Sumal Foods Dismisses Allegations of Neglecting Worker Welfare, Explains Collective Agreement Implementation
An Ibadan based food processing company, Sumal Foods Limited has described as unfounded and deliberate misrepresentation of facts , the viral publications in some newspapers and online blogs that the company failed to implement Federal government directives on Fuel Subsidy palliatives.
In a statement issued by the management of the company today, a copy made available to newsmen in Ibadan, the management said it was also untrue that it refused to increase salaries of workers amidst inflation.
It also declared that it was a total falsehood that the management invited the security agents to stop protesting workers as claimed in the publications.
Responding to the allegations the management of Sumal Foods Limited, the management said it was an attempt to malign its business reputation.
According to the management,
Sumal is not aware of any directives by the Federal Government to the organized private sector to implement subsidy palliatives for workers in the private sector.
However, it noted that the company is aware that sometimes in August 2023, the Federal Government announced a N5 billion palliative for each state of the Federation, including the Federal Capital Territory, to cushion the impact of the removal of the petrol subsidy.
The company affirmed that Sumal did not receive any subsidy relief in form of tax or otherwise from any level of Government in Nigeria.
The management further clarified that they currently do not owe any worker, adding that following agreement with workers union, it has implemented 13% salary increment, and 3% increase in basic salary to cushion the effect of fuel subsidy removal.
” Also, as from 14th December, 2024 an employee becomes entitled to 14% general salary increase .
“Sumal immediately in December, 2023 implemented the Collective Agreement and also increased the transport allowance of the workers by 6.63%. The second phase of the Collective Agreement is scheduled to start on 14th December, 2024. However, Sumal understanding the plight of the workers implemented the second phase of the collective agreement from July, 2024 which has been communicated to the employees in June 2024.
“It is not correct that Sumal invited Security outfits to stop the protesting workers. It is the practice that Police personnel are always stationed in the factory. The Police men did not interfere with the protest until hoodlums hijacked the protest and turned it to a riot. The workers and their outside helpers embarked upon destruction of properties and set one car ablaze. Work activities was also put to a halt. At this point, Police personnel intervened only to prevent further destruction. The rioters immediately pounced on the Police officers such that a senior police officer is currently battling for his life at a hospital, the management said.
