Labour Writes Umahi, Demands Rectification of Retrogressive Pension Law

The Nigeria Labour Congress (NLC) and Trade Union Congress of Nigeria (TUC) have written to the Governor of Ebonyi State, David Umahi, asking him to rectify
the state government’s alleged violation of the provisions in Nigeria’s amended Pension Reform Act 2004.

The two labour houses said in a
statement signed by their respective presidents, Ayuba Wabba and Boboi Bala Kaigama, and presented to THISDAY on
Sunday in Abuja, that the government’s alleged abuse of the pension law was made known to them by their state councils in Ebonyi.

According to them, the state
government had started pension
deductions from its workers’ salaries long before it passed its current pension law which they described as being retrogressive and not in conformity with
the fundamentals of all good laws.
They also stated that the state’s pension law was operating in contravention of the contributory ratio in the national pension law which mandates the employer to contribute a minimum of 10
per cent, and employees eight per cent to contributory pension account.

According to them, Ebonyi made its percentage contributions five per cent for the employer, and eight per cent for the employees.
The state, according to the two labour houses, equally commenced the implementation of the new law without first putting in place requisite processes or structures such as adequate sensitisation on the rights of the workers in the scheme by it and the National Pension Commission (PenCom).

They alleged that none of the
suggestions or recommendations made by workers in the course of the public hearing by the state House of Assembly on the bill was included in the law.

In this regard, they indicated their
willingness to meet with Umahi to find a solution to the issues which they said was troubling.

“Your Excellency, the pension issue is among the other violations (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 the NLC and TUC will be honoured by a meeting with Your Excellency on March
14, 2017 or on a date more convenient to you to resolve all outstanding issues,” said the statement.

They added that in implementing the law, the views of workers should be sought as against making laws intended to subjugate them.

“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,” the statement added.

The NLC and TUC thus asked the
government to adopt a five-year
transition period instead of the three years it chose, in addition to refunding deductions made before the enactment of the law to the bona fide workers.