VZCZCXRO2157
RR RUEHPA
DE RUEHOS #0589/01 1231041
ZNR UUUUU ZZH
R 031041Z MAY 06
FM AMCONSUL LAGOS
TO RUEHC/SECSTATE WASHDC 7059
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHC/DEPT OF LABOR WASHDC

UNCLAS SECTION 01 OF 02 LAGOS 000589 
 
SIPDIS 
 
SIPDIS 
 
DOL FOR ANNE ZOLLNER 
STATE FOR DRL LAUREN HOLT 
 
E.O. 12958: N/A 
TAGS: ELAB PGOV PREL NI
SUBJECT: STICKY PICKETS: ORGANIZED LABOR MAY BECOME A 
MISNOMER IN NIGERIA 
 
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Summary 
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¶1.  Nigerian organized labor is still having problems 
gathering the consensus necessary to initiate action on a 
national-scale.  Since mid-March, the Nigerian Labor Congress 
(NLC) has routinely postponed plans for a national picketing 
campaign to protest unfair labor practices.  Possible reasons 
include the March 2005 amendment to the Trade Union Act, 
which decentralized the NLC; uncertainty about future 
leadership now that NLC President Adams Oshiomhole has 
announced his step-down come 2007; and the direct involvement 
of Ministry of Labor Permanent Secretary Dr. Timi 
Korikpamo-Agary.  End Summary. 
 
-------------------------------- 
Pickets Stuck in Planning Stages 
-------------------------------- 
 
¶2.  Since mid-March, the NLC futilely has been planning a 
massive picketing campaign against businesses located 
throughout Nigeria to protest unfair labor practices. 
Several affiliate unions, from Kaduna to Asaba, have been 
complaining to the NLC's National Executive Council (NEC) of 
arbitrary firings, intimidation of workers, and withholding 
of benefits and/or promised wage increases.  The complaints 
grew loud enough to pressure the NLC to promise their 
constituents action on a national level. 
 
¶3.  Rather than a national strike, the NLC decided local 
chapters of affiliate unions in banking, textile, airline, 
retail, and media industries accused of unfair practices 
would picket branch offices of the offending companies.  The 
NLC said the demonstrations would be peaceful, and not 
involve striking or preventing non-affiliated workers from 
working.  Action was promised first on April 5, then 
postponed to April 12.  Still unable to organize properly, 
the NLC declared a meeting between its President and the 
Presidents and General Secretaries of all industrial unions 
affiliated with the NLC on Wednesday, April 19.  At the 
meeting, the NLC decided to picket companies in two phases. 
The NLC then put off action until after planned May Day 
festivities on May 1. 
 
--------------------------------------------- --------- 
Decentralization of Unions Hampers Ability to Organize 
--------------------------------------------- --------- 
 
¶4.  Through legislation enacted March 2005, the GON broke the 
NLC "monopoly" as the country's only legally recognized labor 
organ and allowed other organizations to operate 
independently.  The law also banned nationwide strikes.  So 
far, only the Trade Union Congress (TUC) has taken advantage 
of the new law and received recognition as an alternate 
central labor organization to the NLC.  The TUC represents 
mostly senior staff and has a more moderate approach to labor 
action and a more pro-GON stance.  During the September 2005 
fuel price hike, the TUC helped block the NLC's attempts to 
gather popular support for a strike.  In contrast, between 
2002 and 2004, the NLC had been able to organize three highly 
successful national strikes. 
 
¶5.  Cracks in the NLC/TUC relationship continue to surface, 
despite labor's adamant assertion of a unified front.  The 
TUC even withdrew from the NLC's nationwide May Day 
celebration over a disagreement concerning the President's 
alleged third-term agenda. 
 
--------------------------------------------- ---------- 
Oshiomhole's Unsettled Future Disrupts Labor Solidarity 
--------------------------------------------- ---------- 
 
¶6.  At the May 1 Workers Day rally, NLC President Adams 
Oshiomhole announced he would step down from his position in 
¶2007.  Representatives of the Nigerian Employers Consultative 
Association (NECA), the Ministry of Labor, and the Michael 
Imoudou Institute for Labor Studies (MINILS) believe his 
departure will create a power vacuum that will disrupt 
organized labor in the country and seriously dilute its power. 
 
