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THE ASSOCIATION OF METAL PRODUCTS, IRON AND STEEL EMPLOYERS OF NIGERIA AND THE METAL PRODUCTS WORKERS UNION OF NIGERIA (NATIONAL INDUSTRIAL COURT) H ON. JUSTICE (CHIEF) P.A. ATILADE PRESIDENT E.O. OLOWU, ESQ MEMBER B. N. OBUA, ESQ MEMBER SUIT NO: NIC/2/91 DATE OF JUDGMENT 23RD OCTOBER, 1991 LABOUR LAW Collective agreement - Intention of parties thereto -Need to be clearly stated - Need for a collective agreement to be precise, clear and unambiguous. ISSUE: What is the correct interpretation of item (ii) of the Collective Agreement signed by both parties on 31st January, 1991? FACTS: In 1990, the National Minimum Wage (Amendment) Decree No.48 was promulgated, which raised the national minimum wage to N250 per month. Following the promulgation of the Decree, the parties entered into a Collective Agreement on 3lst January, 1991 with respect to minimum wage. The Collective Agreement adopted the new minimum wage and further provided in paragraph (ii) thus: โ(ii) member - companies should apply the new minimum wage of N250 in such a way that no employee is disadvantaged in terms of wage differentials.โ A dispute arose between the parties as to the proper interpretation of the said paragraph (ii) of the Collective Agreement. The Minister therefore referred the dispute to the National Industrial Court for the interpretation of the said paragraph (ii) of the Collective Agreement. HELD: (Interpreting the Collective Agreement) On Need for a collective agreement to be precise, clear and unambiguous - The wording of any collective agreement should be precise, clear and unambiguous. The intention ofโ the parties to a collective agreement should be clearly stated. When parties are signing a collective agreement they should know the precise meaning of what they are signing. No party should be encouraged to hide under an undefined technical term to spring a surprise and maintain a position, which was not contemplated by all signatories to the collective agreement. In this case, the disputed Collective Agreement is ambiguous and leads to some confusion.