The management of the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, has described the planned strike action by PENGASSAN and NUPENG, over its staff’s welfare, as an ambush against the Commission and circumvention of the due grievance process established for employee relations.
NUPRC said contrary to the allegations and concerns raised by PENGASSAN and NUPENG about its staff’s welfare, all obligations relating to staff’s claims have been fulfilled and efforts are also in motion to achieve closure on all pending items.
PENGASSAN and NUPENG had in a joint letter dated 30 July 2023 and delivered on 31st July 2023 with refer no. (PEN/NUPRC/BRANCH/S.1/1000) threatened to embarked on a strike action while escalating concerns over the commission’s staff welfare.
A source privy to the development, who spoke with us anonymously, said, “If it was about corruption or shady award of any job in any manner suspicious the union would have put it out today, it’s about corruption fighting back.”
“Yesterday we got hint that supply of laptops were inflated. They thought they could do that to indict the management.
“Immediately management sent memo that a panel be constituted to include 2 nominees from d union to probe the procurement. While supplies should be rejected. Within hours some greedy culprits started begging management to soft pedal, which plea was rejected as management might even bring in EFCC. These are what they are afraid of.”
The source added, “Within 2yrs management has impacted the industry with 17 and other landmark achievements including appropriate metering of our crude oil sales platforms, regardless of pushback and internal sabotage.”
“One of the union leaders was quarried for irregularities in waec certificate in general staff credentials audit exercise.
He found alignment in dubious industry operators opposed to metering regulations and advanced cargo declaration. A top management member who is substantively a manager currently in the system but manipulated to Executive Commissioner thereby holding two positions simultaneously in the commission currently and ambitiously want to overthrow the incumbent CCE supported the union in heating up the system.
20 union members will request to be put in plane to go to dubai for meeting. If you say the cost of such venture is too much it becomes trouble for Commission.”
However, reacting to the Union’s threat and allegations, NUPRC in a letter signed by its Executive Commissioner, Corporate Services and Administration, Are. Jide Adeola, considers the planned strike action as an ambush against its management and circumvention of the due grievance process established for employee relations.
The letter, titled: “RE: CRITICAL CONCERNS AFFECTING STAFF WELFARE WITHIN THE COMMISSION” and addressed to the Branch Chairman, Petroleum & Natural Gas Senior Staff Association of Nigeria, NUPRC Branch, also noted that contrary to the Union’s threat and strike notice, they are aware that all issues raised at the referenced Joint Consultative Council, JCC, are already receiving appropriate attention and most of the issues raised by PENGASSAN and NUPENG in the joint letter have also been resolved.
NUPRC, however, used the opportunity to draw the attention of the Unions to the closures already made and actions in motion by management to address all pending issues:
“1. Pension non-remittance: Contrary to the claim of the Union that payment of pension deductions from staff emoluments have not been remitted to the various PFAs in line with the Pension Reform Act 2014 (Part IV, S. 11.(3a), (3b), The Commission has already fully settled all pension deductions from staff emoluments. Attached is the evidence of payments referenced as appendix 1to the letter.
31st JULY 2023 NUPRC/CSA/UNION/05
PETRINOISSIVAT
2. Non-conducive work environment: Management has secured additional office s p a c e in Abuja. In line with policy a n d the pricing of the rent, the Ministry of Housing and the Bureau of Public Procurement (BPP) are scheduled to complete the due process for procurement.
a) Port Harcourt office: Following the exit of the staff and management of the NNPC Limited, the Commission has taken necessary steps to cover the normal services rendered by NNPCL as well as settle all utility bills in ful.
All office utility bills have been duly paid, and management has approved the purchase a 350 kVA generator as replacement for the 1000KVA generator due to the consumption levels. In the interim, the procurement unit si completing due process for providing diesel in the Port Harcourt office underground dump.
Lagos office: Management has taken steps to address the water supply issue by engaging a water supply company to drill a new water borehole. As a stop-gap measure, alternative water supply is provided daily to ensure the smooth running of the office.
