Peace meeting with PENGASSAN, Dangote flops as strike enters day 3

The peace meeting convened by the federal government to resolve the face-off between members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Dangote Refinery is yet to yield positive results, Daily Trust reports. This is just as the strike action embarked upon by the union entered its third day. Our […]

The peace meeting convened by the federal government to resolve the face-off between members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Dangote Refinery is yet to yield positive results, Daily Trust reports.

This is just as the strike action embarked upon by the union entered its third day.

Our correspondent reports that the peace meeting, which was originally convened by labour minister, Mohammed Maigari Dingyadi, started on Monday afternoon and lasted till early morning of Tuesday without any meaningful conclusion.

The meeting, which was supposed to continue by 2:00pm at the headquarters of the Ministry of Labour and Employment, Abuja, on Tuesday, was subsequently taken over by the National Security Adviser (NSA), Nuhu Ribadu, as the chief conciliator.

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Officials in both the Labour Ministry and the NSA’s office confided in Daily Trust that the takeover was imperative due to the negative dimension the strike action embarked upon by PENGASSAN members had taken.

“This strike is already causing a big problem across the country. In fact, it can snowball into a big security challenge in the country if not resolved on time.

“The NSA, as a coordinator of all security agencies, has a duty to ensure that he’s proactive in preventing any looming security issues,” one of the officials in ONSA who didn’t want his name in print told Daily Trust Tuesday afternoon.

Meanwhile, there are clear indications that President Bola Tinubu may personally intervene in resolving the lingering face-off between the two parties.

The development, which will serve as the last option towards resolving the rift between the two parties, is expected to come after the interventions of the Ministry of Labour and the Office of the National Security Adviser had collapsed.

 

PENGASSAN, others yet to get court order

There are indications that the leadership of PENGASSAN, Nigeria National Petroleum Company Ltd, (NNPCL), the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NDMDPRA) and the Nigeria Upstream Petroleum Regulatory Commission, (NUPRC), have not been served the court order, which restrained them from embarking on their planned industrial action against Dangote Petroleum Refinery and Petrochemicals FZE.

PENGASSAN had directed its members to shut down thermal power plants through which Nigeria’s power grid gets 75 per cent of its supply.

There has been a sharp drop in electricity supply, as confirmed yesterday by the Nigerian Independent System Operator (NISO).

NISO stated that electricity generation on the National Grid has dropped to 3,200 megawatts (MW) due to the industrial action by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).

A statement by NISO said the disruptions by PENGASSAN triggered widespread gas shortages, reducing available generation from over 4,300 MW.

NISO, however, said it has deployed contingency measures to preserve the stability, security, and reliability of the National Grid through strategic ramp-ups from major hydro stations, contributing over 400 MW of additional output to cushion the shortfall from gas-fired plants.

“There are now real-time load adjustments to match available generation with system demand, while preventing a system frequency collapse. While continuous deployment of reactive power compensation and reserve monitoring to safeguard system integrity is strengthened.

“There is selective load shedding, applied as a last resort, to avert a system-wide collapse and ensure fair power distribution. These timely actions enabled the NISO NCC to minimize the impact of the labour-induced gas shortages, sustain operational security, and maintain supply to critical loads, thereby averting a nationwide blackout,” the statement said.

PENGASSAN continues strike despite court order

However, despite the order of an industrial court on Monday, PENGASSAN has continued its strike, while efforts to serve the parties the court order were said to have been futile.

Justice Emmanuel Danjuma Subilim held that it was in the interest of justice for the court to restrain the defendants to preserve the industrial peace and aid the continuous provision of essential services to the Nigerian public, pending the determination of the substantive suit.

The court specifically barred the defendants from cutting crude and gas supply to Dangote Refinery.

However, lead counsel to Dangote Petroleum Refinery and Petrochemicals FZE, James Onoja (SAN), stated that all efforts to serve the Court Order on the defendants proved abortive, as they claimed to be on strike.

