#OPEN LETTER TO DISCONTENTED CEOs/MDs OF BANKS,OWNERS OF COMPANIES AND ALL EMPLOYERS OF LABOUR. #WHO SO EVER THAT PRACTICES THE UNDERLISTED WILL CRY BLOOD@HIS/HER OLD AGE. #NIGERIA LABOUR CONGRESS AND TRADE UNION HAS LONG BEEN IN COMA IN THE ABSENCE OF OSHIOMOLE & KOKORI Contract workers lament injustice of casualisation #Casualisation keeps bank workers starved, bitter - The Punch:NoV,2013. #ALL ILL-GOTTEN BLOOD PROFITS FROM CONTRACT STAFFING WILL AFFECT YOUR CHILDREN. [20/07/2014] BANKS ------------------------- Casualisation keeps bank workers starved, bitter Nwakky CHARLES ABAH writes that many workers in Nigerian banks are facing hard times due to casualisation When on August 30, a Jos, Plateau State-based banker, Augustine Iwu, left his residence to write an employment test in Lagos, his cousin, Eze Ugochukwu, in whose house he took temporary refuge in the commercial city, expressed surprise at the move. The exercise organised by Consolidated Breweries Nigeria Plc was held at Victory Grammar School, Ikeja. Iwu, who took a night luxury bus, arrived at his cousin’s Surulere residence on Saturday morning. After exchanging some pleasantries, he hurriedly freshened up and took a chartered taxi to the venue of the examination. The test was in phases and it lasted till about 6.30pm. He eventually left for Jos the following morning. But Ugochukwu could not fathom why his banker-cousin would embark on such a night journey he considered risky and dangerous, in the first place. Besides, he could not understand why Iwu should be seeking another job barely five months after he was employed by the bank. Has the bank sacked his cousin? Did he not meet the firm’s target? Did he commit any crime? These and many more rhetoric questions occupied Ugochukwu’s inner recesses. The burden, as it were, also prompted his reaching out to their other relations to discuss Iwu’s sudden visit to Lagos and to verify his status in the bank. It was in the course of the enquiries that it dawned on him that his cousin was a casual worker at the bank. Dashed hopes and expectations Indeed, Iwu is desperately seeking a pasture that will not only be greener but more gratifying. Having received the paltry N50, 000 monthly pay for a few months, he has suddenly realised that the bank salary offer is not as fulfilling, after all. Also, not meeting his personal needs – accommodation and a car especially – he has not been able to actualise some other family requests and pressure staring him in the face. This is apart from the fact that he has no sufficient resting time and chance to seek other better life opportunities. Little wonder, the frantic volte-face in his search for another job. Iwu’s fresh job-searching effort also helped his relations to know that their 24-year-old University of Nigeria, Nsukka and Business Administration graduate is working in the bank with the Ordinary National Diploma certificate he obtained before proceeding to the university. The choice is not his; it is that of the bank which is not ready to pay for the value of his university certificate. Iwu’s story is not peculiar to him and his family. In fact, casualisation – or the more dignifying brand name “contract staffing” – has become a signature mark in many Nigerian banks. It has become a daily reality. Just name the banks: from the old to the new generation ones, different casualisation policies and scenarios are playing out daily in these financial institutions. Terrible arithmetic The culture caused a mild drama between a Mowe, Ogun State-based teacher and his wife some months ago. She had attended an interview with an organisation that was recruiting for a new generation bank that needed to expand its workforce, having just acquired another financial institution. The woman was offered a job with a package that came down to N60,000 per month, from which the intermediary company would be taking N27,000. Dilemma reared its head when the husband strongly advised her to turn down the offer, while the woman, an HND holder, who was tired of staying at home, badly desired to play along. The distance between Mowe and Victoria Island, where the branch to which she was to be posted was located, was the last straw that broke the camel’s back. She discovered that every day, she would have to spend about N1,000 on transport. Yet, the fact is that the N33,000 she would have been earning monthly translates into N1,100per day. But many of the young Nigerians, who have no other option, are still trying to cope with the casualisation mechanism. For instance, another young though married woman takes solace in the fact that her husband supports her, helping to settle transport fare, among other responsibilities. She earns N34,000 as a contract staffer in a bank that says it places premium on wisdom. In the case of another lady that works as a cashier with a financial institution that emphasises ‘trust’ in its name and