US embassy cable - 03LAGOS363

UNCLAS LAGOS 000363 
 
SIPDIS 
 
 
PARIS FOR OECA/IEA 
 
 
E.O. 12598: N/A 
TAGS: ELAB, ENRG, EFIN, EPET, PGOV, NI 
SUBJECT: NIGERIA: NUPENG JOINS DEPARTMENT OF PETROLEUM 
RESOURES STRIKE AS TALKS BEGIN 
 
 
REF: (A) LAGOS 332, (B) LAGOS 344 
 
 
1.  (U) As part of a solidarity agreement between the two 
major oil workers' unions, members of the Department of 
Petroleum Resources (DPR) branch of the National Union of 
Petroleum and Natural Gas Workers (NUPENG) joined a strike 
organized by DPR members of the Petroleum and Natural Gas 
Senior Staff Association of Nigeria (PENGASSAN).  Despite 
the walkout by approximately 600 NUPENG members employed by 
DPR, NUPENG General Secretary Joseph Akinlaja said there are 
no plans to call for a union-wide national strike, adding 
that NUPENG is "not interested in punishing people over 
government negligence." 
 
 
2.  (U) Two separate meetings were held on Wednesday, 
February 19, to discuss issues involving unpaid salaries and 
DPR autonomy.  In Lagos, DPR Director Macaulay Ofurhie met 
with workers and promised to pay all wages and allowances 
outstanding before the end of February.  However, 
discussions in Abuja between PENGASSAN and GON officials 
regarding DPR autonomy remain deadlocked.  NUPENG will join 
the discussions when talks resume on Thursday, February 20. 
Labor and Productivity Minister, Alhaji Musa Gwadabe, and 
Special Presidential Advisor on Petroleum, Alhaji Rilwanu 
Lukman, will head the GON delegation at Thursday's meeting. 
 
 
3.  (U) PENGASSAN insists that the strike will continue 
until the National Assembly moves forward with legislation 
granting autonomy to DPR. If Thursday's talks fail, hope of 
an early resolution could rest on Friday's meeting between 
PENGASSAN and the Petroleum and Energy Committee of the 
National Assembly. General Secretary of PENGASSAN, Kenneth 
Narebor, told journalists yesterday that Friday's meeting 
will determine future action.  He said the union "cannot 
just call off the strike without any meaningful achievement, 
because we are not ready to embark on the process again". 
Narebor said PENGASSAN has decided to suspend further 
actions "that will escalate the already tensed situation 
until Friday's meeting with the National Assembly Committee 
on Energy." 
 
 
4.   (U) Comment:  Although the GON will probably fall short 
on PENGASSAN's demands, the National Assembly will probably 
accelerate its review of DPR's demand for autonomy.  DPR's 
promise to pay outstanding salaries and a "good faith" 
effort by the National Assembly to consider autonomy could 
end the work stoppage. However, PENGASSAN's reluctance to 
request that its entire membership join in a sympathy strike 
despite an expired 72-hour ultimatum, demonstrates the 
union's reported efforts to resolve the dispute without 
creating a major industry-wide crisis.  U.S. oil companies 
have reported no reduction in operations stemming from the 
strike.  One source said his company has met all scheduled 
loadings for its crude oil exports since the beginning of 
the DPR walkout, and a relatively small-volume operator also 
reports no disruption in processing whatsoever. End Comment. 
 
 
HINSON-JONES