Dana Air lays off over 1,000 workers after NCAA suspension – The Sun Nigeria

• The airline has not paid a pension for 12 years -Source

• Situation temporary management

From Chinelo Obogo

Around 1,000 employees, including 583 permanent and expatriates, were laid off by Dana Air on Thursday, May 9, 2024, after the Nigerian Civil Aviation Authority (NCAA) suspended its operations, Sunday Sun reports.

Although the airline claims that this withdrawal is temporary in nature, emails seen by Sunday Sun suggest that it is a permanent termination. A paraphrased email sent to all departed airline management employees said: “We regret to inform you that your service will no longer be required as of May 9, 2024. This difficult decision was necessitated by the unfortunate suspension of our AOC/business operations of the Nigerian Civil Aviation Authority (NCAA) and enormous challenges that the suspension continues to pose. We take this opportunity to thank you for your contribution to the organization during your time here with us and wish you all the best in your future endeavors.”

Very reliable sources within the airline revealed to Sunday Sun that since the airline crashed in 2012, the laid-off employees have not received pensions despite deductions from the company.

There are also allegations that proper termination procedures were not followed and statutory severance pay was not paid.

“I can categorically say that over 1,000 Dana Air employees, including expatriates, have been laid off. Of these, 583 were direct employees, while the rest, although working directly with us, were casual employees. Contrary to the information that is out there, the withdrawal is not time-limited. Employees were told directly that their services were no longer needed and those who were laid off had not received their pensions since the 2012 crash because the company had deducted pensions but not transferred them.

“There is no time off in labor law. Our employee handbook and employment law state that if you want to fire someone, you must pay one month’s compensation. You can let the person know that their services are no longer needed. In this case, you must pay the person everything they are entitled to, including pension and tips. Ideally, the pension should be transferred one week after the salary is paid out. If you wish to withdraw, you must have completed the Full and Final Settlement (FFS). You must give the person a check that includes their salary. For example, if the person earns N100,000, you must give the person a check for N200,000 at the time of exit or do so via direct transfer. You can’t owe someone anything and at the same time tell the person that their services are no longer needed,” the source said.

But the airline’s head of corporate communications, Kingsley Ezenwa, said in a statement that the company is undergoing an operational audit by the NCAA and in order to effectively manage resources during the audit, the airline has decided to temporarily lay off some employees in order to achieve a facilitate a smooth audit process and review of operational processes. In its statement, the airline acknowledged the hardship caused by the layoffs, pledged a quick resolution to the situation and promised to keep staff informed and provide support throughout the process. The company said it is already in discussions with aircraft lessors about resuming operations.

“Dana Air would like to provide an update on the ongoing audit initiated by the regulatory authorities. Given the ongoing audit, Dana Air has decided to temporarily lay off some employees pending the completion of the audit. This decision was made to ensure efficient resource management and to enable a thorough review of operations.

“Dana Air management extends its sincere gratitude to all employees for their resilience and commitment during this time of uncertainty. It acknowledges the difficulties experienced by employees and reassures them that every effort will be made to resolve the situation promptly. Dana Air remains committed to keeping its employees informed and supported throughout this process. While these challenges are being addressed, Dana Air has initiated discussions with lessors and is currently updating stakeholders on the progress made to date. Management is working diligently to address any concerns and is preparing a restart plan that will ensure the safe and efficient resumption of operations.”

Reacting to the development, the President of the National Association of Aircraft Pilots and Engineers (NAAPE), Abednego Galadima, said the airline’s actions violated Nigeria’s labor laws and that the union would speak to management on how best to resolve the situation could become.

Last month, the Acting Director General of the Nigerian Civil Aviation Authority (NCAA), Captain Chris Najomo, wrote to the Manager-in-Charge of Dana Air informing him that the agency has imposed a suspension of its Air Operator’s Certificate (AOC) effective from Wednesday, April 24, at 11:59 p.m. to “facilitate a thorough safety and economic review” after a serious incident occurred on one of the airline’s planes.

The letter to Dana read: “Following the runway excursion of your MD-82 aircraft with registration 5N-BKI at the Murtala Muhammed International Airport, Lagos on April 23, 2024, the Authority is awaiting the preliminary report of the investigation initiated by the Nigerian Safety Investigation Bureau (NSIB). As a precautionary measure and in accordance with Section 31(7) of the Civil Aviation Act 2022, the Authority has imposed a suspension of your Air Operator Certificate with effect from 24 April 2024 at 11:59 p.m. to allow for a thorough safety and economic audit.”