Osun Government Explains Financial Implications Of Her New Minimum Wage

Osun State government had on Monday explained the reason for its inability to implement across the board, the new N18,000 minimum wage demanded by the workers, as the government accepted the implementation of payment of the minimum wage for workers on salaries grade levels 1 to 7. According to the “New proposed salary structure” released…”
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August 10, 2011 5:26 pm
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Osun State government had on Monday explained the reason for its inability to implement across the board, the new N18,000 minimum wage demanded by the workers, as the government accepted the implementation of payment of the minimum wage for workers on salaries grade levels 1 to 7.
According to the “New proposed salary structure” released by the government, the full implementation of the new salary structure across the board would jerk the staff salaries from N1.2bilion to N1.9 billion and the government would be left with just N200million, which it said was not enough to run the state, stressing that meaningful projects would then not be embarked on in the state.
The document indicated that it would require additional N700million to be able to accommodate the full implementation of the new wage increment across board  and that the Internally Generated Revenue  (IGR) of the state was just  N300million, while the monthly federal allocation to the state was in the range of N1.8billion, totaling 2.1billion.
The civil servants in the service of the Osun State government had on Monday embarked on indefinite strike action, over the new minimum wage, after the labour leaders and the state government failed to agree on the mode of implementation of the new wage.
Osun State secretariat, Abere in the state capital, was a ghost of itself, as workers refused to resume work, while most of the top government officials including the state Deputy Governor, Otunba Grace Laoye-Tomori, who were in the office could not stay for long as a result of the development.
However, there was heavy presence of police detachment at the gate of the secretariat to prevent breakdown of laws and orders.
At Olorunda and Osogbo Local Government Secretariats, visited by OSUN DEFENDER, most of the offices were under lock, while few workers at the council secretariat were just there to monitor the compliance of the workers.
All other government establishments including Osun State Broadcasting Corporation (OSBC) were also providing skeletal services.
The state chairman of the Nigeria Labour Congress (NLC), Comrade Saka Adesiyan, and his counterpart in the Trade Union Congress (TUC), Adetunji Oladele, had on Sunday declared an indefinite strike action to press home their demands on the new minimum wage after failed negotiation with the state government.
The state governor Mr. Rauf Aregbesola led the delegation from the government side to a meeting with the labour leaders last Friday.
Also at the negotiation meeting were the state deputy governor, Secretary to the State Government (SSG), Alhaji Moshood Adeoti, Chief of Staff to the Governor, Alhaji Gboyega Oyetola and state Head of Service, Elder Segun Akinwusi.
It was gathered at the meeting that while the labour leaders insisted on full implementation of the new wage, the state government maintained that it could only accommodate the payment of minimum wage of N18, 000 for workers on levels 1 to 7, while wages for levels 8 to 17 would progress until finance of the state improves.
All pleas made by the government team to workers to reason with the state government fell on deaf ears, as workers there and then served the state government a notice of an indefinite strike action.

9 Comments

AKIN AKINJINMI (USA)

This is a task that must be done. Workers work for the state and they uphold the state, therefore their interest matters. If we dont have enough, let us think on revenue generations and priority expenses. We cannot be holding workers responsible for our woes everytime. A responsible state government generates revenue and not depends solely on monthly salary ( allocation) from the federal government. No development will ever takes place in a state that depends solely on the central. Let us encourage peole to,pay their taxes, stores and shop levy, let each council areas commercial farming, let governments contruct shopping complexes around the towns, manage transport services in towns and cities and even in Institutions of higher learning. industrial development will create job. Government to make use of what we have for industrial use. A reasonable government mostly establish her industrila development on the local raw materials. Nigerian industrial development will do better if it is mostly based on agriculture and stop the dream of when are we going to fly the first Nigeria aeroplane. Universities are being establishes in all our villages today, this is good but we need to develop other sectors for the products to work after graduation. So Ogbeni, your reliance solely on salary from the federal govenement will not help. May be there is need for new minimum wages (allocation ) for our states. Hei, what are the states going to do if the big brother ( federal government) fails to pay them their salaries for months ?

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Adubiaran Ajani (Imoru Iwo)

I do not pity the Osun state government for the situation they put themselves in. Firstly the cardinal program of most progressive parties especially the ACN during the campaign in which they solicited the votes of the people in exchange for free education at all levels, free medical care and free this free that was not only deceptive but equally ignorant and unachievable.

For a prospective government to promise free for most things it is assumed that the promisor knew the cash flow of the government. For proper understanding cash flows mean the expected income that will flow into the coffer of the government and different areas that will consume that income plus or minus certain factors.

The questions arise that is the state government aware of the revenue allocation formula to the state monthly,quaterly, yearly and the 4 years of her tenure? Did she have statistics and relevant demographic figures as to the number of civil servants in her domain, the number of school children she has to cater for? What about the existing facilities that require maintenance, upgrades and sometimes outright rebuild? Did he have a blue print of what he wanted to achieve infrastructurally and the cost and how to source for funds? Did she have an insight into the decays and debts which his predecessor in office had accumulated and which must be serviced? There are one and hundreds questions that would be asked which will point to the facts that politicians sometimes are not all that brilliant but carrry the the population with sweet tongues because the population themselves are gullible and always believe in free things and once someone tells them vote for me we will do it they swallow it .

The promise of jobs for 20000 OYES is additional to the existing numbers of workers before assumption. Where is the government going to get their pay. Unfortunately my suggestion will be seen as spoiling the charismatic desposition of the state government. Do we really need the services of all the workers? Why cant we do a staff audit and rationalise the work force. Do all the officers need drivers, do we really need all the messengers, do we still need the file carriers in these days of IT and e-mails,what are we doing with the gatemens and redundant securities when CCTV and digital monitoring can reduce numbers and bring effectiveness and efficiencies.

