IN THE NATIONAL INDUSTRIAL COURT OF
NIGERIA
IN
THE LAGOS JUDICIAL DIVISION
HOLDEN AT LAGOS
BEFORE
THEIR LORDSHIPS:
HON. JUSTICE M. N. ESOWE Presiding Judge
HON. JUSTICE A. N. UBAKA Judge
HON. JUSTICE ELIZABETH A. OJI Judge
DATE: TUESDAY 4TH MARCH 2025 APPEAL
NO: NICN/LA/177/2023
BETWEEN
MARITIME
WORKERS UNION OF NIGERIA - APPELLANT
AND
INTELS
NIGERIA LIMITED - 1ST RESPONDENT
ASSOCIATE
MARITIME SERVICES LIMITED - 2ND RESPONDENT
Representation:
B C
Anyanwu (Mrs) with E F. Obidiegwu for the Appellant
Lawrence
S. Oko-Jaja (SAN) with M. A. Bisong and S. Micheal for the 1st
Respondent
Godfrey
Niger for the 2nd Respondent
JUDGMENT
Introduction:
1.
This matter came to this Court by way of a Referral from the Minister of
Labour and Employment in accordance with section 14(1) of the Trade Disputes
Act, Cap T8, Laws of the Federation of Nigeria (LFN) 2004. The Referral Letter is dated 20th May
2023. In the Referral Letter, the Minister noted that “an objection has been
raised by Maritime Workers Union of Nigeria (MWUN) to an Award made by the
Industrial Arbitration Panel (IAP) in a dispute between Maritime Workers Union
of Nigeria (MWUN), Intels Nigeria Limited and Associated Maritime Services
(AMS). The Referral Instrument itself is
dated 25th May 2023, and signed by the Honourable Minister of Labour
and Employment. The matter was
thereafter assigned to be heard by this Panel in Lagos on 2nd June
2023. The matter was first mentioned on
26th October 2023 and further mentioned before this Panel on 22nd
February 2024. On the said 22nd
February 2024, the panel ordered parties to file their briefs starting with the
Appellant. The matter was adjourned to
25th April 2024 to hear the appeal.
On the 25th April 2024, the Appellant had filed its brief of
argument. The 2nd Respondent
informed the panel that it had filed a Notice of Preliminary Objection. The matter was adjourned to enable the
Appellant to respond to the 2nd Respondent’s objection. On the next adjourned date; 30th
May 2024, the 1st Respondent also filed a Notice of Preliminary
Objection. The panel informed the parties of its
intention to take the two objections, alongside the appeal; and all the parties
consented to it. The matter was
therefore adjourned to the 10th of December to hear the objections
and the appeal. The objection was heard first, thereafter parties adopted their
briefs of arguments and the matter was adjourned for ruling and judgment.
The
Case of the Appellant:
2. The Appellant is a duly
registered trade union with the jurisdiction to unionise among others, all
workers employed in the manning of ocean going, inland waterways, coastal and
habour vessels or crafts afloat and all dock workers engaged in rendering dock
services in the ports in Nigeria. The
Appellant’s members numbering six hundred and ten (610) dockworkers who had
worked for the 2nd Respondent (Intels Ltd) through the 2nd
Respondent(Associated Maritime Services) and other Stevedoring companies namely
Ntel International Ltd, later Faitone Stevedoring Services Ltd, Joesco and
Toresco Stevedoring Services Ltd as well as Modern Stevedoring Ltd had their
employment terminated not in accordance with the termination of contract
between the Respondents, thereby rendering the dockworkers redundant. The
termination of the contract between the Respondents resulted in the laying off
of 610 dockworkers at the terminals operated and run by the 1st Respondent,
without paying the terminal benefits that were due to the said dockworkers. The said Appellant members were laid
off from their employment on 28th February, 2021 following the
termination of the stevedore service provision contracts between the 2nd
Respondent (the 1st Respondent’s labour management contractor) and
Modern Stevedoring Services Ltd and Faitone Stevedoring Services Ltd (both of who were contracted to supply the 1st
Respondent with stevedore labour/ services. The nature of services rendered by
the said six hundred and ten (610) dockworkers (members of the Appellant) to
the 1st Respondent at its Ports Terminals include loading and
offloading of general cargoes and oil related cargoes. It was the 1st Respondent that
instructed the 2nd Respondent to terminate the contract agreement
which resulted in the loss of employment of the six hundred and ten (610)
dockworkers. It was the Appellant’s case before the IAP that the relationship
between the affected dockworkers, the 1st Respondent and the
stevedoring companies is tripartite employment relationship. The 1st
Respondent is the employer of the affected dockworkers while the stevedoring
companies and the 2nd Respondent are its agents in the employment
relationship, with the 2nd Respondent serving as its employment
manager. (Refer to paragraph 3(b),(c) and (i) of the 3rd Party’s
Memorandum at pages 834-835 of the record).
