Guardian

Pitfalls in 2012 policy thrust

IT’S a year labour leaders and indeed all Nigerians would not forget in a hurry. The year 2012 was characterised by surprises and alleged inadequate policy thrust.

Right from the beginning of the year, January 1, 2012, the entire country was thrown into labour crisis following the announcement by President Goodluck Jonathan of full deregulation of the petroleum sector.

The development immediately paved way for petroleum marketers to increase the price of Premium Motor Spirit (PMS) also identified as petrol from N65 to between N137 and N141.

Organised labour led by the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) of Nigeria and its affiliate members reacted by mobilising members to the street in a showdown with the Federal Government.

The policy was subsequently shelved and petrol price reduced to N97 coupled with Federal Government pledging to ameliorate the economic burden of Nigerians through various incentives.

However, President of TUC, Peter Esele, while reviewing labour activities in 2012 in an interview with The Guardian at the weekend, scored the Federal Government 45 per cent in its response to labour matters in the out- gone year.

He also used the opportunity to advise the Federal Government to be more responsive to labour issues this year (2013).

According to him, government failed in most of its promises such as job creation and policy thrusts.

Specifically he noted that though government formulated the minimum wage policy but it on the other hand introduced other policies such as the new electricity tariff to further pauperise workers.

He said, “2012 is a year no one can forget in this country because it was the year the government choose to give its citizens a new year present in the form of petroleum product price increase.

“This singular act was not really good for the polity and thankful enough government redressed its stance by reducing the initial price to N97, which we buy a litre today.

“Government in 2012 also introduced some policies that made its increment of the minimum wage a mere show. We don’t have a good transportation system and workers end up spending nearly all they earn for basic needs of life.

“Government should look at the option of putting a systematic transportation scheme on ground. Let them take a cue from Europe and America where transportation is heavily subsidised by government,” Esele added.

In 2013, he urged government to fine tune its policies to suit the good of the citizens.
Besides, he urged government to as a matter of importance review the abuse of expertriate quota by foreigners.
He alleged that the immigration service was not doing enough to check the excesses of foreigners in the country.
According to him, many foreigners are doing lots of works meant for Nigerians without the required papers.

To the Nigerian Labour Congress NLC, year 2012 was characterised by government shenanigans, which almost brought the country to a halt on January 1, 2012.

Speaking on behalf of the congress, its General Secretary and Assistant General Secretary, Chris Uyot and Denja Yakub both criticised government handling of workers related issues in the out gone year, especially the handling of the minimum wage issue, which according to them is still not honoured by some state government.

Specifically, they said since the minimum wage agreement was an act passed into law by the Federal Government, it ought to be binding on all government apparatus and states.

Citing the more than seven months long crisis in the Plateau on the minimum wage agreement, NLC said it would forthwith be directly in charge of workers welfare negotiation at the local government level, which hitherto was the sole responsibility of its state officials.

They equally picked holes in the handling of the subsidy scandal and urged government to as a matter of importance bring the erring actors to book irrespective of their status in the society.
Besides, they tasked the government on handling of security challenges that characterised the out gone year, urging it to put stiffer measures in place to tackle the menace.

“For labour year 2012 started on a very bad note, we were greeted on january 1st with an unprecedented increase in fuel prices. The was done when the leadership of the Trade Union Congress (TUC) and the Nigeria Labour Congress (NLC) had met with the president where they were assured that the ministers would met with them before any decision would be taken.

“But, the president choose to toll the line of abrupt increment without consultation from the labour bodies, this however shows that government doesn’t respect collective dialogue.

“Though the fuel issue was kind of resolved, we closed the year with the minimum wage crisis in Plateau State, which was on for more than six months. Respite only came before Christmas when the state government grudgingly agreed to pay 50 per cent of the agreed minimum wage.

“We expected that the federal government would wade in before the issue escalated but it didn’t. We believe the ministry of labour should fine-tune its strategy for resolving labour crisis in the country.

“As mediator, Ministry of Labour should not take sides with government as it usually does. It should be able to stand on its own if its role as a mediator is to yield the necessary results. It should be more proactive in its quest to resolve labour issues in the country,” Uyot said.

For 2013, the NLC urged President Jonathan administration to tackle economic issues, ranging   from creation of jobs to eradicating corruption.
Specifically, it urged government to put in place a concrete industrialisation policy aimed at reviving industries in the country.

According to the congress, an industrialised country would have enough jobs for its youth and workforce thus improving the economic status of such a country.
They also urged government to put in place adequate measures to eradicate corruption in all facet of Nigerian lives.

