Dangote’s meeting with the oil union in Nigeria on day one hits a brick wall

The Dangote Petroleum Refinery’s dispute with the Petroleum and Natural Gas Senior Staff Association (PENGASSAN) appears to have no immediate resolution, given the counterproductive meeting between both parties.

• The dispute between Dangote Petroleum Refinery and PENGASSAN remains unresolved following an unfruitful meeting mediated by the government.
• Negotiations were overseen by several ministers, with no consensus reached.
• Both parties are scheduled to reconvene on Tuesday at 2:00 PM to revisit discussions and attempt to resolve issues.
• The conflict centers on claims by PENGASSAN of unjust dismissals of employees and their replacement with expatriates, while Dangote Group cites organizational restructuring.

A delegation from the union held a meeting with the Dangote Refinery; however, the negotiation, which was put together by the government around 4. PM on Monday was reportedly unfruitful.

DON'T MISS THIS: Dangote refinery scores legal victory over union drivers

Mohammed Dingyadi, the Minister of Labor and Employment, and Nkiruka Onyejeocha, the Minister of State for Labor and Employment, were part of the nine-hour-long dialogue, which lasted until early Tuesday morning.

Despite the lengthy negotiations, the Dangote Refinery and PENGASSAN were unable to reach a mutual agreement, as seen in the Punch.

After the meeting, the labor minister revealed that the delegations from both parties would meet again at 2:00 PM on Tuesday to break the stalemate.

Following reports of widespread dissatisfaction, the Federal Government called both sides to the bargaining table, concerned about the dispute's possible effects on the country's economy and energy security.

Dangote’s dispute with PENGASSAN

The Dangote Refinery is currently locked in a major dispute with the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) over the firing of hundreds of workers.

SEE ALSO: Dangote’s wealth rebounds to $29 billion despite domestic pressures, on cement and refinery growth

The union claims that more than 800 Nigerians were fired after joining PENGASSAN and replaced with expats, accusing management of violating labor rights and discriminating against local employees.

In retaliation, the union requested a suspension in crude oil and gas delivery to the $20 billion refinery, causing severe disruptions in Nigeria’s downstream oil sector.

They followed up with a nationwide strike that has drawn the solidarity of other union groups in the downstream sector.

Currently, major oil institutions in Nigeria, including the Nigerian National Petroleum Company Limited (NNPC), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), have been shut down owing to PENGASSAN’s strike.

Dangote Group denies the allegations, maintaining that the dismissals were part of a reorganization to combat sabotage in particular refinery facilities, and condemning the supply disruption as "economic sabotage."

Read More