3. Insufficient Working tools: The Union is aware that all laptops and working tools are procured from accredited agents of Original Equipment Manufacturer (OEM) as a matter of policy. Accordingly, all electronic devices, automobiles, and machinery are procured directly from OEMs following the due process under the Procurement Act 2007.
Against the foregoing, all staff laptops are ordered under a Service Level Agreement with OEMS. The laptops are manufactured to the specification with a lead period of six (6) weeks and maintained by the OEM.
During 2023, Management has successfully procured two (2) batches of laptops for staff. The laptops have been allocated to staff based on the priority list. The Union is advised to refer to appendix 2 to this letter for the list of both unionised and non-unionised staff members who been allocated their working tools. The second batch of laptops is in process of being allocated.
Management’s preference is to procure laptops based on a prioritised list of staff due to capital and cash flow realities following a change-out process rather than en-masse as canvassed by Union
4. Medicals: The Union si invited to recall the policy of management to provide HMO to all staff against the existing practice of pay-as-you-go. The Commission completed a selection process of a suitable service provided through a committee with sufficient representation by the in-house Unions.
The Commission took a shift in approach to implementing the HMO programme following the requirements for compliance with the official gazette of the National Health Insurance Authority Act (NHIA) 2022 and the financial implications.
Accordingly, the Commission continued with the existing arrangements where staff members have access to accredited hospitals and bills are settled subsequently. All staff members are aware that once staff and their wards are issued referrals from the medical team, they have access to approved medical facilities. In emergency circumstances, staff IDs are sufficient to gain access to treatment.
Full and comprehensive medical care inclusive of approved overseas treatment where required is provided to all staff. Al medical expenses are scheduled for payment and are undergoing processing.
5. Outstanding upfront allowances: Following the mop-up of unspent balances of funds as of 31st December 2022 by the CBN as required by law, the NUPRC commenced the fiscal year 2023 with a funding deficit of about N2.7b against zero allocation as of January 2023. The attached analysis (appendix 3) of the funds and expenditure from January to June clearly shows the inflow and outflow trend of financial operations of the Commission.
The Union is invited to recall that despite the financial deficit, management engagement with the in-house Unions and their awareness of the financial circumstances, the Union continued to mount significant pressure on management for the immediate settlement of all staff upfront obligations despite the lack of the needed funds.
Against this background, Management began a build-up cash from the monthly Cost of Revenue Collection (CORC) which averaged about N3Billion (after salary payments) from February to April.
Despite the build- up, the cash flow was unable to service the gross staff upfront (inclusive of Cooperatives, Pensions and Medicals) after deducting overheads.
Consequently, a decision was taken to pay staff entitlements in batches net of deductions. This enabled full coverage of staff whereas all other deductions were scheduled to be set-off in the subsequent months.
As of June allocation, the Commission has paid a total of one billion, five hundred and eighty million, eight hundred and fifty-nine thousand, ninety-eight naira only. N1,580,859,098 of the upfront cooperative deductions. Whereas the outstanding amounts are undergoing processing for settlement in August 2023.
6. Outstanding staff claims: All staff claims are undergoing processing in line with the cash flows of the Commission. All staff claims as of 31 July 2023 have been scheduled for immediate payment on the Remita platform. The staff accounts will be credited as fulfilled on the platform.
7. Unpaid staff on-call allowances: You may recall the guidelines and procedures for on-call allowances as well as the cadre of staff qualified for on-call allowances in line with the subsisting staff policy (refer to appendix 4). The Union may also recall that on-call allowances are processed with salary monthly. It is therefore surprising to note that the Union claims that staff have not been paid on-call allowances in line with the policy.
The Union may note that all on-call allowances as of 31 July 2023 have been paid fully in line with the staff policy. The Union is invited to refer to the Appendix 5 to this letter with list of staff who have been duly paid their on-call allowances. Accordingly, the claim is unfounded.
8. Non – payment of outsourced personnel: Following improvements in our procurement procedures, the Commission required the outsourced service providers to provide documentation in compliance with the procurement Act for renewals.
Significant progress has been made in ensuring compliance and all outsourced services providers invoices are undergoing payment processing.
