Ekiti State government has announced the suspension of minimum wage payment and a cut in the salaries of workers and political appointees.
According to a statement from the state government after a meeting with organized Labour unions in Ado-Ekiti, the state capital, the decision was reached in response to the present economic reality in the country.
For a period of three months, the Ekiti government would temporarily delay paying minimum wage salaries to workers in Grade Levels 07 to 12 who have been affected since January 2021.
But workers on Grade Levels 01 to 06 were not affected, as their N30,000 minimum wage was upheld. The new salary structure was disclosed yesterday in Ado Ekiti during the signing of a Memorandum of Understanding between the state government and Organised Labour on the new salary regime.
While reading out the agreement, Adigun said Labour agreed that the consequential adjustment for certain categories of workers should be suspended for a period of three months beginning from May 2021.
It was also agreed that the salaries of political appointees should be slashed by 25 per cent for a period of three months.
The pact also included that the grant for the running of the Government House be reduced, while the monthly meeting of the Economic Review Committee was mandated to convene five days after the meeting of the Federal Account Allocation Committee to keep the workers abreast of the state’s financial position.
The workers also agreed that 10 per cent Internally Generated Revenue (IGR) should be released to the local councils henceforth.
In the pact, government gave the assurance that it won’t downsize or retrench any worker as a result of the present economic crunch in the country.
The Head of Service, Mrs. Peju Babafemi, while addressing the labour leaders, said Governor Kayode Fayemi had during a recent State of the State Finance programme presented the financial report of the state, where it was evident that the two sides must shift grounds as a response to the economic realities.
The SSA on Labour Matters, Oluyemi Esan, saluted the labour leaders for showing understanding in the matter.
Also speaking on the agreement, JNC Chairman, Fatomiluyi, said it was a known fact that Nigerians and especially workers were passing through hard economic situation.
QuickNews Africa had reported on that state governors may have to make difficult decisions in the coming months due to falling federal funds.
According to findings, only three Nigerian states can generate up to 50 percent of their running costs. These states are Lagos, Federal Capital Territory and Ogun State.
