Workers in Ondo State have agreed to collect 50 percent of their salary for November 2020.
The workers also agreed to adopt the model in use by the Local Government/SUBEB for future salary payments.
This was because Governor Oluwarotimi Akeredolu declined to further borrow to augment salary payment.
The Ondo Governor was said to have told workers that borrowing to augment payment of salary was no longer sustainable.
It was learnt the labour leaders agreed to the half salary after they were showed realities of the state finances.
At a meeting with Ondo labour leaders on Wednesday, the State Head of Service, Oluwadare Aragbaiye, displayed Federal Allocation receipts for the month of December 2020 but shared in January 2021.
The Ondo allocation for the month of December as shown to the workers was N2.3bn after deductions of government obligations whereas total gross salary (Net + deductions) payable to all categories of workers summed up to N5.21bn.
A statement by Ondo organised labour reads in parts: “Flowing from the above reality, therefore, it was agreed that payment of Percentage Gross Salary (Net + Deduction) for the month of November 2020 be effected.
“With the net sum received, the percentage payable herewith is to be augmented from the Internally Generated Revenue (IGR) by the government to make the payment 50% across the board.
“It was agreed at the meeting that, before the payment of December 2020 salaries, the balance of November 2020 which is 50% must first be paid as a matter of priority.
“Organised Labour practically in agreement with government adopted in its entirety the model in use by Local Government/SUBEB for salary payment going forward.”