The former workers of Honeywell Flour Mills (HFM) Plc, on Thursday, embarked on a peaceful demonstration over the decision of Flour Mills of Nigeria (FMN) Plc to deduct gratuity from their severance package.
The protest took place at the company’s Tincan office, as the ex-workers brandished placards reading, “our gratuity deductions a daylight robbery”.
During the protest, more than 25 ex-staff blocked the entrance to Honeywell’s main gate, preventing workers and trucks from going in and out of the firm for more than three hours.
FMN received regulatory approval to acquire HFM from Honeywell Group in April 2022.
Following the takeover, HFM sacked 190 workers on July 28, 2023, according to Nnanmdi Fidelis, a former supervisor in the firm’s mills department.
However, almost two months after the layoff, the former employees are yet to receive their severance package.
They accused FMN of trying to short-change them by deducting gratuity — paid to the ex-staff as far back as 2016, seven years before the acquisition, and in 2022 — from their severance package.
TheCable understands that HFM stopped its gratuity benefits in 2011, and that was paid to the ex-staff in 2016 and 2022, was the total gratuity from previous years before it was halted.
This means the ex-workers were not entitled to gratuity in the last 11 years — 2012 to 2023.
The former workers questioned why FMN wants to deduct the gratuity despite paying such benefits to its own workers and ex-workers.
Ifeanyi Odemena, one of the affected workers, told TheCable that HFN had initially shown them their severance package, which included gratuity benefits, at the time they were fired.
But he said when they went back to sign and receive their severance pay, they were presented with a different severance package that showed the gratuity would be deducted.
Adenekan Olumide, the former supervisor of flour packing at HFN, said Honeywell initially paid 40 percent of the gratuity in 2016, charged 10 percent, and withheld the remaining 50 percent, but later made the payment last year when FMN was about to acquire Honeywell.
Olumide said while they were paid 90 percent of the gratuity, FMN plans to deduct 100 percent from their severance package.
“They (FMN) do not even need to bring it up again. They (HFN) have already stopped gratuity,” he said.
“Now, these people bought the company without no liability of gratuity. In their company (FMN), they are still paying gratuity. People that they laid off (in FMN), they still paid them a gratuity.”
He accused FMN of playing politics with the former staff as the company has refused to listen to them.
Commenting on the situation, Fidelis (mentioned earlier) said the ex-employees will be left with nothing if FMN deducts the gratuity.
“FMN doesn’t in anyway have the right to remove that gratuity since they are still paying their workers. What justifies doing this?” he also said.
Source: Top Stories
