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Construction debt: Job losses in sector inevitable – Julius Berger warns

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The Managing Director of Julius Berger Nigeria Ltd, Engr. Detlev Lubasach has said the construction industry is in dire straits occasioned by non-payment for completed jobs by the government, adding therefore that there must be staff reduction due to inability to meet their obligations to staff and sub-contractors.

Speaking in Abuja at the 10th Triennial Delegates Conference of Construction and Civil Engineering Senior Staff Association (CCESSA), Lubasach lamented the non-payment for on-going and already completed jobs in the country by the government.

The MD, represented by Barrister Moses Aniete said: “Our industry is in dire straits, occasioned by non-payment for on-going and already completed jobs. As you all know, the construction industry is majorly engaged by the government- Federal, state and local – with little patronage from corporate entities and private individuals.

“In view of this, any distortion in the income equilibrium of our major clients will definitely affect the income and cash flow of the construction companies. As a consequence of this, construction companies are unable to sustain the existing structures in terms of meeting their obligations to staff and sub-contractors.

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“It therefore became imminent that there must be staff reduction as well as other cost saving measures. It is only to keep the industry afloat currently, most companies are working far below their capacity, which is neither healthy for the Industry nor for the country.

“In such a very difficult situation, you will agree with me that all hands must be on deck to salvage our industry.”

At this juncture, I need to commend CCESSA, both the members and executive for the understanding. This understanding must be extended to the current NJIC negotiations.”

Speaking earlier, President of Trade Union Congress of Nigeria (TUC), Comrade Kaigama Bobboi called on the Federal Government to ensure provision of jobs, protection of workers and social security for all Nigerians.

He said, “President Buhari should know that the change mantra should not be limited to going after corrupt individuals only, but also providing jobs and protecting workers, providing social security and then we will know change has come.”

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On the issue of casualisation in the construction industry, Kaigama expressed worries at the situation where employees in the industry are not respected.

“This is a sector where you have the highest number of casualisation. If there is any industry that has no respect for employees, it is the construction industry,” he added.
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