Yar’Adua, Obasanjo and the labour strike Print E-mail
Written by Olusegun Adeniyi, PA to President Yar'Adua   
Saturday, 23 June 2007

Yar’Adua, Obasanjo and the labour strike

TO most analysts, the on-going general strike by the Nigerian Labour Congress (NLC) and Trade Union Congress (TUC) was avoidable and could have been averted if only President Umaru Musa Yar‘Adua had not tried to claim paternity of the policies of the President Olusegun Obasanjo administration.

With the conversation reduced to no more than Obasanjo, to this popular school of thought, all that Yar‘Adua should do to stop the strike and earn popular acclaim is simply to disown the former President, beginning with the specific demands of Labour which initially were three before they became four. I have received several mails and SMS messages along that line: ‘Why don‘t you advise your oga to accede to the demands of labour and free himself of the Obasanjo yoke? If he does that, Nigerians would hail him.‘

That has been the thrust of most of the messages but the tragedy of it really is that given the nature of our society, the President could indeed become an instant hero today by simply announcing the abrogation of the decisions of Obasanjo, who, (as former Presidents go) is now very unpopular, regardless of the consequences. Of course, those proposing this line of action have justification for it.

In 1999, the first thing President Obasanjo did was to cancel all the appointments and commitments of the military regime he succeeded. So, as the argument goes, the fact that Yar‘Adua has refused to yield wholesale to Labour demands amounts to tying himself to the ‘apron string‘ of the former President, who, if we are to believe some commentators, still controls events from his Otta farm. Nothing can be farther from the truth.

At the heart of this struggle is the economic reform programme of the government founded on the removal of inefficiencies in public institutions on one hand and introduction of genuine and durable improvements on the other. To achieve these objectives, some people are bound to get hurt. In the current battle, which on the face value is over N5 per litre differential in the pump price of petrol, the argument of the President is that in the difficult times that we are in as a nation, a leader must be prepared to take the hard decisions in the sincere belief that they would be in the long-time interest of the people.

Furthermore, he is of the firm conviction that to reduce the fundamental problems plaguing our nation to Obasanjo is not only self-serving, it is the usual recourse to such opportunism in the past that has landed us where we are today. While he is, however, of the MKO Abiola School that if you are running and looking back you will fall, he is also of the view that any government policy that impacts directly on the welfare of the people must meet the criteria of the rule of law and public morality.

To this end, even before Labour sent in a letter of ultimatum, he had already requested for information on some of the key issues which they are raising based on the controversy that had started raging in the public arena. Certain officials were directed to look into some of these issues and report back with recommendations on the way forward. The first issue was that of Value Added Tax which the business community considered rather crippling given the already high cost of doing business in Nigeria. The question was: Could it be sustained on the basis of legality?

I recall that the Federal Inland Revenue Service Chairman, Ms Ifueko Omoigui, spent considerable time in her briefing on the issue. While her arguments were persuasive and logical, the President still sought legal opinion from the office of the Solicitor-General of the Federation. As is typical of lawyers, the response was Yes and No. Yes, according to the lawyers, because the enabling Act empowers the Minister of Finance to review upward or downward the percentage. No, because the 2007 Appropriation Act, the law governing the implementation of this year‘s budget, is based on 5 per cent VAT and so long as it has not been amended by the National Assembly, it is in breach of the law.

The President sided with this latter position reinforced by the fact that the VAT element was taken out of a comprehensive tax regime proposal before the National Assembly that would have seen personal income tax coming down. To the President, VAT cannot be legally sustained under the current dispensation which makes upholding the rule of law a cardinal principle. On that score, labour had already won one victory even before any agitation.

The second issue was 15 per cent increase in the salary of Federal Government workers effective January 2007. This was a promise made last year by President Obasanjo. Apparently after assessing the financial implications, he decided to shift the commencement period to April while the unions insisted government‘s word must be its bond. That was the point at which everything was stalled before he left office. After the facts of the matter had been presented to President Yar‘Adua, there was no debate. He directed the Ministry of Finance and Office of the Accountant General to go and work out the details. He was later to be informed that the promise had a proviso: that there would be right-sizing (euphemism for retrenchment) in the Federal Civil Service. Notwithstanding, to the President, government just has to honour its obligations. Another point won by labour without any hassle.

Now to the issue of fuel price hike done shortly before the administration came in. There were presentations by PPPRA, NNPC and other stakeholders on all the indices that informed the decision. There is no point repeating them because they are the same arguments even though they are germane to the development of the oil and gas sector. What should government do in the face of the harsh economic realities?

The consensus remains that in a democracy, the people have to be widely consulted and the relevant stakeholders carried along on important decisions that would affect their welfare. Taking into account the hardship that normally goes with fuel price hike which has been rather evident across the nation, the President decided that since kerosene and diesel are more essential for the vulnerable elements of our society, prices of such products should be reversed to the old rates. As for petrol, having factored in the economic indices, a reduction of N5 was also approved even though this would go against the projections of NNPC and PPPRA.

Of course, it is politically expedient to just reverse everything but one fact often ignored is that Nigeria is a poor country with the potentials for changing our fortunes if we do the correct things though the problem remains that the people, for good reasons, do not trust those in power as acting in their interest. That explains why public opinion is today against government on the vexatious issue of petrol pricing. The position of President Yar‘Adua, however, remains that it is the responsibility of government to take the hard decisions, however painful, provided they are in the long-term interest of the people.

