This Day (Lagos)

Nigeria: How Obsolete Labour Laws Impoverish Workers

Godwin Haruna

8 July 2009


analysis

Lagos — Mr. Felix Omolu works with the West African Seasoning Company (WASCO), also known as Ajinomoto in Apapa, Lagos. Some months ago while dutifully serving the company, Omolu fell down and allegedly sustained serious spinal chord injuries which may leave him on the wheel chair for the rest of his life. Apart from the enormous pains he endured from months of hospitalisation in various hospitals in Lagos, his once promising life appeared to have crashed before him at the moment.

Inspite of the bleak prospects of life brought on him by the accident, his compensation package was a paltry N1.1 million. Apart from this obvious shoddy treatment meted to a promising young man whose life has been made miserable, other company employees are crying over other sundry anti-labour practices in the multi-national firm. The firm, inside sources alleged, use casualisation as an official policy in the recruitment of most of its unskilled work force. It is so bad that a casual could work for as long as four years without enjoying the benefits of a full-fledged staff.

Then, there is the issue of rampant industrial accidents whereby workers suffer the cutting off of limbs and other associated misfortunes. It was alleged that in such incidents, victims are left to rue their fate without commensurate pecuniary compensation. According to them, although the company covers the medical expenses of such workers, however, the compensation package is so miserable that the loss of their limbs would remain a permanent sore thump.

Inside sources told THISDAY that the frequent industrial accidents could be attributed to inadequate training of workers before they are deployed to man industrial machinery in the food seasoning company. They frown at the wide disparity between indigenous workers in terms of compensation package and their expatriate counterparts.

Furthermore, one of the aggrieved workers told THISDAY, "Don't you think it is incredulous that a food seasoning company has no canteen where its staff could enjoy their lunch break? We produce the seasonings that other restaurants and eateries use for their food, yet WASCO does not have a canteen despite decades of operation in this country to test such products. So, if charity should begin at home, why shouldn't a food seasoning company that has operated for years here own a canteen? It is part of the shabby treatment of the Nigerian workers but our so-called Nigerian management staff are always eager to collude with them to exploit us. The government too is turning a blind eye to our suffering or how do you explain the situation where somebody's fingers are chopped off working for a company and he is paid just N300,000? We are suffering here and we want the public to know that we are being exploited in our own country."

Company insiders alleged that in the face of this litany of anti-labour practices, the management would always plead for patience and understanding. Often, when injuries reach alarming situations, THISDAY learnt, the firm relies on the country's lax labour laws pertaining industrial accidents to pay their token compensation package. This package, it is gathered, is rather too small and insignificant to ameliorate the long term impact of the permanent injuries. The clearest example of this is the case of Omolu cited earlier. Although his life threatening injuries could confine him to the wheel chair for life, his total compensation package which the insurance worked out was N1.1 million. Realising the severity of his case, not minding the laws, it was learnt, the firm paid additional N1 million as ex-gratia to Omolu recently.

Asked to comment on the vexed issues, Mrs. Margaret Olele, general manager, corporate affairs and Mr. Nick Inegbenebor, administrative and human resources general manager, WASCO, put up spirited defence for the food seasoning firm. Inegbenebor said due process was always followed in the compensation packages given to their staff, who suffer industrial accidents including Omolu. He added that the company did not just compute the compensation package when industrial accidents occur, they rely heavily on what their doctors and insurance firms recommend. It is based on such recommendations, he stated, that the firm pays victims according to the rules of the Federal Government guiding industrial accidents.

"The doctors write the percentage disability and when they send it to us; we take it to the insurance firm, which compute the claims. We have the workmen's compensation, group personal accident and the other. All the staff here are comprehensively insured and in times of accident, we report to the insurance firm within 24 hours. Even at weekends in your house, if anything untoward happens to you, the comprehensive insurance covers you. Secondly, we report to the Federal Ministry of Labour because this factory is covered by them. We take the victim to the hospital and underwrite all the medical expenses," he stated.