practices, she was offered N40,000 monthly, from which the recruiting firm takes N10,000. Depending on commission A marketer and a contract worker, Miss Adeyinka Adele (not real name), survives on the N20,000 monthly stipends she collects from one of the new generation banks. Adele, who prefers anonymity for fear of victimisation, says, “My brother, you will not believe me but that is my salary and I have been earning this for quite some time now. The worst is that the challenges associated with the job are enormous. I live my house every day early in the morning rummaging around the city of Lagos for potential customers for the bank and returning home totally exhausted later in the day.” But how has she been surviving on this stipend? The young lady, who claims that unemployment dragged her into the system, explains that the survival strategy depends on the individual’s contacts. According to her, the more contacts one has with regard to attracting and selling the bank’s services to clients, the more commission one makes from the organisation. “Interestingly, there are months one makes additional N150,000 from the commission and there are also periods that one makes less. So it is the commission that attracts us to this kind of employment,” she adds. Lending credence to Iwu and Adele’s experience, the President of the National Union of Banks, Insurance and Financial Institutions Employees, Mr. Danjuma Musa, notes that their stories are not “tales by the moonlight.” These are stark realities in the nation’s banking industry, he states, adding that the fad, which some Asian firms introduced in Nigeria, is also fast catching up with other sectors of the economy, especially telecommunications. How it works Investigations show that the managements of these banks employ discreet recruitment approaches in carrying out the exercise. One of such, a three-prong technique, our correspondent gathered, largely revolves around the banks, outsourcing firms and the employees. While the banks engage the outsourcing firms or vendors, as middlemen, the latter reach out to prospective employees. Though the banks’ personnel needs vary, they reportedly use this method in recruiting all manner of people ranging from cashiers, tellers operators, security officials, dispatch riders to cleaners. But why do these profit-making financial houses prefer to remain in the background? The NUBIFIE boss says it borders on cost. He insists that they are just avoiding cost, nothing more and nothing less. He adds, “Do you know that there are no direct employment letters from the banks. The letters these workers have are from the outsourcing companies. The implication of this is that the banks are not indebted to this category of workers in any way, even in death and this is what we are kicking against. “Inasmuch as these employees are believed to be on contract, there are no entitlements for them from the banks.” Pleading anonymity, another victim of this policy, whose case with one of these banks is still in the court, shares Musa’s view. According to him, after using his productive years for so many years, doing overtime without additional pay, the bank suddenly sacked him without any form of compensation. He adds, “I am involved and I know what these banks are avoiding. If those of us known as contract staff were on direct employment in the banks, our earnings would be higher than what we take home now. I suspect that the bank representatives, who negotiate with the vendors, share a certain percentage of the money, while the remnant comes to us. In this way, our overall package is reduced.” Cagey denials from banks But the bank authorities seem united in their reactions to our correspondent’s posers to them: They are trying hard to distance their institutions from casualisation. According to the head of corporate communications in one of the banks, who pleaded not to be named because he needed the consent of a higher authority, this category of workers does not belong to the bank. “Did you see any employment letter from this bank with the petitioners? In fact, that easily tells you that they do not belong here,” he notes offhandedly. Also, a source from the corporate communications department of United Bank for Africa Plc says the bank does have casual workers in its workforce, and does not plan to have them. He, however, explains that the company’s management operates outsourcing arrangement for the employment of drivers. He says, “In UBA, there is nothing like casualisation. When you talk about core banking workers, we do not do that. Every member of staff you see in our bank across the country is a core member of staff.” He, however, adds, “I want you to forward the question on the issue to me, so that I will send it to appropriate channel that will provide more detailed answers,” he adds. Yet, ‘Tell that to the marines’ is Musa’s response to such claims. The labour leader