Home |  Elder Rights |  Health |  Pension Watch |  Rural Aging |  Armed Conflict |  Aging Watch at the UN  

  SEARCH SUBSCRIBE  
 

Mission  |  Contact Us  |  Internships  |    

        

 

 

 

 

 

 

 

 




17 Private Sector Unions Reject Pension Scheme

By Chris Nwachuku, This Day Online

Lagos, Nigeria

July 19, 2004

Seventeen unions affiliated to the Nigeria Labour Congress (NLC) yesterday resolved not to participate in the new pension reform which was signed into law by President Olusegun Obasanjo. The unions insisted that the reform does not protect their interest as they gave a 30-day ultimatum to government to withdraw the law.

But the NLC said it would formally state its own position on the pension law tomorrow.

Leaders of the private sector group, Bright Anukuru told THISDAY yesterday that the 17 unions at a close door meeting held at the national secretariat of Food Union resolved to reject the new pension scheme as it does not benefit workers.

The unions which are all in the private sector declared that they would not hesitate to fight any employer who deducts workers money for the purpose of servicing the new scheme.

"We have resolved not to participate in the new pension reform because it does not have a future for our people. The law does not take our interest into consideration. What it did was to devalue the already existing scheme to make us poorer. We cannot contribute our hard earned money for a reform we know nothing about and cannot guarantee our future," said Anokuru who is both the president of Shop and Distributive Union and National Auditor of NLC

The union leaders said they were disturbed by the absence of defined benefit as well as social security benefits as provided by the Nigeria Social Insurance Trust Fund (NSTIF). "We don't know the benefits. All the social security benefits and services provided by NSITF is missing. All government want is to use our money to service public sector retirees and other political expediency. We shall not accept this," he said.

The unions consequently gave the federal government 30 days within which to take an appropriate stand that will lead to a review of the new law or face workers wrath. Already the unions have fixed a meeting for July 21 to deliberate on measures with which to confront the state.

The unions anchored their positions on the fact that workers were not taken into confidence in the reform agenda while all the proposal submitted by the NLC was rejected.

To avoid any industrial crisis, the workers demanded that all existing pension schemes should be folded up while workers should be made to pay their dividend before the new scheme. He said the new scheme should commence afresh without the contributions already made by the workers.

The workers said the new pension reform was containing to the provisions of the 1999 constitution which stated that government could only make pension reform policy that will be paid from the consolidated fund.

The 17 unions said by the provision of the law, government has no right to include workers from the private sector whose entitlement were not paid from the consolidated fund in the new reform.

"This is a clear case against the Nigerian constitution and the Nigerian private sector workers. We shall not accept this", Anokuru said.

The unions frowned at a situation in which workers and employees contribute the same amount, while the benefits are not properly defined. They noted that any new schme should be built on the existing one.

Last Thursday, NLC which began a high level meeting of its top to harmonise the views of both public and private sector unions said it would unfold its decision tommorrow in Lagos. NLC President, Adams Oshiomhole said that while reform was imperative, there were obvious shortcomings militating against workers in all sectors.


Copyright © Global Action on Aging
Terms of Use  |  Privacy Policy  |  Contact Us