Ogun Workers’ Strike Continues as Labour Rejects Governor Abiodun’s Pension Proposal
State Government’s Offer Fails to Meet Union Demands
The Organized Labour in Ogun State has firmly rejected Governor Dapo Abiodun’s proposals to resolve the ongoing indefinite strike, which was initiated due to unresolved issues including N82 billion in unpaid contributory pension deductions. This decisive rejection came after a seven-hour emergency meeting held in Abeokuta on Friday night, where representatives from 25 affiliate unions unanimously agreed to continue the industrial action.
Key Points of Contention
In a strongly-worded communique issued after the meeting, labor leaders expressed profound dissatisfaction with the state government’s offers regarding several critical issues:
- The controversial contributory pension scheme
- Implementation of the new minimum wage
- Eight years’ arrears of leave allowance
- Consequential adjustment on pension payments
- Pending staff promotions for 2023 and 2024
Pension Scheme Remains Major Sticking Point
The labor unions particularly criticized the government’s position on the contributory pension scheme, which has been a major source of tension between workers and the administration. “The council-in-session is displeased with the resolve of the state government, especially on the contributory pension scheme,” the statement read.
Emphasizing their unwavering stance, the unions declared: “In effect, the initial position of the congress subsists, and the declared trade dispute stands,” effectively extending the strike action indefinitely until their demands are met.
Governor’s Proposed Payment Plan
Earlier on Friday, Governor Abiodun had outlined a proposed solution through his Chief Press Secretary, Lekan Adeniran. The governor suggested a 10-year phased payment plan for the pension obligations:
Phase One (2025-2030)
The administration pledged to pay outstanding contributions for retirees from July 2, 2025 to July 2030, with immediate payments beginning next year.
Phase Two (2030-2035)
Subsequent payments would cover those retiring between July 2, 2030 and July 1, 2035. The governor emphasized this arrangement would span both his remaining tenure and that of his successors.
“We have decided that in phase one, we will pay outstanding contributions for retirees from July 2, 2025 to July 2030. We will make that immediate payment next year; we will make the second payment, which will be phase two for those who will be retiring from July 2, 2030 to July 1, 2035,” Governor Abiodun stated.
Fundamental Changes to Pension System
The governor’s proposal included significant structural changes to the state’s pension system:
- Elimination of the gratuity scheme effective July 2, 2025
- Full transition to the contributory pension scheme
- Reverting all consolidated salaries to the new pension framework
Implications and Next Steps
With labor’s outright rejection of these proposals, the stalemate continues, leaving thousands of Ogun State workers without pay and essential services potentially disrupted. The unions’ firm stance suggests they are prepared for a prolonged confrontation unless the government presents more favorable terms.
This development marks one of the most significant labor disputes in Ogun State’s recent history, with both sides appearing entrenched in their positions. Observers suggest mediation may be necessary to break the deadlock and prevent further economic disruption in the state.
The situation remains fluid, with stakeholders across Nigeria watching closely as the confrontation between Ogun State workers and the Abiodun administration unfolds.
Credit: Premium Times – Original reporting