“We are scandalised that while government beats its chest that the growth of the economy at seven per cent is good, we are however worried about the state of unemployment and joblessness in the country.
Nigeria as at today has no industrialisation policy that can create or save jobs.

“There is need for government to take serious stance on the issue of unemployment in the country. Companies are folding up day in day out and jobs are being lost on a daily basis. What we are witnessing in Nigeria today is de-industrialiastion, government should put on its thinking cap on how to re-industrialise Nigeria.

“The issue of corruption is unprecedented today in Nigeria that we wonder whether there are proper regulations in place to tackle the menace. It has become a way of life and has eaten deep into the core of our existence as a country.

“A point in question is the scam in the petroleum industry. Its quite scandalous that government agencies and captains of industries were involved in the scam.
The only way to put an end to this problem is if all those found culpable on corrupt practices are tried and brought to book through sentences.

“Government should also in 2013 look into grass root development by mandating state government to develop manpower at the grass root level, this we believe would contribute to creation of more jobs in the country.

“Besides, government most equally as a matter of importance check the excesses of employers of labour in the country, most of whom engages in anti labour practices”, NLC said.

Meanwhile, what made 2012 protest unique and radically different from other protests against fuel price increase was its leadership and execution structure. Whereas, the labour movement led most protests before the January 2012 with its civil society allies, these protests were led by the opposition political parties and supported by the civil society groups.

Also against the popular choice of seat of power in Abuja as the rally point, this round, it was Lagos, the commercial nerve centre of the country, which served as the Launch pad of the struggle.

The convergence venue was the Freedom Square at Ojota where protesters were united in calling for the immediate reversal of the pump price to N65 per litre from the N137 per litre.

Shortly before the withdrawal of subsidy by the Federal Government on January 1, 2012, the NLC had in its traditional New Year message, accused the Bretton Wood Institutions for promoting deregulation and subsidy of essential services in the developing countries.

The NLC argued that such step would not only retard development, but also will increase the population of the unemployed and further push more Nigerians into the dreaded poverty community.

Speaking via a statement issued to commemorate the New Year, Congress President, Abdulwahed Omar, said, “the unfolding tragedy in our country today is that years after the world had discarded these ruinous policies and programmes of the World Bank and International Monetary Fund (IMF), the Jonathan administration decided to embrace them as its abiding religion to the extent of employing and relying on their priests to run the entire economy.”

He added, “this is the fact behind the cuts in social spending, deliberate currency devaluation, deregulation, privatisation and attempts to astronomically increase electricity tariff and withdraw oil subsidy. It is this uncritical and subservient acceptance of the worn out World Bank and IMF policies that is responsible for the on- going divorce of the Jonathan administration from the Nigerian people, and that has created the yawning gap with the populace which had largely supported the administration’s emergence.”

The statement entitled: ‘Role Up Your Sleeves In 2012,’ which signifies the hard road that lies ahead in 2012, the umbrella body of Nigerian workers described the previous year as one that witnessed unprecedented hyper-inflation, job losses, insecurity, growing government intolerance and deepening poverty.

Expectedly, the anticipated removal of fuel subsidy by government featured prominently in the statement as Congress reiterated its opposition to the move.

Congress expressed worry about huge sums of money that was expended on fuel removal project saying the country is losing enormous resources in the campaign.

It added, “also, while government claims to be ‘consulting’ on the fuel subsidy removal, its commissioners of Police in a number of states are boasting that they are armed and battle ready to smash Nigerians who may publicly protest their feelings against the removal.”

While respecting the right of government to hold consultation with sections of Nigerians with a view to convincing them to endorse deregulation of the downstream sector, Congress challenged government to hold a referendum on the issue.

“Since the concept of “consultations” is nebulous, and there are no objective criteria to determine its outcome, the NLC challenges the government to conduct a referendum on the issue to determine the WILL of the Nigerian people. If it does not, but rather elects to impose its will on the citizenry, the Nigerian people have the fundamental right to resist. Since the fuel subsidy removal is a war foretold, Nigerians must begin preparations to meet this challenge in the New Year.

The NLC is working with other mass organisations in the country including professional bodies, pro-people civil society organisations, market associations and other sections of the populace to organise a peaceful and orderly resistance including rallies, strikes and mass protests. Congress asks the populace to support and attend the mass meetings, rallies and sensitisation campaigns which are on-going,” it said.

One year after the NLC called for referendum over fuel subsidy withdrawal and the alleged monumental fraud the exercise has generated, government has not considered subjecting subsidy withdrawal to popular participation.

The twin decisions of planning its next action and its avowed opposition to the removal of fuel subsidy did not encourage the Federal Government to open a line of dialogue with the movement.

