THE Labour Civil Society Situation Room has condemned decision of the Kaduna State government to deduct salaries of workers in their states describing it as anti-worker practice as it violates the fundamental principles and rights at work.
In a communiqué issued Thursday in Abuja, signed by Comrade Ayuba Wabba and Comrade Emmanuel Ugboaja, President and General Secretary respectively of the NLC, Comrade Ene Obi, Country Director of ActionAid Nigeria and Comrade Jaiye Gaskiya, Chairman, LASCO, Abuja, the coalition of labour and civil society bodies monitoring the management of the coronavirus pandemic in Nigeria stated that the “infringement of these rights is a crude abuse of power” that is “akin to modern day slavery.”
“Wages are binding contracts which cannot be unilaterally or arbitrarily reviewed. It is unfortunate that while some states are giving incentives to workers at this time of grave health emergency, in line with global trend, Kaduna State is taking away from workers and pensioners. This is nothing but a full-blown industrial tyranny,” the Labour-Civil Society Situation Room contended.
It said the resolution of the Kaduna State government and a few other states to arbitrarily deduct from workers’ salaries is contrary to the objectives of the decision by the federal government to grant a moratorium on the repayment of the budget support palliatives earlier given to state governments, which was aimed at ensuring that no state would come up with any excuse not to pay workers’ and pensioners their full salaries and pension.
The Situation Room applauds the federal government for reversing the directive by the Federal Airports Authority of Nigeria (FAAN) to place workers on half salaries based on the claims of shortfall in revenue owing to covid-19 saying that “this is the way to go for all employers in the public and private sectors in order to protect the livelihood and dignity of workers.”
While expressing worry on the continued incidences of job losses, income deprivation and denial of the means of livelihood for workers by some employers in Nigeria on the excuse of Covid-19, the Situation Room rejected the actions of Governor el-Rufai and other states and threw the coalition’s weight “behind the ultimatum by our workers in the affected states for a reversal of the unjust decision. We fully stand by workers’ resolve to embark on a strike action if their demands are not met.”
It also demanded that state governments reciprocate federal government’s gesture in granting moratorium on repayment of budget support palliatives by paying workers and pensioners their full entitlements. We also renew our calls for investigation on how states used the palliatives and Paris Club refunds; just as it also demanded “private sector employers to stop the retrenchment of workers in the guise of Covid-19 as such moves would only impair efforts geared at economic revitalization.”
The communiqué also contained among other things reviews of public health safety concerns as well as on the economy and public governance.
The Full Communiqué below:
20th May 2020
LABOUR-CIVIL SOCIETY SITUATION ROOM DEMANDS ADEQUATE PROTECTION FOR WORKERS AND A HOME GROWN CITIZEN-CENTRIC ECONOMIC MODEL AS A SUSTAINABLE RESPONSE TO THE NOVEL CORONA VIRUS (COVID-19) CRISIS.
A COMMUNIQUE
The Labour-Civil Society Situation Room on Covid-19 met on Wednesday, May 20, 2020 at the Labour House, Abuja. The meeting which was chaired by the President of the Nigeria Labour Congress, Comrade Ayuba Wabba, mni reviewed a range of recent developments pertaining to the management of the Covid-19 pandemic in Nigeria particularly on the economic front. The meeting considered a Covid-19 Economic Response Paper within the broader context of current global economic downturn and its implication for Nigeria. The meeting went on to recommend immediate, short and medium-term interventions to deal with the looming crisis and protect the rights of Nigerian workers.
Concerns
Public Health Safety Concerns
1. The Labour-Civil Society Situation Room noted the poor synergy in the implementation of the World Health Organization’s (WHO) Covid-19 protocols by different tiers of government across our primary, secondary and tertiary health institutions;
2. The rising cases of exposure and infection among Nigerian health workers in private and public health sectors (primary, secondary and tertiary) owing to the dearth of personal protective equipment, conducive work environment and specialized training for health workers battling the Covid-19 pandemic is worrisome;
3. We commend the Federal Government and the Presidential Task Force for the plans to fully re-open the economy and introduce sector specific guidelines. Yet, we worry on public ownership, and development of effective dissemination channels and enforcement mechanisms when such guidelines are issued; and
4. Poor mapping of the severity of impact of the Covid-19 pandemic in Nigeria which has led to inadequate response by government and corporate organizations in the form of support palliatives.
Resolutions and Recommendations
1. We call for synergy in the implementation of public health and safety guidelines on Covid-19 by all tiers of government and across our primary, secondary and tertiary health institutions;
2. We demand that government must provide adequate personal protective equipment for healthcare workers deployed in the fight against Covid-19 in both private and public health institutions. Our health workers chose the cause of service to humanity not martyrdom. We ask healthcare workers deployed in the fight against Covid-19 to withdraw their services if adequate provisions are not made for their health and safety;
3. We call for the sector-specific guidelines being developed by the government to be collectively owned and effectively disseminated to Nigerians living in both urban and rural communities. The sector-specific guidelines must also be strictly enforced; and
4. We call for the mapping of the severity of the impact of Covid-19 in different communities and states in Nigeria. This is in order to facilitate the rendering of the most suitable response and support.
