No. 303, Nov. 4 - 10, 2004

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Nigerian unions declare indefinite strike, threaten oil exports

 





Nigerian unions declare indefinite strike, threaten oil exports

Compiled by Finn Finneran

Nov. 3 (AGR) — Nigeria’s main trade union has said it will hold a second general strike in protest at fuel rises, warning it would specifically target oil production.

The umbrella union body Nigeria Labor Congress (NLC) confirmed the action would start on Nov. 16.

Oil giant Royal Dutch/Shell Group opened a court action Nov. 1 to try to block a strike targeting oil exports in Nigeria, but failed in a first-round bid to block wildcat strikes or other union action in the meantime.

Federal Justice Abdullahi Mustapha in the commercial capital, Lagos, held only a brief hearing Nov. 1 on Shell’s attempt to block the strike, postponing the case until Nov. 18. Judges also postponed to Nov. 18 a similar case against the blue-collar National Union of Petroleum and Natural Gas Workers of Nigeria.

Union leaders accused the Anglo-Dutch oil giant Shell of being the “enemy of the Nigerian people” and called for action against the firm.

Shell accounts for about half of the daily exports of 2.5 million barrels.

The NLC’s last general strike from Oct. 11-14 shut down banks, businesses, shops and public services, but did not affect oil exports.

“All the oil workers will be involved in the strike. Last time there was no disruption of the upstream oil sector. Now the only way for the government to listen is to interrupt the oil flow,” said Adams Oshiomhole, a leader of the NLC.

Because oil exports account for more than 95 percent of Nigeria’s foreign revenue and Nigeria is the world’s seventh biggest oil producer, and the fifth most important supplier in the US, the country’s ongoing labor unrest is inevitably cause for concern in the oil sector.

Nigerian unions are protesting September’s 23 percent increases in fuel prices domestically.

On Oct. 29 the Nigerian government introduced a number of grants and tax reductions to help offset the recent 23 percent rise in fuel prices.

But the measures did not include the lowering of prices at the pump.

Labor has demanded that President Olusegun Obasanjo reintroduce fuel subsidies in order to cut the pump price of gas and diesel back to its level on Sept. 23, when it jumped to 55 naira (about 40 cents).

Obasanjo has tried to limit the NLC’s powers by obtaining a court ruling that it should not strike over matters unrelated to work conditions. He also tabled a new union law to abolish the NLC’s monopoly status and give unions freedom of association.

Hundreds of small civil society groups and opposition parties have joined the unions in a coalition to stage mobilization rallies around the country before the strike.

Chima Ubani, director of the Civil Liberties Organization, said they also planned to hold protests during the strike.

Earlier this month oil prices hit an all-time high of around $55 a barrel amid the strike in Nigeria, strike threats in Norway, hurricanes in the Gulf of Mexico, China’s surging demand, and continuing high consumption in the US. Supplies have also been hit by the situation in Iraq.

Global oil prices have increased by 60% since the start of 2004.

Sources: AFP, AP, BBC, Reuters