Mass sacking likely in private, public sectors as Oil prices continues to crash.

As crude oil price continues its descent, and the economy falters, strong indications have emerged that workers in both private and public sectors are faced with mass retrenchment.

Stakeholders in both sectors, have painted a gloomy picture of the economy and the prospects of workers in the new year. They based their projections on recent happenings in the Nigerian and global economies.

Oil prices have been in steep decline since June 2014 as a result of slow demand growth and the United States’ oil boom, which has increased supply. The global oil benchmark, Brent, against which Nigerian oil is priced, on Tuesday, tumbled below $58 per barrel, hitting its lowest levels since May 2009.

PUNCH had exclusively reported on Tuesday that at least 70,000 civil servants in 30 ministries, departments and agencies of the Federal Government had yet to receive up to three months salaries.

While the Federal Government is believed to owe workers of the Ministry of Labour and Productivity salary arrears ranging from one to three months, 11 state governments could not pay December salary to workers. Three of the states – Benue, Plateau and Osun – have been reported to owe workers three months’ salary arrears.

In separate interviews stakeholders expressed fears that companies and public institutions were planning to address the downturn in the economy with cost-cutting measures and downsizing.

On Friday, the Petroleum and Natural Gas Senior Staff Association of Nigeria gave indications to this effect when it raised the alarm that companies, especially petroleum companies, had plans to retrench staff.

According to the association, non-core employees of oil firms in the country may be asked to quit their jobs, if the fall in oil prices persists till April or May.

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