Download PDF
1. WEST AFRICAN DISTILLERS LIMITED 2 BUREAU OF PUBLIC ENTERPRISES (FORMERLY TECHNICAL COMMITTEE ONPRI VA TIZATION AND COMMERCIALIZATION (TCPC) 3. ADETONA ISICHEI & COMPANY AND FOOD, BEVERAGE AND TOBACCO SENIOR STAFFASSOCIATION (NATIONAL INDUSTRIAL COURT) HON. JUSTICE (CHIEF) P.A. ATILADE PRESIDENT B.N. OBUA, ESQ. MEMBER E.O. OLOWU, ESQ. MEMBER SUIT NO: NIC/1/94 DATE OF JUDGMENT 14TH MARCH, 1996. LABOUR LAW Collective agreement - Persons who are no longer employees as at the date of execution of –Whether collective agreement can apply to them. LABOUR LAW Redundancy - When inappropriate in a company. ISSUES: I. Whether declaration of redundancy was appropriate in the circumstances of the case. 2. Whether the Collective Agreement of 29th September, 1992 was applicable to employees who were no longer employees of the West African Distillers Limited with effect from 1st July, 1992. FACTS: The 1st Appellant was a company fully and totally owned by the Federal Government. It was heavily indebted to various creditors. The Federal Government, under its privatization and commercialization programme, then sold the company to new owners. The company carried out a reorganization which involved disengaging some staff, who were paid retirement benefits. The Respondent association complained that it was not notified about the company’s redundancy exercise and that the reorganization was in breach of collective agreement between them. Subsequently, the Respondent declared a trade dispute, which was referred to the Industrial Arbitration Panel. The Panel duly made its award. The 1st Appellant was aggrieved by the Panel’s award, and appealed to the National Industrial Court. HELD: (Allowing the appeal) 1. On Whether a collective agreement can apply to persons who are no longer employees as at the date thereof- A collective agreement cannot apply to employees who for all practical purposes were no longer employees of the company as at the date the collective agreement was entered into. 2. On Whether redundancy exercise inappropriate in a company - A redundancy exercise is inappropriate in the circumstances of this case, which involved disengagement of staff as a result of re-organization exercise. Thus, Appellant acted properly.