That exactly was what Obasanjo did at a time when it was ordinarily convenient for him not to touch the issue. What this translates into is that the former President wanted to help the in-coming administration by taking the flak for the unpopular but necessary decision, certain that time will vindicate him. Sadly, he is being vilified today as acting deliberately to ‘punish Nigerians‘.

What is even more unfortunate about the whole negotiations between the government and labour is the attempt to paint the Secretary to the Government of the Federation, Ambassador Babagana Kingibe, as unbending. That is not what has transpired. Before the negotiations commenced, those who were involved in previous such exercises had recommended to government an incremental approach in the offer of concessions to Labour until a final one was finally agreed upon when everyone would have been strike-weary. This time, the position of the President, canvassed by Kingibe, was that a strike could be averted if government showed sufficient good faith by putting its cards clearly on the table.

As an experienced diplomat, Kingibe was further buoyed by the fact that since a negotiation presupposes that every party should go away with something, more so when the issues in contention were inherited ‘problems‘, Labour would be willing to give that ‘little‘ to government while accepting all the major concessions which would have been given anyway by way of reversal (in VAT) and 15 per cent salary increase.

There was also the assumption that since the government is just coming in with a cabinet not in place, Labour would be also willing to agree on common grounds so that, working together, the whole price mechanism in the downstream sector could be jointly agreed upon. It did not turn out that way because, once the labour leaders were offered the concessions, the biggest they ever got under any government, it decided to raise the stakes and that explains where we are today.

The impression one got from the negotiations is that labour was already primed for a general strike and nothing would have averted it, not even if government had actually acceded to all the demands. It must, however, be noted that the labour leaders exhibited a high sense of responsibility and patriotism in the timing of their action by allowing the transition process to complete its course before making their demands. The fact should also not be lost that government has equally been restrained in its response with a clear understanding of its responsibility to public sensitivity. Unfortunately, the Labour leaders have not reciprocated this gesture in their actions since the strike action commenced on Wednesday.

The pundits who argue that the contending issues on ground can be resolved simply by Yar‘Adua disowning Obasanjo clearly miss the point. Even if he does that to please the mob, it would still not obliterate the fact that the April elections were messed up, a fact to which he has admitted and made a solemn commitment to redressing by reforming the electoral process so as to bring integrity to the ballot box. It would also not address the Niger Delta crisis for which concerted efforts are being made and the power sector reform that form the kernel of his agenda for change. YarAdua is not a man who would take the short-cut. He would rather face the problems squarely as he has been doing. Almost single-handedly, he is now on the verge on resolving the contentious issues that lead to perennial strike with his last meeting with the lecturers ending 2am Thursday.

Interestingly, one of the major undercurrents in the on-going strike saga is the sale of Kaduna and Port Harcourt refineries. The position of Labour is that there was no transparency in the whole process. There are other vested interests who also have issues with the buyers and the timing of the sale. But the Bureau for Public Enterprise, the body statutorily set up to conduct such exercise, has been defending the sale with facts and figures that thus far remain incontrovertible even if public perception is totally different.

The guiding principle for the President is that the Privatisation exercise should be as transparent. Because, if this does not happen in our peculiar atmosphere beclouded by a lack of trust in the conduct of public officials, then a relatively straightforward disagreement can blow up into a full-fledged controversy, with accusations of bad faith, corruption, and so on as is now evident. Even at that, the position of the President is that genuine concerns from the sales of Port Harcourt and Kaduna Refineries raised by Labour can be resolved within the ambit of the law.

The point, however, is that if we must follow the due process and the rule of law, those who oppose the sales or have issues associated with the exercise must be prepared to use the appropriate channels to seek redress rather than expect the President to announce a whimsical cancellation of a completed process on the basis of rumour and insinuations. Such recourse to arbitrariness will not promote investment, either of local businessmen or that of foreigners.

Aside the explanation by BPE that 10 per cent of the shares are reserved for workers and another 10 per cent for the host communities, Labour has even been given the power to do its own independent due diligence on the sale of 51 per cent shares (to the core investors) and examine other related matters on the issues. If at any point it is discovered that the sale was not done in public interest, the President is ready to take appropriate actions in promotion (or defence) of transparency and the rule of law.

It is, however, unfortunate that a serious national conversation has been reduced to no more than a conflict between Obasanjo‘s former government and Yar‘Adua‘s new one. That is not the case. Besides, if the whole idea is that Obasanjo‘s legacies are bad and Yar‘adua should do away with them, why then should he be made to pay the 15 per cent increase in salary, a commitment also made by the former President?

One should, however, not lose sight of the fact that like any government that has just left, or is leaving, power (whether in the UK, US or Nigeria), Obasanjo is very unpopular today. But we should wait for the judgement of history. Personally, I believe he made his mistakes, as we all make ours, but he did well considering where he met Nigeria and where he left her. All factors considered, he was a great leader. That much I wrote as a practicing journalist. Even in matters that now generate serious controversy in Abuja, there are examples to show of how things have changed.

One thing most people may not know now which would soon begin to manifest is that it is becoming increasingly unattractive to hold public office. In the past, for instance, someone in my position would have a big house, retinue of cars and aides at the expense of government. Now, I do not have, and will not get, an official car. I have no official residence and not entitled to one. That is the situation for everyone. While it is convenient to blame Obasanjo for selling all government houses as many now do (including this writer, in frustration), he has in the process cut a lot of waste that goes with public office and with time, people would begin to count the cost before taking government appointments.

