Chevron Nigeria Limited (CNL), operator of the joint venture between the Nigerian National Petroleum Corporation (NNPC) and CNL (the “NNPC/CNL JV”) together with its affiliates, confirmed that 25 percent of its workforce will be sacked.
CNL has 5377 employees including contractors as at end of 2017, by implication, 25 percent of 5377 is 1344 employees and contractors.
The Company, in a statement made available to momentous confirmed that it is reviewing its manpower requirements in the light of the changing business environment, while continuing to evaluate opportunities to improve capital efficiency and reduce operating costs. In this process, the company will be streamlining its workforce and improving service delivery and overall performance at all levels.
CNL’s General Manager Policy, Government and Public Affairs, Esimaje Brikinn, explains that the aim is to have a business that is competitive and have an appropriately sized organization with improved processes. This will increase efficiency and effectiveness, retain value, reduce cost, and generate more revenue for the Federal Government of Nigeria.
According to him, the new organizational structures will, unfortunately, require approximately 25 percent reduction in the work force across the various levels of our organization.
”It is important to note that all our employees will retain their employment until the reorganization process is completed,” he noted. CNL said it supports the Federal Government in its objectives and efforts to build a prosperous Nigeria. In the area of employment generation, the company has several social investments which are helping to provide employment for thousands of Nigerians.
Brikinn clarified that there are no plans to migrate Nigerian jobs outside the country. He explains that ”we have prospects for our company in Nigeria; however, we must make the necessary adjustments in light of the prevailing business climate; and we need everyone’s support to get through these tough times stronger, more efficient and more profitable, in order to sustain the business’.
He stated further that CNL is in alignment with both its Joint Venture partners, the NNPC, and the Department of Petroleum Resources (DPR) on this process; and “we are actively engaging our workforce to ensure they understand why this is being done.
We will continue to consistently engage all relevant stakeholders, including the leadership of the employee unions as we continue this process of business optimization.”
“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,” he concluded.
Meanwhile, Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) kicked against the sacking of Nigerian employees and urged the company to suspend the process.
The union claimed that the process will affect over 2000 workers in the industry.