DYNAMICS OF INDUSTRIAL RELATIONS AND CAPACITY BUILDING IN NIGERIA’S OIL AND GAS INDUSTRY

1. DYNAMICS OF INDUSTRIAL RELATIONS AND CAPACITY BUILDING IN NIGERIA’S OIL AND GAS INDUSTRY Paper Delivered by: • Comrade Dr. Louis Brown OgbeifunManager, Employee Relations Section of the NNPC at the NNPC Corporate Headquarters • At the Workshop Titled “Global Trends and Emerging Issues in the Nigeria Oil and Gas Industry: Critical Challenges and Prospects from all Stakeholders’ Perspectives” organised by PENGASSAN, Port Harcourt Zone, held at EEMJM Hotel & Suites, Uyo, Akwa– Ibom State, 8th – 10th May, 2013

2. DEFINITION • Industrial Relations: • IR Industrial relations encompasses a set of phenomena • Concerned with determining and regulating employment relationship between management and employees or among employees and their organization that characterize and grow out of employment.

3. OBJECTIVE • To enhance economic status of worker • To avoid industrial conflicts and their consequences • To extend and maintain industrial democracy • To provide an opportunity to the worker to have a say in the management decision making • To regulate production by minimizing conflicts • To provide forum to the workers to solve their problems through mutual negotiations and consultations with management • To encourage and develop trade union in order to develop workers collective strength

4. NATURE OF IR • arise out of employer employee relations • web of rules : formed by the interaction of Govt, industry & labor IR is multi dimensional : influenced by complex set of institutional. economic & technological factors • dynamic and changing : keep pace with employee expectations, trade unions, employer associations and other economic and social institutions of society • characterized by forces of conflict and compromise . Individual differences and disagreements resolved through constructive means. • Govt influences and shapes IR : with its laws, rules, agreements through executive and judicial machinery

5. Scope of IR Very wide as it covers grievances, disciplinary measures ethics, standing orders, collective bargaining, participatory schemes and dispute settlement mechanism etc Interactive and consultative in nature : in resolving conflict, controversies and disputes between labor and management.

6. CONTD’ The major components of the industrial relations system By Dunlop are: • The actors (workers and their organizations, management, and government). • Contextual or environmental factors (labor and product markets, technology, and community or "the locus and distribution of power in the larger society" [from Dunlop's Industrial Relations Systems]). • Processes for determining the terms and conditions of employment (collective bargaining, legislation, judicial processes, and unilateral management decisions, among others).

7. ISSUES • Shift in the host business system • Actors • Management’s approach • Government approach • Union approach • Office holders in the Union and the carrier unionists • Ideologies especially at the shop floor • Industrial culture

8. CONTD’ • Political • Corruption • Legislation • Policies • Environment • Kidnapping • vandalism

9. SOURCES OF NIGERIA’S LABOUR LAWS • NATIONAL CONSTITUTION • Nigerian Constitution guarantees a number of fundamental human rights and these rights are entrenched in our Labour laws. • LABOUR LEGISLATION • COLLECTIVE AGREEMENTS • Procedural Agreements. • Substantive.

10. CONTD’ • The international treaties that impact the most on Nigeria’s Labour laws are the Conventions of The International Labour Organisation, (ILO). • Nigeria is a member of the Organisation and has ratified all eight core ILO Conventions. These include Convention No. 87 on Freedom of Association and Protection of the Right to Organise

11. CONTD’ • ILO Convention No. 98 on the Right to Organise and Collective Bargaining; • Convention 138- Minimum Age Convention; • Convention 111 – Discrimination (Employment and Occupation) Convention. • In fact, many of the provisions of the Labour laws in the Country derive from the ILO conventions ratified by the Government of Nigeria.

12. ACTORS IN IR • The Government • The employer • The employee

13. Government • Establishment • Makes laws according to economic, political or socio-cultural factors. • Favourable environment for the practice of industrial relations in the workplace. • Ensures compliance with international statutes that promote the right of every actor in the workplace and also makes internal laws according to the dictates of.

14. Employer • Corporate entity that employs people to work for it in exchange for a wage. • Organize activities through selected technocrats who are Management experts. • Voice of the owners of the enterprise. • Also staff members

15. CONTD’ • Employee, self-employed, independent contractor, employment relationship, employer-employee relationship, intermediate work categories, dependent contractor, dependency, democratic deficits, subordination etc.

