22 March, 2010
Mobil Producing Nigeria (MPN), the subsidiary of ExxonMobil, has begun dialogue with ICEM affiliate PENGASSAN to address the growing use of casual and temporary workers among its contractors in the upstream oil and gas sectors of the country. But it still refuses to take responsibility for the abuse and sudden disposal of casual workers of it contractors.
That is according to Bayo Olowoshile, the General Secretary of PENGASSAN. In talks with Mobil Producing, the company has stated that it is willing to be an observer if contractors and labour brokers do choose to sit down with the union, but not to be an active participant.
Bayo Olowoshile, PENGASSAN General Secretary
“That is unacceptable,” said Olowoshile. “The use of these workers is a disguise for MPN. They use Mobil’s equipment, they use Mobil’s facilities, and they perform the same work that full-time PENGASSAN members perform.” He added that PENGASSAN’s mandate is equal pay for equal work, and making all casual workers regular, rostered, and full-time employees with the multinational.
Olowoshile said MPN uses 12 such companies, easily characterized as labour brokers, which utilize some 600 casual workers. They earn 40 to 50% less than regular workers, and are denied most social benefits, as well as the right to join a union.
There has been some progress, however. Since an early February strike by PENGASSAN and junior staff belonging to NUPENG, and an ICEM intervention with US-based ExxonMobil over the issue, MPN has converted some 10% of all casual workers to full-time staff. The company has also encouraged its contractors to talk with the union.
PENGASSAN is waiting on the federal Ministry of Labour to issue a ruling on the casualisation issue under Nigeria’s local content policies.
Meanwhile, NUPENG’s Petroleum Tanker Drivers’ Division is preparing to strike another multinational’s subsidiary over the same issue. NUPENG’s Western Zonal committee could take industrial action any day against Shell Nigeria Exploration and Production Co. for using contractors to employ casual workers, who are then retrenched at will without payment of entitlements. Similar to MPN, Shell uses contractors to disguise the employment relationship, with NUPENG saying that such “pay masters” gain far more money than what is paid casual workers.