dismisses the idea that these workers are not employees of these banks; noting that they work, solicit customers and render other services in the organisations. The source further notes, “In one of such funny developments, the infringement on the workers’ rights prompted our agitation to Diamond Bank Plc on July 10, 2013 to picket its branches across the country. Again, do you know that in the banking sector till date that there are marketers that earn N20,000 every month? Don’t you think that this can make them to think of other ways of subverting the system?” Curiously, the Central Bank of Nigeria seems to prefer to remain “silent” on the controversy. The apex bank’s Director of Corporate Communications, Mr. Ugochukwu Okoroafor, who briefly spoke to our correspondent, promised to return the call after liaising with the appropriate department of the bank. As of the time of filing the report, he neither called nor responded to the text message sent to his telephone. Similarly, a source at First Bank of Nigeria promised to get back to our correspondent but she never did. She said, “I need to contact someone who can talk on the issue after which I shall get back to you.” Implications for the polity Apart from the job security threat that the “victims” face, they also remain stagnant in their various positions, analysts observe. Issues bearing on “working without condition of service, no closing time, no overtime allowances and no provision of medical facility” equally top the challenge chart of the “victims”. On a wider perspective, Musa argues that casualisation policy is ironically a double-edge sword. According to him, besides the large-scale fraud perpetrated in some of the defunct banks like Intercontinental Bank Plc and Bank PHB, some of the firms got their fingers burnt following the activities of casual workers. He warns, “By keeping some of these people who are disenchanted by the fraudulent policy, the banks are on the other hand endangered. It is detrimental to the banks. For instance, if you employ one on a contract basis without strings attached to the offer, without any hope of entitlement or compensation, there is the likelihood that the person will try to defraud the system.” Also pointing out that these “victims” are potential cannon fodder for fraud, a management consultant, Mr. Richard Maduegbuam says, “Corruption is all about money, not structure or building. It is cash. When one hears that a bank collapses, it is not the structure but the finances of the organisation.” Reasons for accepting the offers Beyond the blame game, unemployment has largely been identified as the source of the social malaise. Like bees to honey, high level of unemployment in the country is compelling many unemployed persons to embrace this kind of job. Evidence abound that thousands of Nigerian graduates are roaming the streets in search of white-collar jobs. What the Labour law says For a Lagos lawyer, Mr. Bamidele Aturu, the Nigerian constitution and the International Labour Organisation rules forbid casualisation. Noting particularly that the initiative contravenes Section 7 of the Labour Act, he adds that it is akin to modern day slavery just as it devalues human dignity. According to him, the section clearly forbids an employer from keeping an employee in the dark with regard to his terms of employment. Section 7 (1) of the Labour Act, Cap 198, Laws of the Federation of Nigeria, 1990. The Act provides that, “Not later than three months after the beginning of a worker’s period of employment with an employer, the employer shall give to the worker a written statement specifying the terms and conditions of employment, which include the nature of the employment and if the contract is for a fixed term, the date when the contract expires.” Sabotage from within Even as NUBIFIE is fighting this cause, it is also saddled with what can be described as sabotage from within its ranks. He says, “We have been against this policy from its inception. We have taken our protest to the banks, and to some of the outsourcing firms. But strange enough, some of them behave funny when we visit to picket the organisations where they work.” Appeal to govt Still frowning on the policy, Aturu urges the Federal Ministry of Labour and Productivity to live up its responsibility. He insists that there is the need to prosecute all defaulting firms, no matter their ranking in the country. But for Musa, the Central Bank of Nigeria as well as the Labour ministry needs to show more than passing interest in resolving the issue. He says, “The Ministry of Labour and Productivity is not doing enough. We challenge the ministry to formulate and initiate better policies that will put a stop to the casualisation initiative. We also urge the apex bank, the Central Bank of Nigeria, to put together better policies that will impact positively on the people, the banks and the nation in general.” The