16. HISTORICAL PERSPECTIVES-PRE INDEPENDENCE • 1938: Enactment of Trade Union Ordinance. It guaranteed freedom of association and Trade Union rights. It legalized the formation and unfettered practice of trade unionism. • 1940: Laissez faire Era in trade union practice in Nigeria with about 990 Trade Unions and about 700,000 union membership

17. CONTD' • 1976: Laissez faire continued • Fierce competition and intra union conflicts, which was detrimental to labor-management relations. • 1973: first major step at restructuring what could be said to be a confused industrial relations system.

18. CONTD’ • Act No 22 of 1978 gave recognition to the two trade unions in the Oil and Gas industry. It listed the in-house unions among all other approved trade unions in schedule 3, as numbers 44 and 45 respectively. • 1996: decree No. 4: Trade Union (Amendment) amended the aforementioned decree and restructured the industrial unions to 29.

19. CONTD’ • Unregistered Unions were banned. • Regulations put in place to regulate the terms of formation, registration, rights of members and dissolution of unions. It also set out rules for the formation of Federation of Trade Unions and Central Labor Organizations. • 1976: Trade Union Central Labour Organization (Special) provisions Act no. 44 Enacted

20. CONTD’ • Appointed Mr. Michael Abiodun to do a structural re-organization of the existing structure and form a Central Labour Organization in Nigeria in line with the new Act. • 1978: Government enacted Act No. 22 of 1978 • dissolution of existing unions and created 70 trade union organizations in the country.

21. CONTD’ • These included workers’ unions, senior staff associations and employers’ associations. This Act (then a Decree) also recognized the Nigeria Labour Congress as the only Labour Center. However, section 33 barred many senior staff associations from forming either a labour center or affiliating with Nigeria Labour Congress (NLC).

22. CONTD’ • August 17, 1994 dissolution of NUPENG, PENGASSAN and the NLC by the Government of late General SaniAbacha in response to the Unions’ solidarity on the annulment of the June 12 presidential election. • Appointed sole administrators to manage their affairs of NUPENG. • 1998: General AbdusalamiAbubakar unbanned the Unions

23. CONTD’ • during the Military era, there was greater intervention in Labour Relations by Government. • In 1968, the military promulgated the Trade Disputes (Emergency Provisions) Decree, which banned strikes and lockouts and provided that no employer should increase the salary of any worker without the approval of the military government.

24. CONTD’ • 1973 Wages Board and Industrial Council decree was promulgated to: • Review the salary structure of workers because of the aftermath of the civil war on workers salary and standard of living. • Trade Unions Act was also promulgated in 1973. • Increased the number of members to form unions from 5 to 50(thus repealing the 1938 Ordinance) • Banned workers in essential services from unionising,

25. CONTD’ • 1974- Labour Act no 21 was enacted • Addressed loopholes in the 1929 Labour Code Ordinance. • Prevent exploitation of workers through the introduction of provisions on condition of work, contract of employment, holiday pay and leave allowances, medical facilities etc. • Protection of Wages, Contracts of Employment and terms and conditions of employment. • Procedures for Recruiters

26. CONTD’ • 1976:Trade dispute (enquiry and arbitration) decree was promulgated • Conflict resolution by establishing the Industrial Arbitration Panel and National industrial court(NIC) • 1978:Trade Union (Amendment) Decree introduced check-off dues system • Wages Board Act was promulgated in 1981 • 1986K Trade Union (miscellaneous provision) was introduced and amended in 1989.

27. CONTD’ • 1987: Amendment to both the Factory Act and the Workmen’s compensations Act were amended. • Factories Act: • General and special provisions for the health, safety and welfare of persons working in areas designated as factories • General provisions on HSE. • Report of all accidents and industrial diseases to the nearest inspector of factories for investigation

28. CONTD’ • In 1991, the National Minimum Wage Act was introduced which prescribed a statutory minimum rate of pay to workers. • In 1996 Decrees 4, 24, 26 and 29 were promulgated by the military Government

29. In 2005, the Trade Union ( Amendment) was enacted • Sections12, 16a, 17, 24, 30, 33, 34 and 42 dealt with the principle of voluntarism, payment of check-off dues, collective bargaining representation • Ban on strike or lock-out • Registration of more central labour organisations

30. CONTD’ • Section 2: • voluntary entrance into the unions • No worker shall be victimized for joining the Union • Essential service prohibited • Strike only on disputes of right i.e. Dispute arising from a collective and fundamental breach of contract of employment or collective agreement on the part of the employer, trade union or employer • Ballot with simple majority before strike can take place;

31. CONTD’ • In 2011 the Workmen Compensation Act was amended to become the Employee Compensation Act . • In 2011, the minimum wage Act was amended.

