Novelty Industrial Company Limited V National Union Of Textile, Garment Workers Of Nigeria (1992)

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HON. JUSTICE (CHIEF) P.A. ATILADE

LABOUR LAW: Agreement between employer and workers – Bindingness of – Where employer did not inform workers that agreement is subject to approval of Minister – Whether employer can refuse to implement same until assented to by the Minister. LABOUR LAW: Duress – Claim that document was executed under duress – Seriousness of – What employer making claim thereof must prove to succeed.

ISSUES: 1. Whether both parties signed two agreements dated 8th November, 1988, concerning ‘End-of-year bonus’ and other fringe benefits, and if the answer is yes, whether the management is not liable to implement the agreement. 2. Whether the management of Novelty Industrial Company Limited was justified in terminating the appointments of fifteen workers.

FACTS: Both parties entered into an agreement on 8th November, 1988 concerning ‘End-of-year bonus’ and other fringe benefits which, the Appellant thereby agreed to implement on or before end of November, 1988. The Appellant refused failed to implement the agreement, and also terminated the appointment of (fifteen) 15 workers without justification. The matter was referred to the Industrial Arbitration Panel, which heard the matter and made its award upholding the Respondents claim. The Appellant was dissatisfied with the panels award and appealed to the National Industrial Court. HELD: (Dismissing the appeal). 1. On What employer claiming that it signed a document with workers under duress must prove to succeed – To sign a document under duress is not a trivial matter that should be glossed over.

For employer to succeed that its staff signed an agreement under duress there mu be substantial evidence to suggest that the management staff at the agreement was concluded were made to sign the agreement under duress, that a complaint was lodged immediately afterwards by management at I appropriate quarters.

2. On Whether employer can refuse to implement agreement between it a workers – Management cannot refuse to implement an agreement it reached with a union because it was not assented to by the Minister of Employment, Labour and Productivity, when the management did not inform the union that it would u implement the agreement until the Minister approved it.

Other Citation: (1992) LCN/2484(SC)