Health Insurance: Osun Workers kick against 1.5% monthly salary deduction

By Jamiu Ganiyu

Workers in Osun State under the umbrella of the Association of Academic Staff Union of Polytechnics (ASUP), and the Colleges of Education Academic Staff Union (COEASU) has kicked against the directive of the state government over the commencement of 1.5% deduction from the basic salary of all public servants in the state as subscription cost for Osun Health Insurance Scheme tagged (O’HIS).

The unions made this known through a rejoinder letter addressed to the Governor of the State, Gboyega Oyetola, dated 20th June, a copy which was made available to osun.life, the union said their members could not afford to part ways with such amount from their hard earned money at this critical time unless the state government wants to further impoverish their members more having suffered from the calamities of half-salary payments for more than 30 months.

The state-owned tertiary institutions unions reminded the state government that her inability to provide the obligatory counterparts funding for the contributory pension scheme has subjected most of the retirees in the state to unspeakable suffering and irredeemable loss, yet the state government wants to dwell into another scheme which would require huge financial commitment from the current lean pulse of the state again.

The unions unequivocally stated that they are not ready for the O’HIS until Osun State Government fully discharges the heavy burden of unremitted deductions and fulfills the payment of all half salary arrears about 30 months among other demands.

The letter reads” we acknowledge the effects of the Government to improve the general welfare of workers and residents in our dear State. The circular under reference dictates that as from May 2019, 1.5% of salary would be deducted while Government will 3% as counterpart fund to provide health insurance scheme for workers in the State. We are constrained to use this medium to request for exemption from Osun State Health Insurance Scheme”

“Without prejudice to the benefits of such a scheme, we find it unaffordable and will further impoverish our members more having suffered from the calamities of half-salary payments which has undoubtedly had a bandwagon effect on us through cut-throat taxes and yet unpaid indebtedness to our banks. Due to lack of funds, for example, Government has not been able to provide counterpart funding for the Contributory Pension Scheme, resulting in an unspeakable suffering irredeemable loss for us. In the light of this, it is better to direct resources towards ameliorating this detrimental indebtedness by clearing the backlog and ensuring prompt remittance henceforth than embark on another scheme requiring counterpart funding by Government.

Therefore, we are not ready for the O’HIS until Government fully discharges the heavy burden of unremitted deductions and fulfills the following:

  1. Payment of all half salary arrears (30 months).
  2. Remittance of all outstanding deductions for contributory pension, bank loan repayment, union check-off dues, staff cooperatives, etc.
  3. Cash backlog of multiple notional promotions.
  4. Regular and timely payment of salaries and remittance of deductions.

“With the grateful acknowledgment of the goodwill of Mr. Governor, it is our hope that this request would be treated with deserved consideration in the interest of industrial peace”

You would recall that just on the 15th of June, the Osun State Labour Movement which comprises the Nigeria Labour Congress, the Trade Union Congress and Joint Negotiating Committee wrote a protest letter to the Governor of the State of Osun, Mr. Gboyega Oyetola, advising the government of putting the matter of O’HIS on hold until July salary is paid when the leadership of the state labour unions would sit with the management of O’HIS to address all the grey areas of the scheme.

The Osun Labour Movement also accused the state government of running foul of the law that established the contributory pension scheme especially the vital sections of the law such as section 18.5(a) and (b), 6,7,8,9 and 10.

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