Lagos (Platts)--22Apr2010/845 am EDT/1245 GMT

Nigerian blue-collar oil workers union Nupeng Thursday said it would withdraw its members from oil fields and export terminals as it embarks on an indefinite strike from Friday over an industrial dispute with Shell.

"It will be a total shutdown. We have informed all the four branches of our union to withdraw their services from the refineries, fuel depots as well as the oil fields and terminals head of the Lagos branch of the union," Nupeng's Nojeem Korodo told Platts.

"We know that the strike will affect the economy, that was why we gave the political class enough time to intervene, but they were adamant. So we are standing by our resolution," he added.

Korodo said Shell had declined to address the demands of the union, including ending anti-labor practices as well paying severance benefits to workers laid off in 2008 and 2009, and had shunned talks called by Ministry of Labor and Productivity to address the matter. Shell, however, said the industrial dispute involved one of its contractors, Motak.

"The issue is for Motak to resolve with its employees and the union in accordance with the law,"

Shell spokesman Precious Okolobo told Platts. "Shell maintains its principle not to directly manage contractors personnel and expects service contractors to fully manage their employees in accordance with the laws of the Federation of Nigeria," he added.

The unions have threatened to strike several times in the past but usually back down after the government intervenes.

Analysts said that if the strike holds, it would be mostly disrupt fuel distribution across the West African nation.

--Staff, newsdesk@platts.com