The NLC also insisted that smuggling and false monetary claims for imported fuel coupled with the non refurbishing and building of new refineries are some of the inefficiencies driving up the prices and that government ought to have checkmated these excesses but rather choose to pass its inefficiency as a burden to ordinary Nigerians.

Labour argued that a reversal to N65 per litre would help douse tension that has enveloped the country since the policy was announced.

It added, “we decided to make a plea to President Goodluck Jonathan in the overriding interest of the country to suspend the PMS (petrol) price increases and direct that talks between government and Labour be concluded on the petroleum industry especially at it affects fuel subsidy and pricing within a short time frame.”

It argued that a return to the status quo of N65 would allow for a conducive atmosphere for consultations and talks.

Labour blamed the slow progress in the negotiation process on government intransigence in its preference for price reduction instead of phase price increase. Not wanting to be seen as rigid in its position, labour was quick to add that it shall honor future government invitation to dialogue on the matter.

The labour movement said its sole objective for organising the protests is solely for petrol price reversal and not campaigning for regime change.

“The labour movement is wedded to democracy, therefore, anybody or group that wants a change in the political leadership of the country at whatever level, should do so through the ballot box,” it stated.

Labour stressed that while it is saddened by the loss of lives in the course of the protests, it again vowed to continue the strike and the protests to show its commitment to the popular clamour of Nigerians.

Also, NLC threatened to drag the Federal Government to court over the establishment of the Subsidy Reinvestment an Empowerment Programme (SURE-P).      In a statement in Abuja by the President of NLC,  Abdulwahed Omar, the  congress said it will  be seeking an interpretation as to whether any committee has the powers to spend public funds without appropriation by the National Assembly.

This came as the Congress labeled the establishment of the Justice Alfa Belgore committee to dialogue with labour as an after-thought.

The statement read in part: “On the Christopher Kolade Committee on the so-called Subsidy Reinvestment and Empowerment Programme, Labour is seeking legal opinion as to the constitutionality of spending public funds without appropriation by the National Assembly. The retired Chief Justice of the Federation, Justice Belgore purportedly to dialogue with Labour, we also think is an afterthought and meant to give Nigerians the impression that the government wants to consult Nigerians.”

It also posited the presidency lied to the country by asserting that labour supported the removal of subsidy saying, “First, the Presidency had invited Labour to a follow-up discussion on the issue of fuel subsidy removal only for it to abort the process by removing the subsidy.

“Secondly, it announced to Nigerians that it was consulting them on the issue only for it to announce new PMS prices.

“Thirdly, the government announced that even if the subsidy is to be removed, it will be from April 1, 2012 only for it to carry out same on January 1, 2012.”

It also refuted the notion held by government that labour was in support of the move saying labour was never party to the removal of subsidy.

“His (Dr. Ruben Abati) claim that Labour was consulted and had given support to whatever government does on the issue of removal of subsidy is a blatant lie. In the first place, the leadership of the Labour Movement had held only one meeting with the Federal Government on the issue of oil subsidy. This was on Tuesday, December 20, 2011 and that meeting was not conclusive, as it was agreed that a follow-up meeting would be called by the Presidency.

“Secondly, the outcome of that meeting was immediately made public through a press statement, and up till now, the Presidency has not disputed its content.

“At the meeting, the Labour Movement had noted that it was not only impossible for the Federal Government to implement a fifth of the projects outlined in the Subsidy Re-investment and Empowerment Programme (SURE), but that the presentation by the Presidency on the issue of oil subsidy was simply a repetition of the presentations made by the Babangida and Abacha regimes and the Obasanjo administration, and that none of those promises were kept.”

Esele had explained on his way to Lagos from Port Harcourt for the meeting of TUC Central Working Committee (CWC) that a definite date for the commencement of labour protests would be taken at the Lagos parley.

Omar also confirmed the development saying, “tomorrow, Wednesday January 4, 2012, the NLC and TUC will issue a clear directive on the date coordinated nationwide general strikes, mass rallies and street protests will commence, and the methodology of the protests.”

The National Executive Council arm of the NLC was also scheduled to meet same day in Abuja.

By this time, government has moved to open the line of dialogue with labour, but labour rebuffed any overtures from government.

The appointment of former labour chief as a member of the Federal Government team that will negotiate with labour was also seen as threatening the once-vibrant and united movement.

A source told The Guardian, “there is no way labour can just declare strike in its present situation. The appointment of a former labour leader as member of the team that will negotiate with labour on fuel removal will no doubt weaken the position of labour in the negotiation processes. Even as we speak, I expect that contacts are on-going between government agents and labour leaders.”

