The management of Intels Nigeria Limited has revealed that low activities in the oil and gas industry due to the fall in crude oil prices and the COVID-19 pandemic was responsible for its decision to lay off some of its employees.
On December 9, over 600 dockworkers at the Onne seaport had shut down operational activities of Intels Nigeria over the disengagement of some workers.
In a statement issued on Tuesday, the company expressed concern over the ongoing industrial action by members of the Senior Staff Association of Statutory Corporations and Government Owned Companies and Maritime Workers Union of Nigeria, which it said had impacted its operations.
It remarked that redundancy was due to the general low activities in the oil and gas industry caused by a fall in crude oil prices and the COVID-19 pandemic.
It explained that the redundancy exercise affected direct employees and some of its labour contractors such as Associated Maritime Services Limited.
It also said that SSASCGOC and MWUN engaged in negotiation for workers’ redundancy packages.
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Part of the statement read, “Due to low operational activities arising from the general low activities in the oil and gas industry attributable mainly to fall in crude oil price which affected most of our clients, coupled with COVID-19 pandemic, management of Intels was constrained to embark on a redundancy exercise recently.
“The redundancy exercise affected both our direct employees and some of our labour contractors, such as Associated Maritime Services Limited, whose contract with Intels had to be partially terminated, and committed to paying entitlements due to AMS under the labour contract.
“In accordance with extant laws and the conditions of service applicable to employees of Intels, we engaged both SSASCGOC and MWUN in a negotiation over the modalities for the redundancy exercise as it affects Intel’s employees.
“Following the agreement reached with both SSASCGOC and MWUN, the redundancy exercise was successfully implemented in respect of employees of Intels affected by the exercise.”
The company explained that AMS was a separate legal entity from Intels and not it’s subsidiary.
It added, “AMS also embarked on a redundancy exercise and engaged in negotiation with SSASCGOC and MWUN with respect to its employees affected by the redundancy exercise and committed to pay all entitlements due to its staff affected by the redundancy in accordance with the provisions of the conditions of service of AMS.”