Industrial Concerns
1. The Labour Civil Society Situation Room reviewed the decision by the Kaduna State government and a few other states to deduct the salaries of workers in their states including healthcare workers battling the Covid-19 challenge. Even worse is the threat by Governor Nasir El-Rufai to sack affected workers if they go on strike. This anti-worker practice championed by the Kaduna State government violates the fundamental principles and rights at work. These principles and rights are key components of the International Labour Organization (ILO) global labour standards and are also codified in our laws. The infringement of these rights is a crude abuse of power and akin to modern day slavery. Wages are binding contracts which cannot be unilaterally or arbitrarily reviewed. It is unfortunate that while some states are giving incentives to workers at this time of grave health emergency, in line with global trend, Kaduna State is taking away from workers and pensioners. This is nothing but a full-blown industrial tyranny;
2. The Labour Civil Society Situation Room commended the recent decision by the Federal Government to grant a moratorium on the repayment of the budget support palliatives earlier given to state governments. In contrast to the decision of the Kaduna State government and a few other states to arbitrarily deduct from workers’ salaries, this gesture by the Federal Government was aimed at ensuring that no state would come up with any excuse not to pay workers’ and pensioners their full salaries and pension;
3. The Labour Civil Society Situation Room applauds the Federal Government for reversing the directive by the Federal Airports Authority of Nigeria (FAAN) to place workers on half salaries based on the claims of shortfall in revenue owing to Covid-19. This is the way to go for all employers in the public and private sectors in order to protect the livelihood and dignity of workers; and
4. The continued incidence of job losses, income deprivation and denial of the means of livelihood for workers by some employers in Nigeria on the excuse of Covid-19 is a source of worry to us.
Resolutions and Recommendations
1. The Labour-Civil Society Situation Room on Covid-19 unequivocally condemns and rejects the arbitrary deduction in the salaries and pension of workers and pensioners, respectively, by the Kaduna state government and other states. We throw our weight behind the ultimatum by our workers in the affected states for a reversal of the unjust decision. We fully stand by workers’ resolve to embark on a strike action if their demands are not met;
2. We demand that state governments must reciprocate federal government’s gesture in granting moratorium on repayment of budget support palliatives by paying workers and pensioners their full entitlements. We also renew our calls for investigation on how states used the palliatives and Paris Club refunds; and,
3. We demand that private sector employers should stop the retrenchment of workers in the guise of Covid-19 as such moves would only impair efforts geared at economic revitalization.
Concerns on the Economy and Public Governance
1. The Labour Civil Society Situation Room on Covid-19 noted the decision of the Federal Government to review the 2020 national budget, in line with global trends. Yet, we are concerned that the decision to downsize the budgetary provisions for health, education, agriculture and infrastructure and freeze new recruitments in all the Ministries, Agencies and Departments of government except those in the health and security sectors, would make economic recovery from the Covid-19 crisis more difficult. The Situation Room is also worried that the over-padded emoluments of political leaders in Nigeria remain untouched including their unregulated access to security votes;
2. The Situation Room also bemoans the incongruities in our public budgeting system. The persistence of unwieldy recurrent expenditure, replication of similar cost centres, and insertion of vague cost items in the budget indicate an entrenched and thriving culture of official sleaze through budgeting;
3. The Situation Room also noted the resort to increased foreign borrowing as a way out of the current economic quagmire. Just before the Covid-19 pandemic in Nigeria, Nigeria’s external debt had hit a 16 year high of US$27 billion with a debt servicing commitment of US$1.5 billion per annum which is about 5% of our 2020 federal budget and 75% of our external reserves. It is of great concern that our current total debt profile is almost at par with what we owed the Paris Club before the debt amnesty of about US$18 billion from a total debt stock of US$35.994 billion. CBN records show that the Federal Government borrowed over N4.4 trillion by ways and means in 2019. This is far beyond the maximum of N4.5 billion allowed in CBN legal statutes;
4. We are also concerned on the debt crisis facing the private sector. The withdrawal of labour from the production chain owing to Covid-19 meant that loans sourced for production have been lying idle or are trapped as raw materials without value beneficiation. While this situation once again re-echoes the fact that labour is the real creator of surplus value and wealth, it is important for government to address the debt challenge in order to save jobs;
5. The Situation Room expressed concerns that while different tiers of government seek to boost their internally generated revenue amidst the current crisis, incidences of infringement on statutory revenue sources for the lower tiers of government particularly the local government councils would likely be on the increase. We are also worried that recent public financial audits show a gale of widespread mismanagement of government revenues;
6. The Situation Room noted the policy by government to withdraw from funding the so-called under recovery costs or fuel subsidy. We reiterate that the policies of successive governments on our downstream petroleum sub sector reeks of opacity, double standards, corruption and an obstinate desire to transfer the cost of governance failures and inefficiencies to the Nigerian people;
7. The Situation Room noted that while government groans over paucity of funds, no serious effort is being made to salvage the Nigerian economy from the dilemma of under-production and under-development. The solid minerals sector of our economy has been poorly governed creating opportunities for government revenue to be siphoned by unscrupulous persons and organized criminal networks who are protected by highly placed political actors. Furthermore, the failure of our economy to add value to primary resources has become our albatross. From our crude oil to agricultural products, the breakdown in our resource value chain has deepened our crisis of unemployment, dearth of foreign exchange reserves and local currency tumult; and
8. The informal sector is the worst hit by Covid-19 crisis. The Situation Room observes that the distribution of palliatives to the informal sector is not sufficient, inclusive and transparent enough.