unionist, who notes that the casualisation policy is fast spreading like wildfire to the oil and telecommunications sub-sectors, among others, warns that “now is the time to stop the lump before its growth becomes cancerous.” PUNCH.Nov 2012 ------------------------- COMPANIES: --------------------------------- Scores of Nigerian youths are at the mercy of firms which unduly engage them as casual labourers under the guise of contract staffing, writes GBENGA ADENIJI The joy of Tolu Aloba (not real name) knew no bounds when he got a job in one of the customer care centres of a popular telecoms firm. But the once overjoyed Aloba said he lost interest in the job when reality dawned on him two years after when his mode of employment was still on contract basis. Asked if his employer did not initially inform him about his mode of job offer, he said he was told that chances of being offered full employment were high. Aloba, who is still in the employment of the firm, described contract staffing as modern slavery. He said such practice was becoming a trend among corporate organisations and could encourage cheap labour if it was not checked. He added, ‘‘Though I work for a telecoms firm, I do not deceive myself that I am their employee in the real sense of formal employment. In fact, my work schedule is so tasking yet the pay is nothing to write home about. Contract staffing is now a trend in the corporate world as a way of cutting cost.’’ Aloba’s case is similar to Tade Alonge’s. The difference is that Alonge threw in the towel after two years. He said work benefits were denied contract employees but given to those on full employment. According to him, apart from the disparity in salary, each employee on contract is expected to work for at least six hours daily. He stated, ‘‘The work schedule of contract workers is flexible with some employees operating either morning or night shift. Though no worker can be on a fixed work schedule except on a rare case, the payment for night duty is higher. Daily pay for morning duty is about N600 while night duty is N1,000. At the end of the month, a worker’s salary ranges between N50,000 and N60,000.’’ He also said annual leave days are usually 15 days while five days are for sick leave. “No any extra allowance or bonus. The payment for leave is calculated with the amount payable for morning duty. For the sick leave, one’s daily pay is automatically deducted when one is not in the office even if one is ill,’’ he said. Also, Felicia Aigbodion, who has been working for six years as a contract worker with one of the leading telecoms firms in the country, said there exists a huge discrepancy in the salary of both contract and full employees. She noted that the two categories of workers, in most cases, are employed with the same qualification. Aigbodion further said contract workers have no specific department they work hence could be deployed to customer care, human resources, network group or marketing units. She said, ‘‘Workers on full employment partake in profit sharing of telecoms firms but contract workers do not. If a contract employee is offered N70, 000 monthly, half of the money is guaranteed at month end while the remaining will be tied to productivity, attendance and work schedule among other conditions. So, at the end of the day, one reason or the other will be given to justify the non-payment of the remaining amount.’’ Same work scenario manifests in the banking sector including some companies run by expatriates. Mr. Ifedayo Oriloye is a 29-year-old Nigerian and holder of a degree in Theology. Before he went to a theology school and took up a full-time ministry, he searched for a job for about two years. His search eventually paid off when he got a job in a company run by expatriates in Ogba area of Lagos State. Oriloye told SUNDAY PUNCH that he was glad to get the job until he saw the working condition in the place. He added that he became frustrated when he was not offered a letter for regular employment after working for a year. He said, ‘‘I was told to start work after the employment. Since I was in dire need of a job, I did not bother to scrutinise the offer. Two days after I resumed work, it dawned on me that the company produces more than what it registered for. They registered one product but in production, they do some other things. ‘’ According to him, the duration of work is 7am to 7pm, from Monday to Sunday. “The work period is divided into morning and afternoon shift. One is required to work for 12 hours and payment is N50 per hour. I worked there for one and half years before I was offered full employment. I did not know why I was so lucky because I met some workers there who had worked for more than eight years without the management changing their casual employment status. There was a Ghanaian who worked for 10 years before his employment was regularised,” he added. He further said