State-owned tertiary institutions in Osun state have rejected the government’s plan to start deduction of 1.5 percent as premium from their basic salary for the health insurance scheme.
A letter dated June 20, 2019, and signed by the Academy Staff Union of Polytechnics, ASUP, Osun state Polytechnic, Iree, Osun state College of Technology, Esaoke, College of Education Academic Staff Union, COEASU, Colleges of Education, Ila-Orangun and Ilesa, urged the government to exclude the institutions from the deduction “in the interest of industrial peace.”
The letter addressed to the Governor, Alhaji Adegboyega Oyetola, was in reaction to the government’s letter titled: Commencement of 1.5percent Deduction as Premium from the Basic Salary of all Public Servants in the state and Alignment of all state-owned Tertiary Academic Institutions with the Osun Health Insurance Scheme Tertiary Institution Social Health Insurance Programme.
The letter exclusively obtained by our correspondent reads: “We acknowledge the effects of the Government to improve the general welfare of workers and residents in our dear State. The circular under reference dictates that as from May 2019, 1.5% of salary would be deducted while Government will 3% as counterpart fund to provide health insurance scheme for workers in the State.
“We are constrained to use this medium to request for exemption from Osun State Health Insurance Scheme.
“Without prejudice to the benefits of such a scheme, we find it unaffordable and will further impoverish our members more having suffered from the calamities of half-salary payments which has undoubtedly had a bandwagon effects on us through cut throat taxes and yet unpaid indebtedness to our banks.
“Due to lack of funds, for example, Government has not been able to provide counterpart funding for the Contributory Pension Scheme, resulting in unspeakable suffering irredeemable loss for us.
“In the light of this, it is better to direct resources towards ameliorating this detrimental indebtedness by clearing the backlog and ensuring prompt remittance henceforth than embark on another scheme requiring counterpart funding by Government.
The ASUP and COEASU, in a letter jointly issued, gave conditions that must be met by the government, before the commencement of the deduction, saying, “Therefore, we are not ready for the O’HIS until Government fully discharges the heavy burden of unremitted deductions and fulfils the payment of all half salary arrears (30 months).
“Remittance of all outstanding deductions for contributory pension, bank loan repayment, union check-off dues, staff cooperatives, etc.
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“Cash backlog of multiple notional promotions, as well as regular and timely payment of salaries and remittance of deductions.