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STADIUM HOTEL AND NATIONAL UNION OF HOTEL AND PERSONAL SERVICES 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/3/78 DATE OF JUDGMENT FRIDAY, 16thFEBRUARY, 1979 LABOUR LAW Trade union - Recognition of trade unions -Law governing. LABOUR LAW Trade union - Service charge in hotel industry - How levied - How distributed -Principles governing. LABOUR LAW Trade union - Victimization of workers -Termination of appointments of union officials on account of union activities -Whether constitutes victimization -Whether justified - When court will take lenient view thereof. TRADE UNION LAW Trade union - Recognition of trade unions -Law governing. TRADE UNION LAW Service charge in hotel industry - How levied - How distributed - Principles governing. TRADE UNION LAW Trade union officials - Termination of Appointments of on account of union activities - Whether constitutes victimization - Whether justified - When court will take lenient view thereof. ISSUES: 1. Whether the Industrial Arbitration Panel was right in deciding that the termination of the Respondent's officials by the Appellant for reason of union activities was unjustified. 2. Whether the decision of the Industrial Arbitration Panel was unreasonable and unwarranted in the circumstances of the case. FACTS: There was a trade dispute between the Appellant and the Nigerian Union of Hotels, Restaurants and Night Club Workers, which was part of the National Union of Hotels and Personal Services Workers (the Respondent). The dispute was over the issues of victimization of union officials on account of union activities, confiscation of workers' service charge, denial of union members' right to participate in union activities, of and stalling discussion with the union on how to improve the conditions of service of the Appellant. The matter was treated by the Industrial Arbitration Panel, which recommended in its Award, subject to confirmation by the Commissioner for Labour, that: the termination of appointments of two union officials, be declared null and void and that they should be reinstated in their former employment with the Appellant; payment to the Appellant of 50% equivalent of total service charge collected; full recognition of the Respondent by the management of the Appellant; and management of the Appellant should allow its employees the right of participation in trade union activities. The Appellant appealed against the Panel's Award, objecting to the Award on the following grounds inter alia, that the proceedings of the Panel was null and void and ultra vires as the dispute had already been adjudicated upon by the national Industrial Court in favour of the Appellant as far back as 1975; breach of rules of natural justice and/or fair hearing; and weight of evidence. The Appellant claimed, in the main, that the Respondent was unknown to the management of the Appellant and that the Appellant had no dispute whatsoever with the Respondent. On the other hand, the Respondent urged the court to reject the Appellant's objection, because it was the Appellant's counsel who made it difficult for it to give evidence before the Panel. HELD: (Granting severance pay and service charge to the Respondent): 1 On Law governing recognition of trade unions - The question of recognition of registered trade unions is governed by section 1 (1 )(e) of the Trade Unions (Amendment) Decree No.22 of 1978. 2 On Whether termination of appointments of union officials on account of union activities constitutes victimization and unjustified - Termination of the appointments of union officials by an employer on account of union activities amounts to victimization of union officials and is unjustified. Thus, the National Industrial Court disapproved the attempt by the Appellant to frustrate union activities by victimizing the accredited representative of the Respondent. 3 On When court will take a lenient view of unjustified termination of appointments of union officials - Where the prevailing circumstances in a company justify it, the court will take a lenient view of the unjustified termination of the appointments of union officials and order the company to make severance pay to the affected union officials instead of reinstating them. 4 On How service charge is levied and distributed in the hotel industry - While it is legitimate for the management of a hotel to set certain expenses against its service charge, such arrangement should be made with the trade union concerned. In the absence of such negotiated agreement, service charge is levied on certain services rendered by the hotel for the purposes of the following: a. to offset part of the cost of damages to hotel property through the negligence of hotel guests; b. to offset cost of damages occasioned by the staff; and : c. to cater for the welfare of staff. Whatever is left is distributed between the company and the staff on a mutually Agreed basis. 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