My govt inherited N106.9bn workers’ welfare debt – Ogun gov

Ogun State Governor Dapo Abiodun yesterday said his administration inherited N106.9bn workers’ welfare debt making it difficult for it to meet up with the demands of the striking civil servants.

The organized labour in the state had on Wednesday begun a one-week warning strike over the non-payment of minimum wage, contributory pension scheme totaling 134 months deducted from workers and unremitted, among others.

The governor, in a statement titled ‘Ogun State Labour Industrial Action: Our Position, Our Offers’, signed the Secretary to the State

Government, Tokunbo Talabi, said his government required N32.5bn to meet up with the demands of the workers.

He broke down the inherited outstanding personnel liabilities thus: “gratuity of exited (retired) personnel: state personnel, accumulated from 2014 to 2019, N18.5bn; local government & SUBEB 2011 - 2019, N32.5bn; subtotal gratuity, N51.0bn; leave bonus from 2015 to 2019, N9.2bn; contributory pension liabilities: state government N20.1bn; local government & (SUBEB) N26.4bn; subtotal contributory pension liabilities, N46.5bn; promotion arrears, N217m. Total, N106.9 bn.”

He said implementation of new minimum wage would increase the monthly wage bill by N1.04bn; “an immediate payment of 3 - year arrears of leave bonus, amounting to approximately N9.2bn; while on payment of 3 - year gratuity as demanded by the labour demanded is approximately N24bn as well as additional payment of about N1.2bn for the underpayment by the last administration to some categories of retired personnel.”

He expressed surprise that the strike was declared at time the government and the labour leaders were approaching an amicable resolutions on the demands.