeting, being preliminary and exploratory, adjourned to reconvene at a later date. Despite this, we noted and stated before the government team that its arguments for the deregulation of petroleum products are precisely the reasons why there should be no deregulation.“Among other issues, the government lamented at the meeting that marketers are hoarding products and that their underhand tactics had forced the NNPC to rent initial 600 trucks to distribute petrol products, with a pledge to hire additional 400 trucks.

“If with government’s involvement, the marketers are holding the country to ransom, then what they will do under deregulation can be better imagined. “We also told the government team that its argument that the economic meltdown makes deregulation necessary is not in tandem with trends in other parts of the world, like United States and Europe where the meltdown has meant government stimulus package for the economy and the citizenry. As other forward-looking countries have shown, this is not the time to cut social spending; rather this is the time to increase social spending.

“Another major fault in government’s thinking that was discernible at the meeting is its almost metaphysical belief that deregulation will lead to availability of petroleum products and crash in prices of the products.

“The Nigerian people do not have such believe or faith in the religion of market forces. In any case the deregulation of diesel has only led to hoarding and astronomical increase in prices of the commodity.

“It is our view that the deregulation of the downstream sector of the oil industry will only spell doom to the economy and bring untold hardship to the Nigerian people. If deregulation is allowed, the country will return to the era of arbitrary high prices, profiteering, adulteration of commodity, artificial queues, as well as endless importation of refined petroleum products.

“We are of the view that the problem of instability in the supply and distribution of petroleum products is embedded in the inefficiencies and corruption in the management of the Petroleum Support Fund and sharp practices in the downstream sector of the oil industry. These are exacerbated by the deliberate weakening of the capacity of the refineries to produce due to incessant but deceptive Turn Around Maintenance that only lead to frequent breakdowns.

“For us in the Labour Movement, the solution lies in government stopping the importation of refined petroleum products at no distant future, having the political will to decisively check leakages in the downstream sector of the oil industry, honestly fixing the refineries and building new ones. The chain effect prices of petroleum products have on other commodities and services makes it imperative that the product must be available at moderate prices to the average Nigerian.”

MINIMUM WAGE INCREASE AND GENERAL WAGES REVIEW
“In these times of global economic crisis most governments have abandoned the path of market fundamentalism in favour of a regulated people-oriented system of governance. This stresses the need for stimulating and re-invigorating the labour market through mass job creation and cushioning the effects of the economic downturn on the citizenry. In line with this, workers need a stimulus package and better standard of living by government increasing the minimum wage and carrying out general wage review in the country. While the wages of workers were raised by 15% in the last three years, emoluments of public office holders were increased by over 800%. The rather lame attempt at cutting 20% from the wages of public office holders is only a tokenism in the current compensation scheme.

“We are demanding the expeditious conclusion of negotiations and implementation of a new minimum wage and general review of wages in the country.”

ELECTORAL REFORMS
“Another issue of concern to the Labour Movement is the need for fundamental electoral reforms to check the massive fraud and violence that have become the hallmark of our electoral system. The setting up of the Justice Uwais Electoral Reform Committee was a welcome relief to most Nigerians who believe in the sustenance of our democracy through credible elections. It was surprising that despite the wide consultations that led to the recommendations of the Uwais Committee, the Federal Government jettisoned some fundamental recommendations that would have strengthened our electoral system and ensured that the votes of the people count.

“We believe that a neutral and independent electoral body would go a long way in restoring confidence in the electoral process. The recommendation that for the INEC Chairmanship, the National Judicial Commission should screen candidates, shortlist and forward three candidates to the National Council of State, which shall select one of them and send to the National Assembly for ratification, to our mind, is the best way of ensuring unbiased electoral umpire for the nation. Secondly, to check election riggers benefiting from elections they never won.