he was sacked after he worked for four years without any gratuity. Seyi Ishola’s case is different from Oriloye’s. He said he worked in an Ikeja-based motorcycle assembling factory as a casual labourer for six years and was frustrated with the maltreatment in the place before he left the organisation. Ishola stated that the company lacked adequate safety measures for workers. He said, ‘‘Workers carry metals and some are without safety helmets, boots and coats to protect themselves against injury. It is sad that some people lose parts of their bodies during work and all they get as compensation is a meager amount after making a noise. The condition of work in some of the companies is appalling. But the government is not sectioning them because the majority of the firms pay taxes.” A worker in one of the expatriate companies, who simply identified herself as Amaka, told SUNDAY PUNCH that the authorities in some of the firms maltreat workers because they (workers) begged to be engaged in the first place. She added that many of the workers in the companies are populated by youths, who seek employment in the companies to save money to further their education or run a business. Amaka noted that none of those employed with her was asked to produce a certificate. She stated, ‘‘Some people are paid N70 or N100 per hour depending on the department they find themselves. I think the companies are doing what they like because of the level of unemployment in the country. The workers know that the work situation is not good but they have no choice, after all they will not steal.’’ When our correspondent visited two of the companies located in Agege and Ikeja on Thursday, some employment seekers milled around the companies surroundings. Nobody was also available to speak to our correspondent as a notice warns visitors to stay off the premises. One of the employment seekers in the Ikeja-based firm, Benjamin Stephen, said he had been visiting the place for two weeks. He added that he desired to sit for next year’s Unified Tertiary Matriculation Examination and wished to work to save money to purchase the form. Asked if he was aware of the paltry pay and work condition in such a company, the 17-year-old Stephen said, ‘‘My parents cannot provide everything for me because I have four siblings and I am the first child. People say work does not kill but hunger does. I will be careful and once I make enough money to purchase the UTME form and other pressing needs, I will stop it.’’ Speaking on the development, Secretary of the Joint Action Front, Mr. Abiodun Aremu, identified what he described as the non-unionisation in some companies as responsible for the casual employment and ill-treatment of workers. Aremu stated that once an organisation lacks unionism, negotiation for improved welfare condition for workers would be a difficult thing to achieve. He said, ‘‘Contract staffing and casualisation are not acceptable. Privatisation and deregulation encourage sharp practices in the working environment. When there is a non-unionisation policy in place in a firm, the security of workers, their welfare and other things cannot be adequately addressed. Under the guise of foreign investment, all forms of anti-labour laws are practiced by some firms. There will be lack of adequate pension, gratuity, maternity leave for mothers and full-time employment.’’ The JAF secretary noted that on October 7, marking the annual celebration of the World Day for Decent Work, the group joined forces with the workers of firms without unionisation to demand for the rights of workers. “We protested at two industries in Ikeja, Lagos to examine the state of workers there. It is vital for every firm to adhere to the Convention 153 of the International Labour Organisation which Nigeria is a signatory,” Aremu said. Also, a lawyer and human rights activist, Mr. Bamidele Aturu, said the nation’s legal system was in shambles on the issue of employing people as casual workers. He noted that there was no regulation which allowed such practice. He said, ‘‘Section 7 of the Labour Act is clear that workers people must be given terms of employment within a period of time.’’ He described casualisation as illegal and contrary to the Labour Act. Some critics have also identified the economic situation in the country and increasing rate of unemployment as responsible for the scenario. Deputy President, Nigeria Labour Congress, Mr. Promise Adewusi, described casual employment as illegal and inhuman. Adewusi said, ‘‘It is unconscionable and against good conscience. It is a reprehensible way of re-introducing daily paid work in Nigeria. Because no matter the good reason for missing work (ill health or others). You don’t get paid for any day you missed work.” He added that the union would continue to protest against such indecent work aberrations. [PUNCH:NOV,2013]
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