Whatever may be our disposition towards Obasanjo and his stewardship, he is no longer an issue. While government accepts responsibility for the current hardship in the land and is working towards ameliorating the situation, public commentators should also be courageous enough to lay the blame where it belongs: Labour and not government is the rigid party in this negotiation. For inexplicable reasons, it is their leaders that are unwilling to shift any ground even when out of four demands, they won three and a half. If in an examination, one scores 87.5 per cent, is that not a major achievement?

I am, however, not surprised that the President is being criticised for his stance which some see as ‘insensitive‘. Yet, I have heard some respected senior colleagues asking: ‘where is Segun and why is he not talking?‘

In a season where public discourse has been so debased by bombast, and hot air is sometimes packaged and sold to the ‘informed‘ public as insight, I am not surprised that some people expect me to be making noise on the airwaves at a time when constructive engagement would be more productive.

As for the analysts boxed into the cocoon of ”correct” versus ”incorrect” and ”good” versus ”evil” in this struggle, they also must realise some disputes are about ”right” versus ”wrong” as this one clearly is even while those words can also have double meanings, leaning alternately toward one or the other end of the spectrum. What times like this therefore demand is the ability of leaders at both ends of the spectrum (Labour and government) to be flexible enough to take into account the greater interest of the Nigerian people. That exactly is what President Umaru Musa Yar‘Adua has been doing. Unfortunately, on the other side of the spectrum, NLC‘s Comrade Omar and my brother, Peter Esele of TUC have not shown that capacity.




RobotRobot is offline 
Villager

avatar
 # 1

As for the analysts boxed into the cocoon of ”correct” versus ”incorrect” and...Read the full article.

Posted by Robot| 24.06.2007 00:31

Reply Quote



naijalovenaijalove is offline 
JJC

avatar
 # 2

Well...

Labour Suspends Strike

http://www.thisdayonline.com/nview.php?id=81833


Labour paid tribute to President Yar’Adua for the “statesmanship he has demonstrated,” noting that “it is impressive that he has risen beyond the temptation to dismiss the strike and use draconian measures, as would have been the case in the past.”




