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

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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.

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Paper Industry’s Economic Contribution Hits N398bn

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The contribution of the paper industry rose to N398.8billion in 2023 from N356billion it recorded in 2022.
Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Musa Yusuf, disclosed this in a report released to mark the inauguration of World Envelopes Day in Lagos.
Marking the event, which also commemorated the 50th anniversary of envelope manufacturing firm, FAE Limited, Yusuf stated that the paper industry has a profound economic impact across all sectors of the economy.
He, however, noted that the growth in digital technology had greatly disrupted the sector, especially as a mode of communication.
“As of 2023, the value of the Nigerian paper industry was N398.8billion naira, according to the National Bureau of Statistics.
“The value was N365bn in 2022; N363 billion in 2021; and N255billion in 2020. This is a significant contribution to our GDP. However, when compared to the size of our economy, which is estimated at N230trillion as of 2023, it is still very small”,  the CPPE boss stated.
Yusuf said the paper industry had been largely in recession because of the digital technology disruptions and other macroeconomic headwinds, especially relating to exchange rate depreciation, forex liquidity crisis and high cost of fund and energy cost escalation.
He emphasised that the paper industry had a profound economic impact across all sectors of the economy, which underscored the need for government intervention in the sector.
In her opening remarks, the Managing Director of FAE Limited, Funlayo Bakare, described World Envelopes Day as the brainchild of the company, which sought to set aside April 16 as a day to celebrate the fundamental role envelopes play in daily communication.
“As we celebrate our golden jubilee, we are delighted to announce the inauguration of World Envelopes Day, to be celebrated annually on the 16th day of April.
“This is a pioneering initiative by FAE Ltd in accordance with our leadership position in the sector.
“The establishment of World Envelopes Day is to raise awareness about the importance of envelopes in various aspects of human endeavour, including personal correspondence, business transactions, and creative expressions”, she said.
The Publisher of The Guardian Newspaper, Maiden Ibru, who chaired the occasion, stressed the need to strike a balance between digitalisation and physical paper production, especially due to the indispensable role paper plays in cultural preservation.
Nigeria once had three paper mills: the Nigeria Paper Mill Limited, located in Jebba, Kwara State; the Nigerian Newsprint Manufacturing Company Limited, Oku-Iboku, Akwa Ibom State; and the Nigerian National Paper Manufacturing Company Limited in Ogun State.
The mills are no longer operational, and the country has had to depend on importation to make up for the shortfall.
The Asset Management Company of Nigeria has taken over the management of NNMC over unpaid debts.

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Aviation Union Threatens Strike Over Revenue Deduction

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The Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) has said it would embark on industrial action if the Federal Government refuses to exempt aviation agencies from a directive that seeks to deduct 50 per cent from their Internally Generated Revenue (IGR).
ATSSSAN disclosed this in a communique issued by its National Executive Council (NEC) after its National Economic Council meeting in Ibadan, Oyo State.
The NEC, which had in attendance all 17 affiliates of ATSSSAN comprising all branch Chairmen, Secretaries, and national officers, reiterated calls for the exemption of the aviation agencies from the deduction of 50 per cent  of their IGR under the Fiscal Responsibility Act.
The association said the agencies were not established for profit, hence stifling them of the required funds would jeopardise the effective performance of their safety and security mandates.
ATSSSAN warned that if the Federal Government insist on the deduction, it would compound the current financial state of the agencies, and “we may be forced to direct all aviation workers to down tools until the government reverses itself”.
Last year, the Federal Government directed the Office of the Accountant General of the Federation to immediately commence the presidential directives on a 50 per cent automatic deduction from the IGR of Federal Government-owned enterprises.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, had issued a circular titled, “Re: Implementation of the Presidential Directives on 50 per cent Automatic Deduction from Internally Generated Revenue of Federal Government Owned Enterprises (FGOEs)”.
According to the circular, all partially-funded Federal Government agencies and parastatals (receiving capital or overhead allocation from the Federal Government’s budget) should remit 50 per cent of their gross IGR, while all statutory revenues, like tender fees, contractor’s registration, and sales of government assets, among others, should be remitted 100 per cent to the sub-recurrent account.
ATSSSAN stated its apprehension over what it perceives as deliberate efforts by certain private airlines to stop their employees from forming labour unions.
Citing Section 40 of the Nigerian Constitution and international labor norms, the association contends that such actions constitute a violation of workers rights.
The statement, however, did not specify the airline operators suppressing workers from joining unions.
Part of the statement read, “The NEC-in-session calls on all employers in the private sector in the aviation industry to respect collective bargaining agreements in order to avert industrial crises at the workplace.
“NEC-in-session was seriously disturbed by the continuous willful acts by some private airlines towards frustrating the unionization of their employees, contrary to the letters and spirit of Section 40 of the Constitution of the Federal Republic of Nigeria and relevant international conventions and laws”.
The association, therefore, called upon the Federal Ministry of Labour and Employment to uphold and enforce employees’ rights to unionise within the aviation industry.
It urged the Minister of Aviation and Aerospace Development, Festus Keyamo, to orchestrate a dialogue involving all relevant stakeholders, including the non-compliant airlines and labour unions, under the auspices of the Labor Ministry.
At the meeting, other issues affecting workers, especially members’ welfare and working conditions, and the aviation industry at large were discussed, and positions and resolutions were taken.
The aviation group decried what it perceive as a dearth of avenues for career progression within government-owned aviation entities.

