Business

Crisis Rocks LM Ericsson, as Mass Sack of Nigerian Workers Looms

Published

15 years ago

December 2, 2009

It is no news that the excruciating heat of the credit crunch is taking serious toll on many businesses in the world and that has been making some companies, out of their managerial defects to layoff their staff in an indiscriminate manner with total disregard to labour legal provisions. No doubt the operations of end-to-end telecommunications infrastructure giant, LM Ericsson in Nigeria may soon be grounded if it carries out its threat to retrench its Nigerian workers.

This is because the morale at the company with headquarters at Walter Carrington Crescent, Victoria Island in Lagos, has hit an all time low now. The workers who have vowed to resist an impending mass sack with everything in them are no longer motivated to put in their best in any way.

Consequently, they are silently protesting the highhandedness of the management of the company which earlier illegally banned them from active participation in unionism.

Huhuonline.com gathered that after Ericsson sent out a circular to members of staff that due to its current reorganisation exercise as a way to cut cost, some of them would be the way out of the company, Nigerian workers in the company could not imagine the justification for the grim news. Sources reckon that the Nigerian operation of the Swedish company has continued to yield a lot of profit for the company despite the economic meltdown that has halted economic activities all over the world. Infact, we learnt that the Nigeria operation is only one of the few operations of the company that has continued to be profitable inspite of the recession.

There are indications that the decision of the company to send local workers packing is fallout of its activities In South Africa. LM Ericsson was said to have ran at a loss in 2008 in South Africa but was unable to retrench workers as a cost cutting measure as a result of strong labour laws in South Africa. The result of its loss in South Africa is now about to be visited on Nigerian workers, as the company feels that anything goes in Nigeria as Labour Laws are hardly recognised let alone been enforced. We also gathered that as a result of protest by Nigerians working in the Company, the management decided to carry out its intention through the back doors. Local workers have been asked to resign and reapply to the company. This was vehemently rejected as it amounts to the same mass purge of the local workers by another deceptive guise. Local workers have continued to mobilise as the management seems detrimental in carrying out its intimidating mass sack threat.

Meanwhile, there are indications that the company may have flouted immigration laws and Expatriate Quota regime in its employment of expatriate staff. Huhuonline.com discovered that foreign workers hired as consultants for just a three month period end up working for the company for years. At a time, it was gathered that there were close to 300, such expatriate consultants who illegally worked for the company. Sources say that the problem is, these expatriates do not contribute as much as the local workers, they are better remunerated. The company accommodates, feeds and places them on a high salary scale, they equally use state-of the-art-official cars.

Huhuonline.com checks also have it that the management of the company has reserved a couple of positions in the company for only expatriate workers despite the fact that there are\several Nigerians better qualified to handle such positions. Hence the tension at the company is now palpable. Though, the Precision Electrical and Related Equipment Senior Staff Association (PERESSA) which is affiliated to the Trade Union Congress of Nigeria is poised for a showdown with the management of LM Ericsson. In a letter dated 30th of October 2009 and signed by T.K. Olatunji, Ag Gen. Sec, the group warned of dire consequences, should the company’s management proceed to retrench local workers in the guise of cost cutting.

However, the group requested for a meeting with the management of Ericsson but threatened to mobilise the full force of the Trade Union Congress of Nigeria for appropriate response, if the planned move is not suspended.

Information gathered at the Nigerian Communications Commission (NCC) for comments showed that the Commission may take actions if LM Ericsson continues to flout Nigerian laws by carrying out actions that are impossible in other countries. L.M. Ericsson is one of the leading telecommunications equipment suppliers in the world and the supplier of choice for Nigeria as most operators deploys for their services. Operators that make use of Ericsson switches and other equipments include MTN, Zain, Zoom Mobile, MTEL and a couple of others. Meanwhile, while LM Ericsson was reacting to this scandal through it Director, HR and Blair Mackenzie maintained that Ericsson like any other global corporations has had to respond to global financial crisis to remain competitive and well positioned for the future, and that Ericsson has embarked on a cost reduction and right sizing exercise and the sub-Saharan part of this adjustment is currently underway and will also affect Nigeria. As a result of this exercise there are likely to be some job losses.

