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Labour, Delta Steel back restructuring

By Victor Ahiuma-Young
ORGANISED Labour, under the umbrella of Steel and Engineering Workers Union of Nigeria, SEWUN, and its Iron and Steel Senior Staff Associa-tion of Nigeria, ISSSAN, counterpart, have reached agreement with the manage-ment of Delta Steel Company, DSC, Delta State, to restructure the company into core and non-core areas.

At a meeting called by the management of DSC to resolve lingering industrial dispute, that culminated in the closure of the company on 11 December 2009, a communique issued by the parties, said the restructuring into core areas and non-core areas of operations was meant to refocus and reposition the DSC into a self-sustaining company

The agreement reached at the end of the meeting which resulted to the re-opening of the company,  read, “the Management of the Delta Steel Company Plc and the unions of Iron & Steel Senior Staff Association of Nigeria and the Steel and Engineering Workers Union of Nigeria, agreed and resolved on the proposal of Management to Restructure the Company into Core areas and Non-Core areas of Operations in order to refocus and reposition the company into a self-sustaining opera-tions where the under-listed will be able to generate its own funds and manage all its expenses and thereby becoming fully commercialised.”

According to the communique, both parties also “agreed on the need to right size the over-bloated work force (members of both unions) by 440 for survival, improved efficiency and eventual sustainability of the company.

“The parties agreed on the payment of severance benefit after completion of clearance of the affected workers in accordance with the company’s established procedures. As a result of the disagreement on the implementation of the new conditions of service by the Management upon which both parties have recorded disagreement pending when the disputed issues will be resolved by the Federal Ministry of Labour and Productivity.”

The communique added, “the unions, ISSSAN and SEWUN have rejected the proposal of the management on the reduction of salary by 40%.”

But instead, both party, management and the unions have agreed that, there will be no negotiations for any salary increment in the next three years effective from today the 16th January 2010. The   parties  agreed  on  the   payment  of outstanding  Salaries  of Workers after the reopening of the Company.

The Unions and the Management agreed on the prompt and regular remittance of all statutory deductions by Management. The Management refused the Unions’ demand for reinstatement of the branch Union executives of Iron and Steel Senior Staff Association of Nigeria (ISSSAN) and Steel and Engineering Workers Union of Nigeria (SEWUN), hence the declaration of disagreement.”


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