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FAAN to transfer 14.29% workforce to concessionaire - Edoman - 11-13-2020
FAAN to transfer 14.29% workforce to concessionaire
November 12, 2020
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About 14.29 per cent of the over 8, 100 workers of the Federal Airports Authority of Nigeria (FAAN) will transfer their services to private sector players who will run airports planned for concession by the Federal Government, Minister of Aviation, Captain Hadi Sirika has disclosed.
The minister who disclosed this in Abuja said the category of workers to be affected by the development include personnel working at the terminal building , which constitute part of infrastructure to be handed over to would be concessionaire.
The minister said the concession exercise would not lead to mass sack of workers as claimed by some stakeholders in the sector.
But, members of the House of Representatives Committee on Aviation had suspended the concession of the four airports in Lagos, Abuja, Kano and Port Harcourt because they said it is not in national interest as well as lacking in transparency.
Sirika , who presented the Nigeria Airport Terminal Concession Strategy to the House of Representatives stated that only 1,158, workers of FAAN working at the terminal buildings would be transferred to the would-be concessionaires.
He said with new buildings in Abuja, Lagos, Port Harcourt and Kano more manpower would be needed. He listed the airports to be taken over by FAAN to include Kebbi, Bauchi, Gombe, Osubi, Dutse, would need more personnel to man the facilities rather than job loss.
Sirika further stated that the successful concessioning of Lagos, Port Harcourt, Kano and Abuja airports would lead to improved provision of infrastructure at the airports, while passenger traffic would also increase at the terminals.
On staff of FAAN with the concessionaire, he said staff redeployed to the concessionaires would have the option of returning to FAAN after a period of 18 to 24 months, while staff not required by a concessionaire would also be allowed to return to FAAN after the 18 to 24 months period.
Sirika maintained that the benefits of transferred staff would also, be paid by FAAN on completion of the 18 to 24 months if the staff decided to stay with a concessionaire.
Besides, Sirika pointed out that the concessionaires would sign service level agreements with FAAN and the Nigerian Airspace Management Agency (NAMA) to ensure that airport operates efficiently, while the service level agreement would cover the runway, taxiway, security and air traffic management.
He added: “FAAN will negotiate benefits to be paid with the unions before completion of the handover. Traffic will increase as a result of increased efficiency and expansion, costs will reduce due to efficient operations and FAAN will be paid its own share of Passenger Service Charge (PSC) and security levy directly from the International Air Transport Association (IATA).
“All other facilities at the airports will still be managed by FAAN. Our airports are national security assets. This must be kept so. The concessionaire(s) will provide the investment required to upgrade the existing terminals, take over the new terminals and maintain them over a period of time to be determined based on financial assessment of each transaction.
“Passenger Service Charge and security charge will be shared by FAAN and the concessionaire(s) and FAAN’s share of the charges shall be paid directly to FAAN by IATA. FAAN will be required to provide manpower through Aviation Security (AVSEC) for the security of both the airside and landside.”
He added that the concessionaires were expected to provide and maintain landside equipment, while FAAN continued to provide and maintain airside security equipment, stressing that all existing concession contracts within the terminal concession would be transferred to the concessionaire(s) as part of their management obligations.
He assured that tariffs would be regulated in ac