Nigerian government holds crisis talks with oil unions over strike threats

Lagos (Platts)--5Jul2013/552 am EDT/952 GMT


The Nigerian government, led by oil minister Diezani Alison-Madueke held talks Thursday with the country's two oil worker unions, in a bid to stave off a strike that could potentially disrupt oil production and exports.

Nigerian blue-collar oil workers union Nupeng on Tuesday called off a planned three-day strike to protest against planned job cuts by foreign companies. It has, however, threatened to go on indefinite strike if the government fails to halt plans to sack its members as well as regularize the employment status of several hundred others.

The other workers union Pengassan has also issued an ultimatum to the government, demanding that it address widespread oil theft in the country. The deadline expires July 5.

A statement issued by the office of the oil minister said that at the end of Thursday's meeting held in Abuja, a 12-point resolution aimed at addressing the grievances of the unions was adopted.

"In the 12-point communique jointly endorsed by representatives of all stakeholders, far reaching decisions [were] adopted on all the items put forward by the unions as areas of concern," the statement said.

The government agreed to include the unions in a special committee set up to look into the rise of oil thefts and pipeline sabotage, which has disrupted production and, in some cases, exports.

"It was resolved that the unions should submit the list of all unfair labor practices to the 13-man committee headed by permanent secretary, Ministry of Petroleum Resources," the statement said.

The unions' grouse on the irregular status of junior oil workers is to be addressed by the labor ministry.

A general strike by oil workers will severely hurt Nigeria, whose economy is already under serious threat through widespread oil theft, illegal bunkering and pipeline sabotage.

The finance ministry said in late June that oil theft and pipeline vandalism were responsible for a 5% fall in Nigeria's revenue in the month to Naira 590.77 billion ($3.7 billion) compared with Naira 621.07 billion in the preceding month.

Nigeria's biggest producer, Shell, which put in place force majeure on exports of Bonny Light crude grade following disruptions to production because of attacks on its pipelines, has estimated that up to 150,000 b/d of crude oil is stolen in Nigeria, out of a total production of a little over 2 million b/d.