As PENGASSAN threatens Dangote Refinery, citizens point to “cancel” laws
Social media has become deeply involved in debates and disagreements surrounding the imbroglio between PENGASSAN and the Dangote Refinery. While some support PENGASSAN, citing the right to free association and assembly, others argue for the refinery’s economic contributions.
Until PENGASSAN’s threat and directive to its members in seven firms to withhold essential feedstock from the refinery.
People now reference Abacha’s proscription of PENGASSAN on 18 August 1994. They also mention laws they suggest the president utilise to resolve the conflict.
The Nigerian Trade Disputes (Essential Services) Act of 1976 grants the President power to proscribe trade unions or associations in essential services that engage in disruptive activities or fail to follow dispute settlement procedures. Key provisions include the power to refer disputes to an Industrial Arbitration Panel, penalties for disrupting the economy, restrictions on forming new unions after a proscription, and the forfeiture of property and cancellation of registration for proscribed unions. Officials of proscribed unions face permanent barring from leadership positions.
Key Provisions:
Power to Proscribe Unions: The President can order the proscription (dissolution) of any trade union or association whose members work in an essential service if they are involved in industrial unrest or actions that disrupt such services.
Referral to Industrial Arbitration Panel: The Act permits the special referral of trade disputes in essential services to an Industrial Arbitration Panel for resolution.
Penalties for Disruptive Acts: There are penalties for acts calculated to disrupt the economy or the smooth functioning of essential services.
Restrictions on Proscribed Organisations:
Property Forfeiture: Proscribed unions forfeit their property to the Federal Government.
Loss of Legal Status: The proscribed organisation ceases to exist.
Formation Restrictions: Members are prohibited from forming or joining another union for a period of at least six months.
Official Disqualification: Officials of a proscribed union are barred from holding leadership positions in any other union in an essential service.
Property Registration: The Act includes provisions for the registration of property and indemnity related to these disputes.
Detention: Individuals involved in acts prejudicial to industrial peace after a union’s proscription may face indefinite detention.
Ramifications and implications of the PENGASSAN versus Dangote Refinery conflict
The dispute between the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Dangote Petroleum Refinery has escalated into a major crisis with immediate nationwide consequences. The federal government has stepped in to mediate, aiming to prevent severe economic disruption and energy shortages.
Read also: PENGASSAN members march to NNPC Towers to protest Dangote Refinery mass sack
PENGASSAN’s Position
a. Dismissal of over 800 workers for joining the union, violating constitutional rights to freedom of association.
b. Accuses the refinery of replacing Nigerian workers with foreigners and providing poor working conditions.
c. Nationwide strike; directive to cut off crude oil and gas supplies to the refinery.
Dangote Refinery’s Position
a. A “minimal number” of staff were let go during an internal reorganisation to improve safety and efficiency, denying that it was due to union membership.
b. Union’s actions are “lawless,” “economic sabotage,” and “terror tactics”.
c. Accuses PENGASSAN of a history of sabotaging national projects and serving the interests of its leaders over Nigerian workers.
Immediate National Implications
The strike actions have moved beyond the refinery’s gates and are now affecting the broader Nigerian economy and populace.
• Operational Shutdown: The Dangote Refinery has reportedly been “100 per cent shut down,” and operations at its fertiliser plant have also been significantly halted. The union has also directed its members across all oil and gas installations to go on strike.
• Threats to Fuel and Power Supply:
Fuel Crisis: The disruption risks a return of fuel scarcity. The refinery has been supplying an estimated 17 million litres of fuel daily to the Nigerian market; cutting this supply could spark a 32% shortage and drive up prices.
Electricity Instability: The Nigerian Independent System Operator (NISO) has warned that the dispute poses a serious risk to the national grid. As the grid relies heavily on gas-fired power plants, any sustained disruption to gas supply could lead to widespread blackouts.
Severe Economic Loss: Nigeria risks a daily loss of $110.8 million in crude oil export revenue and an estimated N14.7 billion in domestic losses, exacerbating existing economic pressures.
Government Intervention and Legal Context
The federal government is taking urgent action to mediate the dispute and prevent a national emergency.
• High-Level Mediation: The Minister of Finance, Wale Edun, chaired a meeting of a steering committee to address the issue, reaffirming the government’s commitment to the naira-for-crude policy and energy security. Separately, the Minister of Labour, Muhammad Dingyadi, has appealed to PENGASSAN to suspend the strike and has called for a conciliation meeting with both parties.
• Broader Labour Movement Stance: The Trade Union Congress (TUC), an apex labour centre to which PENGASSAN is affiliated, has condemned the refinery’s actions. The TUC has demanded the immediate reinstatement of the workers and has placed its affiliates on “red alert,” signalling readiness for a wider industrial action if its demands are ignored.
• Legal Perspectives: A public interest lawyer analysed that while the dismissal of workers for joining a union “falls short of the provided constitutional safeguards,” PENGASSAN’s directive to cut off supplies might itself be unlawful as it affects “essential services,” which requires a 15-day notice for industrial action.
What to Watch For
The situation remains fluid. The key developments that will determine the outcome are:
• The result of the conciliation meeting called by the Minister of Labour.
• Whether PENGASSAN will heed the government’s appeal to suspend the strike to allow for dialogue.
• Whether Dangote Refinery shows flexibility regarding the reinstatement of the dismissed workers.
Deeper Dive: The Legal and Constitutional Tension
The conflict lies at the intersection of constitutional rights, labour laws, and national economic security, creating a complex legal landscape.
• The Core Legal Violation: PENGASSAN’s main argument is that dismissing workers for unionising violates Section 40 of the Nigerian Constitution (1999, as amended), which guarantees the right to freedom of association and assembly. Additionally, it breaches Sections 9(1) and 12(1) of the Trade Unions Act, which safeguard workers from victimisation for joining a union.
• PENGASSAN’s “Nuclear Option” – A Legal Grey Area: While Dangote Refinery labels the directive to cut off crude supply as “economic sabotage,”
PENGASSAN’s action is a classic, if extreme, form of sympathy or solidarity strike. The legality of this is murky:
Against PENGASSAN: The refinery could be classified as an “essential service,” and the Trade Disputes Act requires a 15-day notice before industrial action in such sectors. By acting immediately, PENGASSAN may have technically acted outside the strict letter of the law.
For PENGASSAN: Unions argue that the right to strike is a fundamental corollary to the right to associate. By allegedly engaging in mass anti-union dismissals, Dangote Refinery is perceived as having provoked an unprecedented situation that demands an equally unprecedented response, justifying immediate and widespread action to protect the very existence of union representation within the critical refinery.
The legal battle, if it proceeds to the National Industrial Court, will likely centre on balancing the company’s operational prerogatives against the fundamental rights of workers to organise.
A Pivotal Moment for Nigerian Industry
The PENGASSAN vs. Dangote dispute is more than just a labour disagreement. It serves as a crucial test case for Nigeria’s goal to shift from a crude oil exporter to a refined products powerhouse.
The resolution will set a critical precedent on several fronts:
1. The Power of Labour: It will define the limits of union influence in the “new” Nigerian oil industry, which is controlled by private entities such as Dangote.
2. Investor Confidence: The balance between protecting workers and ensuring operational stability will be a key factor for future investments, both foreign and domestic.
3. Governance: It assesses the government’s capacity to mediate complex disputes without resorting to heavy-handed force that might escalate tensions.
The central conflict is between the ‘right to manage’ claimed by a private enterprise and the ‘right to organise’ claimed by labour. How this conflict is resolved will influence every major industrial project in Nigeria for years to come.
