VZCZCXRO4448
RR RUEHMA RUEHPA
DE RUEHOS #1237/01 2720632
ZNR UUUUU ZZH
R 290632Z SEP 06
FM AMCONSUL LAGOS
TO RUEHC/SECSTATE WASHDC 7966
INFO RUEHZK/ECOWAS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHC/DEPT OF LABOR WASHDC

UNCLAS SECTION 01 OF 02 LAGOS 001237 
 
SIPDIS 
 
SIPDIS 
 
DOL FOR SUDHA HALEY 
STATE FOR DRL GABRIELLA RIGG 
 
E.O. 12958: N/A 
TAGS: ELAB PGOV PREL NI
SUBJECT: STATE OF THE UNIONS 
 
REF: LAGOS 874 
 
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SUMMARY 
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¶1.  (U) This is a summary of labor activities.  On July 21 
the Federal Government signed a Memorandum of Understanding 
(MOU) with the National Public Service Negotiating Council, 
agreeing to suspend and further negotiate the planned 
retrenchment of 33,000 civil service employees.  June 
showcased strike threats in three different sectors: 
electricity, energy, and telecommunications.   More than two 
weeks of complete disruption of landline telephone service 
ended when the GON released funds to pay a portion of overdue 
salaries for NATE members (reftel).  On June 26, the National 
Union of Electricity Employee's called off the threat of a 
July 1 strike after Nigeria's privatization unit, the Bureau 
for Public Enterprises (BPE) met with the Power Holding 
Company of Nigeria (PHCN) to negotiate employment rights and 
compensation in the wake of the July unbundling of PHCN into 
18 separate companies.  Also on June 26, the oil sector 
senior staff union, PENGASSAN, settled a dispute with an oil 
service company which had threatened to erupt in sympathy 
strikes throughout the sector.   Meanwhile, the National 
Union of Air Transport Employees is quiet.  Nigeria,s labor 
umbrella organization, the Nigeria Labour Congress (NLC) is 
preparing for upcoming elections.  END SUMMARY. 
 
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Civil Servants 
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¶2.  (SBU) On July 21 the Federal Government signed an MOU 
with the National Public Service Negotiating Council (NPSNC), 
suspending the government's retrenchment of 33,000 civil 
service employees.  The NPSNC, representing eight public 
sector unions, threatened a 160,000 civil servant-wide 
strike. Chris Uyot, Head of Industrial Relations at the 
National Labour Congress (NLC), said the unions were not 
against reform, but were incensed by the Federal Government's 
lack of dialogue with unions throughout this process, 
disregard for employee agreements, and perceived efforts to 
replace older workers with unemployed youth.  The Federal 
Government's quick turn around, willingness to negotiate, and 
apology for lack of 'oversight' in consulting the unions on 
this issue surprised union leaders.  The MOU calls for 
negotiations to reduce the number of retrenchments, and 
suspends any recently served retrenchment letters. 
 
----------------------------------- 
Electricity Strike Narrowly Averted 
----------------------------------- 
 
¶3.  (SBU) The Bureau of Public Enterprises (BPE) managed to 
unbundle the Power Holding Company of Nigeria (PHCN) into 18 
separate entities on June 30 -- at least on paper -- without 
inciting a nation-wide power sector strike.  Absent 
discussions regarding labor restructuring, the National Union 
of Electricity Employees (NUEE) had threatened to strike July 
¶1.  Joe Ajaero, General Secretary of the NUEE, said the union 
was in the dark regarding plans for PHCN's unbundling and 
privatization, and had no notion of their plans for 
restructuring of employment.  However, a June 26 meeting 
involving the BPE, PHCN, Senior Staff Association, and the 
NUEE concluded while successor companies would have greater 
autonomy, labor restructuring would not be concluded without 
the NUEE's and Senior Staff Association's input. 
 
--------------------------------------------- -------------- 
Energy: Labor Ministry Steps in to Thwart Oil Sector Strike 
--------------------------------------------- -------------- 
 
¶4.  (SBU) The Federal Ministry of Labour and Productivity 
helped mediate a resolution between Franks International Oil 
Field Services Nigeria Limited, the Petroleum and Natural Gas 
Senior Staff Association of Nigeria (PENGASSAN), and the 
National Union of Petroleum and Natural Gas Workers (NUPENG) 
on June 26.  A dispute regarding expatriate worker quotas had 
threatened to erupt in a sector-wide solidarity strike by 
July 31.  According to Dr. Fadakinte, PENGASSAN's General 
Secretary, the expatriate-quota issue will be discussed, 
 
SIPDIS 
along with the possible reinstatement of several executive 
union members. 
 
----------------------------------------- 
National Union of Air Transport Employees 
----------------------------------------- 
 
LAGOS 00001237  002 OF 002 
 
 
 
¶5.  (SBU) President Itua of the National Union of Air 
Transport Employees (NUATE) told EconOff on June 29 while 
NUATE has not had problems with international airline 
companies, the Union has faced some resistance from Nigerian 
companies not wanting employees to become unionized.  While 
Mr. Itua said a multi-sector strike might eventually be used 
to allow employees to unionize, he gave little indication 
that this was currently or seriously being discussed. 
 
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Nigeria Labour Congress 
----------------------- 
 
¶6.  (SBU) Denja Yaqub, Assistant Secretary of Organisation to 
the NLC, told EconOff aside from covering aforementioned 
union disputes, the NLC's Organisation Department continues 
to help casual laborers gain worker protection, permanent 
status when employed over three months, and the ability to 
unionize.  Sectors commonly involved in hiring casual labor 
are steel engineering, chemical industries/manufacturers, 
construction, and some government.  Yaqub commented that 
certain industries in Nigeria have been decimated by 
globalization and more competitive producers of goods such as 
textiles.  According to the NLC's head of Industrial 
Relations, negotiating employment and job security in the 
face of privatization has proved to be a challenge for unions 
in affected industries.  In recognition of this 
worker-oriented problem, the NLC backs the Global Campaign on 
Fair Trade and campaigns for debt cancellation.  NLC contacts 
repeatedly mentioned their interest in USG training/visitor 
programs, and commented on the need for election 
observing/monitoring and voter education. 
 
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COMMENT 
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¶7.  (SBU) Striking appears to have become a Nigerian labor 
union norm for forcing negotiations and gaining results, 
particularly in the face of large-scale privatization of 
ailing State industries.  While strikes can be incredibly 
disruptive, the Federal Government's quick turn around on the 
civil servant retrenchment issue may indicate its desire to 
improve public relations in the face of upcoming elections. 
END COMMENT. 
BROWNE