The Dynamics of Policies and Practices of Labour Contracting in the Nigerian Oil and Gas Sector

Hakeem Adeniyi Ajonbadi

Department of Business and Entrepreneurship, School of Business and Governance, College of Humanities, Management and Social Sciences, Kwara State University, Malete, Nigeria.

DOI: 10.4236/oalib.1101756                

Abstract

This study critically examined the dynamics of the policies and practices of labour contracting within the Nigerian oil and gas sector as operated by some selected multinational organisations, namely: Mobil, Shell and Chevron. The study examined the nature of labour contracting, how and why it was adopted; and the implications of MNCs using such policies and practices in managing Nigerian workers. The study shed light on labour contracting arrangements and emerging employment relationships, as well as tensions among workplace actors. The research methodology was qualitative and was essentially driven by a subjective philosophy. It has an ontological undertone embedded with social constructionist approach. The target population for the study, therefore, was all the randomly selected contract workers of the three MNCs, the contractors of the user firms, and the two trade unions—NUPENG and PENGASSAN who were given survey questionnaires to complete and were engaged in semi-structured interviews. The study found that there are increased tensions in the working relationship. Other findings from this study include: the challenges that come with the entry point (recruitment); pronounced disparities in the remuneration packages between contract staff and permanent employees; contracted labour being faced with poor working conditions; and increase in the precarious nature of job security.

Keywords

Labour Contracting, Policies, Practices, Multinational Corporations, Employment Relations

Conflicts of Interest

The authors declare no conflicts of interest.

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