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THE NIGERIAN NATIONAL PETROLEUM CORPORATION AND THE PETROLEUM AND NATURAL GAS SENIOR STAFF ASSOCIATION OF NIGERIA (NATIONAL INDUSTRIAL COURT) H ON. JUSTICE (CHIEF) P.A. ATILADE PRESIDENT B.N. OLOWU, ESQ MEMBER B. N. OBUA, ESQ MEMBER SUIT NO: NIC/8/90 DATE OF JUDGMENT MONDAY 3RD JUNE, 1991 LABOUR LAW Termination of employment - Government parastatal - Staff of - Need for sanctity of tenure of- Termination of appointment of - When court will order reinstatement. ISSUES: 1. Whether the Appellant used security agents to detain and torture staff at Wan Refinery and Petrochemical Company without reasons. 2. Whether there was wrongful termination and demotion of staff of Warri Refinery and Petrochemical Company without reason or showing cause. FACTS On 6th April, 1989 there was the Crude Distillation Unit (CDU) Extractor Fan Explosion in the Warri Refinery and Petrochemical Company, a subsidiary of the Nigerian National Petroleum Corporation. As a result of the explosion, eight members of the respondent association and former employees of WRPC had their appointments terminated or were demoted. Aggrieved by the acts of the management of the Appellant, the Respondent had them referred to the Industrial Arbitration Panel for arbitration. The Panel in its award reinstated some of the affected staff. The Appellant was dissatisfied with the Panel’s award, and appealed to the National Industrial Court. HELD (Dismissing the appeal): On Security of tenure of staff of government parastatal - The staff of a government parastatal should enjoy security of tenure except in cases of proved malpractice, inefficiency or negligence. A situation where staff that have put in from 10 to 21 years service without blemish can have their appointments terminated without just cause is not acceptable. In the instant case, the court took into consideration that the NNPC is a government parastatal engaged in a sensitive industry which is important for the economy of the country. The court, therefore, ordered the reinstatement of the seven staff whose appointments were terminated and revoked a demotion order on one of them.