He said the company did not make the laws with which they settle claims, it is the government, and therefore, he could not be drawn to the question of inadequacy of the claims paid out. According to him, there are laws governing such incidents and the law has to take its course, adding that they have always abided by the provisions of the law. He said in the case of Omolu, the company picked all his medical bills in Lagos and even paid him additional N300,000 which he claimed he spent in a traditional medicine healer's home. Then, after settling his insurance claims, the company also paid him additional one million naira as compensation.

Asked if such laws also apply to expatriate staff, Olele said it could not because they were engaged under contract in their countries to work here. She said nobody works in a perfect environment; therefore, they would always be room for improvement in circumstances of where they work. Olele added that the firm is very conscious of its activities since they work to enhance lives, they would also strive to improve their workers' situations irrespective of rules.

On the issue of casualisation, Inegbenebor said it was only in loading and off-loading of goods that the firm employs casual labourers. Virtually all their factory workers, he added, are employed on permanent basis. "Our kind of machines are not the type that you just bring somebody from outside to come and operate because we don't have the technicians here in the country. Usually, when they are engaged, we train them and if found suitable, they are engaged to operate the machines. The training could take between two to four months depending on the type of machines because they are very sensitive. We employ casual labourers only when we have containers from the port to assist in off-loading the goods."

He said because the parts for the machines are not readily available, they ensure that workers who are to man them are given adequate training. He said once trained, an operator hardly leaves the company because he treasures his work and so because of that they do not have high turnover of staff. He added that in addition to their in-house training arrangements, the company brings in expatriates from Brazil, Japan and others to train their personnel on the use of the machines.

He puts the blame of the frequent accidents at the feet of the factory workers, who disregard safety rules and procedures. He said they are often warned not to put their fingers in the machine when it mal-functions, he accused some of the workers of trying to play smart wherein they are harmed in the process. He said they are posters and labels all over warning staff of safety rules, but a majority of them do not pay attention to such rules.

Olele added that the company does not take the issue of training lightly because of the long term benefits even though she acknowledged that there is always room for improvement. She said realizing this; the company has acquired new machinery which has an in-built sensor that puts the machine off immediately as soon as a finger gets close to it. She added that because of the delicate nature of their products, the company is often visited by the relevant regulatory agencies to ensure that they comply with best manufacturing practices. She added that the firm is ISO certified and they have never been found wanting because they also carry out internal quality audit and they also have a consumer feed back mechanism to intimate them of any anomaly. She said the grievances of the workers could not diminish the quality of their products.

Inegbenebor said the firm owned by the Japanese has strived to meet all its obligations to the staff. He said the company did not owe the staff and the complaints emanated from a few staff because both the junior and senior staff unions, who have unfettered access to the management never raised any of these issues. According to him, the staff are happy because all agreements signed with unions are always implemented without much ado.

Despite the spirited defence of the company by the duo of Inegbenebor and Olele, the issue of staff canteen actually caught them napping. When THISDAY pointed this out, they searched for reasons to explain this obvious anomaly away. Inegbenebor said they do not have one because of lack of space! This appeared incredible because of the large expanse of land the firm occupies on Creek Road, Apapa, Lagos. Pressed further, he said the management was aware of this obvious oversight and they were working to create one when they are able to improve their building infrastructure within the sprawling complex in the shortest possible time.

Mr. Godwin Amrete, leader of the junior arm of the Food, Beverages and Tobacco Union in WASCO, who have put in 16 years, said there was no cause for alarm. He said even though there was room for improvement, the firm has always catered for victims of industrial accidents in their hospitals. Amrete said his union negotiates with management always on issues of welfare for the staff. He added that they have taken up the issue of staff canteen and they are optimistic their request would be met. Not your type of fire-spitting labour activist, the calm and calculating Amrete could also not explain why a food seasoning firm has no canteen despite years of operation.

Like the duo of Inegbenebor and Olele explained to THISDAY and corroborated by the labour leader, the company has actually followed laid down procedures in paying compensations for industrial accidents. The issue, however, remains for the Federal Ministry of Labour, why should a colonial legislation be allowed to remain operative in self governing Nigeria? The compensation package for industrial accidents is currently too abysmal to be allowed to stay a day longer. Although no pecuniary emolument could compensate for a dear life or limb, there is an urgent need for a review of these laws by the labour ministry.

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