DECLARATION OF TRADE DISPUTE: MATTER ARISING
*DECLARATION OF TRADE DISPUTE: MATTER ARISING*
By: Comrade Akeem Lasisi
Chairman,
TUC Ogun State Council
The trade dispute in Ogun State has ended, but what remains are several issues surrounding the action.
While some called for the intervention of Traditional Rulers, Labour Veterans, and National Leadership in resolving the dispute, others opposed this, arguing that it would not yield positive results. Many expressed disappointment, questioned the achievements, and some even felt that Ogun workers had been deceived.
The reality is that the outcome of the dispute served as a wake-up call for the government, underscoring the importance of Organized Labour in advocating for its demands. It highlighted the necessity for the government to pay closer attention to the concerns of workers.
After continuous engagement with the government and the involvement of notable figures, the strike was suspended to allow the government an opportunity to fulfill the terms outlined in the Memorandum of Action (MoA).
It is important to note that the government has significantly violated the Pension Law; however, if the government chooses to comply with the law, we cannot oppose that since the Contributory Pension Scheme (CPS) is established by law. This is why the suspension of the CPS could not fly.
We did not convene the Workers' Parliament before suspending the action due to advice from veterans based on security reports regarding the safety of workers.
The MoA resulted from discussions we had with Labour Veterans, and the Chairmen and Secretaries of affiliated unions were adequately informed about its contents.
During our engagement with the government, led by the Secretary to the State Government (SSG), we highlighted that all necessary actions, as mandated by law, must be taken, including:
1. The formation of a Pension Fund Management Committee (PFMC) for the state and local government who would be responsible for providing professional and administrative guidance on the operation of the CPS.
2. The government must immediately resume full remittance of monthly pension contributions (employees 8% and employers 10%) for all employees into their individual Retirement Savings Accounts (RSAs).
3. Immediate consideration should be given to the non-remittance of pension funds for 17 years into individual RSAs, particularly for those retiring from July 2, 2025.
4. The unresolved issues regarding the Personal Identification Numbers (PIN), including shared and duplicate PINs that hinder access to RSAs, must be addressed immediately.
5. The Accrued Pension Rights of workers who were under the Defined Benefits Scheme before the introduction of CPS deductions must be paid immediately.
These points led to the creation of the Memorandum of Action, which the government agreed to, including:
i) Immediate establishment of the Pension Fund Management Committee, comprising both labour and government representatives.
ii) All issues related to RSAs, PINs, and other enrollment processes will resume immediately, with the committee determining the framework.
iii) Starting from July 2025, employees' and employers' contributions must be remitted monthly.
iv) Outstanding deductions will include Return on Investment (ROI).
v) The outstanding contributions, plus ROI, will be credited as follows:
a) The actuarial evaluation will take 6 to 8 weeks.
b) After the valuation, payment for the first five years (from July 2, 2025, to July 1, 2030) will be made immediately.
c) The second phase of annual disbursement will occur in August 2026, covering the period from July 2, 2030, to July 1, 2035.
vi) The process in (v) above will be completed by the end of September; otherwise, Organized Labour may request a deferment, and all retirees post-July 2 will revert to the Defined Benefits Scheme.
vii) The government will implement a legislative framework to prevent defaults by subsequent administrations over the remaining seven years.
viii) The committee will have the authority to request information from the actuary to ensure transparency.
ix) *The files of individuals who voluntarily retired before July 2, 2025, which were hitherto set aside, will be handled appropriately.*
x) No individual will face punishment based on their role during the action.
You may recall that individuals who retired voluntarily, rather than statutorily, for various reasons had their files previously left untreated.
As a result, they were unable to receive their pensions or gratuities; however, their files will now be processed as appropriate under the Defined Benefits Scheme. They will eventually receive Pensions and Gratuity. Congratulations to this set of public servants.
Those who retire on or after July 2, 2025, will receive their benefits immediately following the actuarial valuation of outstanding deductions, which will take 6 to 8 weeks.
Other worker demands were not included in the Memorandum of Action (MoA) because the MoA is a timeless document of action regarding the Contributory Pension Scheme that remains applicable after the current administration concludes its term.
Additionally, the government has agreed that individuals promoted in 2024 will enjoy the financial benefits of their promotions in December 2025, instead of March 2026. A circular regarding this matter is already in circulation.
Regarding the Consequential Adjustment of the New Minimum Wage and Minimum Pension, the government has committed to reviewing the concept of basic salary to make necessary adjustments. Ogun State currently has the lowest basic salary, as the decision was made to prevent our basic salary from being taxed, focusing instead on increasing allowances. There is no perfect policy, we choose the one that is nearest to perfection.
For instance, if Ogun's basic salary is ₦18,000 and a state like Oyo has a basic salary of ₦59,000, the tax liability in Oyo will undoubtedly be higher than in Ogun. Since the basic salary affects Leave Allowance, Pension, and Gratuity, labour has agreed to increase our basic salary as commonly requested. We have been tasked with preparing a template to assist the government in addressing this demand, including payment of domestic servants allowance for officers on Grade Level 15, 16 and 17.
Furthermore, the government has agreed to begin payment of the 8-year Leave Allowance in installments as finances permit.
In conclusion, friends and family have been congratulating members of the newly inaugurated Pension Fund Management Committee on their appointments.
It is important to note that these appointments are not political in nature; they are administrative and professional appointments to a committee comprising labour leaders and career officers. Their responsibility is to ensure the smooth operation of the Contributory Pension Scheme (CPS). The committee members will not receive salaries or financial incentives. You are encouraged to hold them accountable if the scheme fails.
On behalf of the leadership of Organised Labour, I want to sincerely thank the resilient workers of Ogun State for their unwavering support during this critical period.
As we engaged in negotiations with the Ogun State Government, we were fueled by your hopes, prayers, and steadfast encouragement. Your calls, messages, and genuine concerns reminded us of the significant responsibility we hold on your behalf.
We remain committed to this cause and will continue our efforts until we achieve a meaningful breakthrough. Victory may not come overnight, but with unity and persistence, we will prevail.
Don't be disappointed; don't believe we achieved nothing or were scammed!
There is no general in the army if there are no soldiers behind you!!
There is no Leadership in the Organised Labour if you are not behind us!!!
We also believe that 17 years of being shortchanged cannot be redeemed in just 2 years. However, let's give the committee supervising the scheme the benefit of the doubt.
In solidarity,
*Comrade Akeem Lasisi*
Chairman, TUC Ogun State Council
24/7/2025
