Chevron Nigeria Limited has announced it will lay off 25% of its work force, in what it said is “in light of changing business environment.”
The firm indicated that it is keen to “evaluate opportunities to improve capital efficiency and reduce operating costs.”
The company through a statement signed by the General Manager, Policy, Government and Public Affairs, Esimaje Brikinn stated that “the company will be streamlining its workforce and improving service delivery and overall performance at all levels,”
“This will increase efficiency and effectiveness, retain value, reduce cost, and generate more revenue for the Federal Government of Nigeria,”
Even though he stated that “all our employees will retain their employment until the reorganization process is completed,”
It also will eventually mean that approximately 25 per cent of the workforce will be reduced across the various levels of the organization.
However, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has made known that it will fight back the layoff “with all available tools” in its arsenals.
The union has called on other related body’s including the Nigerian National Petroleum Corporation (NNPC), Department of Petroleum Resources (DPR) and the Federal Government to intervene in the situation, to prevent job losses and a further spike in the unemployment market.
It has been alleged that the company wants to reduced its workforce in Nigeria so that it can now employ other staffs from the US to work as remote staffs.
It is assumed that since the work from home model worked out well for the company during the height of the lockdowns, that it can also work for staffs from the US, since Chevron Corporation which is the holding company is an American multinational energy corporation.
Chevron has since denied the allegation and also noted that “We are actively engaging our workforce to ensure they understand why this is being done,” and also that “At CNL, the welfare and safety of our workforce is one of our highest priorities. Making changes to the organization is never easy for anyone that will be impacted, but it is necessary to improve our ability to remain competitive in Nigeria. Reducing the cost and improving the efficiency of our operations is critical to generating more revenues for the Federal Government of Nigeria.”
According to Vanguard the Unions, National Union of Petroleum and Natural Gas (NUPENG), and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) gave the directive in a joint statement on Sunday. NUPENG’S President, Mr Williams Akporeha, and the President, PENGASSAN, Mr Festus Osifo, said: “We have directed our members in Chevron to withdraw their services. “We also call on the Federal Government to call Chevron Management to order, otherwise we can no longer guarantee industrial peace in the oil and gas sector.