- Oil workers’ unions strike call condemnable, says Dangote Refinery
The Federal Government has launched a concerted mediation to stave off disruption to petrol supply.
This follows the escalating disagreement between senior oil workers union and Dangote Petroleum Refinery (DPR).
It is the second time in one week that DPR will be battling with labour unions in the oil industry.
Last week, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) threatened to stop loading of products from the refinery.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, yesterday chaired a marathon session of the Steering Committee of the Domestic Crude Oil and Refined Products Sales in Local Currency Initiative where issues of the naira-for-crude oil arrangement and the row between Dangote Refinery and Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) were discussed extensively.
Minister of Labour and Employment, Muhammad Dingyadi, who appealed to the labour unions to shelve the planned strike, invited all parties to an emergency meeting today, as part of a roundtable to settle the dispute.
The government assured Nigerians that the supply of refined petroleum products will remain uninterrupted, despite the concerns in the downstream oil sector.
Dangote Refinery decried the strike call by PENGASSAN.
The Edun-led committee reaffirmed the continuation of naira-for-crude policy, dispelling any concerns about the initiative that had been hailed as a game-changer and a major contributor to the stability in the downstream oil sector.
According to the committee, all outstanding issues, particularly the dispute between PENGASSAN and Dangote Refinery, are being addressed with urgency.
The committee said the Federal Government is committed to sustaining stability in the petroleum products market.
It said: “The crude oil-for-naira initiative will continue”.
The government noted that its priority remains guaranteeing energy security, protecting consumers, and preventing shocks that could disrupt fuel availability in the country.
Dingyadi said the ministry has taken steps to bring both parties to a roundtable to stop their dispute from escalating.
He called on the leadership of PENGASSAN to withdraw the strike notice to allow the ministry resolve the dispute in a peaceful atmosphere.
Dingyadi said: “The Ministry of Labour and Employment through the Director of Trade Union Services and Industrial Relations has extended invitations to the leadership of PENGASSAN and the management of Dangote Refinery to attend a conciliation meeting in my office on Monday.
“I appeal to both parties to be mindful of the importance of the petroleum sector to the country, being the core of the economy. A strike will not only lead to heavy revenue losses by the country but also cause more hardship and difficulties for Nigerians. Consequentially, it will have adverse impacts, both on economic stability and national security”.
He promised that the government would resolve the dispute amicably to the satisfaction of all involved and in the national interest.
Dangote Refinery also yesterday defended its position, calling on the government and Nigerians to protect the refinery as a national asset that must not be threatened by vested interests disguising as labour unions.
In a statement, the management of the refinery decried the “lawless act of economic sabotage” pursued through untruths and intimidations.
“We call on the Federal Government and its agencies, as well as Nigerians, to stare down PENGASSAN and put a stop to the machinations and blackmail tactics of its oligarchs and sponsors,” Dangote said.
According to Dangote, the threat by PENGASSAN on the refinery could hurt the economic recovery process and the country’s energy security.
“We must not allow the association and its co-conspirators to sabotage and imperil the economic recovery and energy security of the country. The economic recovery of Nigeria must not be derailed or reversed by PENGASSAN,” Dangote said.
PENGASSAN, yesterday, vowed to press on with its nationwide strike until the Dangote Refinery recalls over 800 workers allegedly dismissed for joining the union.
PENGASSAN’s President, Festus Osifo, said the action was forced by what he described as Dangote’s flagrant violation of Nigeria’s labour laws.
He said: “This is not a banana republic. Over 800 Nigerians, who subscribed to PENGASSAN, were issued sack letters simply because they chose to belong to a union. That is unacceptable. Until those workers are recalled, this strike will continue.”
Osifo, who also leads the Trade Union Congress (TUC), spoke on a national television programme last night. He rejected suggestions that the action amounted to sabotage.
He said: “To every action there is a reaction. The person sabotaging Nigeria’s economy is Aliko Dangote. He cannot sit down and break the laws of the land because he is wealthy”.
Osifo argued that the oil workers were within their rights.
“Two weeks ago, close to 1,000 workers filled forms to join PENGASSAN in accordance with Section 40 of the Nigerian Constitution. We wrote to Dangote Refinery informing it. Instead of respecting the law, it sent teams from unit to unit to confirm those names, and then issued mass sack letters. This is not done anywhere in the world,” Osifo said.
He said the union’s strike would not have an immediate impact on petroleum supply given the stock of products at Dangote Refinery, unless the refinery chooses to sabotage supply.
“There will be no disruption in the supply of petrol because of our strike tomorrow (Monday). We have fuel in our tanks that will serve us for more than 30 days.
