
According to the Minister of Labour and employment (State) Festus Keyamo, the agreement involves the suspension of the new electricity tariff hike for two weeks.
Keyamo in a tweet announced that the agreement was reached at 2:53 am and government has also promised to roll out palliative in two weeks.
It would be recalled that NLC had fixed 28th of September for the commencement of strike over fuel increment and electricity tariff hike. The Labour union also announced negotiation meeting with the federal government.
“FG & LABOUR reached agreement at 2:53am. Deregulation to stay as Govt rolls out palliatives for labour (details in 2 weeks); Electricity tariffs suspended by Govt for 2 weeks with a joint Committee headed by @fkeyamo to examine the justification for the new policy. Strike suspended.”
Find below details of the agreement reached.
JOINT
COMMUNIQUE ON THE RESOLUTION OF TRADE DISPUTE BETWEEN THE FEDERAL GOVERNMENT OF
NIGERIA (FGN) AND THE ORGANIZED LABOUR REPRESENTED BY THE NIGERIA LABOUR
CONGRESS (NLC) AND THE TRADE UNION CONGRESS (TUC) HELD AT THE STATE HOUSE
BANQUET HALL ON SUNDAY, 27TH SEPTEMBER 2020.
A Bipartite Meeting between the FGN
and the two Labour Centres – Nigeria Labour Congress (NLC) and Trade Union
Congress of Nigeria (TUC),
Having been convened at the Banquet
Hall, State House, Abuja to discuss emerging labour issues arising from recent
cost - reflective Electricity Tariff adjustments and deregulation of the
downstream sector of the Petroleum Industry,
Recognizing the public outcry and
protest over the recent Federal Government twin policies on Electricity Tariff
Reform and full implementation of deregulation of the downstream sector of the
Nigerian Oil and Gas Industry resulting in the planned nation-wide industrial
action by Organised Labour,
Bearing in mind the spiral and
negative impact of COVID-19 pandemic on world economy,
Further bearing in mind that due to
impact of COVID-19 pandemic the world is undergoing socio-economic transition
which has affected price stability, sustainability of enterprises, employment,
and other socio-economic indices,
Acknowledging that the spiral and
negative impact of COVID-19 pandemic on the global economy has given rise to
the need for a new socio-economic order,
Recognizing the need to sustain enterprises
for retention and creation of jobs as well as sustainable growth and
development,
Acknowledging the need for social
consultation between the Federal Government and workers’ representatives,
namely the two Labour Centres – The NLC and TUC,
To aid in the dialogue and
communication, the Federal Government side made presentations to show the state
of economy and the drive behind the recent cost - reflective Electricity Tariff
adjustments and deregulation of the downstream sector of the Petroleum Industry,
Bipartite meeting to address and
resolve the issues in dispute between the FG and Labour Centres were held on
September 15, 24, and 27, 2020,
After exhaustive deliberations on
the issues raised by Labour Centres, the FGN stated that it has fashioned out
palliatives that would ameliorate the sufferings that Nigerian workers may
experience as a result of the cost - reflective Electricity Tariff adjustments
and deregulation of the downstream sector of the Petroleum Industry. The
palliatives will be in the areas of transport, power, housing, agriculture and
humanitarian support.
After thorough debates and negotiations on various issues
raised by all parties, the following resolutions were reached and mutually
adopted:
ELECTRICITY
TARIFF REFORMS
The parties agreed to set up a Technical Committee
comprising Ministries, Departments, Agencies, NLC and TUC, which will work for
a duration of two (2) weeks effective Monday 28th September 2020, to examine:
the justifications for the new
policy in view of the need for the validation of the basis for the new cost
reflective tariff as a result of the conflicting information from the fields
which appeared different from the data presented to justify the new policy by
NERC;
metering deployment, challenges, timeline for massive roll –
out.
The Technical Committee membership
is as follows:
Mr Festus Keyamo, SAN – Hon.
Minister of State Labour & Employment - Chairman
Mr Godwin Jedy-Agba – Hon. Minister
of State Power – Member
Prof. James Momoh - Chairman
National Electricity Regulatory Commission – Member
Engr. Ahmad Rufai Zakari - SA to Mr.