You are only after check-off dues, Dangote tells PENGASSAN

Meanwhile, Dangote Refinery has accused PENGASSAN and the Trade Union Congress (TUC) of prioritising union dues and personal interests over workers’ welfare.

In a statement on Monday, the refinery described the TUC as “zombie-like” for declaring “full solidarity” with PENGASSAN and threatening nationwide strike action against its management, without making any effort to verify the claims on which the action was based.

Dangote Refinery accused the unions of being driven solely by the desire to secure check-off dues. The company cited comments by PENGASSAN President Festus Osifo, who, in a recent interview with Channels Television, stated that the union had written to Dangote Refinery to begin remitting dues the day after workers allegedly unionised.

The company dismissed both unions as self-serving and controlled by “oligarchs”, insisting that their real agenda is not the protection of workers but the preservation of their financial interests.

“PENGASSAN and TUC are two peas in a pod. They are twins from the same womb. Their interests do not extend beyond themselves and the oligarchs that run their affairs. The monthly check-off dues and other subscriptions and scams that feed their lifestyles are the primary concern and interests of these oligarchs. At least, one of them, Festus Osifo, President of PENGASSAN, admitted that much on national television very recently.”

It further alleged that neither PENGASSAN, TUC, nor allied unions such as NUPENG have offered accountability for the funds collected from workers. Instead, it accused them of funding “lavish and opulent lifestyles”.

The refinery called on the federal government to resist what it described as attempts by union leaders to return Nigeria to “the dark ages” of energy insecurity and industrial sabotage.

The refinery challenged the unions to publish their financial records.

“Finally, we demand that TUC join its co-travellers, PENGASSAN and NUPENG, in publishing its 10-year audited accounts. Surely, the workers in whose name they all purport to be working deserve to know what the unions have been doing with their monthly check-off dues,” it said.

Meanwhile, Wumi Iledare, Professor Emeritus of Petroleum Economics, said what is unfolding between PENGASSAN, NUPENG, and the Dangote Refinery is not just about one company but the credibility of Nigeria’s institutions, the rule of law, and the ethics of doing business in the oil and gas industry.

He stated that the labour unions are right in their demand as no operator should be bigger than the country, and the principle is non-negotiable.

He however said shutting down the system is too costly and in oil and gas, a single day of disruption can create weeks of revenue losses, job disruptions, power shortages, and shaken investor confidence with Nigerians paying the price.

He added that for 21 years, unions received salaries in refineries that produced little or no value; thus, the history should remind Dangote Refinery Complex (DRC) of the need to act ethically and equitably in its dealings, as equity and ethics cannot be one-dimensional.

“The Petroleum Industry Act (PIA) gives us the tools to resolve disputes. Regulators must enforce rules firmly and transparently. If Dangote has breached obligations, sanctions should follow. If not, clarity must be provided. But brinkmanship by unions or companies cannot replace institutions.”

 

Marketers speak

Some marketers have expressed anger and disappointment over the current development, which has disrupted their operations.

One of the marketers who spoke with our correspondent on the condition of anonymity said, “PENGASSAN has ordered the withdrawal of services by its members in companies where they have a union. All these companies set up by various investors and entrepreneurs have no quarrel with the union.

“In a country where jobs are scarce and setting up a business is very challenging, the union believes this is the best option to address their grievances with a single company. All the workers who are going to withdraw their services expect to be paid their salaries at the end of the month.

“If they are sick, they will go to the hospital and expect the company to pay. How is this action encouraging to investors, both local and foreign?  The same union fought against the sale of the refineries.  They also prevented the deregulation of the Downstream for over 20 years. Tomorrow, you will see their leadership transition to the national assembly or high political office.

“Even the dispute with Dangote, is it the only remedy to shut down the largest single investment in Nigeria in recent times? How does this help Nigeria?  Yes, injury to one is an injury to all, but does it make sense to punish over 200 million Nigerians because of a dispute over 800 people?”

From Abdullateef Aliyu (Lagos), Idowu Isamotu & Faruk Shuaibu (Abuja)