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NCDMB Rakes In $1m Return On NEDOGAS Investment

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Management of the Nigerian Content Development and Monitoring Board (NCDMB) says it has received a cheque of $1 million from Nedogas Development Company Limited (NDCL).
A statement made available to newsmen by the Directorate of Corporate Communications and Zonal Coordination of the Board said the sum received was part of the return on investment (ROI) on one of its strategic investments.
The statement added that: “The cheque was presented by the Chairman of the company, Engr. Emeka Ene, when he visited the Nigerian Content Tower in Yenagoa, Bayelsa State, where he was received by the NCDMB’s Executive Secretary, Engr. Felix Omatsola Ogbe, and other members of the Board’s management.
“Nedogas Development Company Limited (NDCL) is a joint venture company between Xenergi Limited and NCDMB Capacity Development Intervention Company.
“As part of the project, Nedogas NDCL constructed and commissioned a 300 MMscfd Capacity Kwale Gas Gathering (KGG) and injection facility located in the Umusam Community, near Kwale in Delta State, Niger Delta, Nigeria.
“The KGG Facility was designed to handle stranded gas resources in Nigeria’s OML56 oil province by providing the opportunity for independent operators in the area to monetize natural gas from their fields through the gas gathering, compression, injection and metering infrastructure of the KGG for quick market access.
“Nedogas is one of the several strategic and successful investments of the NCDMB funded from the Nigerian Content Development Fund (NCDF), in line with the Board’s mandate to build capacity and catalyze local projects in the Nigerian oil and gas industry as enshrined under the Nigeran Oil and Gas Industry Content Development (NOGICD) Act”.
In his remarks, according to the statement, the NCDMB Executive Secretary stated that the success story of NEDOGAS at Kwale, Delta State, could be replicated in other oil and gas producing communities to minimise gas flaring, saying that Ogbe also declared the Board’s readiness to continue collaborating with the company.
“Their model should be extended to other parts of the country where gas flaring is continuing.They have shown that with the modular system, we can quickly remove flaring from our operations in Nigeria.
“The NCDMB had continued to receive briefings from its investment partners. We’re still waiting for them to come back with success stories. Some of them are near completion and have not started operations yet”, the NCDMB’s Executive Secretary said.
In his remarks, Chairman of NEDOGAS, Mr. Emeka Ene, conveyed the company’s excitement in returning part of the credit and profit, adding that it was a proof that the NCDMB’s investment was a success and they are getting back that investment, adding that the firm looks forward to further collaboration with the NCDMB to expand its scope.
Responding, the NCDMB boss said the Board was now doing effectively and practically and tangibly what it was set up for, saying its mandate was to impact the economy by direct interventions.
“That’s the way the economy can grow, improve the gas infrastructure in such a way that’s sustainable despite the tight economic conditions”, he said.
He added that, “the  value propositions of the Nedogas project include total eradication of flared gas and conversation of environmental pollutants into products of value and creation of a strategic gas gathering hub and injection node for quick access to market for gas owners to monetize gas”.
Other benefits, according to Ogbe, include the provision of alternative gas supply to western flank of the OB3 line to add to the volumes of economic sustainability and increase in Nigeria’s Gross Domestic Product (GDP).
“The partnership with NEDOGAS is one of NCDMB’s 15 strategic investments geared towards actualizing the Federal Government’s aspirations in key areas of the oil and gas industry.
“Most of the projects were targeted at actualizing the Federal Government’s Decade of Gas programme.
“Some of NCDMB’s notable third-party investments include Waltermith’s 5000 barrels per day (bpd) modular refinery in Imo State, Azikel Group12,000 bpd hydro-skimming modular refinery in Gbarain, Bayelsa State, and Duport Midstream’s 2,500bpd modular refinery in Edo State.
“Other investments of the Board include Better Gas Energy for LPG terminal and gas distribution, partnership with Rungas Prime Industries Limited to establish a cooking gas cylinders manufacturing plant in Polaku, Bayelsa State, and Alaro City in Lagos and the partnership with Butane Energy to deepen LPG utilization in the North”, he stated.
The Executive Secretary also noted that there was the partnership with BUNORR Integrated Energy Limited in Port Harcourt, Rivers State, to produce 48,000 litres of base oil per day and partnership with the Nigerian National Petroleum Corporation (NNPC) Limited, Brass Fertilizer and Petrochemical Company Limited, and DSV Engineering to establish a 10,000 Ton Methanol Production Plant, Odioama, in the Brass Local Government Area of Bayelsa State.

By: Ariwera Ibibo-Howells, Yenagoa

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