Minister of Power, Prof Barth Nnaji
Federal Government has approved the payment of 50 per cent salary
increase for workers of Power Holding Company of Nigeria (PHCN), as a
show of its commitment to the welfare of the workers.
Minister of Labour and Productivity, Chief Chukwuemeka Wogu, who disclosed this at a National Workshop on Power Sector Reform, said the implementation exercise would commence very soon.
Wogu used the opportunity to reassure the trade unions in the industry who had earlier expressed apprehension over what they called “subterranean moves” by government to rationalise PHCN staff of government commitment to the imperatives of social dialogue on all labour related issues in her march towards power stability in the country.
He said the workshop with a theme ‘Towards Power Stability in Nigeria’ is a major step in an effort to maintain a communication channel between the Federal Government and all relevant stakeholders, especially the Labour Unions in the Power Sector.
The minister observed that gross deficit of electricity has been the major factor constraining socio-economic development in the country, noting that it had stifled the creation of jobs needed in a rapidly growing population like Nigeria.
“The erratic and unpredictable nature of electricity supply has been a source of deep and bitter sense of frustration felt across the country; and many agree that this is the bane of successful enterprise. Our scorecard in this all-important sector indicates that our power generation hovers around a daily production of 3,500 MW of electricity for a population of over 150 million. When compared to some other countries, this scorecard is abysmally unacceptable.
“The Federal Government has developed and pursued fundamental changes in Ownership, Control and the Regulation of the Power Sector as enshrined in the Electricity Power Reform Act of 2005, and as outlined in Mr. President’s Roadmap for the Power Sector Reforms.
“A fall-out of this initiative is the apprehension, which, has been expressed by critical stakeholders made up of the rank and file of workers represented by the Labour Unions of the Power Holding Company of Nigeria. This workshop is therefore a major step in an effort to maintain a communication channel between the Federal Government and all relevant stakeholders especially the labour unions in the power sector,” Wogu said.
Speaking further, he explained that the power sector reform was aimed at reducing electric costs on governments; attract private capital by removing bureaucratic policies; and, maximise public revenues from the sale of government-owned assets.
He added that the goals and aspirations of the government for the critical sector would invariably result in independent power production and a healthy competition in generation, decentralisation, privatisation, and unbundling generation from transmission and distribution; leading to a functional and viable sector.
In this regard, he said government has commenced negotiations with the industrial unions while urging the social partners to come back to the table to conclude talks with the government and also allow the investors that have been shortlisted by the Bureau of Public Enterprises (BPE) access for the already scheduled due-diligence of the facilities in October, 2011.
“The first phase of the negotiations chaired by the Conciliator was held in Abuja between May 16, and May 19, 2011 and progressive agreements were recorded that a biometric verification exercise should be jointly carried out as a fore-runner to the decasualisation of nearly 12,000 workers.
“On the demand for 137 per cent increase in salary, it was unanimously agreed that 50 per cent increase shall be paid with effect from June 2011 as final settlement for the 137 per cent demanded by the Unions.
It was also agreed that a workshop shall be held to facilitate the
buy-in of the Labour Movement into the reform and also to afford
relevant stakeholders an opportunity to discuss critical labour issues
for the advancement of the sector.
“The second Phase of negotiations between the Federal Government and the trade unions commenced on July 19, 2011 in Accra, Ghana.
However, the non-implementation of the Abuja agreements stalled the
negotiations and social dialogue broke down. It is pertinent to note
that this workshop is in fulfilment of the Abuja May negotiations.
“A series of milestones has been reached since the Accra negotiations. The Vice President and Chairman of the NCP has approved the engagement of a Consultant for the biometric audit of casual staff of PHCN to enable this category of staff receive their entitlements as at when due. This exercise is about to commence”, he added.
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