President on Infrastructure – Member/Secretary
Dr. Onoho’Omhen Ebhohimhen – Member
(NLC)
Comrade Joe Ajaero – Member (NLC)
Comrade Chris Okonkwo – Member (TUC)
1no. Representative of DISCOS - Member
The
Terms of Reference (ToR) are as follows:
v To examine the justification for the new policy on cost -
reflective Electricity Tariff adjustments.
v To look at the different Electricity Distribution Company
(DISCOs) and their different electricity tariff vis-Ã -vis NERC order and
mandate.
v Examine and advise Government on the issues that have
hindered the deployment of the six million meters.
v To look into the NERC Act under review with a view to expanding
its representation to include organized labour.
v The Technical sub - committee is to submit its report within
two (2) weeks. During the two weeks, the DISCOs shall suspend the application
of the cost - reflective Electricity Tariff adjustments.
v The meeting also resolved that the following issues of
concern to Labour should be treated as “stand – alone” items:
Ø The 40% stake of Government in the DISCO and the stake of workers to be reflected in the composition of the DISCO’s Boards.
Ø An all-inclusive and independent review of the power sector operations as provided in the privatization MOU to be undertaken before the end of the year 2020, with Labour represented.
Ø That going forward, the moribund National Labour Advisory Council (NLAC) be inaugurated before the end of the year 2020 to institutionalize the process of tripartism and socio dialogue on socio – economic and major labour matters to forestall crisis
DOWNSTREAM
SECTOR DEREGULATION
Consequent upon the critical review of the various
challenges of the downstream sector of the Nigeria oil and gas industry vis a
vis the incalculable losses associated with a subsidy regime the Country has
been incurring in terms of, stifled growth in the downstream sector, diminished
human capital development and massive financial leakages and flight. This is in
addition to the dire financial circumstances of the Federation that precludes
any ability to sustain any subsidy on PMS and making deregulation of PMS
inevitable. Consequently, the Parties agreed to the following:
All parties agreed on the urgency for increasing the local
refining capacity of the nation to reduce the overdependency on importation of
petroleum products to ensure energy security, reduce cost of finished products,
increase employment and business opportunities for Nigerians.
To address (1) above, NNPC to expedite the rehabilitation of
the nation’s four refineries located in Port Harcourt, Warri and Kaduna and to
achieve 50% completion for Port Harcourt by December 2021, while timelines and
delivery for Warri and Kaduna will be established by the inclusive Steering
Committee.
To ensure Commitment and transparency to the processes and
timelines of the rehabilitation exercise, the management of NNPC has offered to
integrate the national leadership of the Nigeria Union of Petroleum and Natural
Gas Workers (NUPENG) and Petroleum and Natural Gas Senior Staff Association
(PENGASSAN) into the Steering Committee already established by the Corporation.
A Validation team comprising the representatives of the
NNPC, Nigeria Extractive Industries Transparency Initiative (NEITI),
Infrastructure Concession Regulatory Commission (ICRC), NUPENG and PENGASSAN
will be established to monitor progress of the rehabilitation of the refineries
and the pipelines/strategic depots network and advice the Steering Committee
periodically.
Post rehabilitation, NNPC shall involve the PENGASSAN and
NUPENG in the process of establishing the operational model of the Nation’s
refineries.
The Federal Government will facilitate the delivery of
licensed modular and regular refineries, involvement of upstream companies in
petroleum refining and establishing framework for financing in the downstream
sector.
NNPC to expedite work on the Build Operate and Transfer
framework for the nation’s pipelines and strategic depots network for efficient
transportation and distribution of Petroleum products to match the delivery
timelines of the refineries as agreed.
The Federal Government and its agencies to ensure delivery
of 1 million CNG/LPG AutoGas conversion kits, storage skids and dispensing
units under the Nigeria Gas Expansion Programme by December 2021 to enable
delivery of cheaper transportation and power fuel. A Governance Structure that
will include representatives of organized Labour shall be established for
timely delivery.
GENERAL
INTERVENTION
To cushion the impacts of the downstream sector deregulation
and tariffs adjustment in the power sector, the Federal Government will implement
the following:
v A specific amount to be unveiled by the FGN in two weeks’
time will be isolated from the Economic Sustainability Programme Intervention
Fund and be accessed by Nigerian Workers with subsequent provision for 240,000
under the auspices of NLC and TUC for participation in agricultural ventures
through the CBN and the Ministry of Agriculture. The timeline will be fixed at
the next meeting.
v Federal Government will facilitate the removal of tax on
minimum wage as a way of cushioning the impacts of the policy on the lowest
vulnerable.
v Federal Government will make available to organized labour
133 CNG/LPG driven mass transit buses immediately and provide to the major
cities across the Country on a scale up basis thereafter to all States and
Local Governments before December 2021.
v Housing: 10% be allocated to Nigerian workers under the ongoing Ministry of Housing and Finance initiative through the NLC and TUC.
Consequently, the NLC and TUC agreed
to suspend the planned industrial action.
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