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Oil Workers And Industrial Action

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Oil company workers under the aegis of the Petroleum and National Gas Senior Staff Association of Nigeria (PENGASSAN) recently issued a sevenday ultimatum  to the Rivers State Government and the management of VAM Onne Nigeria Limited, to either resolve the industrial relations crisis in the  company or have all oil and gas operations shut down indefinitely. The workers alleged that the company in collaboration with some politicians sponsored thugs numbering over 15 armed with dangerous weapons to harass, manhandle, assault them and disrupted the peaceful protest organised by PENGASSAN, Port  Harcourt Zone against the management of VAM Onne Nigeria Limited.

In a petition addressed to the Rivers State Governor, Rt Hon Chibuike Rotimi Amaechi dated February 8, 2012 and signed by the Assistant General Secretary of PENGASSAN, Port Harcourt Zone, Mr Sunday Onyenachi, the workers said,” as a result our National Secretariat has directed that after seven days, with effect from February 9, 2012, there will be a complete shutdown of all oil and gas operations in Rivers State.  If thereafter, the matter is not resolved within the period, the entire 10 states in Port Harcourt Zone including Abia, Akwa Ibom, Anambra, Bayelsa, Enugu, Imo and Rivers State will follow suit and this will escalate the crisis.”

They alleged that the  country Manager of VAM Onne, Mr Engene Fogli victimised 27 PENGASSAN members who have been locked out for over  three months without salaries. The workers accused the  VAM manager of  engaging in anti-union activities ranging from intimidation, harassment, lockout, victimisation and enslavement of Nigerian workers, flagrant abuse of our extant labour laws and release of Nigerians from employment without clearance from the Department of Petroleum Resources (DPR). And more importantly, refusal to honour agreement which was reached at a meeting at the instance of Prince of Onne community, Prince (Dr) Jime Osaronu and Mr Sunday Dudu between the association and the management on November 15, 2011 at Novetel Hotel , Port Harcourt.

They also said Mr Fogli had started recruiting new staff to replace workers that were locked out because they exercised their fundamental rights to belong to trade union.

Similarly the independent Petroleum Marketers Association of Nigeria (IPMAN), Ilorin branch penultimate Saturday threatened that the association would withdraw its services with effect from Tuesday last week because the lives of its members were being threatened by vandals of petroleum pipelines.

Chairman of the association Alhaji Holaji Agbolade bemoaned a situation where those arrested for pipeline vandalism by the Police, State Security Serviced (SSS) and the Nigeria Security and Civil Defence Corps were not properly persecuted.

He said : “Pipeline vandalism is an economic sabotage, we are worried about a situation where suspects are arrested and released within a few days without prosecution! According to the association, “we will likely withdraw our services and fuel will not be sold at the Ilorin Depot to any filling station. He gave an instance where about two years ago, the police arrested five persons who were each sentenced to five years imprisonment by the Federal High Court but were released two weeks ago without completing their jail terms by another court and called for the re- arrest of the  convicted pipeline vandals.

All these came at the time when fuel tanker drivers embarked on their strike that triggered some days of petrol scarcity.

It is known that the prime function of trade unions the world over is to protect and improve the wages and working conditions of their members through collective action, whether by bargaining with the employers by promoting legislation. In fact, historically, one of the main reasons for the setting up of trade unions was that the workers might acquire a combined strength which would enable then to bargain more effectively with the employers and to replace the individual contract by a collective agreement.

In Nigeria, many employers and employees refuse to believe that this is what happens and they think that the collective agreements are fundamentally different in form and content from what obtains outside.

Another midely held belief is that the workers in Nigeria are not free to withhold their services if they are dissatisfied with their conditions of work.

Freedom of association does not merely imply the right of workers to form or join an organization and the right of that organization to have a legal existence. It also implies freedom for the organization to function. If freedom of association is to have its full value, the workers must be able to use their organization for collective action and must enjoy the right to strike if they regard their working conditions as unsatisfactory.

Another thing to be remembered is that the structure, functions and rights of the Nigerian trade unions cannot be properly appreciated unless the economic, political and social structure of the country is taken into account. Personal or group circumstance is less important in the case of the nation. The fact that the rights of oil workers are trampled on or tampered with as alleged by PENGASSAN and the IPMAN do not call for strikes that are not negotiated or dialogued before commencement. There are various methods for dealing with industrial disputes which were not adopted by the tanker drivers and oil workers in the current crisis.

