At the end of the National Executive Council (NEC) meeting of NUPENG-PENGASSAN at Transcorp Hotels, Calabar, Cross River State on the 13th of May, 2016, the following issues of urgent concerns impacting on the Oil and Gas Industry and the Country as a whole were exhaustively deliberated upon and the NEC-in-session resolved as follows:
STATE OF THE NATION
(a) NATIONAL SECURITY
• The NEC-in-Session acknowledged the efforts of President Muhammadu Buhari’s administration to improve security in the Country, especially combating insurgency in the country. The NEC-in-Session condemns in its totality the havoc being perpetuated by the rampaging herdsmen in several communities in the Country.
• The NEC-in-Session commiserates with families of those who have lost their loved ones to the menace of these herdsmen.
• The NEC-in-Session condemns the renewed insurgency in the Niger Delta Region and urges the Federal Government to take decisive measures to stem the tide.
• The NEC-in-Session therefore demands that the Federal Government and the security agencies tackle the recurrences of kidnapping, hostage taking and ritual killings, which have spread to all parts of the country. The NEC-in-Session also calls on the Federal Government to evolve ways of resolving various agitations in different parts of the country so as to keep Nigeria as one indivisible and cohesive nation.
(b) POWER:
• NEC-in-session bemoans the epileptic state of electricity supply in the country as the situation has further worsened the energy crisis and call on the Federal Government to find a lasting solution to the problem so that we can jumpstart the nation’s economy.
• The NEC-in-Session therefore calls on Mr. President to reverse the recent increment in tariff as well as revisit the privatisation of the power sector to ensure effective and efficient power supply.
(c) BAD ROADS:
• The NEC-in-session condemns the high level of decay in infrastructure, particularly the poor state of roads in the country.
• With the recent signing of the 2016 Budget, the NEC-in-session calls on governments at all levels, especially the Federal Government to urgently embark on repair of roads in their domain to stop the carnage and loss of lives and properties on our roads.
(d) UNEMPLOYMENT/CASUALIZATION/REDUNDANCY:
• The NEC-in-Session decries the high level of unemployment among young school leavers and graduates. The NEC-in-Session notes the increased social dislocation and upheaval arising from the high level of unemployment.
• The NEC-in-Session calls on the Federal Government to put in place sustainable plans to create wealth and decent jobs that will align with the International Labour Organisation (ILO’s) agenda of using employment to create wealth, eradicate poverty and reduce crimes.
• The wave of redundancy in the industry especially in the International Oil Companies (IOCs) and the service sector is worrisome and should be treated as a matter of urgent national priority.
• The NEC-in-Session therefore demands in strong terms that the Technical Committee set up by the Federal Ministry of Labour under the leadership of the Late Barrister James Ocholi address all the industrial relations issues in the Oil and Gas Industry and conclude its assignment without further delay.
• As a major stakeholder in the Oil and Gas Industry, the NEC-in-Session are calling on NAPIMS to put in place a clear policy statement against frequent redundancy plans by operators under the guise of fluctuating crude oil prices.
JOINT VENTURE FUNDING:
The NEC-in-Session reviewed the lingering irregular Joint Venture funding and Cash Call payments which has been a source of concern. The NEC-in-Session observed that accumulation of cash call arrears from 2012 till date has risen to over five (5) billion US dollars. NEC-in-Session noted that current cash call are delayed and even when paid, its much below cash call approved without consideration of JV commitment including staff salaries. The effect of non-payment has led to thousands of job losses across the sectors and non-creation of new jobs against the backdrop of the electoral promises of the current Government.
The NEC-in-Session therefore resolves that if measures at resolving JVs funding and arrears owed are not urgently addressed within fourteen (14) days, effective Friday, 27th of May 2016, the Union will embark on an indefinite industrial action.
ANTI-CORRUPTION WAR:
The NEC-in-Session commends the Federal Government war against corruption and calls for the cooperation of all other arms of Government for the success of the anti-corruption war. The NEC-in-Session also canvasses that corruption cases be carefully scrutinised and treated with dispatch by the law courts. The NEC-in-Session notes the delay in dispensing justice and therefore enjoins that specialised court be established for the expeditious handling of all corruption cases.
STATE OF NATION’S REFINERIES:
The NEC-in-Session reviews the state of the nation’s refineries and condemns the calls in some quarters to sell these strategic national assets as scrap. The NEC-in-Session strongly reiterates our support for the retention of the State-owned refineries in the best interest of the Nigerian nation and for economic security as well as to keep faith with OPEC’s principle that member countries should have good grip of the commanding height of their economy.
