Details are emerging of the negotiation and agreements signed by Dangote refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) following the crisis that erupted due to the sacking of workers.
Sources privy to details of the negotiation told PREMIUM TIMES that Dangote refinery offered to pay the sacked workers’ salaries for five years without any work requirements due to concerns about potential sabotage they could cause.
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The offer, made during the negotiation, “would have allowed the workers to stay home or pursue other opportunities while receiving their monthly salaries for five years,” the sources said.
The sources told this newspaper that despite government representatives expressing concerns about the financial burden of such an arrangement, Dangote refinery insisted that it was a lesser burden than allowing potentially untrustworthy workers into the facility.
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However, the sources said PENGASSAN rejected this option, opting instead for the workers to be redeployed to other parts of the Dangote Group’s business.
“Dangote offered to pay the sacked workers for five years to continue to stay in their homes, or do other things, but they will be paid every month for five years. But they will not be allowed to go near the refinery, because they are not sure of not sabotaging. So, Dangote offered to pay them without work.
“Even though the government representatives at the negotiation said that it may be too much of a burden on Dangote. Dangote, however, said that’s a lesser burden for him than for him to allow people who he cannot trust to be in his facility because he doesn’t want to compromise on sabotage. But PENGASSAN rejected it,” one of the sources said.
When contacted by PREMIUM on Thursday morning, to ascertain the reasons for rejecting the salary payment option, PENGASSAN General Secretary Lumumba Okugbawa said they agreed on a resolution that prioritises the workers’ welfare.
Mr Okugbawa explained that negotiation was a process of give-and-take, where various options were considered and discussed until a mutually acceptable agreement was reached.
He emphasised that the final agreement is what matters, not the individual options that were considered during the negotiation.
“So, the option that he wants to pay salary for five years without any work. I don’t think the option is important at the final stage. The most important thing is that what did you agree? That’s what you will do and not, what they disagree on,” he said.
Sources suggested that the redeployment option may not be ideal for the workers, as they may be sent to far-flung locations, which could lead to some workers resigning rather than accepting the redeployment.
But Mr Okugbawa said such concerns are speculative, adding that workers are expected to report to their assigned locations and continue working.
He likened the union’s role to settling a dispute between a husband and wife, where the goal is to facilitate a resolution and allow the parties to move forward in harmony.
“Those are speculations, even if the union was not there and they transfer you, won’t you go to where you are transfered to and continue your job. I think Nigerians should look at the positive outcome of the negotiation, not the negative aspect.
“What union do after mediating is go back to their house and workers and the management will continue working together. It’s like you try to settle a case between the husband and the wife. After settling the case between them you go back to your house and the husband and wife will live together.
“So there is no need to create enmity between them at all. We hope to have good relationship and everything with Dangote refinery in the future. All we are interested in is our workers’ welfare. Dangote Refinery is losing no kobo and people should not think that we are interested in his business model. The most important thing is that these people have their jobs back,” he said.
The sack
The Dangote Petroleum Refinery recently terminated the appointments of some of its workers, citing repeated acts of sabotage that have raised significant safety concerns and affected operational efficiency.
A letter signed by the Chief General Manager, Human Asset Management at Dangote Group, Femi Adekunle, and sent to its staff members informed affected staff members that their services were no longer required, effective 25 September.
The company emphasised that the decision is not arbitrary but a necessary measure to protect the facility and ensure its long-term stability.
“This exercise is not arbitrary. It has become necessary to safeguard the refinery from repeated acts of sabotage that have raised safety concerns and affected operational efficiency.”
It added that the decision was taken in the best interest of the refinery as a result of intermittent cases of sabotage in the various units of the refinery with dire consequences on human life and related safety concerns.
Following the sack, PENGASSAN asked its members to disrupt activities at the refinery by blocking gas supply to it.
The association said its decision was in response to the decision by the refinery’s management to sack some workers who are members of the union. It also accused Dangote refinery of spreading misinformation to justify its actions.
The union also directed its members nationwide to withdraw their services in protest against the alleged sack of Nigerian workers at the refinery from midnight on 28 September. It accused the management of the refinery of anti-labour practices and discrimination against local employees, prompting the federal government’s intervention.
In a swift response, Dangote refinery described the order as illegal and cautioned PENGASSAN to obey Nigerian laws in its operations. It noted that PENGASSAN has no legal right to disrupt or interfere with the refinery’s contracts with third-party vendors for gas and crude oil supply.
Dangote refinery called on the federal government and its security agencies to intervene and call PENGASSAN to order, urging that the union’s actions are not only lawless but also have the potential to inflict significant harm on the Nigerian economy and citizens.
Last Saturday, the House of Representatives Committee on Petroleum Resources (Downstream) called on PENGASSAN to suspend its directive to cut off gas and crude oil supply to the Dangote refinery.
On Sunday, the federal government appealed to PENGASSAN to suspend its planned nationwide strike over its dispute with the Dangote Refinery.
In a statement, the Minister of Labour and Employment, Muhammad Dingyadi, said the ministry had already initiated moves to reconcile the parties to prevent the crisis from escalating.
PREMIUM TIMES reported that PENGASSAN, on Monday morning, shut down the major entry points of the Nigerian National Petroleum Company Limited (NNPC Ltd), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
On Monday, the National Industrial Court, Abuja, issued an interim order stopping PENGASSAN from continuing with its nationwide industrial action against the Dangote refinery.
The court also restrained PENGASSAN from cutting crude and gas supply to Dangote Refinery.
On Wednesday, PENGASSAN suspended its nationwide strike against the Dangote Refinery after reaching an agreement with the management.
The agreement was reached following a reconciliation meeting facilitated by the Nigerian government between the parties.
The meeting initially ended in a deadlock on Monday night. It was scheduled to resume at 2:00 p.m. on Tuesday at the Ministry of Labour and Employment, Abuja, and later moved to the Office of the National Security Adviser (NSA).
PREMIUM TIMES understands that the parties reached an agreement in the early hours of Wednesday after negotiations.
READ ALSO: Why we didn’t sign agreement with Dangote before suspending strike – PENGASSAN
Agreement reached
After a lengthy discussion, the parties resolved that unionisation is a right of workers in accordance with the laws of Nigeria and that this right should be respected.
The meeting agreed that the management of Dangote Group shall immediately start the process of taking the disengaged staff to other companies within the Dangote Group, with no loss of pay, and no workers will be victimised arising from their role in the impasse between Dangote and PENGASSAN.
The PENGASSAN President, Festus Osifo, who announced the suspension of the strike at a press briefing in Abuja on Wednesday, cautioned that the union will resume the action without notice if the agreement is breached.
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