The withdrawal of services by tanker drivers for about six days and the threats by the PPPRA, PENGASSA and IPMAN has resulted in enormous pressure on other sectors of the economy.

Oil workers should acknowledge the fact that the oil and gas industry is an important aspect of the nations economy and any action such as strike critically paralyses the economy and the movement of people.

Petroleum products distribution in Nigeria and Rivers State in particular in the past one week has continued to suffer from the negative effects of the marketers and oil workers. People are forced to pay exorbitantly for petroleum products  which also affects transport fares. The reputation of some oil workers and their managements has been battered by their failure to come to terms.

Regardless of what the issues are, citizens of the country and government are not happy with the situation in which they find themselves while the fuel scarcity lasts.

Cheap and effective business and services are no longer guaranteed in the country. This is why it is incumbent on the state and federal governments to seize the initiative and end this improfitable standoff once and for all.

The Tide learnt that the  Federal Government might have begun the process of calling a stakeholders meeting where some of the issues unearthed during the hearing on the subsidy claims by the National Assembly would be addressed with a view to checking the fuel scarcity.

The issues raised by IPMAN and the PENGASSAN concerning intimidation and other ill-treatments meted out to their members should be addressed just as perpetrators of pipeline vandalism should be treated according to the law as it concerns economic sabotage. Oil workers on their part should not in any way allow themselves to be used by anyone or group whatsoever to disrupt the distribution process of petroleum products.

Security agencies should take serious the issue of pipeline vandals because their activities are counter productive, especially now that there is the need for improvement in the allocation of petroleum products.

The Rivers State government would not wish to put itself in a position where it will be vulnerable to copycat strikes and it must be realised that the consequences of this quibbling have resulted in economic downturn and penury on the citizens.

When two elephants fight, the resultant effect is always on the grasses. While the oil workers or tanker drivers argue over the fine points of their grievances, the citizens are suffering.

As the body charged with overall well-being of the citizens, government should endeavour to bring the strike and threats under control. The welfare of the people is simply too important to be put on hold through strikes. The companies managements should see reasons with their workers and give them what they want if their demands are genuine.

There should be evidence of  faith in the demands of the workers and it must be obvious that they are making a point. There is the need for negotiations between the government, company managements and the workers to find solution to the situation.

The Nigeria National Petroleum Corporation (NNPC) alleged the fear of petroleum products scarcity as it claimed that Nigeria still has over 35 days sufficiency and more importers of petrol are in the business, so people should  face what they are licensed to do rather than causing artificial scarcity of fuel.

There are many issues involved in the  petroleum sector reform which need to be addressed. Insecurity in the nation’s high seas is one of the factors that bring about scarcity of petroleum products. Some oil companies have applied for as much as 160,000 metric tones but had not been able to get that quantity while some take their vessels to neighbouring countries such as the republic of Benin and Togo because of inadequate storage facilities at the country’s ports, so they have to split the products, which is a security risk because of the way pirates operate and the difficulty in the jetties.

As a way forward, there is need for re-classification of the oil companies  in a bid to effectively reposition the oil  industry. The dearth of facilities at our ports has also forced importers to use ports in neighbouring countries and there should be market forces to determine quality of fuel imported and the prices they are sold as an inspector  is made to oversee the quality and quantity of import.

 

Shedie Okpara

 

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Oil & Energy

MIND Slams PENGASSAN, Urges Senate Probe Over Alleged Maltreatment Of Nigerians At TotalEnergies