The NEC-in-Session is convinced that it is only an efficient and effective local refinery that can end the unnecessary importation of petroleum products, deal with issues of perennial fuel scarcity and conserve the much needed foreign exchange.
The NEC-in-Session calls on the Government to intensify efforts to deal decisively with the issue of crude oil theft and pipeline vandalism to ensure steady and regular supply of crude oil to the nation’s refineries. The NEC-in-Session demands that Government should without further delays embark on the statutory periodic Turn-Around Maintenance (TAM) of the Refineries.
We also demand the resuscitation of the Polypropylene and Carbon Black Plants in WRPC as well as the Tin, Drum, Lube and Asphalt plants in KRPC, among others, to create jobs for the teeming unemployed youths.
The Petroleum Industry Bill:
The NEC-in-Session takes cognisance of the new efforts by the National Assembly to commence the process of speedy passage of the Petroleum Industry Bill (PIB). The NEC-in-Session notes that the delay in its passage has been a disincentive to investments in Nigeria oil and gas industry.
The NEC-in-Session demands that an all-inclusive industry Stakeholders’ Summit be convened to ensure that various stakeholders’ inputs, especially NUPENG and PENGASSAN positions are represented in the Bill.
IMPLEMENTATION OF THE INTEGRATED PERSONNEL PAYROLL INFORMATION SYSTEM
The NEC-in-Session demands a waiver from the policy which is not supported by the peculiar salary structure in the oil and gas industry. The NEC-In-Session further cautions the Ministry of Finance and office of Accountant-General of the Federation from the threat to enrol staff of PPPRA, DPR, NNRA, PTI and NCDMB on the IPPIS platform pending the final outcome of the technical committee jointly agreed upon by PENGASSAN/NUPENG and Ministry of Finance.
NON-IMPLEMENTATION OF COLLECTIVE AGREEMENT FOR NNRA, PTI, PPPRA, DPR AND NCDMB 2015 COLLECTIVE BARGAINING AGREEMENT
The NEC-in-Session calls on the National Salaries, Income and Wages Commission to honour the directive of the Secretary to the Government of the Federation (SGF) by implementing the 2015 Collective Bargaining Agreement (CBA) as approved by Mr President for PENGASSAN/NUPENG members in NNRA, PTI, DPR and NCDMB without further delay.
NEC-in-Session calls on the Salaries and Wages Commission to take cognizance of 2015 as the agreed tenure of the agreement in advising the budget office.
PETROLEUM PRICE MODULATION
The NEC-in-session had an extensive discussion on the recent price modulation. The NEC-in-session is of the view that price deregulation has its benefits in the immediate and near future. However, the NEC-in-session strongly demands the Federal Government’s engagement with the stakeholders to work out a clear direction on how to reinvest the gains into the economy to cushion the effect of the price.
The NEC-in-Session after an exhaustive deliberation of all these resultant effects, resolves that, there is an urgent need for a paradigm shift and a new direction in the management of new investment and income in the oil and gas industry, but with critical proviso, among which include:
• Government must ensure optimal performance of the existing refineries and also put in place machinery for the construction of new refineries in the country to ensure adequate production for domestic consumption and possibly export
• Immediate commencement of negotiation of minimum wage for workers across all cadres.
• Engagement of critical stakeholders for the Federal government to provide a road map with timelines of the infrastructures to intend to embark upon with the proceeds from this price modulation to cushion the harsh effects of the new direction.
• Immediate reconstitution of the board of PPPRA and PEF for the management of the new price regime
• The reconstitution and the re-strengthening of relevant agencies such as Standard Organization of Nigeria (SON), DPR and the Nigeria Customs and Excise Department to prevent the abuse of the new framework of PMS supply and distributions.
PENDING INDUSTRIAL RELATIONS ISSUES
The NEC-in-Session unequivocally demands that the Federal Government and the concern organisations commence the process in resolving the critical industrial relation issues, particularly in H15, IEME CHEVRON, FUGRO, UNIVERSAL ENERGY, FRONTIER OIL, ARCO, CHEVRON CONTRACTS TECON and AVION OIL. Also, the NEC-in-session demands the implementation of the Collective Bargain Agreement (CBA) 2015 of NNRA, PTI, PPPRA, DPR and NCDMB.
The NEC-in-Session resolves therefore that industrial peace will not be guaranteed if these issues are not resolved within seven (7) working days effective Monday, May 16, 2016.
. Being the communique issued at the end of the Joint National Executive Council meeting of the Petroleum and Natural Gas Senior Staff Association and National Union of Petroleum and Natural Gas Workers, held in Calabar, Cross River State on May 13, 2016.
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