Chief of Staff to Governor Aregbesola, Gboyega Oyetola, speaking with the press

Workers in the state of Osun and the state government ended their acrimony over the settlement of arrears of salaries that government owed.

According to an agreement reached today, the Aregbesola Government will pay the workers salary arrears till the month of June, 2015, with the bailout loan, given by the Federal Government.

The MoU was read out by the leader of the State NLC, Jacob Adekomi at the official residence of the Chief of Staff to the governor, Mr. Gboyega Oyetola. The residence is located within the Government House, Osogbo.

Adekomi explained that the payment covers arrears of March, April and May 2015 salaries for state workers as well as April, May and June for Local Government workers and primary school teachers.

Jacob Adekomi, Osun NLC leader

Mr. Adekomi further ‎noted that the deductions from September and December salary as well as balance of January and February salary would also be paid.

According to him, state pensioners will receive balance of December 2014 pensions and full payment of January to M‎arch 2015 pensions, while their counterparts in the local governments and primary schools would be paid up to June.

Oyetola said the payment would put a stop to speculations on the status of the bailout. He added that the payment for June and July 2015 would be made in October‎, while the state pensioners would also get their April dues.

In the agreement signed by both parties, the parties agreed that whatsoever is available as allocation from Federal account and IGR be used in away to accommodate salaries, pensions‎ and other critical expenditures of the state government.

Detail of the MOU

A. Disbursement of Bailout Loan.

(I) That bailout loan be disbursed to cover the payment of outstanding salaries for the months of January to June, 2015 as well as deductions from salaries of September and December 2014 and balance of 2013 and 2014 leave allowances for the State Workers,

(II) That in order to ensure sustainability of payment of salaries in the State of Osun, the first disbursement from the bailout loan should cover the payment of outstanding September and December 2014 deductions, balance of January and February Salaries and full payment of March, April and May 2015 Salaries for State Government Workers;

(III) That Workers in the employment of Local Governments and Primary school Teachers be paid their first installment out of the bailout loan to cover the payment of balance of March and April, 2015 salaries as well as full payment of May and June, 2015 salaries;

(IV) That State Pensioners be paid balance of December, 2014 as well as January, February and March 2015 pensions while their counterparts in the Local Governments and Primary Schools be paid up to June 2015;

(V) That payment of II to IV above be effected immediately;

(VI) That the second disbursement of payment of State Workers salaries to cover the months of June, 2015 and July, 2015 for the Local Government Workers and Primary School Teachers’ Salaries be paid in October, 2015;

(VII) That the second disbursement of payment that will be made in October, 2015 will address the April, 2015 Pension of the State Pensioners; and

(VIII) That the outstanding leave allowances for 2013 and 2014 of State Workers be paid from the bailout loan in the Month of November, 2015.

B. Subsequent Payment of Salaries

(I) Government and Labour recognized that the current national challenge resulting from dwindling Federation Revenue will continue to affect the payment of Salaries, Pension, etc, and critical expenditures of Government,

(II) The Government and Labour agreed that whatsoever is available as net revenues accruing from Federation Accounts and Internally Generated Revenue (IGR) will be apportioned in such a way as to take care of Salaries, Pensions and other critical expenditures required to run the machinery of government;

(III) The Labour agreed to work with government to increase the Internally Generated Revenue (IGR) so as to increase the available revenue to be apportioned towards Salaries, Pensions and other critical expenditures of Government;

(IV) That the agreement in B(II) above be experimented for a period of three (3) months in the first instance and be reviewed thereafter in line with financial reality on ground; and

(V) That a standing Committee of Labour and Government representative be put in place immediately to ensure transparent implementation of B (II&III) above.

*This report was originally done by Radio Nigeria, Ibadan