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Business News of Monday, 19 April 2010

Source: The Enquirer

No ESB for Shell workers

The management of Royal Dutch Shell has told workers of Shell Ghana Limited that they are not entitled to any end of service benefits (ESB) as they plan to leave Ghana.

According to documents sighted by The Enquirer, the management’s decision is because they are leaving the company as a going concern and furthermore, contributions of staff are already rewarded.

According to Shell Ghana Ltd, their process for pulling out of 21 countries in Africa, including Ghana is to sell “most businesses in scope as going concerns,” aimed at “maximizing employment continuity for staff.”

In a letter written on behalf of the Group in response to one by the Shell Senior and Supervisory Staff Association (SSSSA), the Managing Director/Country Chair of Shell Ghana Limited, Omar Benson, states in part: “I fully recognize the contribution of staff to the performance of the company and this is taken care of through the normal individual performance management process.”

The group promised to also comply with all relevant labour laws and regulations. The Shell Group letter was in response to one written by the SSSSA, in which it raised concerns about the intended sale of “all businesses in scope as going concerns,”

According to the Shell Ghana Workers, the intended sale of Shell Ghana as a ‘going concern’ will not be in the best interest of its members, since any sale of Shell international’s equity in Shell Ghana Limited will result in a change of ownership and a transfer of the employees to the new owners.” The SSSSA argued that its members would “suffer psychological and emotional damage” if they were deprived of their association with “the Shell brand and its values, beliefs and international image,” as Shell is currently ranked among the first 10 most attractive employers in the world.

In their letter, signed by Acting President, Collins Barnieh and Assistant Secretary, Samuel Gasper, the SSSSA pointed out that there were uncertainties and risks associated with such changeover, with regard to employees’ conditions of service, career development, and social status.

The workers said in view of the above concerns raised they preferred a situation where employees of Shell Ghana were given the option to sever their legal relationship with the company.

Acknowledging the “uncertainties and apprehension” that the announcement by the Shell Group to review its ownership options may have on the staff, Omar Benson expressed empathy with them and advised anyone who required support in coping with the psychological or emotional impact of the message to “see the Company Health Advisor for the necessary assistance.”

The workers of Shell Ghana Limited, first intercepted reports of surreptitious moves by the Royal Dutch Shell, to pull out of Ghana and 20 other African countries, at a time when they had not been notified of any such intentions.

The workers raised issues with the suggestion of a going concern, since according to them it was Shell they applied to work with, and therefore it was inappropriate for Shell to decide who became their new employers, without their input.

Subsequently, a web cast of the Executive Vice President of Shell Oil Products Africa (SOPAF), Xavier le Mintier, on April 1, 2010 announced the exit strategy of the company from Africa.

The SSSSA letter, which they copied other management personnel was also copied to the Chief of Staff, Chairman, National Labour Commission, Ministry of Energy and the Minister, Ministry of Manpower, Youth and Employment. Concluding, the workers expressed the hope that none of them would be victimized.