[2005]DLSC6743July 13, 2005Supreme Court

JAMES BAIDEN & OTHERS vs. GRAPHIC CORPORATION

The appellants were former employees of the respondent, Graphic Corporation, whose conditions of service were governed by a collective agreement. Section 28.04 of that agreement provided for end-of-service awards. In December 1990, during the PNDC era, government directed public corporations and state organisations to freeze end-of-service benefits and negotiate arrangements for payment of benefits accrued up to 31 December 1990. Following negotiations, 40% of accrued benefits was paid and 60% was held over and later paid on termination of employment in 1993. On 29 October 1993, the appellants and others were laid off in a redundancy exercise. They also received severance awards and provident fund payments. The dispute arose because the appellants claimed they were entitled to end-of-service awards calculated up to the date of termination in 1993 under section 28.04 of the collective agreement, rather than only up to 31 December 1990 under the freeze arrangement. Portion indicating facts: opening paragraphs of Atuguba JSC’s judgment beginning, “The appellants were the employees of the respondent Graphic Corporation…” through “…they were paid severance awards and their provident fund contributions…”.

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ATUGUBA J.S.C. The appellants were the employees of the respondent Graphic Corporation. Their relationship was governed, inter alia, by a collective agreement (exhibit B). Section 28.03 thereof provided for long service awards to the employees, while section 28.04 provided for end of service awards. However, in December 1990, the government of the Provisional National Defence Council (PNDC), directed all public corporations and the state organisations having end of service benefits to freeze them and to arrange with the unions regarding payments to their employees entitled to such benefits up to the end of December 1990. Pursuant to this directive and following talks on the matter between the Ministry of Mobilization and Social Welfare, the Trade Union Congress and management of the respondent, the end of year benefits were calculated and 40 per cent thereof was paid out to the plaintiffs, leaving 60 per cent thereof on hold, which was paid to them upon the termination of their emp...