9. Notwithstanding the foregoing, Management invites the Union to take note on the existing industrial relations protocol for any planned or immediate strike action. A grievance notice is expected to be sent o management with a notice period of seven (7) days prior to any planned action. The Union is also invited to note that there is an on-going intervention by the National Union of PENGASSAN which is yet to be closed.
Consequently, management considers the planned strike action as an ambush against management and circumvention of the due grievance process established for employee relations.”
NUPRC further noted that its management has endeavoured to create a productive workforce focused on performance as well as encouraged an atmosphere of industrial harmony.
“We anticipate that the Union will consider reason over disharmony and maintain the cordial relationships that have been established by management.
“We look forward to a peaceful engagement and closure of all outstanding matters.”
Meanwhile, in an effort to further resolve all pending issues, NUPRC’s management has again invited the Union’s Executives for a meeting at 9:00am on 1 September 2023 for closure of any pending matter.
See Full Text of NUPRC’s letter:
31st JULY 2023 NUPRC/CSA/UNION/05
The Branch Chairman
Petroleum & Natural Gas
Senior Staff Association of Nigeria NUPRC Branch
7 Sylvester Ugh Crescent
Abuja
Dear Comrades,
RE: CRITICAL CONCERNS AFFECTING STAFF WELFARE WITHIN THE COMMISSION
The Joint letter of PENGASSAN AND NUPENG of 30 July 2023 delivered on 31st July 2023 (PEN/NUPRC/BRANCH/S.1/1000) escalating the concerns about staff welfare refers.
Obligations relating to claims made have been fulfilled and efforts are already in place to achieve closure on the pending items.
Management’s view is that the Union is aware that all the issues raised at the referenced Joint Consultative Council (JCC) are receiving appropriate attention and that most of the issues have already been resolved.
Notwithstanding, it is necessary to draw the attention of the Union to the closures already made and actions in motion by management to address all the pending issues:
1. Pension non-remittance: Contrary to the claim of the Union that payment of pension deductions from staff emoluments have not been remitted to the various PFAs in line with the Pension Reform Act 2014 (Part IV, S. 11.(3a), (3b), The Commission has already fully settled all pension deductions from staff emoluments. Attached is the evidence of payments referenced as appendix 1to the letter.
31st JULY 2023 NUPRC/CSA/UNION/05
PETRINOISSIVAT
2. Non-conducive work environment: Management has secured additional office s p a c e in Abuja. In line with policy a n d the pricing of the rent, the Ministry of Housing and the Bureau of Public Procurement (BPP) are scheduled to complete the due process for procurement.
a) Port Harcourt office: Following the exit of the staff and management of the NNPC Limited, the Commission has taken necessary steps to cover the normal services rendered by NNPCL as well as settle all utility bills in ful.
All office utility bills have been duly paid, and management has approved the purchase a 350 kVA generator as replacement for the 1000KVA generator due to the consumption levels. In the interim, the procurement unit si completing due process for providing diesel in the Port Harcourt office underground dump.
Lagos office: Management has taken steps to address the water supply issue by engaging a water supply company to drill a new water borehole. As a stop-gap measure, alternative water supply is provided daily to ensure the smooth running of the office.
3. Insufficient Working tools: The Union is aware that all laptops and working tools are procured from accredited agents of Original Equipment Manufacturer (OEM) as a matter of policy. Accordingly, all electronic devices, automobiles, and machinery are procured directly from OEMs following the due process under
the Procurement Act 2007.
Against the foregoing, all staff laptops are ordered under a Service Level Agreement with OEMS. The laptops are manufactured to the specification with a lead period of six (6) weeks and maintained by the OEM.
During 2023, Management has successfully procured two (2) batches of laptops for staff. The laptops have been allocated to staff based on the priority list. The Union is advised to refer to appendix 2 to this letter for the list of both unionised and non-unionised staff members who been allocated their working tools. The second batch of laptops is in process of being allocated.
Management’s preference is to procure laptops based on a prioritised list of staff due to capital and cash flow realities following a change-out process rather than en-masse as canvassed by Union
4. Medicals: The Union si invited to recall the policy of management to provide HMO to all staff against the existing practice of pay-as-you-go. The Commission completed a selection process of a suitable service provided through a committee with sufficient representation by the in-house Unions.
