Berger Paints scraps Staff Gratuity Scheme, pays Over N72m

Business News

By Franklin Ocheneyi

 

Berger Paints Nigeria Plc has scraped gratuity benefits for its staff.

Although the company didn’t state the reasons, but Nigeria Industrial Digest learned that due to the harsh operating environment for manufacturers in the country, many of them are owing backlog of salary arrears , and are therefore, being forced to scrap staff benefits .

Berger Paints, in its Annual Report for Financial Year Ended December, 31, 2017, said: “The Company discontinued the staff benefits scheme on December 31, 2015.”

According to the Companyt, during the current year, a subsequent agreement was reached between the representatives of the staff trade and labour unions and the company, resulting in the discontinued gratuity benefit scheme being extended to December 31, 2016.

“The lost included in the profit was N72.3 million. All qualifying staff was paid with outstanding balance of N8. 5 million due to staff that were yet to be paid as at year end.  Employees are entitled to the balance accruing to them on or before exit from the company.”

 

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