OVH Energy Marketing Limited has retrenched 100 people in order to overcome the problem of salaries payment due to challenges in the downstream oil sector.
A top official of the company, who pleaded anonymity, disclosed this to NAN in Lagos on Tuesday.
The official confirmed that all sacked workers had been paid their entitlements, adding that it was to salvage the situation before it got out of hand.
In 2016, Oando Marketing Limited in 2016 changed the company’s brand name to OVH Energy Marketing Ltd.
The change of name was to reflect the then recapitalisation and corporate restructuring aimed at admitting new shareholders.
Reacting to the development, Gogomary Oyet (pictured), the group head, external relations and communications of OVH Energy Marketing Ltd., told NAN that about 70 workers were retrenched.
According to Oyet, the severance exercise is a decision made after due consultations with stakeholders.
“It was done after extensive discussions for over eight months at the local, zonal and national levels of the relevant unions,” he said.
“The severance package realised from these conversations were acceptable and signed by all parties before the implementation of the exercise.
“We have executed this exercise strictly in line with the terms of agreement which was approved and signed by all named chapters of PENGASSAN and OVH Energy Marketing’s management.”
Oyet also said the company had introduced a voluntary exit package for workers who were not affected by the severance exercise but wished to move ahead with other ventures.
“It is important to state that all those affected by this exercise went through an outplacement programme,” he explained.
“This got them ready for life outside OVH Energy which includes financial planning, health management and entrepreneurship.”
According to him, the interest, well-being and welfare of the employees is important to the company.
NAN gathered that the retrenchment which started in December 2018 was still ongoing as scores of the workers were yet to know their fate.