3. It was the Appellant’s case before the IAP
that it is the dock labour industry standard for the ports terminals operators to pay terminal
benefits to severed dockworkers that served in their ports and that the said
dock labour industry minimum standard was set up by the National Joint
Industrial Council (NJIC) of the Maritime industry which consist of all the key
players in the maritime industry to wit;
representatives of the 1st Party, the Seaport Terminal
Operators Association of Nigeria (STOAN), the Nigerian Maritime Administration
and Safety Agency(NIMASA), the Nigerian Ports Authority (NPA) , the National
Association of Stevedoring Companies and private Jetty operators. The said Minimum standard for dock labour
industry is incorporated and is contained in the collective bargaining
Agreement between the Appellant and Seaport Terminal Operators Association of
Nigeria (STOAN) 2020-2023 which the 1st Respondent is a member
of. The Ports Terminal operators are recognized
as the master stevedores for their respective terminals by the regulatory
agencies (Nigerian Ports Authority and the Nigerian Maritime Administration and
Safety Agency (NIMASA) and the ports concession agreements. As such dockworkers
serving in any port terminal are deemed employees of the terminal operator
irrespective of whether or not the terminal operator subcontracts its
stevedoring activities to third parties. The 1st Respondent being
the concessioner and terminal operator of the Ports in which the Appellant’s
six hundred and ten (610) members affected by this trade dispute worked, has
the responsibility to pay terminal benefits to the said 610 dockworkers as prescribed by the dock labour industry
standards and the Collective Agreement between STOAN and the Appellant. By the above stated STOAN and Appellant’s
CBA, the minimum redundancy benefit for dockworkers who have worked for 10
years and above for general cargo terminal is N750,000 per dockworker to be
paid by the terminal operator while the same terminal benefit due to any
dockworker who worked the same length of
time for container terminal is N1,000,000.00.
Each of the affected dockworkers rendered their services to the 1st
Respondent since 2009 and 2010 and all have served the 1st
Respondent for over a period of 10 years and as such are entitled to be paid at
least a minimum of N750,000 per dockworker as redundancy benefit by the 1st
Respondent. It is the refusal by the 1st
Respondent to pay the dock workers their redundancy benefit that gave rise to
this trade dispute
Appellant’s
Argument
4. The Appellant submitted four (4) issues for
just determination by the Court; to wit:
(i) Whether the Industrial Arbitration
Panel (IAP) was right when it held the claim that the six hundred and ten (610)
disengaged dockworkers were employees of the 1st Respondent was not
established and as such the 1st Respondent is not liable to pay the
six hundred and ten (610) dockworkers any terminal benefits?
(ii) Whether the Industrial Arbitration
Panel was right when it held that the contracts of the stevedoring companies by
virtue of which the six hundred and ten
(610) disengaged dockworkers worked at the 1st Respondent’s
terminal was terminated by effluxion of time and as such the
resultant disengagement of the 610 dockworkers does not amount to redundancy?
(iii)
Whether
the Industrial Arbitration Panel (IAP) was right when it held that the
Appellant herein did not prove that the 1st Respondent is a member
of Seaport Terminal Operators Association of Nigeria (STOAN) to be bound by the
Collective Agreement between the association and the Appellant?
(iv)
Whether the Industrial Arbitration Panel
(IAP) was right when it dismissed the claim for payment of severance/redundancy
benefits for the six hundred and ten (610) dockworkers?
