By Emma Ujah, Abuja Bureau Chief & Victor Ahiuma-Young
ABUJA — THE Federal Government has ordered the retrenchment of no fewer than 20,000 workers of the Power Holding Company of Nigeria, PHCN, ahead of takeover by successful bidders of its assets.

Vanguard gathered that the Bureau for Public Enterprises, BPE, issued the directive to the Chief Executive Officers, CEOs, of the 18 successor companies to PHCN at a meeting in Abuja, to compile names and drastically reduce the 50,000 strong workforce before the new investors take over.

It was gathered that new investors demanded that the workforce must be pruned before government hands off.

Labour kicks, warns on danger of action
Though it is not clear how government arrived at this figure, however, General Secretary of the National Union of Electricity Employees, NUEE, Mr Joe Ajaero, who confirmed the directive to massively retrench the workforce, said it was obvious that the Federal Government had decided to truncate the implementation of the collective agreement reached with the unions.

Already, organised labour had kicked against the move and warned the government against such action even as the agreement reached between both parties in December 2012 on the terminal benefits of workers had not been implemented.

The Senior Staff Association of Electricity and Allied Companies, SSAEAC, has petitioned the government through the Federal Ministry of Labour to explain the dangers and futility of government action when agreement on terminal benefits had not been honoured by the government.

On its part, NUEE directed members to shut down the power sector once any worker is issued a retrenchment letter without a financial back up in line with the December 2012 agreement.

NUEE, in a statement by Ajaero, rejected the planned retrenchment of workers without honouring the agreement the government entered into with the workers.

According to NUEE, “our attention has been drawn to the nocturnal meetings being held between Federal Government and all chief executive officers in Power Holding Company of Nigeria, PHCN, where a mandate to retrench workers in the power sector has been handed down to them. It is rather unfortunate and provoking that the Federal Government is hatching such obnoxious idea when agreement reached with the unions on payment of severance benefit is yet to be implemented.

“Information reaching us reveals that arrangement to close down PHCN’s Corporate Headquarters has been put in place. While people are still working, government plans to kill their management.

“It was equally gathered that the Federal Government has concluded plans not to pay pension or transfer money to the Pension Fund Administrators, PFAs, all in the name of driving workers to their early graves. We are worried that the government could be privatizing without cash backing, as information at our disposal suggests that about N43 billion is available out of the over N400 billion agreed with the unions.

“At the moment, agreement on certain indices to be used in calculating entitlements like life expectancy which the Federal Government put at 14 years is yet to be reconciled.

“By this posture, it is obvious that the Federal Government has decided to truncate the implementation of collective agreement reached with the unions. Nigerians should, therefore, hold government responsible for any reaction this action may generate.

“While there is still opportunity for the Federal Government to follow due process, we wish to state unequivocally that PHCN workers will legitimately resist every attempt to shave their hair in their absence. Should the Federal Government make good its threat to retrench workers in the sector when labour issues have not been settled, all members are advised to stop work, while those monies paid into their accounts should be seen as free money. The hour has come for you to defend your rights.”

FG set to pay off workers —Igali

Meanwhile, the Federal Government has said it is now set to pay off the staff of PHCN. The Permanent Secretary, Federal Ministry of Power, Ambassador Godknows Igali disclosed this, weekend.

Igali told journalists in Abuja that the fund for the payment of the workers’ severance package was ready and that in a matter of weeks, they would be paid as part of the process of the takeover of the sector by private investors.

His words: ”What we have done so far is to try to ensure that the entitlement of these people and their severance package is well calculated from the point of their engagement to the point where the government is bringing the private people to take over.

“We have agreed on virtually everything. Government is preparing towards the formal takeover by the private sector. We expect the process to be seamless. So far, there is no major problem; the fund required to pay the people is available.”

…assures workers

The Permanent Secretary expressed satisfaction at the resolution of the issues surrounding the disengagement with the PHCN staff as well as casual workers and assured that the Federal Government was working to ensure that they were all happily disengaged.

According to him, the new owners would certainly re-engage many of the workers as it would be practically impossible to operate without the old staff. He said the private sector operators would be made to adhere to the nation’s labour laws.