Recommendations
Immediate Term
1. Governments should adopt a measured approach to the fallout of Covid-19. The resort to economic stabilization and austerity measures by the Federal government would worsen the current economic crisis. Experience from other climes including Nigeria should come handy at this time. Government should not cut down on budgetary allocations to education, health, agriculture and infrastructure as these sectors are critical for the needed economic rebound and growth. Government should unfreeze the embargo on public sector jobs. Also, hike in user access charges on public utilities should be shelved for the next six months;
2. Given the abuse of security votes by many political office holders in the executive branch of government, we call for the scrapping of security votes from public budgeting in Nigeria. Security votes should be appropriated and accounted for like every other budget item. We call on political office holders to reduce their salaries and allowances in order to free up finances for other areas of national developmental needs. We also call for an end to medical and education tourism for elected public officials and their families;
3. We call for an immediate stop to the practice of borrowing to finance consumption. We call for foreign loans where necessary to be tied exclusively to capital projects with feasible income and debt repayment potentials cum projections;
4. We call for support to the private sector operators struggling with “trapped loans”. We call on government to grant moratorium on accruing interests and repayment schedule for such loans. Government can also buy back “trapped loans” and mediate more flexible repayment plans for private sector operators; and
5. We call for accelerated disbursement of palliatives and loans to workers in the informal sector. This should be transparent and inclusive and monitored by mass-based groups. Also, conditions for access to the loans should be minimal to deepen access.
Short – Medium Term
1. The budgetary and planning process in Nigeria should be overhauled to become more socially inclusive, citizens-centered, value objective and reflective of real national developmental needs. Pursuant to this, we call on the National Assembly to set in motion legislative processes to deliver the promises of Chapter Two of Nigeria’s Constitution. On the budget process, we must cut our cloth according to our materials. We must discard the use of assumptive and deficit budgets that cannot be funded by available resources and heavily dependent on local and foreign loans especially for recurrent expenditure. The focus of foreign loans must be on developing and expanding our infrastructure. We must also go back to the era of long term national developmental planning in order to address in a systematic way gaps in our infrastructural outlay and deficits in our social sector;
2. We call for genuine, concerted and citizens-oriented efforts to lift our economy from the primary mode of production to secondary and tertiary modes of production. To achieve this, we must regain our industrialization zest. We must get our people back to work by energizing the value chains in our local and primary resources. Also, we must reduce the cost of production through investment in infrastructure particularly electricity and mass transportation;
3. The Labour Civil Society Situation Room demands a quick rehabilitation of our four oil refineries. We also warn against further increase in the price of imported refined petroleum products under the guise of removal of under-recovery cost or the withdrawal of the so-called petroleum subsidies. Once our refineries are working, Nigeria would have no business wasting scarce foreign exchange on importation of refined petroleum products or sustaining a corruption infested fuel subsidy regime;
4. We call for the resuscitation of Ajaokuta Iron and Steel Complex, proper governance for our solid minerals sector, revival of moribund textile factories and other manufacturing concerns as a demonstration of our commitment to economic diversification;
5. We call for a rethink on our approach to Foreign Direct Investment (FDI). We must build the capacity of our people to genuinely accumulate material and intellectual wealth, and invest same in the local economy. This is the time to marry ‘Gown’ and ‘Town’. We must save our economy from the contradictions of the current FDI model and inherent humungous capital flight. This is the pathway for sustainable socio-economic development in Nigeria;
6. We must engage public audited documents such as the last Auditor-General’s Report more seriously. We must find the leaks and plug them. We demand that the constitutionally guaranteed sources of funding for different tiers of government especially the local governments be respected; and
7. Overall, our experiences with Covid-19 coalesce in the lesson that humanity is at the heart of development. It must be people – citizens and workers – before profit. The Labour Civil Society Situation Room reiterates our commitment to defend jobs, wages and livelihoods. Pursuant to this, we stress that all interventions in this crisis must be geared at enhancing productivity, stimulating economic growth, promoting diversification of the economy and mobilizing and empowering national productive forces.
Signed:
Comrade Ayuba Wabba, mni Comrade Emmanuel Ugboaja, Esq
President, NLC General Secretary, NLC
Comrade Ene Obi Comrade Jaiye Gaskiya
Country Director, Action Aid Chairman, LASCO, Abuja
