The National Association of Scrap and Waste Dealers Employers of Nigeria (NASWDEN) has directed its members to embark on strike from Oct. 1, over alleged irregularities in the scrap metal industry.
Its National President, Mr Abdulfatah Adisa-Ogunwale, gave the directive in a statement made available to newsmen by the NASWDEN Deputy National President, Alhaji Aminu Hassan-Soja, on Friday in Kano.
The statement said the decision followed what the association described as persistent anomalies, irregularities and grievances affecting scrap-metal dealers and their businesses.
“The industrial action is aimed at suspending the supply of scrap metals to iron-smelting companies producing iron rods and other steel products from non-ferrous and scrap metals.
“The industrial action is scheduled to commence on Oct. 1, and will run until Oct. 15.
“The action will continue indefinitely beyond that date, if no satisfactory Memorandum of Understanding (MoU) is reached with the affected iron and steel companies,” it said.
The statement cited areas of concern to include unannounced reduction in scrap metal prices.
“In some instances, dealers could lose approximately N3 million to N6 million on a single truckload as a result of sudden price reductions,” it said.
Others according to the statement are alleged deductions by some companies under what they refer to as “Extra Dust”.
“Deductions ranging from one per cent to five per cent are imposed on some transactions, which it considers as an additional financial burden and an unfair practice against its members,” it said.
The statement also alleged involvement of foreigners in the scrap business.
“The association further expressed concern over what it described as the increasing involvement of foreigners in the scrap-metal business.
“Some foreigners are allegedly taking over portions of the business by establishing dumpsites and scrap-collection centres across different parts of the country, thereby creating difficulties for indigenous Nigerian scrap dealers,” it claimed.
The association also alleged that some iron companies purchase scrap metals from unregistered or uncertified agents and dealers.
“The association is concerned that such practices could encourage the circulation of vandalised public and private property within the scrap-metal market,” it warned.
The association, therefore, called for greater regulation and verification of scrap dealers, agents and collection centres to ensure that materials entering the steel industry were obtained through legitimate channels.
It appealed to relevant government agencies, stakeholders in the iron and steel sector and the general public to take note of the planned industrial action and support efforts toward resolving the issues through constructive engagement.
