The outbreak of, and consequent fight against, the coronavirus (COVID-19) pandemic has (among others things) separated governments that formulate and implement good welfare policies for workers, from those that have and implement anti-workers welfare policies. But in spite of this distinction, many governments across the world were compelled during the months March, April and May, to adopt a variety of policy responses such as stimulus package, cash transfers, public work programmes and other kinds of welfare palliatives, to reduce the harsh impact COVID-19 pandemic on both the economy and workers.
In Nigeria, during the period of the lockdown, both the federal and state governments equally adopted a varied of policy measures to reduce the debilitating effects of the COVID-19 pandemic. But the far-reaching impact of such policy responses varied vertically across levels of government (namely federal, state and local governments), and horizontally among the states as well as local governments. For some reasons (e.g more revenue available to the federal government than the states), the federal government has done much better than the state governments in protecting and promoting the welfare of workers particularly on the issue of payment of salaries. Be that as it may, this article is focusing on how the federal and state governments have handled the issue of the welfare of workers (including the pensioners) during the period of this pandemic.
There is no doubt that the economic fortunes of the various governments have dwindled since the outbreak of COVID-19. It started with the dwindling price of oil in the international market. As the entire world entered into a total lockdown in the months of March and April (with only essential movements allowed across the world), the demand for crude oil as well as its prices, were drastically reduced. This immediately impacted negatively on Nigeria as crude oil remains its major source of revenue. Consequently, the federal and other levels of government had to revise their 2020 approved budget downward. Again, the total amount of money shared during the monthly Federation Accounts Allocation Committee (FAAC) meetings also fell drastically. In spite of this obvious fiscal crisis, the federal government maintained the payment of salaries to its workers. But unfortunately, state governments started contemplating with the idea of salary cut for their workers. This is marked the beginning of anti-welfare policy idea under the COVID-19 period.
Although a couple of state governments announced their intention to cut salaries of their workers in April, states such as Kaduna, Nasarawa and Bauchi were ahead of many others in this regard. As Dataphyte (May 7, 2020) put it, ‘the salary crisis began in April when some states hinted at a cut in pay. For example, Kaduna and Nasarawa in April announced a 25 percent cut. Both states claimed this is due to dwindling revenue because of the Coronavirus crisis’. But even after scoring first, the Bauchi state governments, reversed its decision to cut salary of its workers.
Kaduna State Governor Nasir El-Rufai who is known as a pace setter in public service reforms generally and policies that affect enhance the welfare of workers (payment of new minimum wage after it became law under President Muhammadu Buhari, surprised everyone when he announced that all state public servants earning, at least, N67, 000 per month will ‘donate’ 25 per cent of their salaries to the state government to help it fight the COVID-19 war. The Government actually went ahead to make this deduction with effect from April salary.
Although the Bauchi state government reversed its decision, the consultative and consensus-building character of arriving at the pay cut policy is worthy of note here. As The Eagle Online (April 9, 2020) reported it the Bauchi State Government has taken a decision to take part of the salaries of the state’s civil servants as their contribution to the curtailment of the Coronavirus Disease. The contribution will cover April, May and June. He said while Permanent Secretaries and their equivalents will contribute 10 per cent of their salaries, Directors on Grade Levels 16 to 17, both at the state and local governments, will contribute five per cent of their salaries for the period, adding: “Workers on Grade Levels 1 to 15 in the state and local governments will contribute one per cent from their salaries for the same months of April, May and June. The SSA to the governor said the agreement was signed by the State Head of Civil Service, Ahmed Ma’aji, and Danjuma Saleh, the State Chairman of the Nigeria Labour Congress. Other parties to the agreement were: Sabiu Barau, State Chairman of Trade Union Congress, and Dauda Shuaibu, State Chairman, Joint Service Negotiation Council.