Why is the state government not liase with the CBN and BOI , form the farmers and traders into co-operative groups source money to enable small scale farming and businesses. I suggested this because this group will never get a dime from these institutions knowing the intricacies of feasibility studies, collaterals, people assumption that such is a share of the national cake and as such not paying back. But at state levels, local government levels and ward levels the small organic units can be helped and monitored to do something on their own and I can assure you that the membership will make the repayment of such loans possible and it will also be a political master stroke for the GOP.

If you have the Ministry of commerce with brilliant heads and not those who will build in 10% as their own commission the State can try it.

I can only wish the government the best with serious minded technocrats because the IGR may not be adequate and may not even be forthcoming with a population that is not all that active and who already believe that everything should be free.

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I strongly disagree with the claim that the present workers’ salary stands at N1.2b monthly. Tell us how much is being paid Tinubu out of the amount and we will tell you how much is left for Osun workforce. However, Ogbeni Aregbe should not complain of how to run the state with any amount left; afterall, he made so much promises b4 getting the mandate.

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Ogeni I strongly disagree with you, pay the worker their wages and let them generate the need money to run your government

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MUSA OLAIWON

I pity Osun State Government because of the enormous amount of money the state has to pay to worker. Payment of workers salary is fundamental responsibility of the State Government as employers of labour. There is no excuse for non payment of the minimum wages as approved by the Federal Government by the state Government. The minimum wages approved by the Federal Government is not more than the amount used to care for the dogs of some of our politicians or entertainment allowance for the Speaker of the State House of Assembly. To start with, let all our Parliamentarians in Osun State get seventy five percent of the salary they are supposed to get. The newly appointed Commissioner should be made to donate twenty five percent of their salary to the state cover. There should not be cars for permanent secretary any longer in Osun State, the money that will be realized from these cuts should be used to repair our hospitals and schools that are currently in state of disrepair. The hospital ambulances should no longer be used by the hospital heads to travel for meetings.

However, there are some problems that need to be addressed by the state Government as far as as staffing of state institutions are concerned. There are many way by which the state is wasting money and these wastage must be addressed.
At Osun State secretariat at Oshogbo, i witnessed the most wastage that can cripple a whole state. There are so many vehicles that are no longer in use which were abandoned at some Ministry especially Ministry of Health and State Health Management. I took my time to go to all Departments and i counted up to fifty vehicles that were in one state of disrepair or another. The vehicles can be sold off to staff that may repair them for their own use. These vehicles should not be sold to the party faithful at give away prices.

I came to Nigeria to work as a volunteer for Osun State as a Nurse at one State Hospital and what i saw there was shocking. The number of staff on duty couldn’t be condoned by private organization and the number should be tailored by patients’ attendance at the hospital.
The number of civil servants working in Osun State is ridiculously high and indiscipline of staff members must be headache to the state. Staffs come late to work, sell things on duty and make Government jobs secondary to their own interests and businesses. No state can develop where staffs are lazy and too big to be disciplined. Where the so call head of the organization comes in late and go home early to do his/her own private practice, where do you think progress of the state will come from?
In United Kingdom, staff must be on duty at the right time and must phone the work place when one is running late. There is no discipline in Nigeria civil service.
Any staffs that have spent thirty five years in service should be retired with immediate effect but their gratuity must be paid on their last day on duty. The pension must be commenced the following month and staff shouldn’t not be allowed to wait for years to receive their gratuity.
Osun state is endowed with mineral resources that are illegally utilized by some people because the state Government during the past administration was not serious and didn’t act on these acts of illegality. Ijeshaland alone is a land full of gold that can be mined commercially for the benefit of the state and Nigeria as a whole.

Erin Ijesha water falls is a tourist attraction similar to Duns River fall in Jamaica. Duns River fall is bringing hard currency to Jamaica and this can be done in Nigeria. As a foreign tourist in Jamaica, the tourist have to pay hotel bills in either UK pounds or US dollars and this is legally binding throughout this country. What is wrong with Nigeria as a nation? Some of our leaders are deaf to advice and they look at those of us advising them from abroad as too westernized to understand the complexities of the problem at home. Ogbeni Rauf Aregbesola is very attentive Governor and he listens to the advice of people and provides statistically data to support his arguments.

Many Nigerians don’t pay taxes and the Government is afraid to levy the business men and women in other not to rock the boat. Boats should be rocked and good luck to those who fall inside shallow water if they refused to wear life jackets.
In my own opinion, all saw millers in the Osun State should pay nothing less than one hundred thousand naira per month to the state Government. Act of illegal cutting of timber in the state should be made serious crime punishable by imprisonment or fine of nothing less than one million naira. Can Governor Rauf Aregbesola do this?
There minimum amount of revenue to be generated by each local Government should be set. Market women and men must be made to pay taxes based on their earning. Chemists, clinics, private hospitals and Patent medicine shops in the state must be made to pay taxes like it is done in all advanced world.

For how long will State Government continue to be at the mercy of the Federal Government? Osun State in term of population and land mass is bigger than Jamaica that is a country. Does it mean that Osun State can’t function without Federal allocation? Nigeria as a nation is not practicing Federalism in real sense of it. Federal Government is having more power and this need to be reviewed if this country is to survive as a nation.
There should be at least thirty farm plantations in Osun state and these should make up Orchard, palm trees and rubber and tick forest in addition to food farms specializing in maize, cassava, yam, potatoes. Snail and honey farming are lucrative business that can be practices even in every secondary school in the state. Manna will not fall from heaven for Osun State, we are the architect of our own destiny, the state shouldn’t rely too much on the Federal Government any longer, and enough is enough.

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