Application of the collective agreement: The firm response of the Senegalese Petroleum Association (ASP) to the Minister of Labour

In a circular dated August 20, the Ministry of Public Service, Labour and Public Service Reform, through the Regional Labour and Social Security Inspectorate of Kédougou, announced that the National Collective Agreement for the oil and gas sector, signed on August 12, 2019 and extended by decree no. 14112 of April 27, 2023, is now applicable to any company and any establishment in the Kédougou region whose main activity falls within its scope.

To that end, the circular letter specified that all contracts for workers involved in the distribution, marketing, storage, and transport of petroleum, gaseous, and derivative products, particularly in service stations, must now refer to this agreement, replacing the Collective Bargaining Agreement for the Retail Sector. The employers' response was swift.

"A measure with such serious consequences..."

The Senegalese Association of Petroleum Companies (ASP) reminded the Minister of Labor that "a legal provision cannot be partial or biased." The organization, headed by Ameth Guissé, also stated that "a measure with such far-reaching consequences cannot be taken without consultation with stakeholders, despite lengthy negotiations between employers and unions, and without compromise regarding its appropriateness."

Therefore, the ASP believes that the minister should instead inquire about the conditions necessary for the effective implementation of this collective agreement, particularly the increase in distributors' margins, which has been demanded since 2015 and recommended by the Mazars firm following its study on the sector. "The State committed to this during the negotiations for the collective agreement," the association points out.

A call for a sense of responsibility

Oil companies also warn that such a measure "would greatly threaten the maintenance of jobs in the directly managed distribution sector, with wages doubled, not compensated by the price structure."

The ASP is therefore appealing to the sense of responsibility of the authorities. It emphasizes that they "must never forget that they are the guarantors of the viability of businesses and that any measure must reflect current economic realities and anticipate future needs, taking into account the sustainability of the measure."