5. Issue one - Whether the Industrial
Arbitration Panel (IAP) was right when it held the claim that the six hundred
and ten (610) disengaged dockworkers were employees of the 1st
Respondent was not established and as such the 1st Respondent is not
liable to pay the six hundred and ten (610) dockworkers any terminal
benefits? The Appellant submits that
assuming without conceding that there was no direct or disguised employment
relationship between the 1st Respondent, the 2nd Respondent and the 610 dockworkers, the
Appellant having shown that binding collective agreement between
the Appellant and the Seaport Terminal Operators Association which the 1st
Respondent is a member of (and which contains the industry minimum standards),
imposed the responsibility of an employer to wit: to pay redundancy and
retirement benefits to dockworkers
working in any seaport on the terminal operator, the IAP was therefore wrong in
holding that the Appellant did not establish that 1st Respondent is
the employer of the said 610 dockworkers
and as such the 1st
Respondent is not liable to pay the six hundred and ten (610) dockworkers any
terminal benefits and we urge the Court to so hold and set aside this finding
of the IAP.
6. Issue two - Whether the Industrial
Arbitration Panel was right when it held that the contracts of the stevedoring
companies by virtue of which the six
hundred and ten (610) disengaged dockworkers worked at the 1st
Respondent’s terminal was
terminated by effluxion of time and as
such the resultant disengagement of the 610 dockworkers does not amount to
redundancy. The Appellant submits that
the law is trite that a contract for a fixed duration automatically comes to an
end on the date it is scheduled to expire. This principle is premised on the
fact that, upon the coming into effect of the expiration date, the rights and
obligations of the parties under it become extinguished and the agreement is no
longer executor; so on 28th February, 2019, the said stevedoring
contracts which were scheduled to expire on that date automatically elapsed.
The Appellant argued that there is equally ample evidence that after the
expiration of those stevedoring contracts on 28th February, 2019,
the Stevedoring companies were allowed
to continue to render dock services to
the 1st Respondent and they continued to carry out the work with the
said 610 dockworkers and payments were also made by the 1st
Respondent through the 2nd Respondent for the said services until 28th
February, 2021 (a period of two years) when the 1st Respondent
through the 2nd Respondent terminated the stevedoring contracts
resulting in the laying off of the workers.
The Appellant submits that the implication of the continued services is
that fresh contracts were created by the parties through their conduct or put
in another way, the expired contracts were renewed by operation of law through
the conduct of the parties. The
Appellant referred to the case of Johnson
v. Mobil Prod, (Nig) Unltd. (2010) 7NWLR (Part 1194) at 462 particularly at
504-505 paras. H-A. The Appellant argues that since the stevedoring contracts
which were scheduled to terminate on 28th February 2019
automatically came to an end on that date, it cannot be said to have been
terminated on 28th February, 2021 as claimed by the 1st and
2nd Respondents. Rather, what was terminated by the Respondents on
28th February 2021 were the fresh contracts created by conduct of
the parties and the reason for the
termination was clearly stated to
be a cost saving measure that led to the said contraction of workforce to
wit; the laying off of the dockworkers specifically engaged for the 1st
Respondent’s dock services.
7. Issue three - Whether the Industrial
Arbitration Panel (IAP) was right when it held that the Appellant herein did
not prove that the 1st Respondent is a member of Seaport Terminal
Operators Association of Nigeria (STOAN) to be bound by the Collective
Agreement between the association and the Appellant. The Appellant argued that established the 1st
Respondent’s membership in STOAN by the emails exchanged between the secretary
of STOAN Uzamot Boye and Usaini Garba of the 1st Respondent via his
official email address; usaini.garba@intelsservices.com with the subject “TERMINAL OPERATORS
ASSOCIATION DUES” conveying invoice for the 1st Respondent’s
membership dues and monthly operational exigencies and a printed out copy of
another email from the same secretary of STOAN Uzamot Boye communicating the outcome of terminal
operators meeting to STOAN’s members and the 1st Respondent is among
the members communicated to (through usaini.garba@intelsservices.com). They referred he Court to these
email communications at pages 134-136 of the record of appeal. They argue that
1st Respondent on its own simply made an evasive denial of the fact
that it is a member of STOAN without more neither did it deny those were email
correspondences between it and STOAN.