The nationwide strike called jointly by the Nigeria Labour Con-gress (NLC) and the Trade Union Congress (TUC) to protest increases in prices of petroleum products and the Value Added Tax (VAT), among others has been called off. By this development, all business premises, factories and public offices were expected to resume normal operations effective midnight yesterday.
The call off of the four-day old strike followed the sealing of an agreement by representatives of labour led by President of NLC, Adbulwahed Ibrahim Omar, President of TUC, Mr. Peter Esele and Secretary to the Government of the Federation, Ambassador Baba Gana Kingibe, representing the Federal Govern-ment.
A personal appeal by President Yar’Adua via a letter to Labour was said to have broken the ice between both parties and led to softening of positions that eventually paved way for the resolution of the dispute. (See full text of President’s letter on Page 8).
A joint statement signed by Omar, Esele and Kingibe at the end of the concluding meeting in Abuja yesterday endorsed the reversal of the N10 per litre increase in the prices of kerosene and diesel.
But the N10 per litre increase in the pump price of petrol was reduced to N5 per litre, meaning that petrol will continue to sell at N70 per litre, which concession the Federal Government had made in the wake of the strike.
The 10-point statement read by former Managing Director of Federal Mortgage Bank and Presidential Aide-designate, Alhaji Tanimu Yaqubu Kurfi, however, assured “there will be no review of this new price level of N70 per litre for petrol for the next 12 months.”
Other agreements reached between Organised Labour and the Federal Government include:
•The increase in the VAT (Value Added Tax) rate from 5% to 10% is revoked. VAT rate is now reverted (to) 5%.
• Government will set up an expert Committee to examine the pricing mechanism of petroleum products and make recommendations, bearing in mind the strategic nature of the products and the impact of their price levels on the economy and the social life and livelihoods of Nigerians. Both the NLC and TUC would be represented on the Committee.
•Government will establish an Expert Committee to examine the recent privatisation/concessioning exercises, especially the sale of the 51% Government equity in the refineries and the proposals for the power sector. Labour will fully participate in the work of this Committee.
•Government will implement the 15% salary increase for Federal Employees with effect from 1st of January, 2007. The modalities for spreading the payment of the arrears for the first quarter will be worked out by Government.
•No staff or worker shall face disciplinary action arising from their participation in the strike action.
•In the spirit of the strategic partnership between Government and Labour enunciated by President Umaru Musa Yar’Adua in his letter of June 23, 2007 to the NLC and TUC, both sides futher agree(d) on the need for a mechanism for structured, proactive and routine interaction between Government and Organised Labour towards a qualitative development process.
Organised labour alluded to the role played by the President’s letter in its own statement yesterday calling off the strike.
The statement signed by Omar and Esele, Presidents of NLC and TUC respectively said that additional impetus for its interest in dialogue and “finding the middle ground was provided by the personal appeal made by President Umaru Musa Yar’Adua.”
It noted that the appeal by Yar’Adua was backed by “an additional concession made by the Federal Government, in the form of a guaranteed moratorium on future price increase for one year.”
The NLC and TUC said that virtually all its objectives for embarking on the strike including the “withdrawal of the one hundred per cent increase in VAT, which has since taken effect in many sectors; the implementation of the 15% increase in salaries with effect from the 1st of January 2007, with a proviso for the payment of the arrears; complete reversal of the price of diesel and kerosene; and revisiting of the privatisation of the refineries,” have been achieved.
It observed that by the additional agreement to ensure that there would be no further increases in the price of petrol for the next one year, the “Federal Government has brought in renewed goodwill to its engagement with labour.”
Organised labour said that it was also motivated to suspend the strike following appeals for moderation and compromise made by Nigerians including leadership of the National Assembly, traditional and religious leaders, the media, social movements and millions of its countrymen and women.
“We were also conscious about the need to manage our concerns and demands in a way to minimise the adverse impact of a strike on the public and the economy,” the NLC and TUC said.
Consequently, labour directed workers to resume work with effect from Monday. It, however, said that all places hitherto shut down can re-open immediately.
The NLC and TUC while apologising to those who may have suffered “momentary loss of income,” said that “we must remain strenghtened in our conviction that we need this kind of collective action and solidarity to end bad governance.”
It noted that good governance cannot evolve if the citizens do not impose control over leaders through strikes and protests, among others.
It hailed Nigerians from all backgrounds for their support and participation and the sacrifice and understanding they showed over the four days of the strike.
Labour paid tribute to President Yar’Adua for the “statesmanship he has demonstrated,” noting that “it is impressive that he has risen beyond the temptation to dismiss the strike and use draconian measures, as would have been the case in the past.”
Labour particulary singled out for commendation some eminent Nigerians who offered to intervene in the crisis including Senate President, Senator David Mark, Speaker of the House of Representatives, Mrs. Patricia Etteh, Sultan of Sokoto, Alhaji Saad Abubakar, former NLC President, Comrade Adams Oshiomhole and lawyer and rights activist, Chief Gani Fawehinmi (SAN).
It appealed to businesses in both the formal and informal sectors, who have increased their prices and tariffs to return prices to the level of 5% VAT in compliance with the agreement.
Labour expressed its determination for continued partnership with Government to ensure successful implementation of all agreements reached.
In particular, Organised Labour called on relevant state governments to take immediate steps towards the implementation of the 15% salary increase in line with the agreement.
Kingibe while reviewing the events of the past four days, decried the colossal waste arising from the nationwide strike. While acknowledging that there were no winners or losers between the Federal Government and Labour, he, said Nigerians and the economy are the real losers.
President of NLC, Omar said that the only panacea to incessant strike action is continous engagement between Government and Orgsanised Labour.
The TUC President, Esele said the events of the last four days were not meant to inflict pains or hardship on the people, but to make “our country better.”
He said it was gratifying that Government thought it wise to establish a broad-based Committee that will examine petroleum product price variations.
THISDAY gathered that as at early yesterday morning, the government was ready to dare labour because some top officials of the Presidency were not happy that labour shunned the overtures made by government through the series of concessions announced Wednesday night.
Government backed down from its ‘no-more negotiation stance’ following the intervention of Senate President David Mark, Speaker Patricia Etteh and former NLC President, Adams Oshiomhole, all of whom held series of discussions with both sides at different times.
Oshiomhole was said to have had long discussions with his former colleagues in the labour during which he shared his experiences with them. He was the one who later appealed to government to re-open discussions with labour.
When contacted to comment on the suspension of the strike by labour and the promise made by the President not to increase fuel price in the next one year, Chief Rasheed Gbadamosi, Chairman of PPPRA asked, “What happens if crude oil hits $200 who foots the bill?
THISDAY: Maybe government
Gbadamosi: Ha! (Laughs) ok. Alright.
THISDAY: What is your reaction on the impact this strike has had on the economy?
Gbadamosi: My dear, some people have done the computation based on the GDP you must have seen the figures yourself but I am not an econometrician (laughs). What someone has done on a streamline basis is to take the GDP figure for the entire country and then do some apportionment whereby the shut down all the sectors that must have been affected and then use the rule of the thump and then knock off that portion of it. You deduct what you think is the fallout from the GDP and then calculate the loss for three days based on the days the strike lasted”.
Labour and government have been locked in disagreements over the price of fuel currently on N70. While Labour insisted it must come down to the former N65, government however insisted having made concessions on VAT and wages for its employees, it could no longer bend backwards.
Meanwhile, Associated Press reports that oil settled back above $69 a barrel and gasoline futures also rose Friday on concerns about Iran's nuclear capabilities and on news that talks to end a general strike in Nigeria had failed.
The news about Iran and Nigeria sent light, sweet crude for August delivery up 49 cents to settle at $69.14 a barrel on the New York Mercantile Exchange, and gasoline for July up 4.01 cents to settle at $2.2868 a gallon.


Posted by naijalove| 24.06.2007 02:18

Reply Quote



nf5kmw1nf5kmw1 is offline 
Villager

avatar
 # 3

The only way to stop and even reverse fuel prices is to change strategy. Talking about price will not change the situation on the ground. Labour needs to take a proactive stands on energy strategy... I will like to see a demonstration for building refineries than waiting for the government to increase prices and having strikes....this is getting old!!!!


For most of the people who are “privatization supporters”, the believe that private companies only will solve our oil needs at point in time is being unrealistic. After 8 years, 240% increase in price (N11 to N65), 17 licenses granted, zero refineries working and total dependent import. We must say that the Energy policy has been a failure. In most places the people responsible for this failures and continuing to push this failed approach would have been fired at year 2.