His words: “The people that are working in these power plants are Nigerians, and when the private people take over, they are not going to bring workers from Jupiter, Mercury or China; most of their workers would remain Nigerians.

“The only difference is that they have been government workers up till now and as the government finishes with them, they will transfer their services to private operators who are driving the sector now. But the private sector will still follow the Labour law of this country.

“So, it is not a situation of whether there is going to be mass exodus of people out of the sector. Most of these workers have been very competent; they have been serving the country very well with commitment. And you cannot just replace those who have been on the job for many years.”

Training and retraining of workers

For those who would not be re-employed by the new owners and those who may choose to go into private business, Igali said: “Government also has a very robust programme to train and retrain the workers of most of these companies. Retraining them is at two levels: first is to retrain people in such a way that they can fit into a new nature of the sector. Before it was public service but now, we have private people taking over.

“So we are retraining them so that those who will continue working on contract basis will fit into the system properly. The second training is directed at those who would opt for private life. A lot of people may want to go into consultancy; like I said, the private people coming in cannot go out of the country to import thousands upon thousands of workers to take over our electricity sector. They will still need these same people.

“Government from the highest political authority has assured people of their commitment to ensure that all parties are satisfied with the way the issues are resolved.”

He added that the power reform transaction signing summit presided over by President Goodluck Jonathan, last Monday, was an eloquent demonstration of highest commitment by the government to ensure a successful conclusion of the power transaction.

The Perm Sec said $600 million (about N94 billion) was realised from the 25 per cent initial payments by the investors in the power sector and that they were equally determined to make the transactions successful with some even ready to make 100 per cent payment of their bid prices ahead of the 90-day stipulated payment period.

He said: “Some are ready to pay 100 per cent but 25 per cent was what was required at this stage and the total amount from the information we have from BPE is about $600m.”

Igali said power generation had risen to over 4,500 and that the Federal government’s target of 9-10,000 at the end of the year was still intact.

He claimed that some major cities of the nation now enjoy about 16 hours of electricity daily.

http://www.vanguardngr.com/2013/04/fg-orders-sack-of-20000-phcn-workers/

What a relief.., afterall.. These miscreants are not god!! These PHCN workers operate in a gangnam style- looting unsuspecting people with impunity every month!!

Good move by the FG to checkmate the excesses of these people who call themselves god through their operation!! Atleast this will instill sanity for the meantime!!

waohhh...so many to lose their jobs?? are we really moving forward with this kind of policy??

someone should read it and give me a summary of the story...wetin dem talk?

All I want is constant power...

Another 20,000 people sent into the labour market again without making adequate alternatives for them.

Good riddance. They will not be missed

I support the move, most of these PHCN workers are either too old, unqualified or extremely corrupt. This would bring about the empolyment of young qualified engineers into the fold who to an extent would understand better load sharing and electrical distibution. Most of the power problems we have is as a result of the use of Kainji Dam trained engineers to work on Gas plant distribution networks. Private companies always have strict methods of recruitment and thats why they get the best hands. The old people should receive their payoff settle into SMEs and leave the Engineering work for trained Engineers. Nigeria would be better.....

why is Jonathan Playing politics with everything

Finally tha axe has landed. I saw this(the sack) coming a long time ago!

this can not be true

Makin which alternative they don't work all they do is get employment go home and come @de end of the month for their pay the ones that work take bribe and receive payment without issuing receipt the ones that issue receipt issue fake receipt their causing prob for poor citizenz 68% of they are too old for their job

20,000 out.. 20,000 on!! I guess this is what GEJ MEANT by Wealth and Job creation.. Let's enjoy the Fresh Air Slogan jwo!!!

Drama.
The Phcn staff on their own are getting hysterical about this. Imagine, in my single room self con I share with my roomie, we were given a bill of N5,250 to pay for one month only. We don't use hotplate, boiler or electric kettle. When my roomie protested, she was told they had a target to meet so they don't read meters anymore but allocate figures randomly to every consumer.
Only in Nigeria! If they are incompetent, let them go. They have sabotaged the economy long enough

nairaman66: C

Madt guy I know you never revisit thi7 p8g3

Wonderful News! The Privatization is now on Gear Two! Great news if you ask me.

