Nigerian airline Dana Air has terminated the employment of over 1,000 employees, including 583 permanent staff members and expatriates, following the suspension of its operations by the Nigerian Civil Aviation Authority (NCAA).
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The mass layoffs, which the airline claims are temporary, came through emails sent to affected staff on May 9, 2024, stating, “We regret to inform you that your service is no longer required effective May 9, 2024. This difficult decision was necessitated by the unfortunate suspension of our AOC/business operations by the Nigerian Civil Aviation Authority (NCAA) and enormous challenges the suspension continues to occasion.”
However, reliable sources within the airline have alleged that the disengagement is permanent and that proper termination procedures were not followed. Additionally, there are claims that the company has not remitted pension deductions to employees since the airline’s 2012 crash, despite making deductions from their salaries.
One source stated, “I can state categorically that over 1,000 members of staff of Dana Air, including expatriates, have been sacked. Of this number, 583 were direct staff, while the rest, though working directly with us, were casual staff. Contrary to the information out there, the disengagement is not temporal.”
The source further alleged, “Our employee handbook and Labour Law state that if you want to disengage someone, you pay one month in lieu. You can tell the person that his services are no longer required, when that happens, you are to pay the person all that he or she is due, including pension and gratuity.”
In response, Dana Air’s Head of Corporate Communications, Kingsley Ezenwa, stated that the company is undergoing an operational audit by the NCAA and decided to temporarily lay off staff to manage resources effectively and facilitate a smooth audit process. Ezenwa acknowledged the hardship caused by the layoffs and assured a swift resolution, promising to keep staff updated and provide support throughout the process.
The airline’s statement read, “Dana Air wishes to provide an update on the ongoing operational audit initiated by the regulatory authorities. In light of the ongoing audit, Dana Air has made the decision to temporarily disengage some staff members pending the conclusion of the audit. This decision has been made to ensure efficient management of resources and to facilitate a thorough review of operational procedures.”
The President of the National Association of Aircraft Pilots and Engineers (NAAPE), Abednego Galadima, has stated that the airline’s action contravenes Nigeria’s labor laws, and the union will be communicating with the management to resolve the situation.
The NCAA’s suspension of Dana Air’s Air Operator Certificate (AOC) came into effect on April 24, 2024, following a serious incident involving one of the airline’s aircraft, allowing for a “thorough safety and economic audit.”
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