Steel workers get 10 months outstanding pay

The misery of steel workers may have come to an end, as the Federal Government has commenced the process of offsetting all outstanding salaries owed them, according to the Iron and Steel Senior Staff Association of Nigeria.

Steel workers at the Ajaokuta Steel Company in Kogi State had protested the non-payment of 10 months salaries by the Federal Government earlier in the year.

Titus Oriimijupa, president of the iron and steel senior workers union, said "We've just finished a meeting with the honourable minister and all the outstanding 10 months salaries have been secured by the ministry and the payment is in process," he said.

Diezani Alison-Madueke, Minister of Mines and Steel Development, confirmed the development.

"We started paying the 10 months outstanding last week. Hopefully before the end of the week everybody will have received their money."

Meagre consumption

For a nation that aspires to be among the world's top-20 economies in 10 years, per capita consumption of steel is meagre when compared to the global average. Nigeria's consumption stands at 10kg, while the world average is 130kg.

Zimbabwe has a steel per capita consumption of 25kg, Algeria 38kg, Egypt 42kg, and South Africa 112kg.

Till date, the Ajaokuta Steel Company, reputed to be the largest integrated steel plant in Africa, and a base to launch Nigeria's industrialisation drive, has gone through 11 different management, with no improvement.

The complex has suffered from a dearth of policy direction from successive governments, a chronic history of mismanagement and huge debts. Its last management, Indian-owned Global Infrastructure Holding, a member of the global steel giant, Arcelor-Mittal Group, owed Nigerian banks N23 billion before it was sacked in April 2008, for non-performance and allegations of asset stripping.

The steel union president said that "the ministry is also looking at the restructuring of the two plants (the Ajaokuta Steel and the Itakpe Iron Ore Mining plants)."

"We insisted that the plants have to run so that the nation does not lose out at the end of it all," Mr. Oriimijupa said. "We also said that enough hands must be retained and for those that will be laid-off, all their terminal benefits must be paid."

The outstanding terminal benefits of the steel workers amounts to N5 billion.

BPE promises to pursue payment

The Bureau of Public Enterprises (BPE) promised to help the steel industry workers pursue the settlement of their outstanding severance benefits.

Christopher Anyanwu, the Director General of the BPE, gave the assurance to the various steel unions - Iron and Steel Senior Staff Association of Nigeria (ISSSAN), Steel Engineering Workers Union of Nigeria, and the Delta Steel Pensioners Association - when he visited the Delta Steel Complex to ascertain the extent of compliance of the core investor with its post-acquisition plans.

Mr. Anyanwu remarked that "the BPE will collaborate with others to pursue the settlement of outstanding pension liabilities of retired steel workers".