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4. NIGERIAN INSURANCE (EMPLOYERS) ASSOCIATION AND NIGERIAN UNION OF BANKS, INSURANCE AND ALLIED WORKERS (NATIONAL INDUSTRIAL COURT) HON. JUSTICE (CHIEF) P.A. ATILADE PRESIDENT DR O.I. ODUMOSU MEMBER S.O. KOKU,ESQ. MEMBER DR. E.C. IWUJI MEMBER ALHAJI Z.M. BELLO MEMBER SUIT NO NIC/7/78 DATE OF RULING MONDAY, 11th SEPTEMBER, 1978 LABOUR LAW Wages and salaries - Harmonization of - Agreed wages and salaries - When will be treated as a case of harmonization. LABOUR LAW Pension and gratuity - Whether negotiable between employer and employees. ISSUES: 1. What was the effective date for the payment of agreed wages and salaries? 2. Whether pension and gratuity were negotiable between the Appellants and the Respondent. FACTS: The dispute between the Appellants and the Respondent involved eight items, namely when the dispute was before the Industrial Arbitration Panel (IAP), the Respondent withdrew items (ii), (v) and (vi). Both parties reached an agreement in respect of item (vii), that is, wage increase after Udoji Wage Revision, which was embodied in a Memorandi of Agreement, which formed part of the IAP's Award. The Appellants objected to the IAP's Award on two matters, namely: 1) the effective date for the payment of agreed wages and salaries, and; 2) the question of whether or not pension and gratuity were negotiable between Appellants and the Respondents. At the hearing of the appeal at the National Industrial Court, the Appellants contended that the agreed wages and salaries were a wage increase after the Udoji Wage Revision, and was contrary to the Federal Military Government's policy on Wage Restraint. That the Industrial Arbitration Panel erred in making the Memorandum of Agreement between the parties effective from 1st October, 1974, which was arbitrary. That the Agreement should have been made effective from 1st October, 1976. The Respondent also contended that the IAP made its Award on the basis of facts and figures; therefore the effective date should remain 1st October,1974. It was, however, contended on behalf of the Respondents that there was no disagreement over the salary scales set out in the Memorandum of Agreement entered into between the parties. HELD: (Allowing the appeal in part): 1. On When agreed wages and salaries would be treated as a case of harmonization - Where the agreed wages and salaries between workers and their employers are comparable to what obtains in similar industries and establishments, the agreed wages and salaries will be treated as a case of harmonization. In the instant case, the agreed wages and salaries between the Appellant and the Respondent is no more than harmonization, and in keeping with the Federal Government's Policy on Wage Restraint. 2. On Whether pension and gratuity are negotiable - Pension and gratuity are negotiable at company level. HON. JUSTICE (CHIEF) P.A. ATILADE - PRESIDENT DR O.I. ODUMOSU - MEMBER S.O. KOKU,ESQ. - MEMBER DR. E.C. IWUJI - MEMBER ALHAJI Z.M. BELLO - MEMBER