This could be a hardline!!! if Nigerians as a whole and labour help change the strategy....
More info at http://nigeriansfor50000mw.com/

"President Yar’adua Reduces Fuel To N7 Per litre, Nigeria's Economy Grows by 12%”


How did he do it? He listened to a different approach because the approach of the last 8 years was a failure!!!
They say imitation is a form of flattery. If so, Nigeria needs to look to Venezuela to reform its fuel sector. Due to the policies of Venezuelan oil company PDVSA, the Venezuela are able to enjoy $0.19 per gallon or N6.12. The Venezuelan oil company, PDVSA, had decided that it was not the the crude oil export business but in the global petroleum and chemical business. So they invested in refining and retail business in Venezuela and almost all their export markets. These market include Europe, Caribbean, South America, Caribbean, Canada and United States. "PDVSA is among the leading corporations in the refining business, with a petroleum processing capacity of 3,285,000 barrels a day (1,285,000 barrels a day in Venezuela and 2 million barrels a day outside the country) through 24 refineries: six complexes in Venezuela, one in the Caribbean, eight in the United States and nine in Europe.
I would advice the New President to seek counsel of the architects of PDVSA and also look to what Mr. Putin in Russia is doing to the oil industry."

I would recommend three strategic steps to revolutionize our oil sector.
1.NNPC should be come a government/public firm with part of it shares allocated for Nigerians. This will provide the company with a new direction and ownership need for the global challenges. By the way we have the money in form of excess funds.

2.NNPC should go on a buying spree with the aid of government funds to buy (outright or major) shares in refineries in Africa, China and United States. This will provide us with immediate source of refined products, opportunities to train our people and hard currency. Best of all this does not need the 18 to 24 months to build a refinery. This will also provide us a stop gag measure until we build more refineries. It is all about add value and we need to start doing that.

3.Start building 4 refineries and retail outlets to take care of the local demand as estimated for 2010. This will help put to rest the fuel challenges that we face as a Nation.

Background and answers
For most of the people who are “privatization supporters”, the believe that private companies only will solve our oil needs at point in time is being unrealistic. After 8 years, 240% increase in price (N11 to N65), 17 licenses granted, zero refineries working and total dependent import. We must say that the Energy policy has been a failure. In most places the people responsible for this failures and continuing to push this failed approach would have been fired at year 2.
Why did they fail? I will give you some reasons.

1.Lack of a Nigerian centric approach. Simply put lack of vision.

2.Corruption and not state owned inefficiencies are responsible for our ills. Most of the companies that are interested in Nigerian assets are government owned companies. Which means that state own or controlled companies are profitable and efficient. PDSVA in Venezuela is an example that currently owns 24 refineries worldwide and sells petrol at N7 per litre.

3.It takes lots of money to play and tonnes to compete in a global oil and gas industry. To illustrate this point the market value of Exxon Mobil is $474.12 billion, while the Chairman, NSP Refineries and Energy Services, Prof. Anya .O. Anya one of the companies granted license was not able to put together a mere $200million financing for a refinery.

.
And for those who want to charge western prices for petrol they should be willing to pay western market salaries. So we can afford to buy the petrol.
The argument of paying for subsides is a non starter, because the multiplier effect on the economy when cost of energy is low is tremendous. Energy is like no other commodity. It accounts for a large part of cost of goods and therefore gives local companies the ability to compete with global companies. This will lead to a reduction in imports of different products while increasing exports for our products. This double “barrel effect” will more than compensate for the so called “opportunity cost”. And we should remember when we establish refineries at home and aboard we will not only eliminate need for hard currency but will gain more foreign currency. For all those who keep on hoping on “opportunity cost” they should stop listening to some foreign interest that are not interested in our well being. If they were these same countries and institutions will first stop stronger nations subsidies before attacking the poorer nations subsides. They keep calling for us to stop subsidizes continue subsidize their own people. Lots of countries provide subsides on several products. USA for example spent $20 billion in farm subsides in 2006 making it difficult for us to sell farm products to them. USA spent $6 billion on oil and gas subsides.
Also we must remember that most of these countries subsides are actually go to affecting the cost of goods like wheat because the cost of wheat is high. Unlike petrol where the cost of extraction and refinery has not change a lot since crude oil was $17.48 per barrel therefore the real subside would have not change if the government had fix and built more refineries in Nigeria in the last 8 years. The so called subsiding is not the same. We are not subsiding cost of product but the high price of crude(and mismanagement of our energy policies zero refineries compared to Venezuela's 24) which today is around $59.25 or 238% from 1999. Last but not the least, the oil that we consume local are also not part of our OPEC quotas so we do not have any “opportunity cost”.
I believe that there is need for the government to step into this issue because this is a matter of national security. A country that cannot provide fuel for its society, with the abundant supply of crude oil, will never improve We need to wake up and take take of ourselves.

