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MTN Nigeria bleeds millions amid labour dispute

Nigeria , 19 Jul 2018

MTN Nigeria bleeds millions amid labour dispute

In July 2018 mobile network operator MTN Nigeria reportedly lost over US$33 million over four days as a result of labour dispute with local union the Nigerian Labour Congress (NLC).

During the month the Union spearheaded protest action outside MTN offices in response to what it described as "anti-labour activities" by the operator.

The NLC details this as "casualisation for nearly all types of work, fixed-term contract work for Nigerian workers, worst forms of precarious work, etc."

NLC President Ayuba Wabba said the protest action was necessary after efforts by the Nigeria Employers Consultative Association failed to bring the company back to the negotiating table.

The Union also accused MTN of not allowing local employees to form or join unions and are "subjected to casualization" despite the company securing 60% of its profit from Nigeria.

"MTN Nigeria, since it commenced operations in Nigeria and in clear violation of extant national and international labour laws, especially ILO Conventions 87 and 98, has denied its workers the fundamental principles of the rights at work," the NLC stated.

MTN has responded by calling the labour union's actions "violent" and also accused it of damaging property.

The company refuted claims workers are being prevented from joining unions.

MTN's Corporate Relations Executive, Tobechukwu Okigbo, said the operator encourages freedom of association among its staff.

"We do not engage in casualisation. All our employees have full-time employment contracts. To enable our organisation to focus on delivering our core services and in alignment with global best practice, we engage licensed specialised service providers to support our operations.

"We provide working conditions in line with international best practices. All employees earn well above minimum wage. They have access to a minimum of 20 paid leave days annually; flexible working hours; four months paid maternity leave; fully funded pensions; staff buses; mortgage subsidies and group medical cover with international emergency evacuation for employees and their immediate dependents. These are just some benefits that contribute to making MTN a great place to work," Okigbo added.

The NLC has reportedly also shut down an MTN switch station in the Ojota area of Lagos. This is believed to have impacted on the country's telecoms grid and forced the Nigerian Communications Commission to intervene.

NCC's Public Affairs Director, Tony Ojobo revealed that the Commission has activated the MoU it signed with the Nigerian Security and Civil Defense Corps (NSCDC) to protect the switch stations and base transmission stations (BTSs) belonging to MTN and other telecom operators.

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