By Ayodele Oni
At last, Labour Unions in Ekiti state have agreed to the introduction of some austerity measures in view of dwindling resources, prompting the government role out its actions with effect from last month.
Earlier in the week, the Labour Unions had rejected a move by the State Government to be paying workers salaries in percentages.
However, a memo dated 1st June. 2021, and signed by the Commissioner for Finance, Mr Akintunde Oyebode, to the Chief Medical Director of Ekiti State University Teaching Hospital, one of the Institutions receiving monthly subventions, informed about decision to slash allocation from May.
Part of the letter reads: “Please be informed that consequent upon the shortfall in the Federal allocation, Ekiti state Government now has an expenditure deficit of N759 million per month.
“Due to this shortfall, the State Government is constrained to take immediate, but temporary actions, to prevent a short down of Government activities.
“Consequently, the following temporary actions will take effect from May 2021 with a review of the prevailing revenue condition in August, 2021.
“A temporary suspension of the consequential adjustment on salaries of grade level 07 to 12; a 25 Percent cut in the salaries of top government functionaries.”
It was gathered that top Government functionaries to be affected include all Political Office holders, Permanent Secretaries and the Head of Service.
Others measures include “temporary suspension of the monthly running grants to MDAs and fifty percent cut in the Subventions to tertiary institutions.”
The letter states further that: “Based on the above, please take this as a formal communication of the state government’s decision to reduce by fifty percent, the Subventions of your institution for the next three months, subject to a review in August, 2021.”
There was, however, a twist on Thursday after the Labour leaders met with workers in the state during which they resolved to agree with Government’s measures rather than retrenchment of workers and payment of percentage salaries.
The Labour leaders, thereafter, signed a Memorandum of Understanding with the Government on the new salary regime.
The Head of Service, Mrs Peju Babafemi , the Senior Special Assistant to the Governor on Labour Matters, Chief Oluyemi Esan and the Permanent Secretary, Office of Establishment and Service Matters, Mr. Bayo Opeyemi represented Government.
On the Labour side were Chairmen, Nigerian Labour Congress, Kolapo Olatunde, his counterpart in the Trade Union Congress, Sola Adigun and that of the Joint Negotiating Council Kayode Fatomiluyi as well as their Secretaries.
The pact, apart from those listed in the letter, also included that the release of the running grant for the running of government office be reduced, while monthly meeting of the Economic Review Committee was mandated to convene five days after the meeting of the Federal Account Allocation Committee to keep the workers abreast of the state’s financial position.
“That 10 percent internally generated revenue of the state being the state responsibility to Joint Account Allocation Committee be released to the local governments henceforth.”
The Head of Service, while addressing the Labour leaders, said Governor Kayode Fayemi had during a recent State of the State Finance programme presented the financial report of the state, where it was evident that the two sides must shift grounds as a response to the economic realities.
“The revenue generating committee has been saddled with the responsibility of ensuring that the state work hard and rakes in more monies to finance the State.
“I am confident that Governor Kayode Fayemi will surely bring his ingenuity and wealth of experience to bear and we shall navigate out of this difficult situation soon . We thank the labour leaders for their understanding and show of solidarity”.
JNC Chairman, Mr Fatomiluyi, said it is a known fact that Nigerians and especially workers are passing through hard economic situation that had disproportionately affected every state of the Federation.
“The Government must adhere strictly to this agreement , because it is a painful one, but we call it a Doctrine of Necessity. We have to abide by it in the interest of our dear state and colleagues in the service.
“No Labour leader would want his workers disengaged directly or indirectly and we thank the government for not thinking in this direction. That is the direction we want our colleagues to look at it.”