¶7.  Oshiomhole rose to prominence because of his ability to 
rally popular opposition to government policies widely seen 
as unfair.  He used the NLC as a vehicle to advocate not only 
workers rights but also human rights during military rule. 
However, Oshiomhole has a cordial relationship with President 
Obasanjo.  Many hardliners in the labor movement have 
privately criticized Oshiomhole for being coopted by Obasanjo 
 
LAGOS 00000589  002 OF 002 
 
 
and that his softening in his opposition to government has 
damaged labor's unity. 
 
¶8.  Oshiomhole refused to comment when asked by Poloff about 
his position on a "third term" for Obasanjo, although, once 
prompted by activists, publicly rejected the idea of a third 
term at the May 1 rally.  NLC Deputy General Secretary Denja 
Yaqub claims Oshiomhole is still undecided whether to 
announce candidacy for the governorship of his home state of 
Edo.  A TUC leader made it clear there would be no consensus 
position from labor on a third term.  He said, lacking a 
viable alternative candidate, Nigeria would do worse if they 
got rid of Obasanjo. 
 
--------------------------------------------- ------------- 
Perm Sec Agary Provides Constructive, Moderating Influence 
--------------------------------------------- ------------- 
 
¶9.  In a March 19 press conference, NLC spokesman Bright 
Anokwuru lambasted industry and unveiled the picketing plan. 
But he also complimented Permanent Secretary to the Ministry 
of Labor, Dr. Timi Korikpamo-Agary, for pushing employers to 
honor commitments to allow workers to unionize freely, 
specifically in the banking and finance industries.  (Note. 
Agary was educated at the University of North Carolina.  She 
is energetic and committed to seeing Nigeria's record on 
worker rights improve, especially in terms of USG annual 
Human Rights and Labor reporting.  End Note.) 
 
¶10.  Agary is responsible for preparing five new industrial 
relations bills to streamline the labor dispute arbitration 
process, and she hope they will soon be submitted to the 
National Assembly for enactment.  She also enjoys wide 
acceptance as an arbitrator, registering recent successes in 
the banking, petroleum, and aviation sectors.  While labor 
leaders and employers have been reluctant to submit disputes 
to the legally mandated Nigerian Industrial Court (NIC) or 
Industrial Arbitration Panel (IAP) because of corruption and 
inefficiency, most parties are willing to deal with Agary 
directly. 
 
¶11.  The newly elected President of the oil workers' senior 
staff union, PENGASSAN, regarding a dispute with Exxon Mobil 
over allowances and pension claims, said his union would wait 
for word from Agary before deciding to strike, despite 
"counterproductive" actions on the part of the company. 
Agary also intervened in bitter disputes over arbitrary 
firings between the aviation workers union, NUATE, and 
Lufthansa airlines and over compensation with the Federal 
Aviation Authority of Nigeria (FAAN).  (Note.  Lufthansa is 
one of the businesses targeted in the planned picketing 
campaign.  End Note.) 
 
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Comment 
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¶12.  A year after the passage of a new labor law, its 
consequences are becoming clearer.  The labor sector is 
weakening, speaking discordantly with many voices.  This was 
a primary goal of the law, and the GON has succeeded in 
achieving this objective.  Now the GON will feel more able to 
take unpopular action with regard to fuel subsidies without 
being as concerned as before about a possible labor-led 
national strike.  With the danger of widespread strikes now 
minimized, the GON can move forward with more economic 
reforms.  But, this has come at a cost of weakening the 
unions in their protection of core workers rights as well. 
Ministry Permanent Secretary Agary has now become a focal 
point for resolution of labor disputes.  We hope her 
influence can counterbalance to some degree the negative 
effect the weakening of the labor sector may have on 
fundamental workers rights in Nigeria. 
BROWNE