AUTOBATE WARNS HONDA, TATA AGAINST DEDUCTIONS FOR NHF

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Nigeria, April 29, 2016 – The Automobile, Boatyards, Transport, Equipment and Allied Senior Staff Association (AUTOBATE) has warned Management of Honda Manufacturing and Tata Africa Services to stop further deductions of 2.5 percent from workers’ basic salary for the National Housing Fund(NHF) against the consent of workers.

The union also frowned at the recent legal threats by the Federal Mortgage Bank of Nigeria (FBMN) to the Management of both companies compelling them to make compulsory deductions from workers salary, stressing that members did not at any time subscribe to the scheme.

In a statement, President and Secretary of the group, Comrades Julius David and Sola Olorunfemi said members decided not to participate because of inherent flaws.

“We had never subscribed to the policy of compulsory deduction of NHF in the Automobile Industry, and even at the level of our Central Labour Movement -TUC we don’t want any of our members to participate because it has never yielded positive results.”

The union however acknowledged that though there was a tripartite agreement between the Trade Union Congress (TUC) and Nigerian Labour Congress(NLC), no worker is bound by the agreement.

“Although there was a tripartite agreement between Trade Union Congress, Nigeria Labour Congress and Federal Mortgage Bank, however, most of the companies operating in the Organized Private Sector (OPS) are not bounded by this agreement as many of AUTOBATE members already have their own houses or pay for other housing scheme therefore deductions of NHF will be burdensome’’, the union said.

“AUTOBATE urges the management to stop further deduction and quickly make refund payment where necessary because it is against the collective interest of workers,” the union said.

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