Service condition crisis brews in aviation sector

…Financial institutions back national carrier project

Crisis is brewing in the aviation sector over alleged unjust delay of the release of workers condition of service for over seven years.

Investigation by Woleshadarenews revealed that the continued delay in the release of aviation agencies’ condition of service has continued to affect the morale of workers, posing grievous harm to the spirit and law of bargaining.

Investigation also showed that the Salaries and Wages Commission was ready to harmonise the condition of service of all aviation agencies, but has been placed on hold as a result of two unions’ refusal to align with the call to release the long overdue condition of service.

The unions, the National Union of Air Transport Employees and the National Association of Aircraft Pilots and Engineers, it was learnt, are planning a showdown with the various aviation agencies.

A source close to these two unions revealed that there was no need to go ahead with the cost since the matter was before the Salaries and Wages Commission.

But other aviation unions did not align with the position of NUATE and NAAPE, because, according to them, the continued delay was unjustified by holding down the progress and well-being of thousands of workers in the aviation sector for such an indefinite time on account of a phantom harmonisation exercise

Two unions, however, the Air Transport Services Senior Staff Association of Nigeria and Association of Nigeria Aviation Professionals, have demanded that all conditions of service already submitted by aviation agencies, which were being unjustifiably delayed since the past seven years, should be immediately released in the interest of industrial peace and harmony.

According to investigation, any further delay will not be accepted and will lead to industrial crisis, adding that their unions were willing to engage other stakeholders on the issue.

Meanwhile, the Federal Government at the weekend said the Nigeria Air project was still on course despite criticisms that led to suspension of the proposed airline.

Minister of State for Aviation, Hadi Sirika, said the Nigeria Air project is currently at the procurement stage, awaiting the approval of the Federal Executive Council.

Sirika maintained that the Nigeria Air project does not lack investors, as institutions and airlines such as the African Development Bank, AFREXIM, US-EXIM, Standard Chartered Bank, Boeing, Airbus and China-Exim Bank, had already indicated interest to back the carrier.

He dismissed claims that the government spent $600,000 on the design of the logo after the carrier was unveiled at the Farnborough Airshow in London, in July.

“In recent months, misinformation, factual errors, insinuations and fabrications have been peddled in both social and print media on the Nigeria Air project,” he said.

“These include desirability, inadequate planning, non-consultation with stakeholders, lack of transparency and publications of fictitious amounts allegedly spent by the government on the project, among others.”

Sirika explained that the current effort to establish the national carrier predated the composition of the present FEC and even his own appointment as a minister.

“Mr. President directed the then Ministry of Aviation to commence the process for the establishment of a national carrier during the ministerial briefing on the aviation sector,” he said.

“The ministry set up a committee, which came up with the modalities for the establishment of a national carrier.

“The committee, in its report submitted in September 2015, recommended a private sector-led national carrier with 10 per cent government ownership and non-involvement of government in the management of the airline, but the provision of enabling environment for its operation.”

The minister said that following approval by FEC, a consortium of Transaction Advisers comprising Airline Management Group Ltd., Avia Solutions Ltd and Tianaero FZE, was appointed in line with best practices.

He said the TAs completed the Outline Business Case Report, which was reviewed by the Infrastructure Concession Regulatory Commission, which subsequently issued the OBC Certificate.

On the financial implications, he said the estimated funding requirement for the establishment of the project is $300 million spread between 2018 and 2020.

He added that the expected initial start–up capital of $55 million comprises $25 million for deposit for new aircraft and $30 million for working capital from June to December 2018, while the estimated working capital for 2019 is $100 million and $145 million for 2020 to be provided by the Strategic Equity Partners who are expected to manage the project.