We have been bless with natural and human resources and it is time to use them.
God Bless Nigeria!!!!!!!!!
http://nigeriansfor50000mw.com/

Posted by nf5kmw1| 24.06.2007 02:36

Reply Quote



akuluounoakuluouno is offline 
Villager

avatar
 # 4

Dear Mr Adeniyi,

Your debut and indeed the words of UMY'A as spoken by u is ridled with doublespeak with some arows alreadyaimed and targeted at the Father of Modern Nigeria no matter how much u strained to brush over it.
Te traditional maxim of governance is that the buck stops somewhere. I hope UMY'A will allow it to stop at his desk and accordingly take all responsibility to take the praises or blames that follow the buck as a true leader.
In your last sentences u continues to blame Omar and Ezele but at hindsight with the strike now called off, would u apologise to them in the spirit of true statesmanship. :icon_ques:icon_ques

Posted by akuluouno| 24.06.2007 03:16

Reply Quote



ocnusocnus is offline 
Villager

avatar
 # 5

This piece by Olusegun Adeniyi is an excellent piece of diversion from what are considered the fundamental issues at stake in this dispute. In short, the imperial Presidency of Obasanjo rode roughshod for eight years over Nigeria’s obligations to Nigerian Law and the international conventions on labour with the ILO which were ratified by the Government and became incorporated as a part of Nigerian law.

Nowhere in the Nigerian Constitution is the President empowered to engage in industrial relations; to set wages or conditions of work, or decide who is or isn’t an essential worker. The blatant interference of Obasanjo in the workings of industrial relations reached its zenith in the passage of the Trade Union (Amendment) Act of 2005. This Act removed many of the rights of labour which had been a part of the industrial relations system for many years, introduced by the pressure on Nigeria, after the debacle of the Sani Abacha era by the International Labour Organisation and the International Confederation of Free Trade Unions (ICFTU).

The International Confederation of free Trade Unions (ICFTU), in response to the passage of the Trade Union (Amendment) Act of 2005 published a detailed report on core labour. The report "shows serious shortcomings in the application and enforcement of all eight core labour standards, particularly with regard to the lack of trade union rights of workers including the right to strike, discrimination and child labour".

In October 2004, the President of the Nigerian Labour Congress (NLC) was arrested during a general strike despite the fact that the action was "an entirely legitimate exercise of the collective rights of the trade union movement," the report noted. Even after his release, the NLC leader faced criminal charges in an Abuja High Court while police have raided his house and office on several occasions. The Trade Union Amendment Act "fails to address adequately problems identified in the report with regard to freedom of association and the right to collective bargaining, the right to strike and anti-union policies." The new Act was said to aim at curbing the right to strike and at weakening the Nigerian Labour Congress.

The Act had been presented without adequate consultations through the tripartite labour review set up with assistance of the International Labour Organisation (ILO), contrary to what had been promised, ICFTU noted. Furthermore, trade union rights were restricted in Export Processing Zones and strikes prohibited in such zones for a period of ten years, which is directly contrary to ILO conventions.

The ICFTU and the NLC considered that, "in view of the seriousness of these problems, there is need for a much stronger commitment to social dialogue by the federal government of Nigeria in order to achieve a culture of constructive engagement of labour over policies and governance issues." It was also imperative to abrogate the Public Order Act, which compels organisations to seek a permit from the Police before any assembly, the unionists said. The law gives the Commissioners of Police latitude to refuse to issue such a permit or to break up assemblies convened without one. As such permits are invariably denied, the right to assembly provided for by Nigeria's Constitution and the right to freedom of association "cannot be meaningful as long as this law still exists," ICFTU said.

Discrimination in employment and wages are persistent in Nigeria. Surveys have shown a wage gap between men and women and a highly segregated labour market. Few women are employed in the formal economy due to social discrimination in education and training and to a gender-based division of labour in the formal economy.

Moreover, Nigeria's Minimum Wage Act excludes many workers, in particular those groups where women are disproportionately represented such as part-time workers and seasonal agricultural workers. Child labour is still widespread in Nigeria, and it was estimated in 2003 by the ILO and the government that 15 million children are working, of which up to 40 percent is said to be at risk of being trafficked for forced labour, forced prostitution and armed conflict. 6 million children do not attend school and 2 million work more than 15 hours per day.

Many children were also trafficked into Nigeria for the purpose of forced labour, according to the same sources. Several child slave camps exist in the western states of Nigeria, where children are used as slaves in mining and on rubber plantations, the trade unionists complained.

No case illustrates this better than the review of Nigeria’s bizarre interpretation of labour law than the complaint filed by the Academic Staff Union of Universities (ASUU) in June 2005 at the ILO where the complainant organization alleges that the Government’s 2005 amendments to the Trade Union Act, adopted without proper tripartite consultation, violates established freedom of association principles on strikes, essential services and the right to organize. The ILO issued a report 343 which reviewed the situation. It might be useful to see what the ILO had to say:

“A. The complainant’s allegations
1014. In its communication of 6 June 2005, the Academic Staff Union of Universities (ASUU) alleges that the Trade Union (Amendment) Act, passed in 2005 without proper tripartite consultation, violates workers’ freedom of association and collective bargaining rights. Specifically, the complainant draws the Committee’s attention to sections (6)(a) and (b) and 9 of the new Act, all regarding the right to strike. The complainant further alleges that the new Act denies to workers in the army, navy, air force, police force, customs and excise, immigration, prisons and preventive services the right to form trade unions.

1015. According to the complainant, section (6)(a) of the Amendment Act bans strikes in essential services, which include services not constituting essential services in the strict sense of the term. More specifically, the complainant submits that the following services are considered essential under the Trade Dispute Act of 1990 (Cap 432, Laws of the Federation), to which the new Act refers: radio and television; postal services; ports; services involving “fuel of any kind”; transport of persons, goods or livestock by road, rail, sea, river or air; aircraft repairs, the Mint, banking and metropolitan transport.