32. FACTORS THAT SHAPE IR • Politics • Economy • Lack of sanctity for Collective Agreements • Social Dialogue system

33. LEGAL FRAMEWORK FOR WORKERS’ RIGHTS • Arise mainly from Federal and state laws. • Policies directives from Federal, States and local authorities. • Company policies and rules: • Guide and moderate workplace operations • Guide and moderate relationships towards accomplishing corporate goals and objectives. • Govern employer-employee/workplace relationship. • Mutually established agreements: • Industrial bi-partite and tri-partite engagements

34. CONTD’ • Collective Bargaining Agreement • Communiqués signed at the industrial bi-partite or tripartite level(s) • Court Rulings & Judicial Precedence on decided matters • Corporate Policies & Procedures Guidelines • Bilateral & Multilateral Agreements & Protocols • Adapted Best Practices

35. CONTD’ • African Charter on Human and People’s Rights • Constitution of the Federal Republic of Nigeria • Laws of the Federation of Nigeria e.g. Occupational Safety & Health Laws, Workmen Compensation Laws, Labour Relations Laws. Trade Unions Laws, Pension Law, Petroleum Industry Laws, Nigeria Content Development Law, NCD act 2010 etc • Conventions of the International Labour Organization

36. CONTD’ Workers Representatives: Recommendation, 1971 (No. 143) Article 1 • shall enjoy effective against any act prejudicial to them, including dismissal, based on their status or activities as a workers' representative or on union membership or participation in union activities NUGGETS • Representatives are protected if only they act: • in conformity with existing laws or • collective agreements or other jointly agreed a

37. CONTD’ • Article 2 Management shall afford to workers‘ representatives; facilities as may be appropriate in order to enable them to carry out their functions promptly and efficiently • NUGGETS account shall be taken of the characteristics of: • the industrial relations system of the country and the needs, size and capabilities of the undertaking concerned. • The granting of such facilities shall not impair the efficient operation of the undertaking concerned.

38. CONTD’ The Right of Association (Non-Metropolitan Territories) Convention, 1947 Collective Bargaining • The rights of employers and employed alike to associate for all lawful purposes shall be guaranteed by appropriate measures. • Article 3 All practicable measures shall be taken to assure to trade unions which are representative of the workers concerned the right to conclude collective agreements with employers or employers' organizations.

39. CONTD’ • Article 4 All practicable measures shall be taken to consult and associate the representatives of organizations of employers and workers in the Establishment and working of arrangements for the protection of workers and the application of labour legislation. • Article 6 Employers and workers shall be encouraged to avoid disputes, and if they arise to reach fair settlements by means of conciliation.

40. CAPACITY BUILDING • Organizations define capacity building in their own ways. • Engagement of consultants • Individual level • conditions that allow individual participants to build and enhance existing knowledge and skills. • conditions that will allow individuals to engage in the "process of learning and adapting to change. • Institutional level • Part time and career unionists • Effective methods of management and revenue control

41. Kaplan’s view “NGOs who focus on developing a conceptual framework, an organizational attitude, vision and strategy are more adept at being self-reflective and critical, acquiring skills and resources that enable more effective capacity building”.

42. Strategy • Identify which are the main issues that affect workers rights in Nigeria and explore ways to overcome them • Understand basic Trade Union rights, such as “freedom of association” to establish trade union organizations, and “collective bargaining” as the means to reach an agreement on working conditions between workers and employers • Assess capacity needs • Formulate a capacity development response

43. Gain more knowledge about why trade unions have been formed, their roles and how they function • Get familiarised with the extant Labour laws and provisions and compare them with core labour standards enshrined in the ILO Declaration on Fundamental Principles and Rights at Work • Engage stakeholders on capacity development • Encourage internal and external customers

44. Conclusion • UNDP: • assessments often find that institutions are inefficient because of bad or weak policies, procedures, resource management, organization, leadership, frameworks, and communication. • Leadership by either an individual or an organization can catalyze the achievement of development objectives. Strong leadership allows for easier adaption to changes, strong leaders can also influence people. • coaching and mentoring programmers to help encourage the development of leadership skills such as, priority setting, communication and strategic planning.

45. Knowledge – The UNDP believes knowledge is the foundation of capacity. They believe greater investments should be made in establishing strong education systems and opportunities for continued learning and the development of professional skills. • Accountability – the implementation of accountability measures facilitates better performance and efficiency. A lack of accountability measures in institutions allows for the proliferation of corruption.