The Commission took a shift in approach to implementing the HMO programme following the requirements for compliance with the official gazette of the National Health Insurance Authority Act (NHIA) 2022 and the financial implications.
Accordingly, the Commission continued with the existing arrangements where staff members have access to accredited hospitals and bills are settled subsequently. All staff members are aware that once staff and their wards are issued referrals from the medical team, they have access to approved medical facilities. In emergency circumstances, staff IDs are sufficient to gain access to treatment.
Full and comprehensive medical care inclusive of approved overseas treatment where required is provided to all staff. Al medical expenses are scheduled for payment and are undergoing processing.
5. Outstanding upfront allowances: Following the mop-up of unspent balances of funds as of 31st December 2022 by the CBN as required by law, the NUPRC commenced the fiscal year 2023 with a funding deficit of about N2.7b against zero allocation as of January 2023. The attached analysis (appendix 3) of the funds and expenditure from January to June clearly shows the inflow and outflow trend of financial operations of the Commission.
The Union is invited to recall that despite the financial deficit, management engagement with the in-house Unions and their awareness of the financial circumstances, the Union continued to mount significant pressure on management for the immediate settlement of all staff upfront obligations despite the lack of the needed funds.
Against this background, Management began a build-up cash from the monthly Cost of Revenue Collection (CORC) which averaged about N3Billion (after salary payments) from February to April.
Despite the build- up, the cash flow was unable to service the gross staff upfront (inclusive of Cooperatives, Pensions and Medicals) after deducting overheads.
Consequently, a decision was taken to pay staff entitlements in batches net of deductions. This enabled full coverage of staff whereas all other deductions were scheduled to be set-off in the subsequent months.
As of June allocation, the Commission has paid a total of one billion, five hundred and eighty million, eight hundred and fifty-nine thousand, ninety-eight naira only. N1,580,859,098 of the upfront cooperative deductions. Whereas the outstanding amounts are undergoing processing for settlement in August 2023.
6. Outstanding staff claims: All staff claims are undergoing processing in line with the cash flows of the Commission. All staff claims as of 31 July 2023 have been scheduled for immediate payment on the Remita platform. The staff accounts will be credited as fulfilled on the platform.
7. Unpaid staff on-call allowances: You may recall the guidelines and procedures for on-call allowances as well as the cadre of staff qualified for on-call allowances in line with the subsisting staff policy (refer to appendix 4). The Union may also recall that on-call allowances are processed with salary monthly. It is therefore surprising to note that the Union claims that staff have not been paid on-call allowances in line with the policy.
The Union may note that all on-call allowances as of 31 July 2023 have been paid fully in line with the staff policy. The Union is invited to refer to the Appendix 5 to this letter with list of staff who have been duly paid their on-call allowances. Accordingly, the claim is unfounded.
8. Non – payment of outsourced personnel: Following improvements in our procurement procedures, the Commission required the outsourced service providers to provide documentation in compliance with the procurement Act for renewals.
Significant progress has been made in ensuring compliance and all outsourced services providers invoices are undergoing payment processing.
9. Notwithstanding the foregoing, Management invites the Union to take note on the existing industrial relations protocol for any planned or immediate strike action. A grievance notice is expected to be sent o management with a notice period of seven (7) days prior to any planned action. The Union is also invited to note that there is an on-going intervention by the National Union of PENGASSAN which is yet to be closed.
Consequently, management considers the planned strike action as an ambush against management and circumvention of the due grievance process established for employee relations.
Management has endeavoured to create a productive workforce focused on performance and has encouraged an atmosphere of industrial harmony. We anticipate that the Union will consider reason over disharmony a n d maintain the cordial relationships that have been established by management.
We look forward to a peaceful engagement and closure of all outstanding matters.
The Union executives are hereby invited for a meeting at 9:00am on 1September 2023 for closure of any pending matter.
Please accept management’s best regards
Are. Jide Adeola FCA FICAD
Executive Commissioner Corporate Services and Administration.