Mobil, PENGASSAN face-off: When will it end?
Komolafe Rasheed, Lagos
Hassan Lawal, Minister of LabourThere seems to be no end in crisis between Mobil Oil
Nigeria Plc (MON) and Petroleum and Natural Gas
Senior Staff Association of Nigeria (PENGASSAN) over the restructuring exercise embarked upon by the company which the oil workers said fell short of their expectation.
The bone of contention between the two was the organisational renewal program launched by Mobil Oil in December, 2007. Mobil employees according to a statement made available to the Nigerian Tribune by its External Affairs Manager Mr. Akin were formally notified of the programme on 22 March, 2007 when details of the objectives and criteria were presented during a Mobil Oil Nigeria employee forum; The objective of the forum according to him was to explain to PENGASSAN National and MON in house union on how the company intend to reposition itself to face glaring business challenges posed by the volatile oil business.
The organizational renewal program, according Mobil Oil was aimed at repositioning the company for sustainable profitable growth as a result of new investment in SAP software technology, implemented in May 2006.
But that in implementing the organizational renewal program, the company told the employee that the company would ensure fair, equitable and dignified treatment to employees affected by the technological upgrade in compliance with Nigeria laws and competitive practice in the downstream sector.
The primary focus of the program according to the company is on position affected by the introduction of SAP and not individual employees and that every effort will be made to explore other opportunities in MON for employees whose positions may be affected but who possess relevant skills and capabilities.
The only sets of employees the program will affect according to the company are those with limited technological skills who are incapable of benefiting from being retrained and those with records of poor performance.
In its effort at ensuring full compliance with labour law and competitive practice which is very fundamental to its planed restructuring, Mobil Oil Nigeria Plc said it conducted 26 negotiation sessions with the in-house branch of PENGASSAN and the National executive of the Union between April and December 2007 and that the severance package for the affected employees was agreed upon with PENGASSAN under the supervision of the Federal Ministry of labour in Abuja on 2nd December 2007.
Some of the affected employees according to Mobil have been released and the company is fully committed to fullfilling the agreement signed with PENGASSANN including prompt payment of separation benefits as soon as affected employees completed necessary documentation as required by company policy.
In keeping with the company procedures in circumstance involving separation of employees, Mobil said their tradition is that once a notification is made to an affected employee, physical entry into company premises remains allowed but controlled.
“In this way an employee’s name is made available on a register approved for daily entry to facilitate completion of documentation, review of terminal package and eventual release of cheque”.
Most of the separated employees according to Mobil have come into the company premises to complete their necessary documentation and review their terminal package and that no one was locked out as alleged by PENGASSAN National. “Separated employees who have completed their handover formalities have started to collect theirs cheques”
In an effort at allaying some of the fears expressed by PENGASSANN National, Mobil said though the present restructuring in the company was borne out of its desire to refresh the Organization but that in doing so the company will be fair to all employee and that MON will maintain a safe work environment enriched by diversity and characterized by open communication, trust and fair treatments.
MON according to the external affairs manager, Mobil, operate a corporate policy that considers human resources as its most prized asset and that the company will continue to treat affected employee fairly and with respect.” We provide an environment for employees to maximize opportunities for success and job satisfaction”.
Another contentious issue between Mobil and PENGASSAN is the alleged non compliance of MON with NSITF Act, a development Fatunke described as false and that in compliance with the Act Mobil Management on monthly basis advised its employees on the statutory deductions and also furnished employees registration numbers. “In addition the company remitted both employees and employers account to the appropriate authorities. Details of all these remittances are available for reconciliation with NSITF”.
And to finally douse the tension created by the MON organizational renewal programm and PENGASSAN, the company said it will comply with the tripartite agreement signed with PENGASSAN and the Federal Ministry of labour and that MON will continue to hold consultation with PENGASSAN as well as holding communication forum with its employees.
But in a swift reaction, the Petroleum and Natural Gas Senior Staff Association of Nigeria PENGASSAN in a press release signed by the General Secretary of the Association Comrade Bayo Olowoshile and made available to the Nigerian Tribune said the grouse of the PENGASSAN with MON Management has been taken through the appropriate channel provided by the law to resolve issues of such nature V1Z the Federal Ministry of labour, the National Pension Commission and the National Social Insurance Trust Fund to summon or compel MON to comply with the provision of the Act and stop MON’s plan to deny the pension benefits and entitlement of workers of under 10 years of service and 45 years of age who are currently being retrenched on blatant breach of agreement.
On the revelation by the MON that 26 meetings was held with the Association to find a lasting solution to the crisis, PENGASSAN said it would have been better for the Mobil management to hide how it went about frustrating and stressing the Association with offers that are not in line with industry best practices, the market leader and profitability level of Mobil Nigeria Plc and that MON should have educated the public on principle that negotiation is contingent on flexibility, disposition to best industry practice and adherence to the provisions of extant laws which its MON management were desperate to circumvent.
On the severance package palaver, PENGASSAN said contrary to what was agreed upon between both parties, MON management has been twisting the severance package to result in negative severance benefits and that rather than paying benefit to separated staff, MON in its queer and mischievous interpretation claimed that staff shall either agree to zero the benefit or be prepared to pay back management.
Not only these, PENGASSAN said it is not happy with the way MON changed a very important word which the Federal Ministry of labour which midwife the agreement used.
The Federal Ministry of labour according to PENGASSAN chose the word ‘less’ in place of the word “less from” in one of the clause in the signed agreement but that MON by replacing the word “less” with the word “less from” has change the interpretation of the agreement and that the Federal Ministry of Labour has been formally informed to quickly intervene to avoid crisis that management intrigue would escalate.
But the good thing about the disturbing unfolding event between the two is that just like Mobil Oil Nigeria Plc said it has thrown its doors open for further dialogue on the festering issue, PENGASSAN in the release also stated that the Association is also not averse to a well intended reorganization that is truly geared towards enhancing company’s market share and profitability but that it insists on transparent, responsible and fair approach to re-organisation.
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