Press Releases

Fashola Inaugurates Committee To Develop Pay Policy Review And Salary Determination In Public Service
…Says there would be no retrenchment of workers

Aug 16, 2010 - Lagos State Governor, Mr. Babatunde Fashola (SAN) on Monday inaugurated a Committee on the development of pay policy, review and salary determination in the State's Public Service with an assertion that no worker will be retrenched.

Governor Fashola who spoke at the Conference room of the Lagos House, Ikeja while inaugurating the 20 man Committee said as a State, Lagos is concerned and deeply touched by the ways and means in which the activities of the Federal Government on salary administration and pay policy had consistently led to agitations and sometimes resulted in industrial unrests.

The Governor explained that in 2007 for instance, the Federal Government introduced the Consolidated Salary Structure as part of its Public Service Reform Programme such that appointment into Junior Cadres at the Federal Service were abrogated and subsequently either outsourced or included in the consolidated salaries of officials.

Governor Fashola said Lagos State expressed strong reservations to the arrangement as most bread winners who belonged to the cadres being extricated would be thrown out of job if implemented.

The Governor explained that despite the reform programme which led to the shedding of a huge expense point by the Government at the centre, the revenue allocation between the Federal Government, the State and the Local Governments have not changed, resulting in the retention of the same amount of money and taking responsibility for fewer staff.

"So many states are still struggling to pay salaries and there are still developmental issues of water, disease control, drainage, education, roads to be dealt with and the resources are simply not there, but we do not want a situation where wages become an issue that would create needless agitations in the State", Governor Fashola added.

He reiterated that Lagos State on the other hand still offer pensionable appointment to drivers, cleaners and other categories of junior cadre staffs and still operating the Harmonized Salary Structure where all components of allowances are clearly stated as opposed to the Consolidated Salary Structures.

Said he: "We purport to run a Federation where the Federating units have consistently had the short end of the stick; they have the smaller size of the revenue but the biggest share of the burden of the population".

Governor Fashola said in view of recent developments at the Federal level, the State is not unmindful of the likely agitations that might be in the pipeline, particularly from Professionals and the generality of the workforce.

"In nipping envisaged reactions and averting any industrial unrest, it has become imperative that we develop a holistic reward management system to benchmark on issues appertaining to Salary determination, wage fixing and pay policy", the Governor said.

The Governor explained that this would involve collective bargaining and shall give credence to key economic organizational and institutional variables such as the fact that States do not have the same resources with the Federal Government and as such when a worker at the federal level gets some kind of remuneration, he should not expect that it would be passed down to the State Governments.

Part of the terms of reference of the Committee are to review past and current pay structure in the Lagos State Public Service, examine the resources of the State and review the current employee population in the State Public Service.

Others are to consider the relativity of sectors in the determination of salaries and allowances in the Lagos State Public Service, consider the relativity of Political Office Holders pay to that of the Career Public Officers and Professionals in the Service.

The Committee is also expected to examine industrial relations and collective bargaining systems and develop appropriate pay policy for the Lagos State Public Service

The Committee shall have up to 34 working days to submit its recommendations to the Governor and will work in collaboration with an External Consultant, who is versatile in the aspects of salary determination, wage fixing and pay policy.

The Governor expressed the desire that the Committee would fast track its assignment with a view to meeting the set deadline and developing an enduring and acceptable salary structure which would put the peculiarities of the state into consideration.

The membership includes the Honourable Commissioner for Establishments, Training and Pensions, Mr. Jide Sanwo-Olu who will be the chairman of the Committee, Head of Service, Permanent Secretary Finance, Accountant General/Permanent Secretary State Treasury Office, Permanent Secretary Economic Planning and Budget, Permanent Secretary Health, Permanent Secretary, Education Permanent Secretary Teachers Establishment Pensions Office (TEPO).

Others include the Permanent Secretary Health Services Commission, Solicitor General/Permanent Secretary Justice, Permanent Secretary Establishments, Training and Pensions, Permanent Secretary Local Government Establishments, Training and Pensions, Director General Public Service Staff Development Centre (PSSDC), one representative each of the Joint Negotiating Council (JNC), unions in the state tertiary institutions, the Nigerian Union of Teachers(NUT), Medical Guild, other health workers, NULGE and the secretariat.

The Governor expressed the desire that the Committee would fast track its assignment with a view to meeting the set deadline and developing an enduring and acceptable salary structure which would put the peculiarities of the State into consideration.

Speaking earlier, the Head of Service, Prince Adesegun Ogunlewe said in view of recent development in the Federal Public Service it has become imperative for Lagos State to formulate a clear cut policy as well as pay review mechanism for its workers.

He recalled that in furtherance to the adoption of the Ernest Shonekan report of 2006 on Public Service Reforms, the Federal Government developed seven new salary structures which did not carry the 36 States along.

Prince Ogunlewe added that in spite of the introduction of the Consolidated Salary Structure at the Federal level, all the States still preferred the HAPSS and HATISS since it clearly spelt out the basic salary and all other allowances including job specific allowances.

The Head of Service said prior to the development, the National Salaries, Income and Wages Commission was responsible for setting the benchmark for salary administration in the Federal, States and Local Governments with salary structures known as the Harmonized Public Salary Structure.

The event was attended by members of the State Executive and representatives of the various unions and agencies on the committee.