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Tag: PENGASSAN

  • PENGASSAN kicks over no-work, no-pay order

    PENGASSAN kicks over no-work, no-pay order

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has decried plans by the federal government to enforce the no-work, no-pay clause.

    Speaking in an interview, Francis Olabode Johnson, the National President of PENGASSAN said no union worth its salt would instigate workers to go on strike without following the laid down procedures.

    “No union will just wake up and say we are shutting down. If a union is giving you 21 days, I believe that to avoid a situation of no work, no pay, you should nip it in the bud. You don’t wait till the expiration of those 21 days. Even after those 21 days, we still give 14 days’ notice to see whether there is seriousness in addressing the issues. In most cases, they ignore it, only to start running from one place to the other later and now wants to invoke the law of no work, no pay,” he said.

    The PENGASSAN boss, who said the union won’t support the no work, no pay policy, maintained that the federal government needs to be advised against taking any such rash decision.

    Waxing philosophical, Olabode said: “If you have a child who is sick, are you going to wait till that child has a relapse of have issues that will cost you more harm? As a parent, you try to nip that in the bud by giving him medical attention. When unions are pushed to the wall, they fight back and that is why we go on strike.”

    While reiterating that the union will not support the issue of no work, no pay under any circumstances, the labour leader said, “No union worth its salt will just wake up and shut down without following the lay down procedures. That is not possible. Except that union has given you 21 days, follow it up with another 14 days and yet another 7 days. In 2014, we gave government 21 days, followed by another 14 days and another 7 days. After the expiration of that, we still waited for about four days before we went on strike. Those are the issues.”

    While commenting on the vexatious agitation for minimum wage, the labour leader said it is disheartening to note that most elected public officials are living in luxury but would readily deny workers their dues.

    Short of blaming the lawmakers for their insensitivity, a visibly angry Olabode was unsparing of in his criticism: “Senators buy cars and accessories running into several millions but workers go home with pittance.”

    Raising some posers, he queried: “How much is the minimum wage? That is why the unity of labour is also important because I have seen different figures being paraded by labour leaders. If we don’t unite, we may lose this opportunity to make sure that Nigerians get a well deserved living wage because N18,000 is nothing. You find out that some states are not even paying that N18,000 despite the Paris Club refund. That is why I said the NLC, TUC and all of us team up. In a situation where states owe salaries running into months is ungodly.”

  • PENGASSAN rejects plan to tax pension, terminal benefits

    PENGASSAN rejects plan to tax pension, terminal benefits

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has rejected the plan by governments at the federal and state levels to tax pensions, gratuities and terminal benefits of workers.

    The senior staff trade union vowed to resist the implementation of the plan, which it claimed was to further impoverish workers.

    In a communiqué issued at the end of its National Executive Council (NEC) meeting in Uyo, Akwa Ibom State, PENGASSAN condemned the unilateral decision by the Federal Inland Revenue (FIRS) and state Internal Revenue Services to act outside the provisions of the Federal Tax Laws, thereby infringing on the rights of workers.

    PENGASSAN, in the communique signed by its President, Comrade Francis Olabode Johnson, and the General Secretary, Comrade Lumumba Ighotemu Okugbawa, condemned the plan by governments, especially the Lagos State Government and its agent, the Lagos State Inland Revenue Service (LIRS), to tax workers’ gratuities and terminal benefits.

    “The NEC-in-Session calls on all workers, the Nigeria Labour Congress (NLC), the Trade Union Congress of Nigeria (TUC) and other labour unions to reject and resist the planned taxation of pensions, gratuities and terminal benefits.

    “The NEC-in-Session notes that the planned taxation will further deplete workers’ final entitlements and increase poverty in the country. This can also shorten the life span of workers in the country,” the communiqué said.

    The oil workers association also condemned the actions of the Joint Tax Board (JTB) and some state Boards of Internal Revenue for illegally harassing employers from processing additional pension and life insurance tax reliefs by workers as enshrined in the law.

    “The NEC-in-Session therefore, states that the law on Personal Income Tax can only be amended by an Act of the National Assembly or clarification via interpretation by the Judiciary, and it would resist the self-help approach being adopted by the tax bodies,” it stated.

  • $25b contracts: PENGASSAN vows to resist interference in NNPC administration

    $25b contracts: PENGASSAN vows to resist interference in NNPC administration

    Oil workers, under the aegis of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), have vowed to resist any attempt by officials not designated for the administration of the  Nigerian National Petroleum Corporation (NNPC) to meddle in the affairs of the association.