The source also faulted non-declaration of strike and mass protests spearheaded by labour immediately the fuel subsidy was announced on Sunday, January 1.

In the midst of labour planning for protests and civil society backed by the opposition parties, the Minister of Labour and Productivity, Emeka Wogu urged Nigerians not to destroy lives and property as they carry out their protests against the removal of fuel subsidy.

Wogu was quoted in a statement issued by the Ministry of Labour and Productivity as saying, “I appeal to labour union and reassure them that the discussion that has taken place in the past between labour and government is still ongoing. What is important at this stage is for labour to continue dialogue with government on the implementation of the deregulation in the downstream of the oil and gas sector.

“Labour should avail themselves with the opportunity to further discuss on area of fine-tuning the benefit that will accrue to Nigerian workers among which are affordable transportation system, job creation among other areas.”

After holding the meetings, the NEC of both the NLC and TUC mandated their leaderships to relay their resolve to President Goodluck Jonathan.

Both labour centres held their NEC meeting at different locations in Abuja and arrived at the same position that the Federal Government must reversed to N65 per litre first before any negotiation can take place.

The NLC meeting, which started around 1pm was held at the Labour House, Abuja while the TUC, which began its meeting earlier held its own NEC meeting at Chida Hotel.

NLC through Comrade Chris Uyot, explained,  “as you are aware, the meeting of the NLC has just been concluded and the position of NLC NEC will be harmonised with that of TUC. We have set up a committee to harmonise the two positions of both organisations.

“After we harmonised the positions of both organisations, we will now have a formal position. We are going to harmonise tour positions because this struggle is being carried out by the NLC and TUC, so until we harmonised our positions we cannot come out with informal position. No, we cannot tell our position now until we meet with TUC. After we harmonised our position, we will have a meeting with the government.”

However Mr. Jaye Gaskiya, the national convener of United Action for Democracy (UAD), who spoke on behalf of the Civil Society Organisations (CSOs) explained that the civil society’s position is that the Federal Government should suspend the subsidy removal pending the conclusion of negotiations and investigations into the alleged corruption that permeates the N1.3 trillion subsidy in the 2011 Appropriation Act.

He said, “that would be tantamount to putting the horse before the cart and putting the horse before the cart means addressing all the issues in the sector before talking about price.

“Our position remains, let us suspend the implementation of the new price regime. Revert to N65 and let us start discussing all of those issues that are involved in terms of what is the nature of the subsidy, the amount of daily consumption and the status of the refineries because these are the roots of the problems,” he said.

Also, the Executive Director, African Centre for Leadership, Strategy and Development, Mr. Otive Igbuzor, who expressed support for the shut-down of the offshore production by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), noted that the union has exercise enough restraints to carry out its threat.

Igbuzor expressed concern over the high cost of living following the commencement of the removal of fuel subsidy and noted that workers cannot afford the cost of transportation, as well as, the effect of the policy on other sectors of the economy.

He said, “the labour and civil society have been consistent in their demand, which is to revert to N65 per litre by doing the first thing first. By the admission of government through the president, Central Bank of Nigeria (CBN) governor and minister of Finance, who have consistently explained that there is corruption in the subsidy regime and from our own observation, the movement from about N300 billion to N1.3 trillion, it is clear to us that things are not normal.”

Respite finally came on the January 16, 2012 when the Petroleum Products Pricing Regulatory Agency (PPPRA) directed petrol marketers to comply with the new price regime of N97 per lire after the Federal Government unilaterally reduced the pump price from N141 to N97 per litre without any kind of negotiation with the labour movement.

Indeed, it marked the first time in history that both the NLC and TUC failed to have any meaningful negotiations with the government over the price of petrol.

The non-complete reversal was a bitter pill that Nigerians were forced to swallow by the labour movement.

A issued by the PPPRA explained that the step follows extensive consultation with stakeholders, including the leadership of the National Assembly, the Governors’ Forum, and Organised Labour groups.

The statement added that by the announcement, the price of petrol at all retail stations is now N97 per litre.

The PPPRA urged all suppliers to honour their fourth quarter of 2011 supplies so that the nation does not go into supply shock.

It stressed that machinery has already been put in place to ensure that products supplied are fully accounted for and appropriate subsidy worked out for such deliveries.

It said, “consumers are by this statement, assured of adequate supply, barring any supply disruption witnessed in the past one week. The PPPRA in conjunction with the Department of Petroleum Resources (DPR) will ensure that marketers revert to the new price, and consumers are not taken advantage of in any form or in any way.”

