Aviation

Agitation over Severance Pay

Desirous to sell a former subsidiary of the defunct Nigeria Airways, Skypower Aviation Handling Compant Limited (SAHCOL)  about six years ago, the Bureau of Public Enterprises (BPE) acquiesced some of the demands of the workers but left the crucial one on a promissory note. By the time it was sold to Sifax and its name changed to Skyway Aviation Handling Company Limited (SAHCOL), BPE had reneged on the payment of about N3.5 billion severance packages to the former workers of Skypower.

The debt owed about 979 workers is now mired in controversy as BPE had failed to fulfill its promise to pay the workers. The aggrieved workers through the National Union of Air Transport Employees (NUATE) sued BPE and later the case was transferred to the Industrial Court. About three weeks ago, the Bureau’s lawyer met with the union but failed to make official statement on the debts. The Bureau’s position is that those who spearheaded the privatisation of SAHCOL had since left BPE.

THISDAY spoke with the vice national president of NUATE, Damisa Cympa, who provided documents on the agreements the workers reached with BPE.

On June 12, 2009 SAHCOL management and the union met to ratify conclusions of earlier meeting between BPE, SAHCOL and the Union at the Bureau’s headquarters in Abuja on Monday June8, 2009. The communique issued at the end of the meeting stated among other things that the new valuation computation should be made for the gratuity, pension, arrears of pension fund contribution and three months in-liu.

They agreed on severance payoff, which stated that all SAHCOL employees shall be paid a minimum of five years of total emolument. They also agreed on repatriation, which should be paid to all SAHCOL employees “as at the current payroll.” There were also agreements on accrued leave, outstanding of one month salary and on training, but while all other conditions were met, according to Cymba, BPE failed to pay the severance benefits amounting to N3.5 billion.

Also, in a meeting held on December 3, 2009 between the Ministry of Aviation, SAHCOL management and the SAHCOL in house union, BPE had said that all necessary computations regarding terminal benefits had been done by the consultants, Messrs Hogg Robinson Nigeria Limited.

Cymba, who is a staff of SAHCOL said the industrial court had filed the case and served BPE notice but no date had been fixed for hearing. He explained that the union had written several letters demanding for the payment of the money but because BPE was not responding “we took the matter to the industrial court.”

He disclosed that some of the workers supposed to benefit from the severance packed had been sacked by SAHCOL, so about 80 per cent of them were out of jobs right now and badly in need of money for their upkeep.

“Some of the workers that are owed have been severed from SAHCOL and it is only few of us that were retained. In fact, 80 per cent of the workers have lost their jobs. So 80 per cent of them are currently unemployed and some of them have died of heart attack due to difficulties,” Cymba said.

THISDAY also contacted a spokesman of BPE Alex Oko, who said he was yet to get full brief on the matter and therefore would not like to issue half-truths about the matter.

However, the workers alleged that the refusal to pay the money was a well-orchestrated plan by BPE to divert the money and deny the ex-workers of Skypower Aviation Handling Company their well-earned emoluments. They said BPE had agreed to pay the severance package and did not understand why it reneged, whereas it met other demands as agreed.

Speaking on the matter, the Executive Secretary of NUATE Olayinka Abioye, said the BPE had no basis for withholding the money, saying union leaders had done due diligence in ensuring that the package was paid to the workers.

“BPE has no reason to hold on to the severance package of the workers. It is outright, fraudulent activities; we have done all the due diligence to ensure that money are paid. We have done management meetings, we have had unions meeting and they have met with the management of SAHCOL where it was agreed that the money was owed the people and BPE should pay,” Abioye said, adding that the unions had met with the BPE, management of SAHCOL and consultants to the government and they had given a go ahead for the payment of the package.

“The unions, BPE, the management and HR consultants had held several meetings, and several process that would lead to the successful disengagement of these workers were agreed upon, but according to the workers, BPE beguiled them by agreeing to abide by but later failed to do so.

The workers now feeling short changed are considering several ways to make BPE pay the money, but first the judgment of the Industrial Court is being anxiously awaited.

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