    The workers warned that they would stop non-executive officials from using top management positions in the NNPC to settle cronies at the detriment of dedicated members of the staff.

    In a statement by the Secretary of the Group Executive Council (GEC) of PENGASSAN in NNPC, Comrade Sulaiman Sulaiman, they noted that the recent re-organisation in the NNPC was in good faith and it encouraged internal growth.

    They said: “We are convinced that the recent re-organisation in NNPC is in good faith and in tandem with our call to allow internal growth in the system through hard work and positive appraisals.

    “We shall continue to reject and vehemently resist attempts in meddling in the day-to-day running of the organisation by non-executive officials of the Corporation. We will no longer allow our institution to be an avenue to settle friends and cohorts into management positions of NNPC at the detriment of dedicated staff with all the requisite qualifications within the system.

    “Problems will continue to occur as long as the Chairman of the Board continues to meddle into the day-to-day running of the organisation, which is a management role. Any attempt to allow this happen will spell doom for the country and create a window for abuse.”

    The senior staff said good practice in corporate governance required absolute segregation of oversight role from the management’s day-to-day functions.

    They asked: “Why should a board chairman seek to meddle in internal organisational adjustment?” They noted that the chairman should focus on performance appraisal of the Board’s committees and its members, rather than wanting to dictate appointments or award contracts in NNPC.

    The workers, contrary to claim in the said letter of the Minister of State for Petroleum, Dr. Ibe Kachikwu, to the President, members of staff are no longer afraid to talk or express their opinion, especially with the domestication of the whistle blowing policy and re-constitution and launch of the Anti-Corruption Committee by the GMD.

  • Economy to lose N150bn daily to PENGASSAN, NUPENG strike – LCCI

    Economy to lose N150bn daily to PENGASSAN, NUPENG strike – LCCI

    The Lagos Chamber of Commerce and Industry ( LCCI ), has warned that the economy would lose an estimated N150 billion daily, if the proposed strike by PENGASSAN and NUPENG is not averted.

    The Director-General of LCCI, Mr Muda Yusuf, disclosed this in an interview on Monday in Lagos.

    Yusuf said that it would not be a good development for an economy that was just emerging from recession.

    The two unions had threatened to embark on an indefinite strike over delay in the payment of N800 billion subsidy arrears to oil marketers.

    Yusuf urged the Federal Government to engage the unions and propose a credible payment plan to settle the arrears.

    He noted that the consequences of the proposed strike would be severe because of the strategic and critical nature of the oil and gas sector.

    “It would paralyse the chain of logistics in the economy as economic activities are driven largely by road transportation, both for commuting and freight.

    “It will impact on revenue as the upstream sector would be affected as well. It would impact the power sector which is largely powered by gas,“he said.

    The LCCI boss noted that the fuel subsidy phenomenon had become a recurring distraction in the management of the country’s economy.

    “It is regrettable that government has over the years got itself entangled in a problem which should not have arisen in the first place,“he said.

    He alleged that the country’s economy had suffered serial scandals and monumental corruption in the oil and gas sector because of the phenomenon of petrol subsidy.

    “We have consistently argued that the government should completely decouple itself from the business of importation, refining, transportation and retailing of petroleum products.

    “This arrangement has created considerable distortions and stagnated private investment in the downstream sector because these are enterprises that the private sector is best suited to manage,“he said.

    Yusuf said that government has no business fixing prices and subsidising the players.

    He said that in spite of  the monumental problem  the economy had from the subsidy regime, government has not taken urgent steps to put an end to price fixing for PMS.

    “The economy cannot sustain this arrangement. The current debt of N800 billion is 151 per cent of the total capital allocation for the Federal Ministry of Works, Power, and Housing in the 2017 budget.

    “It is 1,568 per cent of the capital allocation to health; it is 305 per cent of the capital allocation to Federal Ministry of Transportation; and 1,600 per cent of the capital allocation to education.

    “This raises vital questions about the optimality and efficiency of resource allocation and utilisation by government,” he said.

    He called for speedy passage of the Petroleum Industry Bill ( PIB ), adding that it will help to normalise the oil and gas sector.

    Yusuf urged the government to replicate the telecoms sector model in the oil and gas industry, adding that it would free resources for investment in critical infrastructures like power, roads, the railway, health and education sector.

    He stressed that the model would improve product availability, eliminate fuel queues, and create more jobs for the teeming youth in the downstream oil sector.