The Appellant submits that having shown communications between the STOAN
and the 1st Respondent evidencing the 1st Respondent
membership of STOAN, the Appellant has discharged the burden on it to prove
that the 1st Respondent is a member of STOAN and urged the Court to
so hold and set aside the IAP finding that the Appellant failed to prove that
the 1st Respondent is a member of STOAN to be bound by the
collective agreement.
8. Issue four - Whether the Industrial
Arbitration Panel (IAP) was right when it dismissed the claim for payment of
severance/redundancy benefits for the six hundred and ten (610) dockworkers?
The Appellant argued that it is the termination of the stevedoring contracts of
Faitone Stevedoring Services Ltd and Modern Stevedoring Services Ltd that
resulted in an involuntary and permanent loss of employment of the six hundred
and ten (610) dockworkers affected by this trade dispute and as such a
redundancy of the workers occurred. They argue that this Court has in a
plethora of its decisions in cases of mass loss of employment such as the present case held that where the Court finds that workers did not voluntarily
withdraw their services, but were locked out and dismissed, and the employer is
not prepared to reinstate them, then the workers will be entitled to redundancy
benefits in the circumstances. See Grizi
(Nig) Ltd v. Grizi (Nig) Ltd and Group of Companies Workers (1978-2006) at page 2 particularly at
page 4. The Appellant argues that the 1st Respondent as a
concessioner and terminal operator of the Ports in which the Appellant’s six
hundred and ten (610) members affected by this trade dispute worked, has the
responsibility to pay terminal benefits to the said six hundred and ten (610)
dockworkers affected by this trade dispute as prescribed by the dock labour
industry standard and the STOAN and Appellant’s Collective Agreement; as
per Article 6(a) of the CBA between the
Appellant and STOAN 2020 to 2023. The
Appellant submits having shown that the 1st Respondent is a member
of STOAN, the 1st Respondent is therefore a beneficiary of the
collective agreement between the Appellant and STOAN and as such, it is bound
by the said collective agreement and is under obligation to pay the 610 dock
workers affected by this trade dispute redundancy benefits in accordance with
the applicable scale in the collective agreement.
The
Case of the 1st Respondent
9. The 1st Respondent as the concessionaire of Onne Federal Ocean Terminal (FOT) and Federal Lighter
Terminal(FLT),Warri and Calabar
Ports manages the Ports by providing equipment, facilities and generally, manages the Ports to the
benefit of end users such
as Stevedore,Chandelier, International Oil Companies (IOCs), Shippers, Importers
and Vessels that berth at the Ports.These companies also have their offices
and
staff within the Ports including the 2nd Respondent. When
ships berth at the Ports, the
1st Respondent is responsible for the provision of
facilities for the smooth operations of the vessels,however in such areas where other companies have competency,it engages such companies to carry out the assignment
on
contract basis. Hence
in 2018, the 1st Respondent being
the concessionaire entered into agreement with the 2nd
Respondent a Stevedore
Company. Apart
from
the said agreement, the 1st Respondent from time to time engages the
services of the 2nd
Respondent who is a Licensed Labour Services Company to provide Labour Services to the 1st Respondent. As
a result of the COVID-19 Pandemic and the Federal Government Policy which declassified the Ports i.e.not reserving certain Ports for berthing of oil Tanker Vessels at Onne and other Designated
Ports only but all the Ports in Nigeria;
these vessels no longer berth at Onne Ports,but Lagos Port which is nearer and cheaper for the IOCS.
