Economy
VP Sambo receives report of Reactivated Presidential Task Force on NITEL/MTEL Labour Restructuring
Aug 24, 2010, 17:23
| | Vice President Arc. Mohammed Namadi Sambo on Tuesday, August 24, received the report of the Reactivated Presidential Task Force on NITEL/MTEL restructuring with a promise to forward far reaching recommendations to the President for implementation.
The Vice President, who noted the requests of the task force, observed that only recently a committee constituted by the Bureau for Public Enterprises (BPE) has recommended for the immediate sales of the company. He assured that the Federal Government will be working on the sales of the company while exploring other revenue sources to address the problems enumerated by the task force as a matter of urgency.
The Vice President thanked the task force for a thorough job well done.
Earlier, the Chairman of the task force and the Minister of Labour, Chief Chukwuemeka Wogu, had restated the terms of reference of the task force to include addressing the issue of outstanding salaries and allowances owed NITEL/MTEL staff and determining the number of staff to be disengaged to reduce the wage liabilities of government as the enterprises were not operational, he had also catalogued the challenges posed by the assignment.
These include court judgments by an Abuja High Court prohibiting the employment of casual staff as it goes contrary to the condition of service, which therefore confers on them permanent and pensionable status, even though the ruling is under appeal by BPE; the appointment of actuarial consultant who was to foreclose the possibility of inflation of entitlements and the seeming lack of funds to execute the assignment. He further stated that the task force explored three scenarios which were:
(i) to disengage all current employees and immediately re-engage 445 transition staff from 3389, with a monthly wage bill of N115.5 million from the current N695 million who will remain to handover to a new core investor, while maintaining the existing security arrangements.
(ii) Disengage all employees who are currently aged 45 and above and those that have served 25 years and above. It is capable of reducing the work force by 2,250, approximately 66% of the staff and reduce monthly wage bill from N695 million to N187.6 million while maintaining the existing security arrangements.
(iii) Disengage all employees who are aged above 50 and employees that have served 35 years and above. This is capable of reducing the wage bill from N695 million to N313.8 million which also maintains the existing security arrangements.
The task force after scrutiny recommended the adoption of the first scenario where all staff are exited and paid off their entitlements.
He therefore appealed to Government for the immediate release of the sum of N51.692 Billion to downsize and comply with court orders should they not be reversed.
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