Bimbola Oyesola
As the workers in the Dangote Flour Mills and Savannah Sugar Company’s continued their agitation over suspension of their gratuity, the management yesterday denied owing workers any outstanding.
A statement by the management and signed by the Managing Director of Dangote Flour Mills, Thambo Mabe, said that the recent sale of DFM to Crown Flour Mills (a subsidiary of Olam Group) prompted the agitation for a re-instatement of gratuity to be dated back to 2012 and continue to date.
Noting that the management was compelled to respond to the ongoing industrial action by the workers, he explained that the gratuity payment has been in operation in DFM since inception. He, however, stated that it was suspended in 2012 with the cooperation of the workers.
His words: “Following the review of the Pension Act in 2004, the management and the staff representatives met and resolved to freeze the gratuity scheme on Sepember 30, 2012 and there was never any agitation since it was an agreement between the two parties. “Since then, staff who are qualified have always been paid at the point of exit in line with best practice, in addition to the accrued 10 per cent interest.”
On the recent problem, he said that several meetings were held with the Union representatives for an amicable resolution. “To date, DFM has been fulfilling all obligations in terms of salaries, allowances and other entitlements to workers when due”, he added.
Recall that workers in the food Sector of the economy on Monday has shut down operations of Dangote Flour Mills Plc and Savannah Sugar Company Limited over suspension of gratuity to the workforce.
The workers under the umbrella of Food, Beverage and Tobacco Senior Staff Association (FOBTOB) had embarked on indefinite strike and picketing of the two organisations simultaneously from Monday until now.