Workers flag gaps in Public Pension Bill

Workers' representatives have raised concerns regarding gaps in the recently passed Public Pension Services Bill. They are calling for immediate amendments to address issues related to governance and the inclusion of references to non-existent organisations. 

 While addressing Daily Monitor after a consultative workshop, Mr Richard Bigirwa, the secretary general for National Organisation of Trade Unions (NOTU) said upon analysing this bill which Parliament passed, they found that there are several issues contravening the law.

 "...the percentage we expected, one out of 500, was not included. We believe this is a big gap. We believe that the non-contributors have taken a lion's share of the governance yet we should act in the interest of the savers or the pensioners. Government should look this matter," Mr Bigirwa said.

 He emphasized that, as a trade union, they believe this move is designed to divide them. The intention, they argue, is to fragment labor unions, which is detrimental, especially in the current era.

 Mr Bigirwa highlighted the importance of the government's commitment to ratifying International Labour Organisation (ILO) Conventions. 

However, they pointed out that the recently passed Bill contradicts this commitment, specifically concerning ILO Convention C-144. This convention promotes effective consultation between governments, employers, and workers' organisations on ILO standards and activities. The bill, however, fails to uphold this principle and completely ignores ILO C-144.

He said that the law has overlooked the Labour Unions Act, emphasizing that, under this law, the National Centre is the primary body responsible for coordinating all matters with the government and acting as the official link between the two. 

However, they are witnessing an attempt to bypass the established structure by engaging directly with affiliates, a move that falls outside of their role.

“This action contravenes the Labour Unions Act that they have enacted and consented to,” Mr Bigirwa said.

 He also pointed out that the law overlooks the Labour Unions Act, which designates the National Centre as the primary body responsible for coordinating all union activities with the government and acting as the official link between the two. 

 "However, what we are observing is that they are bypassing the National Centre and directly engaging with our affiliates, which is not within their mandate. We believe that this action violates the Labour Unions Act, a law that they have established and assented to," Mr Bigirwa said.

Therefore, they will request in writing that the law is returned to Parliament to include those areas. While at it, they also want Parliament to look at other laws when reviewing a Bill.

"You cannot create a law that contradicts an existing law. Therefore, I call upon the technical staff and all concerned individuals to assist the Parliament of Uganda in ensuring that the right course of action is taken. For example, I want to make it clear that, as I have previously stated, it is not permissible to approach our affiliates and ask them to make nominations. That responsibility lies with the Federation, which is tasked with nominating representatives to various boards, as we have done with the National Social Security Fund (NSSF), the Labour Advisory Board, and other similar entities," he said.

According to Mr Victor Bua, the Commissioner for Compensations at the Ministry of Public Service, efforts have been underway for the last 20 years to reform the Public Service Pension Scheme. But currently, the scheme is unfunded, relying heavily on government releases and transfers. As a result, timely payments have not been possible.

He pointed out that many pensioners pass away before fully receiving the benefits they have worked hard to earn. This issue stems, in part, from the outdated pension scheme, having been established in 1939. 

Over the years, several changes have occurred, including significant shifts in the size and scope of the Public Service. As a result, the government is now struggling to fully finance the pension scheme's liabilities.

Mr Bua said they held several consultations, with most stakeholders, and they have agreed that the current pension scheme be transformed from the unfunded, pay-go arrangement to a contributory pension scheme. Finally, a Bill was presented before Parliament, and passed.

He recognised that there are two main issues to address in the Bill. The first concerns the nomination of the workers' representative on the board. The Unions' desire is to have four representatives, rather than just two, as the scheme is designed for them. 

The second issue is related to how the four members are nominated. In the original proposal, it was suggested that the four members would be nominated by the Centre, specifically the Public Service Negotiating and Consultative Council.
 The membership will be drawn from the councils, which represent the unions of public service workers.

However, the nomination of these groups will be handled by the Centre, specifically the Central Organisation of Free Trade Unions (COFTU) and the National Organisation of Trade Unions (NOTU). For the final approval by Parliament, there is a proposal that the Federation should handle the nomination process.

 Following discussions, the unions have raised concerns that the term "Federation" does not exist in the law. Mr Bua mentioned that these are the key issues they plan to bring up.

Otherwise, with this Fund, Mr Bua said they expect to change the retirement benefit sector for good. Timely payment of pension, good governance, running a sustainable retirement benefit arrangement and making sure pensioners are paid the day they leave, because the money will be available since it is fully-funded.