Cash Crunch: Ekiti Government Slashes Salaries

 

….Suspends implementation of Minimum Wage Adjustment

 By O'Seun Ogunsakin

Following the dwindling revenue that accrues to it from the federation account, the Ekiti State Government has reduced the salary of political appointees in the State as well as suspended the minimum wage adjustment which it started implementing in January this year.

 

The decision was jointly agreed to by the state government and the Organised labour in the State after several days of negotiations.

 

According to a memorandum of understanding signed by the representatives of the two parties, the duo agreed that the consequential adjustment of the new minimum wage earlier paid to officers on grade levels 7 to 12 be suspended for three months.

 

Political aides, Permanent Secretaries, General Managers and Executive Secretaries will also bear the brunt as their salaries would be slashed by 25% for three months.

 

The parties also agreed that the Economic Review Committee would meet every month five days after FAAC with a view to keeping labour abreast of the financial position of the State.

 

The state government however promised that it would not downsize the workforce or retrench workers as a result of the financial challenges facing the State.

 

The Head of Service, Mrs ‘Peju Babafemi; the permanent Secretary, Office of Estabs and Service Matters, Mr Bayo Opeyemi and the Senior Special Assistant to the Governor on Labour Matters, Chief Oluyemi Esan signed the agreement on behalf of the State government while the Nigerian Labour Congress chairman, Comrade Kolapo Olatunde, his Secretary; the chairman of Trade Union Congress, Comrade Sola Adigun and his Secretary as well as the chairman of Joint Negotiating Council, Comrade Kayode Fatomiluyi and his Secretary signed on behalf of labour.

 

It is recalled that the state Governor, Dr Kayode Fayemi had convened a stakeholders meeting on 4^th May this year to intimate the stakeholders of the state of the State’s finance.