Nice one, I remember what happened few years back when I went to pay for my nepa bill. The lady who was supposed to collect the money resumed work by 9am, while there was a queue since 8am with over 30people. Instead of her apologising, she ignored us and even started applying makeup before attending to us. That day I told her that once government privatise nepa she will lose her job. I just hope she is part of the 20000.

hope say them go pay them d money as them de distribute d retrenchment letter o? cos FG don dey lie for long now.

Ahmedie25: why is Jonathan Playing politics with everything

Meaning?

Itulah: ...
Igali told journalists in Abuja that the fund for the payment of the workers’ severance package was ready and that in a matter of weeks, they would be paid as part of the process of the takeover of the sector by private investors.

His words: ”What we have done so far is to try to ensure that the entitlement of these people and their severance package is well calculated from the point of their engagement to the point where the government is bringing the private people to take over.

“We have agreed on virtually everything. Government is preparing towards the formal takeover by the private sector. We expect the process to be seamless. So far, there is no major problem; the fund required to pay the people is available.”

…assures workers

The Permanent Secretary expressed satisfaction at the resolution of the issues surrounding the disengagement with the PHCN staff as well as casual workers and assured that the Federal Government was working to ensure that they were all happily disengaged.

According to him, the new owners would certainly re-engage many of the workers as it would be practically impossible to operate without the old staff. He said the private sector operators would be made to adhere to the nation’s labour laws.

His words: “The people that are working in these power plants are Nigerians, and when the private people take over, they are not going to bring workers from Jupiter, Mercury or China; most of their workers would remain Nigerians.

“The only difference is that they have been government workers up till now and as the government finishes with them, they will transfer their services to private operators who are driving the sector now. But the private sector will still follow the Labour law of this country.

“So, it is not a situation of whether there is going to be mass exodus of people out of the sector. Most of these workers have been very competent; they have been serving the country very well with commitment. And you cannot just replace those who have been on the job for many years.”

...

If the highlighted parts of the statement are true, then this is a welcome development. I also totally agree that no matter who the private buyers are, they would still have no choice but to hire the same old retrenched staff who already understand the present infrastructure. The only people that may not be re-engaged are the lazy ones and to those I can happily say good riddance. If GEJ can successfully pull this stunt through, then he would have my respect even after leaving office in 2015.

Chuksaluta: Nice one, I remember what happened few years back when I went to pay for my nepa bill. The lady who was supposed to collect the money resumed work by 9am, while there was a queue since 8am with over 30people. Instead of her apologising, she ignored us and even started applying makeup before attending to us. That day I told her that once government privatise nepa she will lose her job. I just hope she is part of the 20000.

10gbosas for u my broda!! No mind d woman,infact she is definitely among d 20,000

abeg who ever read am make e explain wetin them talk, meaning say we go get light this evening?

No wonder our light is a bit constant, something you never imagin.

mychaella: Good riddance. They will not be missed

Good riddance to well....good(they r human beings @ least) rubbish.
God will bless them with good severance pay n wisdom to spend it well n long.

PHCN workers you people MUST go, Nigerian don't need your service anymore.

shiloh: 10gbosas for u my broda!! No mind d woman,infact she is definitely among d 20,000

my friend park well, wetin u dey give gbosa put for another person downfall, because what he said now is what you will see in every govt. establishment. the lady simply followin wht she meant in the system, or u won say make dem sack everybody wey dey work for govt.?

my friend take ur time

Whatever the case is, govt should pay them off. If not the privatization exercise will fail. Everybody will be affected, both PHCN GOVT MASSES. We have all u can't sack 20k Nigerians while award.$ 40mill contract to israel company to provide more employment for their citizens.

Charity begins at home.

I'm loving this. Let's see how it plays out...

Graduate dy complain abt unemployment, now dy 1 sack dos in service. Only God and oursef go save ds country frm bad govt