The Ekiti State Government has suspended implementation of the minimum wage for its senior civil servants due to declining revenues.
Nigeria’s News Agency of Nigeria (NAN) reports that the action followed the signing of a Memorandum of Understanding (MoU) between the government and organised labour on Friday in Ado Ekiti.
In accordance with the agreement, the state government suspended for three months the consequential adjustment for workers in grades 07 to 12.
Nevertheless, workers in grade levels 01 and 06 were not affected by the economic adjustment measure because they would continue to earn their N30,000 minimum wage.
Government representatives at the signing of the Memorandum of Understanding were the Head of Service, Mrs Peju Babafemi, and the Special Assistant to the Governor on Labour Matters, Oluyemi Esan.
The signing was also witnessed by the Permanent Secretary of the Office of Establishment and Service Matters, Mr Bayo Opeyemi.
Those who signed on behalf of labour were Kolapo Olatunde, the Ekiti State chairman of the Nigerian Labour Congress (NLC); colleagues at the Trade Union Congress (TUC), Sola Adigun, and Joint Negotiating Council (JNC), Kayode Fatomiluyi, as well as their secretaries.
The TUC chairman read the agreement, and said that the suspension of the consequential adjustment would take effect in May and July.
Additionally, Adigun said it was agreed that the salaries of political appointees and accounting officers would be slashed by 25 percent for a period of three months in the first instance.
A reduction of government grant for running government establishments was also included in the agreement, he said.
His statement states that the ‘Economic Review Committee’ will meet five days after the Federal Account Allocation Committee meeting.
It was to keep the workers informed of the state’s financial condition.
It was also agreed that 10 per cent of the Internally Generated Revenue (IGR) of the state, which is under the state’s responsibility to the Joint Account Allocation Committee, be released to the local governments.
As part of the pact, the government pledged that it would not downsize or retrench any workers as a result of the present economic crisis, Adigun said.
Gov. Kayode Fayemi presented the financial report of the state at a recent “State of the State Finance” programme, the head of service recalled.
According to Babafemi, the report indicated that both sides – government and labour – need to adjust to the economic reality. (NAN)