US embassy cable - 05LAGOS531

C O N F I D E N T I A L SECTION 01 OF 02 LAGOS 000531 
 
SIPDIS 
 
STATE FOR AF/W 
STATE FOR CA/OCS/SDENYER 
STATE FOR EB/ESC/IEC/ENR/BLEVINE 
STATE FOR DS/IP/AF 
STATE FOR INR/AA 
STATE PASS DOE FOR DAS JBRODMAN AND CGAY 
STATE PASS TREASURY FOR ASEVERENS AND SRENENDER 
STATE PASS DOC FOR PHUPER 
STATE PASS TRANSPORTATION FOR MARAD 
STATE PASS OPIC FOR ZHAN AND MSTUCKART 
STATE PASS TDA FOR BTERNET 
STATE PASS EXIM FOR JRICHTER 
STATE PASS USTR FOR ASST USTR SLISER 
STATE PASS USAID FOR GWEYNAND AND SLAWAETZ 
 
E.O. 12958: DECL: 04/07/2015 
TAGS: EPET, EINV, CASC, PGOV, ASEC, MOPS, NI 
SUBJECT: AMCITS RELEASED IN TIDEX STRIKE; STRIKE CONTINUES, 
VESSELS STILL OCCUPIED 
 
REF: A. ABUJA 522 
 
     B. LAGOS 521 
     C. LAGOS 509 
 
Classified By: Consul General Brian L. Browne for Reasons 1.4 (D & E) 
 
Summary 
-------- 
 
1.  (C)  Tidex reported all expatriates, including ten 
AMCITs, have safely left the vessels in Onne and 
Escravos ports.  GON intervention with national union 
leadership seems have played a role convincing the 
strikers to allow the expatriates off the vessels. 
The strikers still control approximately 22 Tidex vessels, 
and have not agreed to return to work or release the 
vessels.  Tidex will meet GON officials and unions in Abuja 
on Friday in a bid to resolve remaining issues.  Tidex 
management complains the Onne NUPENG executive council 
maintains power through threats and intimidation of 
rank-and-file workers. 
 
Expatriates, Including Amcits, Released by Strikers 
Through GON Intervention with Unions 
--------------------------------------------- ---------- 
 
2.  (SBU)  Mission has learned from Tidex Managing Director 
Bob Vaughn that approximately forty expatriates, including 
ten AMCITs held by Tidex strikers since 11 March, have been 
released unharmed.  GON pressure via petroleum union NUPENG 
and PENGASSAN national leadership appears to have been the 
fillip.  MD Vaughn told us several GON officials provided 
assurances to Tidex management the strikers would now allow 
the expatriates to depart.  Based on these assurances, the 
firm decided move the expatriates this morning, despite the 
strikers making numerous threats in the last week against 
them.  This morning, the firm told the expatriate crews to 
depart the vessels; the movement was completed by about 0915, 
with all expatriates safe. 
 
Focus Shifts to Friday Meeting Between GON, Tidex, Labor 
--------------------------------------------- ----------- 
 
3.  (C)  As per reftel A, a meeting between the GON, labor, 
and maritime agency JUMALIC is planned for 8 April in 
Abuja.  MD Vaughn has confirmed the Tidewater/Tidex 
management team will attend the meeting.  (Note: 
Tidewater/Tidex management has resisted negotiations with 
NUPENG and PENGASSAN, stating they will not negotiate until 
the strikers return to work.  However, they seem to have 
realized they must be at the table during this all-hands 
session.  End note.)  Special Assistant to the President on 
Petroleum Matters Alhaji Paki complained to Energy Off that 
the Tidewater/Tidex management team was "difficult" to deal 
with, but was pleased when we assured him they would attend 
the Ministry of Labor-led meeting. 
 
Tidex Vessels Still Being Held; 
No Agreement to Release Vessels or Return to Work 
--------------------------------------------- ---- 
 
4.  (C)  While the expatriate crew have been released, 
Tidex still faces numerous challenges.  Tidex management 
believes a significant number of their crews have been 
coerced into participating in the strike.  As pressure to 
end the strike mounts, they fear possible violence between 
workers who favor returning to work and those who want 
to continue the strike.  Additionally, Tidex management is 
concerned about possible damage to the approximately 22 
vessels (valued in the hundreds of millions of dollars).  The 
strikers have not agreed to return to work; the strike 
continues to cost the firm about $110,000/day. 
 
Tidex Faces Poisonous Labor Situation; 
Blames Criminal Element in Unions 
-------------------------------------- 
5.  (C)  This is Tidex's sixth strike in the last eight 
months.  Both Ministry of Petroleum Resources officials 
and labor leaders have called the relationship between 
Tidex and the petroleum unions "frayed," and "difficult." 
MD Vaughn and other Tidewater management, however, would 
point to what they call a criminal element in their local 
NUPENG leadership to explain their difficulties. The 
Tidewater/Tidex management team is convinced a "mafia" has 
taken over the NUPENG's local leadership in Onne.  MD Vaughn 
believes this group is driving the current strike and 
abrogation of existing collective bargaining agreements. 
 
6.  (C)  MD Vaughn notes recent troubles began when this new 
group overthrew the pre-existing NUPENG executive council, 
and then claimed they were not bound by collective 
bargaining agreements signed by previous leadership.  He 
charges the local NUPENG executive council uses threats and 
intimidation to maintain power, noting two Tidex employees 
have been shot in past union disputes.  He states the 
practice of the rank-and-file members having to pay the 
senior union leadership to hold a position with Tidex is 
common.  He also ties the recent problems to management 
efforts to cut costs associated with fraud and abuse.  He has 
eliminated several million in costs in the last year, much of 
it through tighter fiscal oversight.  He notes the firm had 
been paying millions in fraudulent travel and medical bills. 
He believes that management efforts to eliminate this 
spending have hurt members of the Onne area NUPENG executive 
council who might have been profiting from the malfeasance. 
 
BROWNE