The two labour centres expressed the concerns via a joint letter dated 21st February, 2017, sent to Governor David Umahi of Ebonyi state and co-signed by Ayuba Wabba, NLC President and Boboi Kaigama, TUC President, respectively.
The unions in the letter which was also sent to the Secretary to the Government of the Federation (SGF); Minister of Labour and Employment; Director General DSS; Inspector General of Police (IGP) and others frowned at the violations of the Pension Reform Act 2004 (as amended) by the state government for the purpose of an urgent review.
According to the leaders of both centres, the agitation was sequel to the report obtained from the NLC and TUC state councils in Ebonyi State alleging that “Pension deductions from workers salaries commenced before the Ebonyi State Pension bill became law, thus making the law to operate retroactively in contravention of the fundamentals of all good laws
“The said law states that the ratio of contribution to the pension fund shall be 5 percent, employer and 8 percent employee in contravention of the provisions of the Pension Reform Act (2004) as amended which puts the ratio at a minimum of 10 percent, employer and 8 percent employee.”
The unions further alleged that “the state government commenced the implementation of the new pensions law without first putting in place requisite processes or structures such as adequate sensitization by both PenCom and the State Government as to the rights of the workers in the scheme, appointment of Pension Managers, establishment of pension management boards at both local and state governments.
“In further contraventions of the state’s own Law (S6), the government made deductions from the salaries of workers who had less than three years to retire, even though our wish would have been five years;
“None of the suggestions or recommendations made by workers in the course of the public hearing by the State House of Assembly was taken on board by the Law, suggesting a woeful dismissal of the workers views.”
Your Excellency, the pension issue is among the other violations delete (the majority of which are labour issues as captured by Conventions 87 and 98 to which Nigeria is a signatory) the state council has brought to our attention.
In consideration of the seriousness of the facts in issue, the leadership of NLC and TUC requested for a meeting with Governor Umahi on Tuesday, 14 March, 2017 or on a date more convenient to you to resolve all outstanding issues.
Meanwhile, the two centres which were part of the amendment of the Pension Reform Act (2004) noted that “most of the concerns of the workers. With all humility, some if not all the safety nets or rights in the Act including the right of contributors to freely choose their PFAs, are the making of the Congress.
“Accordingly, the views of workers should be taken seriously, especially on this matter. Happily, PenCom has developed a model or template for the states. Indeed, most of the states that have keyed into the contributory scheme have improved on the basic provisions in the template.
“It will therefore be shocking and unacceptable if the government of Ebonyi State will use the process of keying into the scheme as an opportunity to enslave workers or deny them their rights.
“Your Excellency, let me specifically refer you to section 31 of the Law that states that, ‘if any other law relating to pensions in the State is inconsistent with this law, this law and that of the Act, the provisions of the Act shall prevail to the extent of the inconsistency.
“Accordingly Sir, I would wish to request you to ensure the right and proper thing be done including the following: All processes as condition precedent before the implementation of the law be followed including an engagement with PenCom.
“The ratio of contributions be corrected to reflect the position of the Law. That Section 17 of the State law be amended to bring it in tandem with the template by PenCom which states inter alia, “State shall pay into the State Government Retirement Bond Redemption fund, an amount equal to 5 percent (and not 1 percent as prescribed by the State Law) of the total monthly wage bill payable to its employees or such other higher amounts as…’
“Five years instead of three be the transition period. In other words, workers who have five years or less to retire from service be exempted from the contributory scheme.
“All deductions made in pursuance of the scheme be refunded to the bonafide workers. The implementation of the law be suspended pending its perfection to reflect the wishes of workers alongside the PenCom template.
“This, Your Excellency will create broad ownership, enhance productivity as well as deepen social justice. As we await your intervention as well as the appointing of a date for our meeting, please accept the assurances of our highest esteem,” the letter read.
Culled from Business day
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