The Campaign for Democratic and Workers’ Rights has condemned the management of BUA Sugar Refinery Limited for violating 2004/2014 Pension Reform Act in a manner that shortchanges workers as well as disengaged workers and retirees.
This was contained in a statement by the CDWR’s National Chairmperson, Comrade Rufus Olusesan, and National Publicity Secretary, Comrade Chinedu Bosah.
The body said workers still in employment in BUA Sugar are also affected.
It added: “We must state that despite the fact that the present pension reform scheme is poorer than the previous retirement benefit arrangement and is a poverty pension for most workers, many private companies are still in the habit of undermining it. Hence, Nigerian workers need a living pension.
“Section 9 of the Pension Reform Act 2004 states that the contributions to workers retirement savings account shall be a minimum of 7.5% each for employees and employers. 2004 Pension Reform Act was amended in 2014 and Section 4 of the Pension Reform Act, 2014 modified the contribution to minimum of 10% for employers and 8% for employees relating to the monthly emoluments. The Act defines monthly emolument in Section 120 (interpretation Section) as total emolument as may be defined in the employee’s contract of employment but shall not be less than a total sum of basic salary, housing allowance and transport allowance. Section 11 (5) of the Pension Reform Act, 2014 also states that where an employee fails to open a savings account with any Pension Fund Administrator (PFA), the employer has an obligation to do it on his/her behalf within six months of employment.
“We were shocked to discover with ample evidence that BUA Sugar Refinery Ltd, part of BUA Group, a big and enormously rich company could consciously undermine the right of workers and retirees to their full retirement benefits in order to accumulate more profits for itself.
“After evaluating disengaged workers and retirees’ pays lips in comparison to their Pension Savings account statements, we were able to establish the following:
“1. The affected workers in question were employed in 2008 and for over a year BUA Sugar Refinery Ltd did not comply with the Pension Reform Act, 2004 in terms of remittance and contributions.
“2. BUA Sugar Refinery remitted 3.75 percent each for employer and employee between 2011 and June 2014 instead of 7.5 percent as enshrined in Section 9 (1c) of the Pension Reform Act, 2004 despite using the minimum which is Basic Salary, Housing and Transport Allowances as a basis for calculation. This was half of the required remittances and contributions.
“3. BUA Sugar Refinery remitted 8.06 percent for employer (itself), and deducted and remitted between 6.45 and 6.89 percent for employee since July 2018. Hence, BUA Sugar Refinery Ltd failed to comply with Section 4 of the Pension Reform Act, 2014 which instructs a minimum deduction & remittance of 10 percent and 8 percent for employer and employee respectively despite using the minimum which is Basic Salary, Housing and Transport Allowances as a basis for calculation.
“Similar attacks on the working conditions of workers took place in 2016 when workers agitated for hazard allowance (local allowance) in line with the industry practice and embarked on strike in August 2016. The management was forced to grant N12, 000 monthly hazard allowance only to come out with new working conditions that were poorer than the previous one without any collective bargaining or agreement with the representatives of workers in line with labour practice. Management also undertook vindictive measures such as redeploying 11 workers to Port Harcourt and sacking them all in August 2017 because of their roles in the strike action in violation of the agreement management reached with workers on August 5, 2016. For instance, Good Service Award and Long Service Awards that were enshrined as benefits in the former condition of service were removed. Likewise, redundancy and gratuity benefits were watered down.
“Besides, the management of BUA Sugar Refineries shortchanged 2019 retirees in violation of the condition of service to the tune of hundreds of thousands of Naira having paid retirement benefits based on 10 years instead of 11 years considering the fact that the retirees were employed in 2008 and retired in 2019. This is one of the numerous anti-labour practices perpetuated by the management.
“CDWR hereby calls on the management of BUA Sugar Refinery Ltd to calculate the shortfall as a result of the poor remittance for every disengaged workers and retirees including paying a minimum of 2 percent penalty for delay in line with Section 11 (7) of Pension Reform Act, 2014 and pay the balance into their respective savings accounts without further delay. Management should carry out this calculation in conjunction with elected workers/retirees representatives. CDWR also call on the management to pay the shortfall arising from the inadequate gratuities that were paid to retirees.
“We call on Nigeria Labour Congress (NLC), National Pension Commission and pro-labour organisations to come to the aid of BUA workers and other workplaces where managements compromise the pension interests and rights of workers and the disengaged workers.”
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