“The committee had also recommended that all electoral disputes should be resolved before the swearing-in of elected officers. This would ensure that the practice of unelected persons imposing themselves on the electorate for upward of 18-36 months as we have witnessed in our recent electoral history, will be effectively brought to an end. Additionally, the practice of election riggers who, when sworn in, use state funds to oil their litigation to stay in power, will be eliminated.

“Our position is that these issues if thought through and implemented by Government will not only go a long way in raising the quality of life of workers and the Nigerian people, but also ensure a level playing field for electoral contestation and good governance.

“We pray that your administration will listen to the voice of the people and muster the political will to do justice. But if government insists on pursuing anti-people and anti-democratic policies, which we believe will be detrimental to workers and the Nigerian people, the Labour Movement will have no option but embark on a full-blown national strike after today’s rally. We remain open and committed to discussion on these issues.”


Trustfund assures workers of their contributions’ safety - Denies N54 billion fraud allegation

Soji-Eze Fagbemi, Abuja

A foremost Pension Fund Administrator in the country, the Trustfund Pension Plc, has assured Nigerian workers, whose pension funds it holds in trust, of absolute safety of their contributions.

The Board Committee of Trustfund has also restated its confidence in the management of the company, acknowledging that the dexterity and selfless sacrifices of the management have continued to place the company in an enviable performance position in the country, even in the face of both internal and external challenges.

The pension administrator assured its contributors, as it also denied the allegation and reports of N54 billion fraud in the company, describing it as a falsehood intended to tarnish its corporate image and goodwill, and deliberately sponsored by persons ”who have been shifted out of the system for lack of transparency and integrity.”

In a statement titled: “Alleged Fraud of N54 billion,” and made available to LabourToday, Trustfund Secretary and Legal Adviser, Mr. Musa Nasi, said the allegation of misappropriation of N54 billion in Trustfund Pension was “absolutely malicious and in bad taste.”

Trustfund is jointly owned by the Nigeria Labour Congress (NLC), the Trade Union Congress of Nigeria (TUC), Nigeria EmployersConsultative Association (NECA), Nigeria Social Insurance Trust Fund (NSITF), Afribank Nigeria Plc, and ChapelHill Denham Ltd, with active participation and involvement of the NLC, TUC and NECA on the board, which has continued to strengthen good corporate governance in the company.

Mr. Nasi explained that the pension fund regulator, National Pension Commission (PenCom)has recently, in August, concluded its 2008 routine examination of Trustfund covering the period up to June 2009 which gave the company a clean bill of health and that there were no issues of misappropriation of funds raised by the commission.

Rather, he stated that the recommendations of PenCom towards improvement of the operations of the company were being implemented by the management. He explained that in compliance with the provisions of Section 42 of the Pension Reform Act of 2004, the management of NSITF in 2006 established the accumulated pension funds transferable to Trustfund Pensions at N54 billion and he added that the total value of pension funds transferred to Trustfund pension custodians and received by them to date was N48 billion.

Emphasising why such fraud could not be perpetrated in the company, the company secretary explained: “Under the Pension Reform Act 2004, pension funds are held by pension custodians which are separate licensed entities, while pension fund administrators only provide administrative and investment management services to the pension funds.”

“The pension funds therefore transferred by the NSITF are in the custody of our three pension custodians, Zenith Pension Custodian Limited, Diamond Pension Custodian Limited and UBA Pension Custodian Limited. Trustfund on its part has continued to provide the necessary investment management and other pension administrative services on these funds under the supervision of the regulator, the National Pension Commission (PenCom). A balance of N7billion pension assets not yet in the custody of the Pension Custodians is due to title regularization and documentation issues which the NSITF management, PenCom and Trustfund have been working together to conclude.

“It therefore smacks of calculated calumny, a clear lack of understanding of the new pension scheme and a figment of the imagination of mischief makers to allege a misappropriation of N54 billion in any pension fund administrator.”

But he stated that the NSITF contravened the provisions of the Pension Reform Act by withholding certain pension assets which it ought to have transferred to Trustfund.

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