Fayemi suspends minimum wages, slashes political appointees’ salaries


As part of the measure to overcome the current financial challenges, Governor Kayode Fayemi of Ekiti State has cut down his salaries and his political appointees as well as workers on Grade Level 07 to GL12.

The new measure was approved after reaching an agreement with the leadership of the organized labour, after a series of meetings on the latest state of finance occasioned by a shortfall in the allocations from the Federation Account.

The agreement was sealed and signed by the representatives of the government and leaders of the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and the Joint Negotiating Council (JNC) in Ado Ekiti, the state capital on Friday.

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Upon the agreement, the governor, political office holders, and top government functionaries are to make a 25-percent reduction in their monthly salaries for three months, effective from May to July 2020.

The consequential adjustment of the new minimum wage approved by the state government for workers on GL 07 to GL 12 would also be put on hold for three months effective from May to July 2021.

It was also agreed that the monthly Running Grants (RGs) released to Ministries, Departments, and Agencies (MDAs) on monthly basis be reduced to reflect the latest economics realities on the ground.

Another deal struck was that an Economic Review Committee would henceforth meet monthly (five days after Federation Accounts Allocation Committee release) to keep Labour abreast of the financial position of the State and actions to be taken.

It was equally agreed that 10 percent of the Internally Generated Revenue (IGR) being the state responsibility to the state Joint Account Allocation Committee (JAAC) would be released henceforth.

The government further reiterated its commitment to workers and also reaffirmed its promise not to downsize the workforce or retrench any worker as a result of financial challenges facing the state.

Addressing a joint press conference with the Organised Labour on Friday in Ado Ekiti after the pact was signed, the Head of Service, Mrs. Olapeju Babafemi, said the agreement was the high point of interactions Governor Fayemi started on May 4 when he presented a State of the State Address on the financial position and how to address the challenges posed.

Mrs. Babafemi commended the labour leaders for their sacrifice and understanding, expressing optimism that Ekiti will successfully navigate through the period of financial challenges.

She assured that the Fayemi administration, which she described as worker-friendly, would be faithful to the terms of the agreement reached with the workers to ensure a peaceful industrial climate in the state.

Speaking on behalf of Labour, the JNC Chairman, Comrade Kayode Fatomiluyi, appreciated the political class in Ekiti for sacrificing 25 percent of their monthly salaries and also hailed the government for making efforts that would not lead to retrenchment of workers.

Fatomiluyi acknowledged that Nigeria and workers are passing through a very harsh economic climate but noted that Labour would not shirk its responsibility of protecting the interests of workers despite the prevailing situation.

He added: “The labour leadership believes in dialogue and subjecting itself to arguments logically and scientifically and bowing to a superior argument. We urge the government to adhere strictly to this agreement.”

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