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The Movement of Intellectuals for National Development (MIND) has  criticized the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) over what it describes as an evasive response to allegations concerning the treatment of Nigerian employees at TotalEnergies.
In a statement issued by its Western Coordinator, Ebi Warekromo, MIND expressed disappointment at PENGASSAN’s attempt to distance itself from a petition submitted to the President of the Nigerian Senate, maintaining that its petition is grounded in verified evidence and first hand accounts from affected workers.
Warekromo noted that the submission draws extensively from documented correspondence originating from PENGASSAN’s local branch communications that previously raised concerns about unfair labour practices and managerial misconduct within TotalEnergies.
Among the critical issues highlighted are allegations of workplace bullying and intimidation allegedly perpetrated by certain expatriate staff.
The petition also cites serious security concerns and alleged violations of the Nigerian oil and gas industry content development (NOGICD) act, particularly claims that expatriate positions have been unlawfully extended beyond their approved tenures.
Warekromo who dismissed PENGASSAN’s characterization of the documents as merely ‘internal correspondence’ as weak and disingenuous, insisted that workers’ rights violations and systemic oppression cease to be internal matters once they begin to harm Nigerian employees.
The group argued that confidentiality must not be used as a shield for injustice, stressing that internal dispute resolution mechanisms must deliver measurable outcomes.
Where such mechanisms fail, MIND insists that public and legislative oversight becomes necessary
beyond the immediate allegations, questioning PENGASSAN’s independence and effectiveness in representing its members.
The group urged the union to welcome a Senate hearing, describing it as an opportunity to clarify its position, restore credibility, and rebuild trust among workers.
“We are not attacking PENGASSAN. We are responding to the absence of effective representation that has allowed these oppressive practices to persist unchecked”,
MIND emphasised its belief that when unions appear reluctant to act decisively, civil society organizations have a responsibility to intervene in pursuit of justice and equitable labour relations.
Calling for a collaborative response, the group urged workers, unions, regulatory authorities and industry stakeholders to work together toward fostering a healthier and more accountable environment within Nigeria’s oil and gas sector.
It further reiterated its unwavering commitment to defending the rights of Nigerian workers and urged PENGASSAN to take concrete and transparent steps to fulfill its mandate as a labour union.
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Elumelu Tasks FG On Power Sector Debt Payment 

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Chairman of Heirs Holdings, Transcorp and United Bank for Africa (UBA), Tony Elumelu, has urged the Federal Government to fast-track the settlement of debts owed to electricity generation companies (GenCos).
Elumelu said that the timely payment was imperative to boosting power supply and accelerating economic growth.
Speaking to State House correspondents, shortly after the meeting with President Bola Tinubu, at the Presidential Villa, Abuja, Weekend, Elumelu insisted that the debt payment would aid in revitalising the power sector and stabilising the economy while strengthening the Small and Medium-scale Enterprises (SMEs).
He said “All of us who are in the power sector are owed significantly, but in spite of that, we continue to generate electricity. We want to see the payments made so that there will be more provision of electricity to the country. Access to electricity is critical for the development of our economy.”
Elumelu, whose conglomerate has major investments in Nigeria’s power industry, stressed that improving electricity supply remains one of the most important enablers of economic expansion, job creation and industrial productivity.
According to him, President Tinubu recognised the urgency of resolving the liquidity challenges in the power sector and is committed to addressing legacy debts to ensure generation companies can scale operations.
“The President realises it, embraces it and is committed to doing more, especially helping to fast-track the payment of the power sector debt so that power generators can do more for the country. That is very, very critical,” he added.
In his assessment of the outlook for 2026, he said growing macroeconomic stability, improved foreign exchange management and sustained reforms in the power sector could position Nigeria for stronger growth — provided implementation remains consistent and structural bottlenecks are addressed.
Elumelu posited that one priority stands out, which is: resolving power sector liquidity challenges to unlock increased electricity generation and energise the Nigerian economy.
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Oil & Energy

‘Over 86 Million Nigerians Without Electricity’ 

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Nigeria has been said to have more than 86 million of its population still without access to electricity.
The Deputy Secretary-General of the United Nations, Amina J. Mohammed, stated this at the Award Ceremony of the Leadership Newspaper, in Abuja, last Thursday.
Mohammed noted that sixty per cent of the world’s best solar resources are on this continent adding that by 2040, Africa could generate ten times more electricity than it needs, and entirely from renewables.
Mohammad regretted that Africa now receives just two per cent of global clean energy investment saying, “And here in Nigeria, more than 86 million people still have no access to electricity at all.”
Expressing concerns over the large population of Nigerians living without access to electricity, the deputy scribe, said however, that Nigeria is responding to this challenge the right way insisting that under President Tinubu’s leadership, Nigeria has developed a best-in-class action plan for climate, one that treats climate not as a constraint but as an engine for growth.
According to her, by placing energy access, climate-smart agriculture, clean cooking, and water management at the heart of its development agenda, Nigeria is showing what serious climate leadership looks like but Nigeria cannot close the climate action gap alone.
 “Developed countries must the triple adaptation financing, we need for serious contributions to the Loss and Damage Fund, and mobilize 300 billion dollars per year by 2035 for developing countries to succeed. Early warning systems need to reach everyone, so that communities have the means to prepare for climate shocks before they hit.
“And as Africa drives the global renewables revolution, including through its critical minerals, Africans must be the first and primary beneficiaries of the wealth that they generate”, Mohammed stated.
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