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FOOD, BEVERAGE AND TOBACCO SENIOR STAFF ASSOCIATION (FOBTOB) AND 1. ASSOCIATION OF FOOD, BEVERAGES AND TOBACCO EMPLOYERS (AFBTE) 2. SUNSEED NIGERIA PLC. (NATIONAL INDUSTRIAL COURT) HON. JUSTICE B.A.ADEJUMO - PRESIDENT PROF. B.B. KANYIP - MEMBER MR. M.A.B.ATILOLA - MEMBER SUIT NO: NIC/1/2002 DATE OF JUDGMENT - WEDNESDAY, 6TH OCTOBER, 2004 LABOURLAW Agreement - Rules of interpretation of- Primary rule of construction - Literal rule of interpretation. LABOUR LAW Labour matters - Need for concern for fairness, equity and social justice in the labour terrain. LABOUR LAW Allowance - Shift allowance - Principle governing payment of. ISSUES 1. What is the correct interpretation of Clause 4 of the Collective Agreement executed between the Appellant and the Respondent. 2. Whether the 2 Respondent or any allied company is bound to pay 15% of the basic salary to all its workers across the board merely because it runs three shifts, or it is only bound to pay pro rata on the number of night shifts done by the worker(s) in a month. 3. Whether the 2 Respondent’s erroneous or ignorant application of Clause 4 of the Collective Agreement in calculation of allowances for night shift amount to estoppel. FACTS The Applicant and the 1st Respondent entered into a Collective Agreement dated 16th December, 1997. Clause 4 thereof provided for the payment of 10% of monthly basic salary as shift allowance for workers on morning and afternoon shifts (two shifts), while 15% was earmarked for night shift (three shifts). A dispute arose as to the interpretation of the said Clause 4 of the Collective Agreement. All attempts by the parties to find amicable resolution to the issue in dispute proved abortive. The Applicant therefore applied to the National Industrial Court for the interpretation of the Clause 4 of the Collective Agreement. HELD (Upholding the Respondents ‘interpretation): 1. On Principle governing construction of written document - The intention of the parties to a written agreement is to be gathered from the wordings of the agreement to which they set their hands. This evinces the state of the law because the literal rule is the primary rule of construction. (National Union of Furniture, Fixtures and Wood Workers v. Management of General Enterprises Limited, Kano [1986] NICLR 207, Baba v. NCATC 5 NWLR (Pt. 192) 388 referred to). 2. On Principle governing payment of shift allowances to workers - In the labour terrain, there is much concern for fairness, equity and social justice. Workers should be paid in accordance with the amount of efforts put in, especially the pains and sacrifices made to the overall output of the company. Night shift involves working at the unholy hours of the day and a lot of sacrifices and pains are involved, such workers should therefore have a relatively better or more remunerative shift allowance over their counter parts that perform shift work in the morning and afternoon.