It was further confirmed that the exercise would be handled with utmost sensitivity and professionalism, Ericsson has communicated openly about their structure and potential for redundancies through letters, emails, workshops and all-employee meetings since July 2009, and provided all employees with opportunity to provide feedback on the proposed restructure as well as suggestions for avoiding job losses. For those that could ultimately be affected by the redundancies, Ericsson Nigeria has consulted labour lawyers to ensure that those employees are treated and compensated fairly and in accordance with the provisions of Nigerian labour law.

It is unfortunate to see Nigerian citizens turning out to be an object of ridicule and victims of labour chastisement by foreign nationals, this is one, too many a call. Such national slap is apparently sending a signal that Nigeria is a country where rights of labour can be trampled on without recourse to justice.

However, as a good people great nation, Ministry of Labour and other stakeholders in the country need to look into these irregularities to ensure that the constitutional rights of Nigerians as it relates to labour are not flouted by any alien who would not respect local content and other rules of engagements. It is not just LM Ericsson, there are several other companies in Nigeria found culpable of a similar act. There are cases of machines and chemicals deforming people while in active service and due compensations are not given to them.

Business

TTP Trains Customs Agents, Freight Forwarders On Eto App

Published

2 days ago

May 1, 2025

The Tide

In a concerted effort to tackle racketeering and reduce inflated transportation costs in the Nigeria’s seaports, Trucks Transit Parks Ltd. (TTP) has trained Licensed Customs Agents and Freight Forwarders on the use of its Ètò electronic call-up system.
The training was held recently at Customs Processing Centre (CPC) Auditorium, Apapa, Lagos, in collaboration with the Nigeria Customs Service (NCS) and supported by the leadership of the Joint Association of Licensed Customs Agents and Freight Forwarders (JALCAFF), Apapa Command.
Speaking at the event, Comptroller Babatunde Olomu expressed appreciation to TTP for facilitating the training and emphasized the need for customs agents to take personal ownership of the Ètò booking process.
“I want to thank TTP for this impactful training. I encourage all customs agents to begin doing their own bookings directly. By doing so, they can take back power from the unscrupulous elements exploiting their lack of knowledge, selling tickets at highly inflated prices,” Olomu declared.
He noted that empowering agents with hands-on training was key to dismantling racketeering networks that have plagued access to the ports and frustrated efficient logistics processes.
Also speaking, the Chairman, Apapa Chapter of the Association of Nigerian Licensed Customs Agents (ANLCA), Chief Emeka Chukwumalu, said the engagement was critical to the ongoing push to reduce cargo transportation costs and ease business operations at the Apapa Port.
According to a freight forwarder, “The training is basically for us to have awareness of the operations of the Ètò call-up system through TTP. We also want to brainstorm on ways to reduce the high cost of cargo transportation in Apapa Port.
“This training opened our eyes to how simple it is to book tickets ourselves. We now know the right steps to follow and how to avoid falling victim to fraudsters.”
Earlier, Head of Operations at TTP, Mr. Irabor Akonoman, talked on common misconceptions about ticket pricing, reaffirming that the cost of Ètò bookings had remained consistent since its inception.
“The official price remains the same since inception. What people are paying higher amounts for is the manipulation by racketeers”.

