An Ibadan-based food processing company, Sumal Foods Limited, has debunked the claims of its workers that it withheld palliatives given by the federal government, describing reports on the protest carried out as unfounded and deliberate misrepresentation of facts.
This was in the company’s reaction to publications in some newspapers and online blogs that the company failed to implement federal government directives on fuel subsidy palliatives.
It will be recalled that on Monday, July 1, the company workers protested over the claim that they were given palliatives which they believed was directed by the federal government to employers.
The protest eventually escalated, leading to the death of one and arrest of 12 suspects by the police.
In a statement issued by the management of the company on Wednesday, July 3, a copy of which got to Thenewsbearer, the management said that 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.
“Sumal is not aware of any directives by the Federal Government to the organised private sector to implement subsidy palliatives for workers in the private sector,” the management said.
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 currently, the company does not owe any worker, adding that following agreement with workers union, it has implemented 13 percent salary increment and three percent increase in basic salary, to cushion the effect of fuel subsidy removal.
The company stated: “Also, as from 14th December, 2024 an employee becomes entitled to 14 percent general salary increase.
“Sumal, immediately in December, 2023, implemented the Collective Agreement and also increased the transport allowance of the workers by 6.63 percent.
“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 policemen 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 were also put to a halt.
“At this point, the police personnel intervened only to prevent further destruction. The rioters immediately pounced on the police officers, to the point that a senior police officer is currently battling for his life at a hospital.”
