• Demand N400 billion Pay-off, Urgent Promotion, Others
• Sale Of Power Plants To Generate $2.6 billon
THE October handover date for the Power Holding Company of Nigeria’s (PHCN) power plants, as proposed by the Bureau of Public Enterprises (BPE), may be in jeopardy following new and “urgent” demands by the workers.
The electricity employees, Saturday, threatened industrial unrest should the Federal Government fail to meet all of their demands in the July 8, 2013 letter addressed to the Ministry of Power.
The ultimatum will expire early this week, according to the Secretary-General of the National Union of Electricity Employees (NUEE), Joe Ajuero.
Almost done with the transmission component, the unbundling of the PHCN is now approaching a crucial final phase during which five Power Generation companies (GENCOS) and 10 Distribution companies (DISCOS) will be sold to private investors, who are expected to bring in $2.6 billion (about N408 billion) to the Federal Government coffers, according to the BPE.
The BPE had already asked the successful bidders, all of whom had paid 25 percent of the individual bid prices, to offset the remaining 75 percent on, or before, September 21, after which unspecified penalties will be meted out to defaulters.
Managers of the process had indicated that “all Labour issues” relating to the privatisation process have been resolved.
For instance, an Implementation Committee, under the Chairmanship of the Permanent Secretary in the Ministry of Power, was set-up to drive the implementation of an Agreement signed between the Federal Government and Labour in December 2012 following which a Sub-Committee was given the task of ascertaining the correct number of bona-fide staff and obtain their bio-data; the sub-committee was also asked to determine components of staff entitlements, including severance, gratuity, pension, repatriation among others.
Notwithstanding the deal that was struck in December last year — and fine-tuned in June this year — the PHCN workers, under the aegis of the National Union of Electricity Employees (NUEE), on July 8, issued a 14-day ultimatum to the Ministry of Power to effect double promotion for staff and pay balance of one year entitlement that were not part of the original discussion.
Ajuero, who also hinted that government — even though it is selling PHCN and its facilities at a ‘give-away’ price, will be paying about N400 billion in gratuities, pensions, and other benefits to some 50,000 employees.
The Guardian reliably gathered that consultations are being made by Ministries and other relevant agencies to avert any major power crisis that could emanate from a possible showdown with electricity workers.
Describing the scenario as not being economically viable in the present circumstances, Ajuero insisted that, apart from the so-called successor companies, the PHCN’s buildings across the country are worth N400 billion; electric poles, N200 billion; and transmission facilities, N400 billion.
In response to disclaimers in official quarters, the NUEE scribe accused the Labour Ministry of not acknowledging letters but warned that he has a mandate from the workers to meet all their demands.
Although results of the bidding process indicate that government could make N400 billion from the sale, Ajuero insists that Nigeria could, at best, net in N200 billion from the sale, an amount which the entire assets could generate, as revenue, in less than eight months. “We made request to buy all the GENCOS and DISCOS and within eight months, we will make N200 billion as revenue,” he claimed.
Over 50, 0000 employees, according to the NUEE, were identified. A source in the Presidency said agreement has been reached with the workers on all aspects of the payment of the terminal benefits, amounting to some N400 billion. Actual payments was expected to commence two weeks ago (middle of July)
But Ajuero said government appears to be playing games with the process. “It appears the Federal government does not have money for the reform,” he told The Guardian in an exclusive chat.
According to him, rather than keep to the terms of the agreement, the Ministry of Power took steps to penetrate the ranks of the NUEE by promoting some employees at the top echelon without adherence to the Federal Character Policy, Public Service Rules and PHCN Conditions of Service.
Besides, the workers observed that the agreement and severance calculations signed between the Unions and the Federal Government captured “up to June 2012, but due to Government’s delay, another year has passed going by today’s date.
“Consequently, we demand that workers’ entitlement for one year not captured by the agreement should be computed pro-rata and paid to (members of) staff before full severance payment is effected.”
A copy of the workers’ letter to the Ministry, which was seen by The Guardian, stated that the Union was reliably informed that the Power Ministry has, without recommendation, commenced “the promotion of a selected few,” as a way of “bribing some Union leaders.”
The NUEE, which threatened industrial unrest, stressed that the PHCN’s condition of service makes provision for annual promotion of workers and requested that all eligible employees in PHCN be “urgently” promoted by two grade levels, in line with what the Union referred to as “the norm.”
Asked to explain the position of government on the workers’ demand, a source in the Presidency, said the Ministry of Labour is already interfacing with the Union on the matter, saying, “we will always dialogue.”
He, however, explained that “most of the stakeholders have not seen the letter (ultimatum)” issued by the workers.
The source also said the management of various establishments in PHCN failed to deduct 7.5 percent of the workers salaries as pensions contributions within the last one year, as agreed. He, however, explained that efforts are being made to meet the new demands.
He gave the assurance that government would meet all of its obligations in the reform process.
On the allegation of the PHCN being undervalued, he said: “the essence of privatization is not about treasury issues; it is about efficiency, not for money-making.
“We originally wanted the Latin American model of privatisation, whereby the buyer uses the money to develop the asset, manage it efficiently and then pay the government in about five years time. But that idea had to be dropped due to the peculiarities in Nigeria.”
When asked to comment on the issue, an Assistant Director in the Labour Ministry would not volunteer comments, saying that he was on casual leave. “I have told you that I am in the village right now with my family. I am not in Abuja and, therefore do not know what is happening there now,” he said.
Source: Guardian
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