Business

NECA Holds MSME Fair To Drive Growth

Published

2 days ago

May 1, 2025

The Tide

Towards strengthening small businesses and promoting a more supportive regulatory environment, the Nigeria Employers’ Consultative Association (NECA) says it will hold the 2025 edition of its flagship MSMEs Fair on Tuesday (May 6, 2025).
The event, themed, “Galvanising MSMEs for Economic Growth and Stability”, will take place at NECA House in Lagos.
According to NECA’s Director-General, Mr Adewale Smatt Oyerinde, the fair seeks to provide micro, small, and medium enterprises with essential tools, resources, and strategic networks to thrive in Nigeria’s challenging business climate.
He emphasised the vital role MSMEs play in national development, describing them as the “lifeblood of Nigeria’s economy.”
Oyerinde noted that the fair is designed to offer entrepreneurs practical solutions to navigate economic uncertainties, regulatory hurdles, and business scalability issues.
A major attraction of this year’s event is the keynote address by the CEO of FATE Foundation, Mrs. Adenike Adeyemi, a prominent advocate for MSME development.
She is expected to share transformative insights on innovative strategies for sustaining and growing small businesses in Nigeria.
A unique feature of the fair will be interactive sessions with key regulatory bodies. Entrepreneurs will engage directly with agencies responsible for licensing, compliance, taxation, and business registration.
NECA said these sessions aim to demystify bureaucratic processes and foster a more enabling business environment.
It also said the fair will provide a platform for entrepreneurs to exhibit their products and services, connect with potential investors, and explore new markets.
It added that participants would gain critical knowledge on digital transformation, access to finance, and strategies for sustainable business growth.
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· NECA stressed that the fair aligns with its broader mission of promoting enterprise development and economic resilience.
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· “By empowering MSMEs with the right support and information, the organisation aims to stimulate job creation, innovation, and long-term economic stability”, NECA said.
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· The 2025 MSMEs Fair is expected to attract a wide range of stakeholders, including financiers, tech experts, regulators, and industry leaders, all united in advancing the growth of Nigeria’s MSME sector.

Business

Over 2m Passengers Board Blue Rail Train – Commissioner

Published

2 days ago

May 1, 2025

The Tide

The Lagos State Commissioner for Transport, Mr Oluwaseun Osiyemi, says over two million passengers have been transported on the Blue Line Rail since its launch, while state-run buses move an average of 42,000 commuters daily.
Osiyemi, who disclosed this during the Year 2025 Ministerial press briefing held at the Bagauda Kaltho Press Centre, Alausa, on Tuesday, noted that the Lagos State Transport Policy, launched in May 2024, was now in its implementation phase, focusing on inclusivity, safety, affordability, and sustainability.
“On rail development, Phase One of the Blue Line (Marina to Mile 2) has served over two million passengers, with Phase Two (Mile 2 to Okokomaiko) in progress.
“Phase One of the Red Line (Agbado to Oyingbo) is now operational with eight stations and additional rolling stocks procured, while Phase two (Oyingbo to link Blue Line at National Theatre) is underway”, he said.
The Commissioner said in the state-owned bus operations, over 60 million commuters have been served since 2019, with daily ridership exceeding 40,000.
He also said plans were on to deploy new buses with Quality Bus Corridors under construction, adding that the Abule=Egba Bus Terminal had also been commissioned.
“For water transport, 15 locally-built Omibus Ferries have been launched and are in operation, with the Ijegun Egba Terminal now open.
“The OMI EKO project, in partnership with the French Development Agency (AFD), will deliver 25 terminals and 78 electric ferries.
“Over 280,000 passengers have used ferry services in the past year, and 12 boats have been upgraded to meet safety standards”, he said.
On road infrastructure and traffic management, the Commissioner said 49 junction improvement projects had been completed, including ongoing ones at Ikorodu, Iju, as well as Allen-Opebi-Toyin axis.
He added that solar-powered Traffic Signal Lights, road markings covering 67.9km, new medians, laybys, and 3,941 parking lots had also been provided.
Additionally, Osiyemi announced that the deployed Automatic Number Plate Recognition cameras had detected over 470,000 traffic violations and that the Vehicle Inspection Service issued over one million roadworthiness certificates.
He also said that the Lagos State Drivers’ Institute trained more than 32,000 drivers in the past 13 months.
The event marked the second anniversary of Governor Babajide Sanwo-Olu’s second term, showcasing major strides in the transport sector under the THEMES+ agenda.

Nkpemenyie Mcdominic, Lagos