Otti Staves off Industrial Crisis in Abia, Signs MoU with Labour on Key Disputed Issues

*Agrees to pay N15,000 wage award for 3 months

Emmanuel Ugwu-Nwogo in Umuahia

Governor Alex Otti of Abia State at the weekend successfully nipped in the bud a looming labour unrest that could have shut down his government indefinitely with effect from Monday, July 15.
He has agreed to key demands of the organised labour, including payment of wage awards which Abia workers have been clamouring for since the federal government announced N35,000 wage award after removal of fuel subsidy.
To this end, Otti has committed to start paying15,000 wage award to Abia workers for three months, beginning from July ending, and within seven days reconcile issues bothering on the implementation of the subsisting N30,000 minimum wage.

Otti had been insisting that records of salary payment voucher showed that government has been implementing the N30,000 minimum wage in full against labour’s claim that Abia workers receive N20,100 minimum wage.
In an 11-point  memorandum of understanding (MoU) signed by both parties after the meeting, government accepted to offset the N16.5 billion inherited salary arrears owed workers in parastatals and to commence promotion of workers due for promotion “as quickly as possible”.

The organised labour had on July 8, 2024 issued a final ultimatum to Governor Otti to implement the N30,000 minimum wage and N35,000 wage award to Abia workers to cushion effect of fuel subsidy removal.

In the letter No. ORGL/ ABS/Vol.11/002 signed by the chairman of Nigeria Labour Congress (NLC) Abia State, Okoro Ogbonnaya and his Trade Union Congress (TUC) counterpart, Enogwe Ihechi, the labour leadership had vowed that workers would commence indefinite strike from Monday, July 15, 2024.
But 48 hours to the commencement of the planned strike, which would have been Otti’s baptism of fire with labour, he invited the state leadership of the organised labour for a meeting at his Nvosi country home for discussions.

The MoU issued after the meeting was signed on behalf of government by the Chief of Staff to the Governor, Pastor Caleb Ajagba, Head of Service, Ngozi Queen Obioma, and the Senior Special Assistant to the Governor on Labour Relations, Sir Godson Anucha.
The organised labour endorsed the document through the Abia NLC chairman, Ogbonnaya Okoro, Secretary, Emmanuel Alozie, as well as the TUC chairman, Ihechi Enogwe and Secretary, George Okogbue.

Notably, the Otti administration specifically told the labour leadership that it would approach the State House of Assembly “for virement to enable it channel funds to the gradual payment of the arrears over time”.

The government also agreed and directed the Accountant General, AG, to pay severance allowances to the permanent secretaries and directors, who were abruptly suspended and then retired when the new government came on board.

The AG was further directed “to work with the HoS and personnel heads in Ministries, Departments and Agencies (MDAs) to pay leave allowances of staff who go on leave “.

However, both government and labour representatives agreed to disagree on the issue of payment of gratuities of workers that retired over the years under the past administrations.

Interestingly, labour agreed to government’s reversal of all command promotions carried on past government the last eight years preceding the present administration.

But the parties “agreed that all regular promotions that followed established due process and conventional civil service guidelines within the period (past eight years) should stand”.

In the MoU it was stated that “no agreement was reached” on the labour’s expectation that government would commit to clearing the backlog of gratuities, which could amount to billions of naira.

On the contentious ongoing certificate verification, the HoS was directed to liaise with labour in order to address the challenges and complaints arising from the exercise across MDAs.

It was agreed that government would henceforth interface with labour leadership on regular basis “to discuss matters of workers’ welfare and other sundry issues”.