1. THE FEDERAL RADIO CORPORATION OF NIGERIA 2. THE NIGERIA TELE VISION AUTHORITY AND RADIO TELEVISION AND THEATRE WORKERS' UNION OFNIGERIA (NATIONAL INDUSTRIAL COURT) HON. JUSTICE (CHIEF) P.A. ATILADE - PRESIDENT M.A. BORISADE, ESQ. - MEMBER B.N. OBUA, ESQ - MEMBER SUIT NO: - NIC/6/89 DATE OF JUDGMENT - 17TH NOVEMBER, 1989 LABOUR LAW - Agreement between employer and employee -Bindingness of – Where employer voluntarily entered into agreement to pay allowance - Whether court will allow employer's financial circumstances to affect implementation of the agreement. LABOUR LAW - Allowance - Introduction of allowance by government corporation - Need to obtain approval therefor before approaching government for funds to defray cost thereof. ISSUE As the parties had in December 1988 entered into the memorandum of agreement, which was subsequently embodied in the Industrial Arbitration Panel (IAP) Award, are the first and parties justified in refusing to pay the weighing allowance provided for in the said agreement? FACT: The parties entered into an agreement whereby the first and second parties voluntarily agreed to pay weighing allowance to the 3rd party's members. The agreement was made part of the Industrial Arbitration Panel's award in a dispute which was pending before the Panel. The second parties objected to the award, contending that they had no funds to implement the agreed allowance to the 3rd party's members. Consequently, the dispute was referred to the National Industrial Court. HELD: (Dismissing the appeal): 1. On Bindingness of agreement voluntarily entered into by party despite its poor financial circumstances - When government corporations entered voluntarily into an agreement to pay their workers a certain allowance, despite their precarious financial circumstances court will not allow their financial circumstances to affect the implementation of the allowance embodied in the agreement. 2. On Need to obtain approval of minister for introduction of new allowance before approaching government for funds to defray cost thereof - Where the introduction of an allowance as a new fringe benefit by corporations requires the approval of the Honourable Minister of Employment, Labour and Productivity in accordance with the Incomes Policy Guidelines, it is only after the Honourable Minister has approved the allowance that the corporations can justifiably approach government for the necessary funds to defray the cost of the: allowance. In the instant case, there was no evidence before the court that such approval had been obtained. The court therefore directed the first and parties to apply within 30 days for the approval of the Honourable Minister for the introduction of the weighing allowance in question.