1016. The complainant further draws the Committee’s attention to section 6(b) of the new Act, which limits strikes to concerns constituting a “dispute of right”. The amended Act defines “dispute of right” as “any labour dispute arising from the negotiation, application, interpretation or implementation of a contract of employment or collective agreement under the Act or any other enactment of law governing matters relating to terms and conditions of employment”. According to the complainant, the new Act deprives workers of their right to promote their interests and to protest against social and labour consequences of the Government’s economic policy such as poverty, malnutrition and huge-scale unemployment.

1017. The ASUU adds that section 9 of the Act amending section 42(1)(B) requires that “no trade union or registered federation of trade unions or any member thereof shall in the course of any action compel any person who is not a member of its union to join and strike or in any manner whatsoever, prevent aircrafts from flying or obstruct public highways, institutions or premises of any kind for the purpose of giving effect to the strike” and therefore grants the Government broad discretion to widely define otherwise legal strike activity within the vague and over-broad language of the law. The complainant infers from the above that any group of workers on strike who have gathered on the premises or on the streets, however peaceful, may be accused of obstructing premises and highways just for grouping themselves there.

1018. The complainant further alleges that the new Act denies to workers in the army, navy, air force, police force, customs and excise, immigration, prisons and preventive services the right to form trade unions.

1019. The complainant believes that the motive behind the new amendment was to weaken the united workers of Nigeria and continue to allow the Government to impose the same economic and social policies that have caused Nigerian workers to suffer in the past. Furthermore, the complainant considers that this new Act amounts to an abortion of the process of comprehensive review of Nigeria’s labour laws backed up by the ILO.”

For those who don’t remember the last battle between the labour movement and an ignorant and insensitive Presidency it might be useful to reflect on the cases of Frank Kokori, General Secretary of Nigerian oil and gas workers' union NUPENG. Kokori was held in jail for three years (1994-1997). His colleague Milton Dabibi, General Secretary of Nigerian oil and gas workers' union PENGASSAN, was in jail for over a year in 1996. Neither was ever charged with any offence.

This caused international outrage. The ILO "outrage" over Nigeria's continued flouting of internationally recognised labour rights. A Commission of Enquiry was set up by the ILO's Governing Body, in which the world's governments, employers and trade unions are represented. Significantly, the commission was established under Article 26 of the ILO Constitution, whose provisions are invoked only in the event of persistent and serious violations of international labour standards and the repeated refusal of a member state to bring its labour practices into line with ILO rulings. Such a commission's findings are final. According to international lawyers, its conclusions can then be challenged only in the International Court of Justice in The Hague.

The ILO Committee on Freedom of Association called on Nigeria's government to release imprisoned trade unionists, end harassment of trade unions and take measures to guarantee respect for the civil liberties essential to trade union rights. The Committee underscored the persistent deterioration of trade union rights and denounced the non-respect of civil liberties in Nigeria.

The two Nigerian labour leaders were recognised as prisoners of conscience by Amnesty International. Their health seriously deteriorated. They were denied access to adequate medical care and legal assistance. Their unions were interdicted and run by government-imposed "sole administrators." Union bank accounts were frozen, and the check-off of union dues was stopped. Many oilworkers sacked on government orders after the 1994 strike in the Nigerian oil industry have never been reinstated.

This was not the first time the Nigerian government has been in trouble at the ILO. Nigeria was seriously embarrassed in full view of the world's oil companies, oil unions and governments at an ILO world conference on industrial relations and freedom of association in the oil refining sector.

Conceived as a mainly technical meeting, the conference was in fact completely overshadowed by the cases of Dabibi and Kokori. The two democratically elected oilworkers' leaders had been invited by name to take part in the talks, but the Nigerian government refused to release them so that they could attend. The workers' group at the conference, consisting of oilworkers' leaders from all continents, was disgusted by the presence of Nigerian government representatives there while the Nigerian oil unions were under government control and their elected leaders rotting in jail. This was, after all, a UN-backed world conference on how to promote freedom of association in oil refining. Coordinating the workers' group was the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM), to which the two Nigerian oil and gas unions are affiliated.

The workers' group kept Nigeria at the top of the agenda and demanded sanctions against Nigeria. The unions demanded that "The ILO commission must be permitted to enter Nigeria without delay and Milton Dabibi and Frank Kokori must be released now. If not, the only adequate UN response will be the introduction of full economic sanctions against Nigeria, including the imposition of a world embargo on Nigerian oil exports."

As a result of this debacle many countries refused Nigerians the right to travel to their countries. The Nigerian government became an international pariah state and Sani Abacha universally condemned.

Obasanjo clearly learned nothing from this. The imposition of the Trade Union (Amendment) Act of 2005 and his treatment of the ASUU and the NLC demonstrated his lack of understanding. His latest decree ordering a rise in fuel prices and VAT and delaying the promised wage increase are being opposed by the labour movement on behalf of the Nigerian people as a whole and, equally important, to show that the ability to make these decrees by the President is unconstitutional, illegal and a violation of Nigeria’s international obligations.

Yar’Adua and his advisors were sure they could bully the unions without fear of retaliation. They are wrong. There were already plans underway in the event of another such crisis to have Nigeria suspended from the ILO; to call for UN sanctions against Nigeria and its politicians; and a boycott of Nigeria. The government of Yar’Adua is not recognised as legitimate in any part of the world as a result of the blatant rigging of the election that put him there. If an illegitimate government asserts itself by violating its own Constitution and international obligations there will be little compunction in reacting strongly to it.