Across the nation, many state governments announced as much as a 50% pay cut, but only applicable to the politically appointed officials which was seen as many to be a worthy sacrifice to be made by such officials. For example, Governor Seyi Makinde who also announced a 50 per cent pay slash for all senior political appointees in his administration, assured that the salary reduction will not affect civil servants in the state. According to him, ‘nothing will affect the welfare and payment of the workers’ salary despite the dwindling economy’ (See. Business day, May 1, 2020 via https://businessday.ng/news/article/coronavirus-gov-makinde-slashes-salaries-of-senior-political-appointees-by-50/).
Again, the Akwa Ibom state government initially announced is pay cut policy to cover everyone (namely public and civil servants, as well as political appointees), however it reversed itself much later and limited the salary reduction to political appointees. But that was not the case with some other states. For example, the Delta state government – a late entrant into the pay cut crisis – went ahead to include all workers on salary grade level 7 and above for a period of six months with effect from July 2020. It appears that the government did not benefit from the lessons learnt with respect to the controversy characterizing the policy in states that adopted it much earlier especially as they became politically wise in limiting the cut to political appointees.
There are many objectionable methods that some state governments have been using to subvert the interest of workers who are suffering so much under this coronavirus pandemic. For example, some of them have been pretending to be paying salaries of their workers, when indeed what they were actually doing was to pay workers in a selective, staggered and phased manner or what can be described as payment in batches. Workers can be owed up to three months or even more in this manner of selective or staggered payment system. This objectionable practice extends to pensioners in their states. All that the government would do is to buy over the leaders of the workers who would be reluctant to mobilize their members to agitate and protest against their inhuman treatment. As if this bribery and cooptation method is not enough, there is now a more objectionable practice of hiring thugs to intimidate and even maltreat workers and pensioners protesting against their inhuman treatment. As the Punch reported hoodlums on Tuesday, August 4, 2020 assaulted pensioners who were at the Imo State Government House in Owerri, the state capital to protest their five months unpaid pension and gratuities. The protest was the fifth time in less than a month the senior citizens were protesting their nonpayment of pensions and gratuities by the governor Hope Uzodinma led administration. Trouble started when thugs clutching canes formed a barricade, stopping the pensioners from approaching the Government House’s main gate. The senior citizens who were resolute in their demands defied the situation which led the flogging by the thugs Punch, August 4, 2020). The inexcusable excuse given by the government was that most of the protesters were ‘ghost pensioners’ who were being used by the opposition politicians to discredit the performances of the government.
The position and reaction of Organized Labour on the issue of workers’ salary reduction was predictable. As the Premium Times captured it: The Nigeria Labour Congress (NLC) ,has warned employers against stoppage and reduction of workers salary in the country due to COVID-19 pandemic. The president of the labour union, Ayuba Wabba, said workers’ salaries are core elements of employment contracts and collective bargaining agreements. He said “stopping it is illegal and will be resisted by workers.” He said the labour union has directed workers in the country to resist any form of salary deduction or stoppage by any employer as a result of coronavirus (See Premium Times, April 29, 2020, as reported by Azeezat Adedigba).
There are some lessons to learn from the different approaches adopted by state governments to address their dwindling economic fortunes. Some are more humane than some others. Some have clearly shown that they are anti-workers in their policies. The advice to such governments is to look for where to reduce their wasteful expenditure and save workers from the untold hardship they are passing through in this COVID-19. There are many of the workers and pensioners lying sick at home with little or no money to buy drugs. Think of the health conditions of pensioners with many of them suffering from underlying or chronic diseases that require constant medical support without which they would be sent to their early grave. Please, please the governments should be compassionate with the issue of the payment of salaries, pensions and gratuities of workers and pensioners. Remember that as the Holy Scripture says, their cries would reach to high heavens and the Almighty would definitely intervene on their behalf. No one knows when and how such intervention would be. It may tarry or delay but surely it would come.
Prof. Isaac N. Obasi, a public policy expert (& former columnist in the Daily Trust, Abuja, March 2003 to October 2006, & Daily Champion, Lagos, April 2005 to December 2008), is of the Department of Public Administration, University of Abuja. Email: nnamdizik@gmail.com