Fuel Hikes, Multiple Taxes Threaten Courier Industry – Union

The Courier and Logistics Services Staff Association of Nigeria (CALSSAN) has raised the alarm over the impact of rising fuel prices, multiple taxation, poor roads and unstable electricity on the courier and logistics industry.

The union said the challenges were threatening the smooth operation of businesses in the sector and undermining the welfare of workers, urging the Federal Government to create a more conducive environment for the industry to thrive.

Speaking at the first Quadrennial Delegates Conference of CALSSAN, the union said the rising cost of fuel had significantly increased operating expenses for courier and logistics companies, while multiple taxes and levies continued to create additional burdens for operators and workers.

In his welcome address, CALSSAN National President, Festus Oluwatuyi, said the courier and logistics industry required a friendlier operating environment to contribute effectively to economic growth.

He said, “CALSSAN, as the blood stream of Nigerian economy will need more friendlier environment for the union members to operate. Though we need safety environment from government, our members also must on their own be safety compliance. We need avoidance of irregular obstacles.

“Since we cannot talk of welfarism in isolation or in unstable and precarious working environment, we must take the important roles of workers and also the employers because unionism is meant to compliment the planned growth and the of any workplace. Workers’ welfare is the greatest strength of the employees as this condition will help eliminate industrial disharmony.”

Oluwatuyi disclosed that the union had been engaging the Lagos State Government over what he described as double taxation of courier and logistics workers.

He added that harassment and alleged unprofessional conduct by some government agents were also affecting workers in the sector.

“We have been engaging Lagos State Government on double taxation of courier and logistics workers. Also, the misconduct and unprofessional of their agents towards workers in the logistics and courier industry.

“It is important to note that the harassment is not limited to Lagos State alone, including double taxation is nationwide and creating bottlenecks to smooth operation of our members, hence, we also petitioned to seek audience with the commissioner of police and other security authorities to enable our members enjoy safety working environment,” he said.

The union also called on the Federal Government to address the rising cost of fuel, which it said had become a major threat to the sustainability of courier and logistics operations.

The CALSSAN General Secretary, Emeka Cyril Ekeh, said improved welfare and working conditions for both workers and employers were essential to the sustainable development of the sector.

According to him, “CALSSAN is of the opinion that better working conditions will produce better and healthy development. As such, CALSSAN has written to the Honourable Minister of Trade and Investment, the supervising ministry in charge of courier and logistics, on the impact of the rising fuel prices on the courier and logistics industry. The same letter has also been extended to Nigeria Labour Congress (NLC) and other stakeholders for their intervention for betterment of everyone.”

Ekeh also criticised the continued reliance on food palliatives as an economic intervention, arguing that such measures were not sustainable.

He said, “As a union, it has dawn on the Nigerian workers that previous of palliatives such as bags of rice, indomie, vegetable oil, garri among other edible foods are as good as weaponising Nigerians with poverty because it is a phyric intervention which is unsustainable, inaccessible to majority of Nigerian population and also, such are channeled to political cronies at the detriment of the masses.

“Consequent upon the above, we urge the federal government to provide intervention that will trickle down all to Nigerians by making fuel available with affordable amount as low as (500) five hundred Naira, at the amount the fuel was sold when subsidy was first removed in the year 2023.”

Meanwhile, the Minister of Labour and Employment, Dr Muhammad Maigari Dingyadi, urged workers in the industry to embrace digitalisation to improve productivity and strengthen their contribution to the economy.

Dingyadi, who was represented at the conference by the Registrar of Trade Unions, Shaibu Rabiu, said workers in the courier and logistics sector needed to adopt digital tools to improve their performance.

He said, “The workers in this industry also need to imbibe digitalization as one of the tools they can use to enhance their performance in logistics and courier operations.”

The minister also urged CALSSAN members to comply with the regulatory framework governing the courier and logistics industry, stressing that adherence to the law was necessary for the sector to contribute meaningfully to the economy.

The President of the Nigeria Labour Congress (NLC), Joe Ajaero, represented by the Chairman, Lagos State Council, Funmi Sessi, also urged workers in the sector to embrace unionism while avoiding actions that could undermine their safety and wellbeing.

The Ogun State NLC Council Chairman, Comrade Ogun Hameed Benco Ademola, equally called on the workers to intensify their efforts towards improving the sector and protecting their interests.