News

September 24, 2015

Abia bailout can’t cover payment of accumulated gratuities —NLC

Bailout, governors

Bailout

By Anayo Okoli

UMUAHIA—THE Chairman of Abia State Council of Nigeria Labour Congress, NLC, Uchenna Obigwe has explained that the N14.152 bailout fund released to the state government would not be able to offset the accumulated gratuities of retired workers.

Obigwe, howver, said that the money would cover the payment of salary and allowance arrears.

According to Obigwe, if the N39 billion Abia State government applied for was approved, it would have gone a long to settle the salary salaries, pensions and gratuity arrears of the workers.

He expressed fear that the government may face  another challenge of paying the gratuities of retired workers.

“The government applied for N39 billion but was given N14.152 billion because the governor even wanted to clear the gratuities  but we have a constraint. What the governor may not be able to handle is gratuity. We are praying for more bailout.

“If what is provided will pay gratuity, the governor will pay because he has a human face, but we need about N25 billion additional to be able to conclusively pay gratuities,” the NLC chairman said.