• Saturday, May 04, 2024
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BusinessDay

Why oil marketers suspend strike

shutdown-of-depots

The intervention of  the national Assembly through its  committee on Downstream and officers of  the  various  unions in the oil and gas industry, which are said to have  had constructive engagement with the federal government officials, made the oil marketers to suspend the strike.

 The Unions  involved  include Petroleum and Natural  Gas  Senior Staff  Association  of Nigeria (PENGASSAN),  National  Union of Petroleum and Natural Gas (NUPENG) National  Association of Roads and Transport Organisation (NARTO), and the Petroleum Transport Drivers ( PTD)

 BusinessDay learnt  that it was  impressed on  the  government by these pressure groups that allowing the strike  to take  place  would not be too  good both for  the economy and the government especially when it has not resolved the issue of minimum wage.

  It was after these  group   of people had talks  with  government  and got  assurance  that  she  would act positively that the mediators  decide to reach  out  to the marketers  and asked them  to give the government the benefit of doubt by suspending their action for a while.

 Consequent upon this, the marketers  had to reconsider their position and gave the government another five days  of grace to see  what would happen.

 According to Olufemi Adewole,   executive secretary,   Depot and Petroleum Products Marketers Association (DAPPMA)   the association had to revise it earlier decision at about 1.30 am on Monday morning to mitigate the possible impact it would have on Nigerian.  “We had already given a directive that the depots across the country should shut down from loading petroleum products effective from 12-midnight today (Monday).

He however stated that If the government fails to act  appropriately they  would   resume the action without  given any  notice.

“The unions  has resolved to recall its disengaged personnel for 5-days to give the FG’s team the opportunity to conclude its process of paying marketers the full outstanding of N800 billion with the first trench being the amount already approved by the Federal Executive Council (FEC)

 He said the association has acted in good faith to avoid unnecessary hardship which could befall Nigerians during the yuletide season and we hope that government would make good its promise to see that those issues are resolved by Friday, Dec., 14, 2018 as promised.

“To this, end, our disengaged personnel would be recalled on  Monday,  Dec. 10 and considering the reactivation time or hitherto shut down system, all depots with fuel stock should be fully active same day,’’ the statement said.

The statement said further that the conclusion of the debts payment would curtail the continuing wastage of public funds as interest accruing on the over N800 billion debt.

  He therefore advised DAPPMA depots   to commence loading operations immediately and await further notification in respect of our long overdue payment.

It would be recalled that on Dec. 9 at about 8.30pm, DAPPAMA had directed its members to shut down all loading operations by midnight, adding that oil marketers had disengaged employees due to their inability to pay salaries.

It said that the Association took a bold step to stop the financial hemorrhaging of its members by the painful disengagement of its loyal workers after over three   years of engaging with the government in the efforts to secure the payment of all subsidy induced debt owed marketers.

According to DAPPMA, to avoid owing staff without any hope of pay, it is hereby agreed that since all our staff have been disengaged, all  DAPPMAN member depot are not in a position to operate hence will shut down all loading at midnight

It  said that the claims by the  government  to  have settle N236 billion out of the outstanding N800 subsidy arrears was not acceptable to DAPPMA members, leading to last week’s Thursday meeting which ended in a deadlock.

The decision of government to pay the N236 billion through promissory notes was equally rejected by the oil marketers.

‘‘As the name suggest, promissory note is a payment instrument that is post dated. Based on this when you approach the banks with the instrument, you don’t get the actual value on it.

“About 30 percent is knocked off because Government will be making the payment at a later date which ties down the bank’s capital,’’ he said.