After the announcement, a source, who spoke on condition of anonymity said, “what have we achieved? All was lost to the civil society groups who dictated the character of the protests. The National Executive Council (NEC) of the two labour centres rejected the N65 without offering another option. The result is that we did not have anything to negotiate with government. We could not even demand anything. This is unprecedented in the history of protests and strikes in this country.

“During Obasanjo’s regime, we had eight strikes and we negotiated and got tangible things for the people. What did this leadership get for the working people of this country? It is easy to call people names but for them to do it now, they have failed woefully.”

The source also queried what labour can achieve in the Justice Alfa Belgore’s Committee saying, “I don’t know what they want to achieve in the Belgore’s committee where they obviously belong to the minority. We have lost out totally. We could have negotiated things that should happen whenever deregulation policy takes effect finally. But, as it is, nobody is bothered about that. Can labour claim victory in this struggle? Why are people still on the streets calling labour leaders names and insisting the right thing be done? This is simply because labour was never in control of the protest from the beginning.”

Speaking at a joint press conference, Omar and Esele explained that labour suspend the strike not because it endorsed the N97 per litre of petrol but in consideration of the prevailing security circumstances in the country.

While paying tribute to the doggedness of Nigerians who stood firm against petrol increase, labour said the strike period indicated that Nigerians can no longer be taken for granted by the ruling class and indeed that sovereignty resides in the people.

The statement which was read by Omar stated in part: “In the last twenty four hours, the Labour Movement and its allies, who had the historic responsibility of coordinating these mass actions have had cause to review the various actions and decided that in order to save lives and in the interest of national survival, these mass actions be suspended.

“With the experiences of the past eight days, we are sure that no government or institution will take Nigerians for granted again. In view of the foregoing, Labour and its allies formally announce the suspension of strikes, mass rallies and protests across the country. We demand the release of all those detained in the course of the strikes, rallies and street protests.”

Labour credited the reversal of petrol price from N141 to N97 to the collective triumph of the people who forced government to retrace its series of protests.

“First, the Federal Government that chorused continuously that its decision to increase petrol (PMS) price to N141 is irreversible and irreducible was forced to announce a price reduction to N97. We however state categorically that this new price was a unilateral one by the government.

“Secondly, government has been made to adopt the policy to drastically reduce the cost of governance. A third major success Nigerians recorded is to get the Federal Government to decisively move against the massive and crippling corruption in the oil sector.

“While until now government has seemed helpless to tackle corruption, the mass action of the people has compelled it to address accountability issues in the sector.

“In this wise, President Goodluck Jonathan has told the nation that the forensic audit report on the Nigeria National Petroleum Corporation (NNPC) will be studied and proven acts of corruption will be sanctioned.”

The movement also said the people’s force influenced the renewed accelerated vigour of President Goodluck Jonathan to order accountability in the oil sector including dedication to ensure speedy passage of the Petroleum Industry Bill (PIB).

In a related development, the NEC of TUC has urged the Federal Government to improve ‘without further delay’ the poor states of road network across the country in 2013.

At the end of its NEC meeting held in Lagos, recently, TUC said members frowns at the state of roads, “despite the huge funds being expended on same.”

TUC also condemns the growing rate of kidnapping, bombings and robbery attacks on banks, workers and citizens, adding that the government should intensify its effort in arresting the menace.

A communiqué issued at the end of the meeting commended the Federal Government on the recently concluded negotiation with the Power Holding Company of Nigeria (PHCN).

The communiqué signed by Esele and Acting Secretary-General, Musa Lawal respectively said, “the NEC-in-Session therefore implores the Federal Government to implement fully the terms of the agreement and deliver to the citizenry the promise of 24 hours uninterrupted electricity power supply to the nation”.

It added, “the NEC-in-Session frowns at the current version of the National Health Bill which does not accommodate the interest of many Nigerians. We therefore demand an invitation to a Public Hearing for our input in making the bill a better gift to Nigerians.

“The NEC–in-Session endorses fully, the current industrial action in Plateau State in the struggle for workers emancipation due to non-compliance with minimum wage Act.

“The NEC-in-Session also condemns the religious coloration being introduced by some religious bodies in the investigation being carried out by the military in the bombing of the military barracks in Jaji by suspected fundamentalists.

“The military should be allowed to carry out both its internal and external statutory investigations so that the issues can be properly addressed in the collective interest of Nigerians.

“The NEC-in-Session endorses the retirement of its Secretary General, Comrade John Kolawole. He is replaced by Barrister Musa Lawal, the deputy secretary general in acting capacity.”