Bulwark Intelligence

Why Exxonmobil Sacked Workers

The deep cut in prices of crude oil in the global market and the Niger Delta crises cutting down Nigeria’s production has resulted in mass sack of oil workers in Nigeria. LEADERSHIP learnt from sources in the Oil and Gas sector that this year has been particularly challenging for the industry in general and for…

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The deep cut in prices of crude oil in the global market and the Niger Delta crises cutting down Nigeria’s production has resulted in mass sack of oil workers in Nigeria.

LEADERSHIP learnt from sources in the Oil and Gas sector that this year has been particularly challenging for the industry in general and for Mobil Producing Nigeria, in particular.

A source within the company confirmed that the profitability of the ExxonMobil affiliate has been the worst in recent history because while costs are down, revenue is down by almost three quarter, even while the company has spent more than its earnings to see that its contractors and employees are paid.

Some of the resultant effects on their business have included scaled down operations, reduced personnel, uplift project deferments and contract re-negotiations.

The company is therefore taking steps to ensure survival.

LEADERSHIP reliably gathered from sources within the company that the employees impact was  only about six percent of the workforce, and were offered an enhanced benefits package in excess of the provisions of the Collective Bargaining Agreement (CBA) signed with the in-house union.

The company also initiated a post-employment support programs to support their transition period from the company as part of the package.

The severance payments driven by years of service and additional redundancy gratuities are in some cases up to N350million for an employee.

It was also learnt that for the total population affected, average payment per person hovers around N140million.

The pay package, it was learnt, covered redundancy pay of about 36 months basic salary, settling-in allowance of up to two months basic salary, additional pay to address economic realities of up to three months basic salary.

 

 

Source:Nigerian News from Leadership News

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