    NAN

  • N720b subsidy arrears: PENGASSAN alerts on impending mass sack

    N720b subsidy arrears: PENGASSAN alerts on impending mass sack

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called on the Federal Government to settle all debts allegedly owed oil marketers to avert job losses.

    The union said it believed that the payment would engender growth of not only the downstream sector, but all sectors in the industry and develop the economy.

    The senior staff trade union made the call against the backdrop of the threat by the marketers to embark on massive retrenchment of their  employees, if the government refuses settle the over N720 billion subsidy arrears.

    The debts, according to the marketers, are among the outstanding subsidy owed importers of petroleum products, accrued interest on loans from banks and exchange rate differentials, which made them halt importation of refined petroleum products, leaving only the Nigerian National Petroleum Corporation (NNPC) as sole importers.

    A statement signed by the PENGASSAN National Public Relations Officer, Mr. Fortune Obi, urged the government to verify  the claims by the oil marketers and ensure quick settlement of genuine debts.

    “The government should try to separate the genuine claims by the importers from spurious ones and pay them accordingly because we will not like to be engulfed in the mistakes of the past where briefcase marketers milked the nation through dubious subsidy claims.

    “A situation where the workers in the industry bear the brunt of the government failure to honour its obligations as part of the importation deal will be unfair and unacceptable to our Association.

    This is against the President Muhammadu Buhari administration’s major policy of job creation,” Obi said.

    He said as much as PENGASSAN would support any move by the government to end subsidy regime and spurious claims by the marketers, it was also canvassing  the payment of debts that could hinder the downstream sector’s growth and attract investments into the sector.

    Obi noted that in the last five years, workforce in the downstream sector, especially the marketing sub sector, depleted by over 70 per cent, adding: “most of them were thrown into the already over-bloated labour market.”

  • Don’t interfere in pension contributions, PENGASSAN warns

    Don’t interfere in pension contributions, PENGASSAN warns

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has cautioned the Joint Tax Board ((JTB) and some state boards of internal revenue against interfering in the voluntary Contributory Pension Scheme as entrenched in the Pension Reform Act of 2014  and the 2015 amendment.

    PENGASSAN said such steps by the JTB and some state boards of internal revenue could jeopardise the relative industrial peace in the country.

    Reacting to the advertisements  by the tax bodies in some national dailies, threatening to impose taxes on withdrawals by workers from their voluntary contributions, the senior staff association in the oil and gas industry stated that this was contrary to the Pension Reform Law.

    In a statement signed by the National Public Relations Officer of PENGASSAN, Comrade Fortune Obi, the union said it was the responsibility of the National Assembly to amend any section of the Act as deemed fit, and that of the Judiciary to provide interpretations where necessary.

    “Hence it will be provocative for the JTB or state tax boards to unilaterally usurp the powers of the legislature and the judiciary by its planned and illegal move to tax such withdrawals. The tax authorities should be reminded that tax avoidance is the arrangement of one’s financial affairs to minimise tax liability within the scope allowed by law and is distinct from tax evasion which implies the illegal non-payment or underpayment of tax due,” he stated.

    Obi cited Section 4(3) of the PRA 2014, which provides: “Any employee to whom this Act applies may, in addition to the total contributions being made by him and his employer, make voluntary contributions to his retirement savings account”.

    “Section 10(4) of the Act further provides that “… Any Income earned on any voluntary contribution made under Section 4(3) of this Act shall be subject to tax at the point of withdrawal where the withdrawal is made before the end of five years from the date the voluntary contribution was made”.

    He noted that with these clear provisions, it is obvious that the tax authorities are over-stepping their bounds by attempting to place restrictions on withdrawals against the express provisions of the law.

    The PENGASSAN spokesperson said the association had concerns with some aspects of the law, but it has not taken the law into its hands by resorting to self-help as the tax authorities are attempting to do.

    “As a law-abiding association, we are waiting for a time when the National Assembly will initiate an amendment process so that we can make our inputs into the process and we hope that all stakeholders will toe the part of peace and honour.  On the other hand, if they cannot wait for such a time, then the appropriate thing is to approach the law courts to determine the legality or otherwise of the current provisions.

    He restated the PENGASSAN’s commitment to defend workers should the tax authorities go ahead with their threats to deprive workers from accessing fully their voluntary contributions as and at when needed.

    He added:  “However, we remain committed to dialogue to resolving whatever differences may exist between our association and other stakeholders.”

