The NLC recently accused the government of diverting 40% of workers’ compensation contributions to the national treasury funds meant to provide financial support to employees affected by workplace injuries, illness, or death. The union demanded an immediate refund and full reconstitution of the National Pension Commission (PenCom) board, warning of possible nationwide strike action.
NSITF confirmed the deductions but argued they were not misappropriated, explaining they followed a federal policy mandating government-owned agencies to remit half of their internally generated revenue. However, the agency maintained that employer contributions to the scheme are statutory liabilities, not government revenue, and assured that such deductions have ceased and some funds have already been returned.
The NLC, while acknowledging the response, said its executive council would review it before deciding on next steps. The union insists the funds are not revenue and must remain protected to maintain worker benefits.
On the issue of PenCom, the NLC also raised alarm over the absence of a governing board, calling it a breach of the law and a threat to transparency in managing retirement savings. Although a new Director-General has been confirmed, the Chairman and four full-time Commissioners have yet to be appointed.
Labour stakeholders stress that these funds are workers’ deferred wages, not government assets, and should be managed with full tripartite oversight. Some observers urged both parties to resolve disputes through negotiation rather than industrial action.
The NLC remains firm that unless urgent steps are taken to safeguard both the compensation and pension systems, it will not rule out mobilising workers nationwide.
Source: Punch
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