Download PDF
AUTOMOBILE, BOATYARD, TRANSPORT EQUIPMENT AND ALLIED WORKERS' UNION OFNIGERIA AND MANAGEMENT OF LEYLAND (NIGERIA) LIMITED (NATIONAL INDUSTRIAL COURT) HON. JUSTICE (CHIEF) P.A. ATILADE - PRESIDENT ALHAJI Z.M. BELLO - MEMBER M.A. BORISADE, ESQ. - MEMBER SUIT NO: - NIC/8/86 DATE OF JUDGMENT - THURSDAY, 2ND OCTOBER, 1987 LABOUR LAW - Redundancy - Anticipated redundancy – Duty on employer to inform trade union of reasons and of-Section 19, Labour Act, 1974. LABOURLAW - Retrenchment - Retrenchment exercise – Whether can be carried out during period of a factory shut-down. ISSUES: 1. Whether the retrenchment of the Respondent's workers was contrary to section 19 of the Labour Act, 1974. 2. Whether the Respondent was right in carrying retrenchment during the period of factory shut-down. FACTS: The dispute between the parties arose when the Respondent carried out a retrenchment exercise. The Appellant felt that the Respondent did not comply with the relevant law in retrenching its staff. It, therefore, declared a trade dispute with the Respondent, which was referred to the Industrial Arbitration Panel (IAP). The IAP in its award refused to make any award in respect of all the issues that were in dispute before it. Aggrieved by the "no award" by the Industrial Arbitration Panel, the Appellant lodged an objection to the award and the Minister referred the dispute to the National Industrial Court. HELD: (Dismissing the appeal): 1. On Duty on employer to inform trade union of reasons and extent of anticipated redundancy - The essential ingredient of section 19 of the Labour Act, 1974 is that an employer must inform trade union or workers' representative concerned of the reasons for and the extent of an anticipated redundancy. In this case, the management of the Respondent complied with the law. 2. On Whether retrenchment exercise can be carried out during the period of a factory shut-down - There is no law which states that retrenchment exercise should not be carried out during the period of a factory shut-down. HON. JUSTICE (CHIEF) P.A. ATILADE PRESIDENT, ALHAJI Z.M. BELLO MEMBER, M.A. BORISADE, ESQ. MEMBER