  • PENGASSAN kicks against refineries’ concessioning

    PENGASSAN kicks against refineries’ concessioning

    The Petroleum and Natural Gas Senior Staff of Nigeria (PENGASSAN), Nigeria National Petroleum Corporation (NNPC) group, has warned against outright sale of the energy sector to private investors at this time of the country’s economic downturn, saying it would not serve any good purpose.

    The group, instead advocated for urgent diversification of the economy outside oil and gas for quick recovery.

    The group equally called for the passage of the aspect of the Petroleum Industry Bill (PIB) that addresses the issues and grievances of oil and gas producing communities to douse the lingering agitations and threats in the Niger Delta region.

    Its General Executive Committee (GEC) Chairman, Sale Abdullahi  gave  the warning during a one-day visit/ tour of Port Harcourt Refinary ahead of PENGASSAN’s national congress and election of new executives in Abuja.

    Abdullahi said it became necessary to give the warning following the plan by the Federal Government to sell the country’s energy sector to private investors.

    He  urged the government to apply caution in the move to avoid the repeat of last experiences. According to him, what the sector needs now is responsible partners that could make  the facilities operate to  maximum capacity and not those that would want to buy off the public assets for their personal gain at the detriment of the general public.

    Abdullahi said: “We are not against privatisation, concessioning of the refineries, but no responsible nation will like to toy with the issue of energy at the moment especially considering the present condition of the economy. We as labour union are against 100 per cent concessioning;  we want to maintain a level of security. This is because energy is security and just like the country cannot give out security 100 per cent to the private sector to manage, we should equally not do that with the case of energy; that is the reason we are saying that when the government is bringing in investors, let them bring in those that will add values to the refineries.

    “We talked about the maintenance that we have not been able to do for so many years, it is certainly because of finance; so we welcome those that will come with finance to help us in the area of maintenance, we partner together, make profits together but with the guarantee that the energy security of the nation is with the government, that is the kind of concessioning we support.

    “After all, the PIB that is before the National Assembly has a portion that reliefs 20 per cent government equity of the oil and gas sector being in the hands of private investors, meaning that when the bill is passed, 20 per cent will go off but what we are saying is that, it does not make any sense at the moment to sell the entire energy facility of the country outright to public investors; if that must be done then, it should be done bit by bit, to give room for monitoring and evaluation on its progress on the economy. This is necessary because of past experience.”

  • PENGASSAN kicks against concessioning of refineries

    PENGASSAN kicks against concessioning of refineries

    Members of the Petroleum and Natural Gas Senior Staff of Nigeria (PENGASSAN), Nigeria National Petroleum Corporation (NNPC) chapter have warned against outright sale of the  energy sector to private investors .

    The members equally called for the passage of the aspect of the Petroleum Industry Bill (PIB) to douse the lingering agitations and threats in the Niger Delta.

    The General Executive Committee (GEC), chairman of PENGASSAN, NNPC Group, Sale Abdullahi, spoke for the group during a one-day visit/ tour of Port Harcourt Refinary ahead of PENGASSAN’s national congress and election of new executives at Abuja, the Federal Capital territory today.

    Abdullahi said: “We are not against privatisation, concessioning of the refineries, but but no responsible nation will like to too with the issue of energy at the moment especially considering the present condition of the country’s economy. We as Labour union are against 100% concessioning, we want to maintain a level of security. Thus is because energy is security and just like the country cannot give out security 100% to the private sector to manage we should equally not so that with the case of energy, that us the reason we are saying that when the government is bringing in investors, let them bring in those that will add values to the refineries.

    “We talked about the maintenance that we have not been able to do for so many years, it is certainly because of  finance, so we welcome those that will come with finance to help us in the area of maintenance, we partner together, make profits together but with the guarantee that the energy security of the nation is with the government the is the kind of concessioning we support.

    “After all the PIB that us before the national assembly has a portion that reliefs 20% government equity of the oil and gas sector being in the hands of private investors, meaning that when the bill is passed, 20% will go off but what we are saying is that, it does not make any sense at the moment to sale the entire energy facility of the country outright to public investors; if that must be done then, it should be done bit by bit, to give room for monitoring and evaluation on its progress on the economy. This is necessary because of past experience.

    “Nigeria Oil and Gas sector has numerous challenges, just as the country also do have. The way forward is to create a road map to give directions to the exact expectations of the country in the sector, and to also plan to diversify the economy away from oil and gas business with the view of developing and giving prominence to the newly identified economic resources, and little or no relevance to the energy sector.

    “To achieving this, a road map will need to begins with building capacity in the identified new economy.