“Nigerians should hold Dangote Refinery and Petrochemicals responsible if there is a disruption in fuel supply because our members don’t control the tanker drivers”.
He said Dangote’s often claim of investment was an exaggeration, which should not give the group impunity to act against labour laws.
The Nigerian Independent System Operator (NISO) also yesterday warned that the crisis between PENGASSAN and Dangote Refinery could affect electricity supply.
NISO noted the implications of the tension beyond availability of petrol supply, calling on both parties to embrace dialogue and peace in the interest of the national economy.
“The national grid relies heavily on gas-fired generation, and any sustained disruption in gas supply would constrain generation capacity, affect system operations and undermine the stability and reliability of electricity supply in the country.
“While NISO is considering measures to mitigate total grid collapse, we urge all parties to embrace dialogue and lawful mechanisms of dispute resolution in the interest of the economy and wellbeing of Nigerians.
“We reaffirm our commitment to ensuring a secure and reliable operation of the national grid and will continue to support wider efforts at safeguarding energy security,” NISO said.
Chief Executive Officer of Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, said cutting off gas supply, coal supply to Dangote Refinery was a disproportionate response to the development.
He said: “We are talking here about issues of energy security. We are also talking about what exactly is in consonance with labour laws. If there are issues with an employer, I think there are processes to go about it. There are processes of resolving disputes. You have industrial courts, you have other processes. This particular step, for me, is going to the extreme.
“I don’t think that is the way to go. In all of this, you never can tell what the motive is because most of these people, including the unions, are people who have been major beneficiaries of the importation regime. The coming of Dangote Refinery into the industry has created disruption and those benefiting from the status quo, including some of these unions, are not likely to be happy with it.
“The unions may have committed an act of illegality by going as far as that. It is a disproportionate response from the union to Dangote. I’m not saying they cannot engage in a dispute but to go as far as that is disproportionate. It’s going to the extreme. If the company gets force majeure, losses must have been suffered on both sides. This is clearly a disruption inflicted by the union deliberately. So, I’m not even sure whether that can qualify as force majeure. It can qualify as sabotage. That is what it’s going to look like”.
The Trade Union Congress of Nigeria (TUC) yesterday condemned alleged anti-worker actions of the management of Dangote Refinery and Petrochemicals, including the “unjust termination of workers for exercising their constitutional right to freedom of association and unionisation.”
In a statement by its Secretary General, Nuhu Toro, TUC asked the oil company to reinstate the 800 workers that it allegedly sacked.
It warned that failure to recall the sacked workers or tender a public apology could lead to industrial action.
TUC said: “We stand in solidarity with the affected workers and with their union, our affiliate PENGASSAN, whose members have been victimised merely for declaring membership. Such actions amount to a direct assault on Section 40 of the Nigerian Constitution and on Nigeria’s obligations under International Labour Organisation (ILO) conventions.
“We demand immediate and unconditional reinstatement of all affected workers; a public apology from Dangote management with firm assurances against future victimisation.
“An independent investigation involving the Ministry of Labour, ILO and stakeholders into the refinery’s labour practice”.
National Chairman of Social Democratic Party (SDP), Alhaji Shehu Gabam, also yesterday condemned the strike call by PENGASSAN.
He described the strike call as a misguided move that threatens Nigeria’s economy and the welfare of its citizens.
According to him, the union’s directive to shut down the oil and gas sector, particularly targeting the Dangote Refinery, amounted to sabotage and could plunge millions of Nigerians into hardship.
He said: “The recent declaration by PENGASSAN to embark on a nationwide strike, effectively shutting down the oil and gas sector, is a reprehensible act of sabotage against the Nigerian people.
“By targeting the Dangote Refinery and instructing members to withdraw services, PENGASSAN is not only jeopardising the stability of the oil and gas sector but also putting the livelihoods of millions of Nigerians at risk”.
He warned that the phased shutdown, including suspension of supplies to the refinery, would trigger fuel shortages, price hikes, and potential instability in the country.
Gabam, however, urged Nigerians to resist “an attempt to hold the nation hostage,” insisting the union’s demands appeared self-serving and contrary to national interest.
“I reject the union’s demands, as evident from the directive to target the Dangote Refinery, which appear to be driven by a desire to undermine the progress made by the Federal Government in the oil and gas sector.
“The government must stand firm and reject any attempts to use industrial action as a means of extorting concessions or disrupting the economy,” Gabam said.
He expressed solidarity with the Federal Government, saying efforts to strengthen economic development should not be derailed “selfish interests.”
He said: “I stand with the Nigerian government in its efforts to promote economic growth and development. I urge Nigerians to remain vigilant and united in the face of this challenge, rejecting any attempts to destabilise the economy or undermine the nation’s progress”.
