Palpable fear has gripped workers of the Nigeria Liquefied Natural Gas Limited, NLNG following indications that the gas company has commenced a restructuring process that may see no fewer than 120 of them losing their jobs.
The restructuring initiative, aptly tagged ‘realignment to win’, may see 10 per cent of the NLNG’s workforce of about 1,200 in Bonny and Port Harcourt in Rivers State and Abuja in the labour market soon.
NLNG is a joint gas initiative of the Nigerian National Petroleum Corporation and oil giants – Shell, Total and Eni – which began formal operations in 1999.
Inside sources hinted that tension had continued to rise among the workers as “none of us is unsure who could be affected by this exercise.”
Though the company did not indicate that it indended to sack workers by asking them to reapply, the employees alleged that the purpose of the restructuring was to sack over 100 of them.
The source said in March, all the staff members, including management staff, were directed to reapply for their jobs after about 40 workers took advantage of the voluntary retirement package of the company to leave in January.
“We were also instructed to indicate three places we would like to work in the organisation. But the management may decide not to place such workers in the new position,” said another source.
“You can imagine the struggle and power play that have ensued among staff. Nobody is working anymore; the workers have become jittery as no one is sure who is going to be affected by the restructuring. They have also become suspicious of one another; no one knows who is gunning for your position.”
The source explained that the Tony Attah-led organisation began a “systematic downsizing” in 2018, when the staff strength of the company was about 1,300.
A copy of the memo sent by the General Manager, Human Resources Division, NLNG, Mrs. Eucharia Ezeani, directing the staff members to reapply for their jobs, said the response of the workers must be filed latest on Tuesday, March 19, 2019.
With the heading ‘NLNG Organisational Restructuring – Position of Preference’, Ezeani said in the memo, “As previously discussed at the recent engagements with staff and the business, employees sustained performance and value index and business needs will be the primary consideration for placement decisions.
“As such, it is very important to note that selection of a position or positions does not mean automatic placement in any of the positions selected. However, where employees selected positions of preference match with business needs, such staff could be placed in one of such positions.
“The position of preference portal is open to staff only once; that is to say once you have submitted your selections, you cannot go back to change them.”
One of the staff members, who spoke to SUNDAY PUNCH, wondered why NLNG would forge ahead with a plan to reduce its workforce when the gas company “remains one of the most profitable companies in Africa.”
He added, “It is indefensible on all parameters. How do you justify the sacking of workers in a company that made a profit of over $2bn in 2018? It could be justified if the company is in distress, but this is not so.
“It is just a ploy to throw over 100 people into the labour market when the nation’s economy is in such a parlous situation. And these are direct workers, not those seconded from the joint venture partners.
“Our only hope now is to appeal to President Muhammadu Buhari, the Senate and other well-meaning Nigerians to prevail on the leadership of the NLNG from going ahead with such atrocious policy.”
Another source claimed that the panel, saddled with the task of restructuring the workforce, commenced sitting last week.
“The panel will continue its work after the holidays while the board meeting will hold next (this) week. The board, headed by the NNPC Group Managing Director, Dr. Maikanti Baru, will only ratify; it’s not part of the decision-making process, and Baru doesn’t even attend the meetings any way; he only sends a representative who is a close pal of our Managing Director, Mr. Tony Attah.
“Those behind this are only interested in another promotion from Shell. They would be seen as having recorded a great feat by reducing the workforce,” the source added.
One of the sources alleged that the company’s branch of the Petroleum and Natural Gas Senior Staff Association had been compromised, making it difficult for the union to kick against the ongoing policy
The source stated, “The local union has not raised a voice against what is going on here. If such move has not been reported to the national body, how will it intervene to stop the plan to sack workers, who may be kicked out unceremoniously soon?”
When contacted, the Manager, Corporate Communications and Public Affairs, Nigeria LNG Limited, Mr Andy Odeh, denied that the firm was planning to sack its workers.
Odeh said the company recently launched a transformation journey in readiness for growth in the emerging energy transition and changing global energy market, with clear objectives to reposition the company in the top quartile of global LNG companies by 2019.
He said, “As part of the journey, the organisational structure has been realigned to enable the company to build a solid foundation for its future with a more robust talent and staffing strategy.
“This is not the first time the NLNG is embarking on a change and so does not plan to sack its staff. However, it is constantly evolving to retain its world-class status and competitiveness, as part of efforts to help build a better Nigeria.”
In its report for 2018, NLNG had a turnover of $6.9bn, which industry source said was 30 per cent above its projection for the year. It also had a profit after tax of $2.2bn, from where it paid dividends of $2.051bn.