MR. Joseph Akinola & Ors V. Lafarge Cement Wapco Nigeria PLC (2015)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

SIDI DAUDA BAGE, J.C.A. (Delivering the Leading Judgment)

This is an appeal against the decision of High Court of Lagos State contained in the judgment of Hon. Justice O. H. Oshodi delivered on the 30th of June, 2008 wherein judgment was entered in favour of the Respondent. The judgment is at pages 451 – 461 of the record.

Firstly the Appellants as Plaintiffs at High Court of Lagos state, sitting at Ikeja, by their Further Amended Writ of Summons and Statement of Claim both dated 29th June, 2006 they claimed against the Defendant as follows: –

(i) A Declaration that the offer of three years basic salaries and allowances made by the Defendant to the Claimants as payable for the Disengagement Exercise and accepted by the Claimants amounts to a valid contract.

(ii) A Declaration that the failure of the Defendant to fulfill the terms of the offer as offered and accepted between the Parties constitutes a breach of contract.

(iii) A Declaration that the content of the Defendants letter dated 12th February, 1999 with reference No.GMP/45A to the Claimants is an admission that the Claimants entitlements have not been paid.

(iv) A Mandatory order against the Defendant to pay each Claimant as computed in the lists of the affected ex-employees of the Defendant the remaining two years basic salaries and other entitlements under the Disengagement Exercise as contained in the said lists.

(v) An Order of Court awarding interest on the judgment sum at the rate of 21% from 10th February, 1999 until judgment and at a rate of 15% from the date of judgment until final liquidation of the judgment sum.

(vi) Costs of this action.

The Respondent as Defendant denied being liable to the Appellants via Amended Statement of Defence dated 28th of September, 2006.

The facts as gathered from the records indicates that Appellants instituted the suit at the Lower Court in a representative capacity, that is on behalf of themselves and on behalf of over 1,400 (One Thousand Four Hundred) disengaged staff of West African Portland Cement Plc, WAPCO, the Respondent herein. That sometime in December 1998, the Respondents’ erstwhile Managing Director, Engineer Joseph Makoju Addressed the entire workforce of the Respondent on the intended redundancy exercise to be carried out by the Respondent.

The main reason given for the exercise was that the Respondent planned to build a new plant at the Ewekoro Plant which would require a lot of funds and as a result the workforce of the Respondent had to be down sized. The exercise would be in two phases. The 1st Phase would involve those who opted for voluntary retirement while the 2nd phase would affect those the Respondent would retire compulsorily. The MD further stated that those who opted for the 1st Phase would get amongst others 36 months basic salaries pay as an incentive to encourage them to choose the option of voluntary retirement.

The Appellants and those they represent by the nature of their contract of employment with the Respondent were not entitled to gratuity, hence their acceptance of the voluntary disengagement exercise on the terms stated earlier. The Appellants subsequently filed and returned the voluntary disengagement forms sent through their various departmental heads to the management of the Respondent.

The Respondent thereafter vide their Letter to the Appellants dated 27th January, 1999 changed its offer of 36 months basic salaries to 12 months basic salaries. The Appellants were paid the 12 months basic salaries only through the Respondents letter of February 10, 1999. The Appellants are by this action demanding their balance of 24 months basic salaries earlier on promised by the Respondent.