Friday, March 11, 2016

Relief as Oil Workers Suspend Indefinite Strike over NNPC’s Restructuring

Barely 24 hours after oil workers under the aegis of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) embarked on an indefinite strike in protest against the restructuring of the Nigerian National Petroleum Corporation (NNPC), the unions yesterday suspended the strike.

The action of the unions had started on Wednesday morning with a total shutdown of operations at the corporate headquarters of NNPC by the branches of both unions.
Their decision to go on strike had subsequently exacerbated the lingering petrol scarcity in Abuja and queues of consumers at service stations.
The statement from the corporation’s spokesperson, Mr. Ohi Alegbe, informed that the in-house unions reviewed their stance after a decision was reached to set up a committee with representatives from the unions and NNPC management to look into the new NNPC structure with a view to considering any suggested amendment where necessary.The corporation in a statement announcing the suspension of the strike action said the unions were led by their National Presidents, Igwe Achese and Francis Johnson for NUPENG and PENGASSAN respectively.
According to the statement, other consensus agreements on outstanding issues such as pension, job security as well as staff performance and appraisal were also reached at the meeting.
It added that Kachikwu assured the unions that the restructuring was aimed at enhancing capacity utilisation of staff and not creating job losses.
It also stated that a strong commitment from the leadership of the unions to join forces with the management of NNPC to eliminate the prevailing challenges experienced by members of the public in accessing petroleum products across the country was also extracted from the meeting
Meanwhile, THISDAY gathered that the strike paralysed fuel distribution and gas supply to power stations, worsening the fuel scarcity across the country and also resulting to massive load shedding across the country by electricity distribution companies.
The Head of Corporate Communications, Eko Electricity Distribution Company, Mr. Godwin Idemudia, on Wednesday night, told THISDAY that power generation had gone down due to the strike by the NNPC workers and apologised to customers under the company’s network for the outage.
“Please be informed that power generation has gone down due to the ongoing strike by NNPC staff resulting in massive load shedding across our entire network. Presently, Ajah-Lekki axis, Ikoyi, Victoria Island, Yaba, Apapa, Surulere, Mushin, up to Festac, Agbara and Badagry are affected.
We are very sorry for the inconveniences,” Idemudia explained.
The strike was fuelled by Tuesday night’s announcement by the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, that President Muhammadu Buhari had approved the restructuring of the NNPC into seven new divisions.
Kachikwu had also explained that under the new structure, NNPC will have five core new divisions comprising the upstream, downstream, refining, gas and power, and the ventures groups.
But PENGASSAN’s National President, Mr. Francis Johnson, told THISDAY yesterday that the unions had suspended the strike because “the Minister of State for Petroleum, Dr. Emmanuel Kachikwu, has assured the workers that it is no more unbundling but reorganisation and restructuring and that henceforth, the workers must be carried along in the entire process.”
“At the Federal Executive Council (FEC) meeting, the strike was seen as a great embarrassment to the government. So, the government has promised to carry the workers along. Henceforth, no decision will be taken without the involvement of workers. That is why the strike was suspended. The Group Executive Councils of PENGASSAN and NUPENG met and resolved to support the restructuring,” Johnson added.
He said a committee had been set up comprising PENGASSAN, NUPENG and the management of NNPC to ensure the involvement of all relevant stakeholders in further engagement on the issue.
Before the action was suspended, the NNPC’s branch chairman of NUPENG, Odudu Benjamin Udofia, had accused the government of embarking on the restructuring without engaging with stakeholders in the corporation.
He explained that it was a unilateral process which was only unveiled to them through a public pronouncement by Kachikwu.
The unions had also expressed their reservations over the restructuring, noting that there were several labour-related issues that could arise as a result of the corporate re-engineering which the government failed to address.
“The whole process has been shrouded in secrecy for a long period without involving or carrying any of the stakeholders along. Due to lack of proper consultations, there are flaws in the final structure that could have been avoided,” Udofia added.
Udofia said the union was demanding a review of the restructuring, adding that the review should include the inputs of all stakeholders.
“The in-house unions are suspicious of the intent of the present unbundling as nobody could explain its direction.
“This development even becomes clearer with the consolidation of operational units with heavy financial transactions under the office of the GMD. This include Nigerian Petroleum Investment Management Services (NAPIMS), Crude Oil Marketing Department (COMD), and crude oil trading, even the corporate social responsibility that is primarily the duty of the Group Public Affairs Department has been moved to the GMD’s office,” Udofia had noted.
Meanwhile, the Chairman of the NNPC Branch of PENGASSAN in Abuja, Mr. Sale Abdullahi, yesterday said Kachukwu would set up a committee to examine the demands of oil and gas unions over the new structure of the NNPC.
Speaking in an interview with the News Agency of Nigeria (NAN), Abdullahi however made no mention when the committee would be set up. “We had a meeting with the minister and we have reached an agreement that all our demands concerning labour issues must be considered. “This is especially with the new companies that were introduced in the unbundling process. They must also consider labour issues, such as transfers, staff condition of service, among others. “We have asked that staff should be a major issue for consideration and the minister has promised to look into it.
“The minister has also agreed to set up a committee to follow up and also ensure that what we agreed upon is followed to the very end.’’ The unionist also said the unions were going to set up a committee to follow up on their demands. NUPENG and PENGASSAN in separate statements on Tuesday said the move to unbundle the NNPC was an attempt to provoke oil and gas workers and cause industrial unrest in the country.
“We condemn the unilateral action of the minister as the decision is not in consonance with the laws establishing the NNPC.”

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