    “We thought that the Petroleum Industry Bill (PIB), is going to give succour to the areas if challenge to the sector…, other countries that have taken time to give legislation that could help them not just in achieving or tapping the potentials in oil and gas but equally allowing them to diversify into other areas, that is what we have not done in the moment; therefore that roadmap is very important and we need to have them urgently.

    “Contrary to the media hype that Port Harcourt Refinary is not working and not producing, the facility is working.

    “It was the media reports that informed the decision to invite you (the media), on a tour of the facility to see things for yourself with the view to confirming whether or not the equipments here(the Refinery), are working or not.

    “Having gone round the facility and also gone to the control room, you(news men), have seen fir yourself that all the compartment of the facility are working, the only challenge is capacity utilization which at the moment is at 60 per cent. We will like to move it to at least 90% and then the supposed  100% utilization.

    “Meanwhile we do not have what we are supposed to have because of some challenges, critical among the challenge is crude oil supply without which, there will be no Refinery.

    “Another critical challenge of the facility as we have seen is evacuation. Even when we refine, we expect that the should be loading for the products to create room for new products that are coming. But we are having challenges in this area also.”

     

     

     

     

     

     

  • Anti-labour practices: PENGASSAN issues 72 hours ultimatum to firm

    Anti-labour practices: PENGASSAN issues 72 hours ultimatum to firm

    Barely two weeks after the suspension of an industrial action embarked upon by Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) over anti-labour practices of the Neconde Energy Limited, the management has sacked workers who participated in the industrial action.

    The association, therefore, has issued a 72-hour ultimatum, starting from Tuesday to Neconde Management within which the five affected members be recalled to work or face monumental consequences as they may relate to the organisation and the oil and gas industry.

    According to PENGASSAN, this was a flagrant violation of the terms  of a communique signed on May 18,  between the two parties towards the suspension of the picketing of the company.

    In the communiqué which was signed by the representatives of the company led by its Company/Board Secretary, Mr. Val Uche-Obi, SAN, who signed on behalf of the Chairman Neconde Energy Limited- Dr. Ernest Azudialu, and the Chief Executive Officer, Mr. Frank Edozie, among others and PENGASSAN representatives led by Chairman, PENGASSAN Lagos Zone, Comrade Abel Agarin, among others, it was agreed that nobody will be victimised on the ground of the industrial action.

    The senior staff trade union said the company terminated the employment of five members on June 1, based on the industrial actions. It would be recalled that the recent industrial  action began on May 15,  with the picketing of the premises of Neconde simultaneously in Lagos and Warri.

    The catalogue of grievances that led to the industrial action include forceful restructuring (evidenced in realignment, grade categorisation and harmonisation of salary structure and downgrade of conditions of service/contractual terms of employment) of Neconde to other non E&P subsidiaries of the Obijackson Group, lack of evidence (TCC) of employee tax (PAYE)  remittance in Lagos and Delta states since 2012, non- payment of 2016 13th month, non-payment of field allowances since August 2016, forceful and immediate transfer of union members (including pregnant women) from Lagos to Warri office with no consideration of impact on families, non-payment of transfer allowances (two months after the forceful transfer), and non-payment of severance benefits.

  • PENGASSAN gives firm 72-hour strike notice

    PENGASSAN gives firm 72-hour strike notice

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has threatened to shut down the operations of Neconde Energy Limited in Lagos and Warri for sacking five of its members that work in Neconde without following due process.

    Neconde Energy Limited is the exploration and production (E&P) arm of the Obijackson Group, the operator of the oil mining lease (OML) 42 located in Delta State.

    In a letter dated June 2, 2017 and signed by the General Secretary, Comrade Lumumba Okugbawa and copied the Ministers of Labour and Employment and Petroleum Resources (State), as well as the Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Group General Manager, National Petroleum Investment Management Services (NAPIMS), Chief Executive Office, Neconde and relevant officials of PENGASSAN, the group demanded for reversal of the sack within 72 hours by Neconde or face shut down.

    The letter entitled: ‘Termination of the employment of our members’, said: “Information reaching us indicates that your management has summarily terminated the employment of five of our members in your organisation without regard to due process and the extant labour laws.

    “We are taken aback by this ugly development as it is happening few weeks after the Association’s industrial action against your organisation. We are aware that the affected members didn’t opt out for severance and that brings to fore the needlessness of their termination of appointment which is a clear case of victimisation.

    “The action of your management also negates item 5(b) of the recently signed communiqué of May 15-18, 2017.”