Yar’Adua was threatening to invoke the challenged sections of the Trade Union (Amendment) Act of 2005 and declare the strikes illegal, that everyone is an essential service and jailing the union leaders (as has been discussed in Abuja). The strike may be over but the fundamental problems remain. This is a lull which will allow Yar'Adua to make his mark in improving the industrial relations climate. Perhaps he will take the opportunity.

Posted by ocnus| 24.06.2007 03:29

Reply Quote



AbraxasAbraxas is offline 
Villager

avatar
 # 6

Hi, folks!

My informed, enlightened, and HUMBLE advice to His Excellency, Mallam Umar Musa Yar'Adua (GCFR) is to simply dump Balogun Olusegun Matiyu Aremu Okikiolakan Obasanjo, the Megalomaniac of Ibogun village, straight into the dustbin of 21st century Nigerian history, if he intends to succeed in his capacity as the very first EVER reasonable president of Nigeria, since 1914.

Muchas gracias.

Don Juan-Carlos ABRAXAS (III)
Director of Propaganda & Enlightenment, Global Coalition for the Total De-Militarization of Nigerian Politics, post OBJ.

Posted by Abraxas| 24.06.2007 03:55

Reply Quote



akuluounoakuluouno is offline 
Villager

avatar
 # 7

Villagers,

Sorry my earlier intervention was riddled with the printers devil because I was in a hurry to keep my ususal morning aptmt with Our Father ( the real one).
So with mr Adeniyi having come out with his magnus opum wrt to his job as UMY,A's spokesman, I think he should learn to eschew spin, hit the nail on the head and avoid shadow boxing.
Regarding the nation's interest, no one can in all honesty call Labour unpatriotic. Yes they may not be the government of the day not having been voted into office, but when it comes to knowledge of the intersts of the workers of Nigeria, i think labour has an overreaching advantage. While the nation waited with bated breath and sympathised with UMY'A for having the misfortune of inheriting a problem which he did not cause, we all woke up today to hear that the strike has been successsfull called off. So Labour is not as insensitive as u earlier proclaimed. It is beleived that UMY'A will seize this window of opportunity to cause a long term review of this incessant increase in fuel prices which majority of Nigerians cannot understand in view of its multiplier effect on the prices of other basic commodities in the face of a non increase in salaries.
While wishing u a successful tenure as govt spokesman, do remember to help carve a niche in that capacity so that Goebbels and other forefathers of propaganda will be shamed.

Posted by akuluouno| 24.06.2007 05:16

Reply Quote



PalamedesPalamedes is offline 
Villager

avatar
 # 8

Olusegun Adeniyi, sir, I don’t know in what real capacity you wrote this article, but I find it rather against protocol that a minor employee of the FGN, would express personal thoughts in an article and sign it “PA to President Yar'Adua" as if he or she were speaking on behalf of the FGN.

This is not a spin but personal view; don’t minor servants know when to keep their mouth SHUT and stop abusing or even over-stretching their minor status?

As for my view on the strike, I have already expressed it in Rubben Abati’ s piece titled "Fuel Price: Omar vs. Umar”.

Posted by Palamedes| 24.06.2007 08:14

Reply Quote



Land Of My BirthLand Of My Birth is offline 
Villager

avatar
 # 9

Here they go again, a government spin doctor calling organized labor rigid.

Labor does not have to prove itself; the burden is that of the government as Nigerians have in the past eight years made unending sacrifices. If this government says it is an extension of the one just gone, then it should ask itself what it has done for the people lately.

The desperation to engage in blackmail of labor by this government (consider also the recent statement by Kingibe that labor is political) has produced statements which are false, unfair and foolish. Nigeria labor leaders are men of integrity and goodness.

Is Segun Adeniyi another Wada Nas, Femi Fani Kayode or Akin Osuntokun in the making, defending government with the same repulsive intemperate enthusiasm? I wonder what makes progressive young men pathetic jobbers, and entrepreneurial sellers of conscience once they relocate to the corridors of government

Posted by Land Of My Birth| 24.06.2007 08:35

Reply Quote



ebasainebasain is offline 
Villager

avatar
 # 10

Mr. Olusegun Adeniyi can spin all he wants, but the fact remains that until the past

president's crimes and felonies (which are uncountable anyway) are brought to book,

the so-called interests of the masses will continue to be submerged in executive

incompetence, corruption and all the ills associated with Aso Rock in the past 8 years.

Unfortunately, Adeniyi isn't even trying to give an insight into how the ills of the past

government will be corrected by his oga. For instance, how is the Yar'Adua's government

going to address the sale of our refineries to Obasanjo and his cronies? What about the

transparency of prosecuting the thieving governors of the past 8 years? These are the

major issues of the day for the average Nigerian and if Yar'Adua wants his stolen

mandate to be given a breathing space, he should begin by addressing these issues

fast.

Posted by ebasain| 24.06.2007 08:45

Reply Quote


Last Updated ( Wednesday, 23 April 2008 )
 

Services : E-mail news | RSS Feeds | Podcasts
Links:   About the NVS | Contact Us | Terms of Use | Privacy & Cookies | Advertise With Us
All Rights Reserved. NigeriaVillageSquare.com