Power sector privatization: Union members claim Ajaero is being unfairly targeted

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NLC president, Joe Ajaero

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By Victor Ahiuma-Young

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The National Union of Electricity Employees, NUEE, has dismissed allegations against the President of the Nigeria Labour Congress, NLC, and its General Secretary, Joe Ajaero, over the privatisation of the defunct Power Holding Company of Nigeria, PHCN, describing the claims as a witch-hunt intended to discredit organised labour.

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The union, in a statement by its Acting General- Secretary, Dominic Igwebike, said the allegations, published by an online platform and attributed to a former PHCN manager, were false and failed to reflect the role played by labour unions in negotiating workers’ entitlements during the Power sector privatisation.

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According to NUEE, Ajaero consistently opposed the privatisation of the Power sector under the administration of former President Goodluck Jonathan, warning that the exercise would transfer public assets to investors without the financial and technical capacity to improve electricity supply.

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It argued that more than a decade after the exercise, Nigeria continues to grapple with poor electricity supply, repeated national grid collapses and increasing tariffs, insisting that these developments have vindicated the union’s position.

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The union explained that negotiations with the Federal Government during the privatisation were jointly conducted by NUEE, the Senior Staff Association of Electricity and Allied Companies, SSAEAC, and the National Union of Pensioners, NUP, stressing that Ajaero did not act alone in the process.

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NUEE said the negotiations resulted in what it described as one of the most comprehensive severance packages secured by workers in any privatisation exercise in the country.

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On allegations that union leaders diverted workers’ 10 per cent equity shares, the union maintained that the shares were never meant to be allocated free of charge. It explained that following negotiations, the Bureau of Public Enterprises, BPE, informed the unions through their legal counsel, Chief Femi Falana, SAN, that the shares had been transferred to the Nigerian Stock Exchange for workers to purchase through the prescribed process.

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“The allegation that union leaders diverted workers’ shares is therefore false and misleading,” the statement said.

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The union also defended its handling of workers’ pensions, stating that it negotiated a lump sum government contribution into workers’ Pension Fund Administrators, PFAs, to guarantee retirement benefits for employees who had not previously made pension contributions.

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On claims that about N400 billion realised from the PHCN sale was mismanaged, NUEE said the funds were utilised for workers’ severance payments and other negotiated benefits, citing information released by the BPE that approximately N409.9 billion was spent on severance and death benefits for former PHCN employees.

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It added that implementation of outstanding agreements reached with the Federal Government in 2012 and reaffirmed in 2019, including gratuities, salary arrears, post-retirement training and equity participation, remains the responsibility of the BPE, while labour unions have continued to engage the government to ensure compliance.

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The union argued that the real issue deserving public attention was the performance of the privatised power companies despite huge government support, saying Nigerians were yet to enjoy the improved electricity supply promised at the time of privatisation.

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Questioning the motive behind the allegations, NUEE said it was surprising that the accusations were being raised more than a decade after workers received their negotiated benefits, noting that the former PHCN manager making the claims was not a member of any trade union while in service.

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It insisted that the allegations were aimed at undermining organised labour and diverting attention from unresolved challenges in Nigeria’s electricity sector.

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The union reaffirmed its commitment to protecting the rights and welfare of electricity workers and urged members to remain united in the struggle for justice, improved labour conditions and reliable electricity supply.

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