Our Stand on Ajaokuta
By
Monday, May 12, 2008
Abdulkareem Jimoh is the chairman, Iron and Steel Senior Staff Association of Nigeria, Ajaokuta Steel branch. He spoke with Newswatch recently on the union's struggles with GIHL management, its expectations from the new management and what should be done to make the company work. Excerpts:
Newswatch: Can you tell us how the company came into its present bad state.
Jimoh: If you have seen the concessionning agreement the federal government had with Global Infrastructures, you will agree that it is nothing to write home about. We don't know how they managed to get the agreement signed by the federal government, that they can hire and fire and can also remove equipment in Ajaokuta. They went as far as cannibalising, looting and carrying our equipment out of this place.
Newswatch: How did the company fare before the coming of the Indians?
Jimoh: The company was not doing so well but most of the departments in the mills were completed but we were not running them. So the GIHL were just lucky to have gotten the opportunity because as at the time the concessionaires came, Ajaokuta Steel was 98 percent completed. So we expected that when they came as the concession agreement stated, they should come and complete and run for 10 years but unfortunately the reverse was the case.
Newswatch: The company was 98 percent completed according to you. But was the plant producing before the coming of GIHL?
Jimoh: Before that time there was no production actually but the rolling mills were perfectly okay. When they came they serviced the mills, and did minor repairs. Not that they came with any item because they didn't even understand the technology. The technology is Russian. So what they simply did was to service some of the parts that were rusting, then got some spare parts produced from central maintenance and before we knew it the mills started working.
Newswatch: In what departments were equipment stolen from or cannibalised?
Jimoh: It was all over, no unit was spared. They cannibalised even down to transport section. They met a lot of scraps on ground when they came which are very useful in blast furnace. The quantity they carted away was so much that by the time we light the furnace in future we will have to buy more scraps again. So many major equipment were looted by them. Some were approved from the ministry by one Akintunde Diya. He usually signed the authorisation for them to remove equipment.
Newswatch: Let's come to the issue of staff welfare. How did the staff fare under GIHL?
Jimoh: Very bad. They didn't pay salaries as at when due. Sometimes, we had to go to the main road to protest, they will promise but they won't pay. Even the contributory pension scheme that was deducted from our salaries they were not remitting the money to the appropriate authorities. As at now they are owing more than 20 months. To worsen it, we organised co-operative societies to take care of the needs of staff. The money the workers contributed was not remitted to the societies. We have three different co-operatives. One of them even sourced credit facilities to buy motorcycles and laptops for staff. But the money they deducted they did not remit to the cooperative societies. Again they were not paying the insurance premium like industrial accident insurance. The life assurance that follows the contributory pension scheme they did not pay the premium. So if a staff is dead you cannot claim anything for the family. For instance, there was a staff called Ibrahim Taofeek who was electrocuted at the thermal plant. His insurance claim was over one million naira. Till today, his family cannot get his money. We also have some people they just decided to terminate their service. Like a staff that lost his limb in the factory, his appointment was terminated.
Newswatch: Are you optimistic that the current interim management has what it takes to turn around the fortunes of Ajaokuta Steel Company given the level of cannibalisation of the plant?
Jimoh: Yes: I think so. We have gone round with them and I must say we have to thank the federal government for selecting these crop of people. They all come from the six geo- political zones. That is an indication that the federal government is committed to making this place work. Their chairman was the head of the monitoring committee for Ajaokuta and Itakpe and also former managing director of the National Iron Ore Mining Company. We have engineers, administrators, architects and lawyers. So we hope they will do a good job to make sure that Ajaokuta survives.
Newswatch: Some staff were disengaged in December 2004 and January 2005, were they paid their entitlements?
Jimoh: When the concession deal came up, the then minister Liyel Imoke came and told us that the Indians were coming to pay everybody off to enable them effectively take over. But the story changed. They sacked 1,517 staff. Their gratuities were delayed before they paid but up till now their pension arrears of 24 months are still outstanding. Another set of 148 staff were disengaged in July 2005.
Newswatch: What do the workers expect from the new management?
Jimoh: Our major concern is to make sure the plant starts production, especially those areas that require minimum amount of money to take off. For instance, the rolling mill is okay, all that is needed is billet. The billet we need is 100mm by 100 mm or 150 by 150. Any of these can kick start the rolling mill.
Newswatch: There is a section within the Ajaokuta Steel Complex that seems to have been abandoned, I mean ASFERRO, and can you give us an insight into what activities was carried out there?
Jimoh: All the equipment is at site waiting for installation. So Ferrostatal could still be called in to complete the galvanising plant because it is a very lucrative venture. The plant can produce materials for the production of rail line and telecommunication and NEPA mast.
Newswatch: Some people are saying that the best solution for Ajaokuta Steel is for the federal government to take full control since all the structures now were done by Shagari. Others say the Russians should be called back to complete their work since they have the technology, what is your own view?
Jimoh: If people are saying the federal government should take over like it has done now, it's a good idea but in doing that government should not spend the money on rehabilitation only. The Russians are the people who started this project. We are of the opinion that the Russians should come back and complete this project.
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