This
resulted in the loss of revenue by the 1st
Respondent and consequentially,
the 1st Respondent terminated the manpower supply contract of 1998. As usual the 2nd
Respondent through
the Appellant went on industrial action by
embarking on strike. This resulted in action between
the 1st Respondent and the Appellant
at the National
Industrial Court, in NICN/PHC/155/2020 Between: Intels Nigeria Limited v. Comrade Mohammed Yunusa & 14 Ors (for themselves and representing disengaged
members of Maritime Workers Union of Nigeria). The
agreement for manpower
supply of 1998 and the Stevedore
Contract of
2018 between the 1st
and 2nd Respondents are
different. It is the stevedoring
contract of 2018 that is the subject of this appeal emanating
from
Arbitration and not the
1998 Manpower Supply Contract. Prior to 2006-2007,the Appellant
Members were all casual workers without being employed by
any company.With the
privatization,this practice
was abolished. Each company now employs dockworkers they can afford, hence the existence of abour and manpower
supply companies like the 2nd Respondent who employs
members of the Appellant
and deploys them to companies with whom they
have labour contract with like the 1st Respondent. As a Stevedore and Labour Contractor duly licensed by the Federal Government, following
the abolition of casual labour,
the 2nd Respondent employed the Appellant’s members. On being
employed, the person now registers with the Appellant. When bidding
for contract as in this case, the labour companies quote the number of persons they will use, the amount they will pay each based on the tonnage of cargo
involved.This was
what was done
by the 2nd respondent in this case.
The total contract
sum involved is based on the cumulative of the various heads of charges and commission.
The company engaging the services of the Labour Contractor have no dealings with members of the Appellant. Such companies deal with the labour companies just as 1st Respondent
dealt only with 2nd
Respondent. Having quoted
so much as the number
of personnel they will use, whether
they actually
use that number,the 1st Respondent does not know and this is how the 2nd
Respondent actually
makes its money. It is the 2nd Respondent as a stevedoring company that uses the services of the
Appellants members while the 1st
Respondent is merely the concessionaire of the port providing and
maintaining facilities for all port users. The 1st
Respondent’s duty also includes
receiving vessels that
berth at the
port, thus when there is a downturn in respect of traffic of vessels
that berth at the port, it affects the 1st Respondent negatively.
It also affects the 2nd
Respondent because the 1st
Respondent will not have
any job for the 2nd Respondent who
engages its members for the jobs.
10. It was the
1st
Respondent's case before the
Industrial
Arbitration Panel that in respect of this particular contract the subject of this matter before this Court between
the 1st and 2nd Respondents, the commencement date as per exhibits M1 clause 6 at page 898 of the Record of Appeal is 1st January 2018 and the completion date is 2nd
January 2019. In otherwords, the terminal date of the contract by effluxion
of time is 2nd January 2019. For annexure N1 as per clauses
6, at page 912 of the Record of Appeal the commencement
date is 23rd January 2019 and the completion date 23 January 2020, In otherwords the terminal date of the contract by effluxion of time is 23 January
2020.
Thus the Stevedore
contract between the 1st
and
2nd Respondents ended by effluxion
of time. It is this termination of the said contract by efluxion of time that necessitated
the 2nd Respondent
issuing termination letters to the members of the Appellant
and to the other
stevedoring companies engaged by the 2nd
Respondent to do some of its work as can be
evidenced in the
letters from the 2nd Respondent to Jesco and Tonesco Enterprises
at page 896 of the Record of
Appeal and the letter from the 2nd
Respondent to Faitone
Stevedoring Services Limited at page 897 of the Record of
Appeal.
1ST
RESPONDENTS ARGUMENT
11. The 1st Respondent raised three
issue for determination in this appeal, to
wit:
(i)
Whether the
Industrial Arbitration Panel was right when it concluded its findings
and
gave its award that the 1st
Respondent is not liable to pay the 610 dockworkers any terminal benefits,they not being employees of the 1st
Respondent.
(ii)
Whether
the Industrial Arbitration
Panel was
right when
it held
in
its award
that the contract
between the 2nu respondent and the stevedoring companies
was terminated
by effluxion of time and therefore the
1st respondent is
not liable to pay
any redundancy benefit to the staff
of the said stevedoring companies,the 15 respondent not being party to the said contract.
(iii)
Whether
the Industrial Arbitration Panel
was
right
when
it held that the appellant did
not prove that
the 1s respondent
is a signatory
to the collective
Bargaining agreement or a member of the Seaport Terminal Operators Association of Nigeria(STOAN)and therefore not
bound by the
collective bargaining agreement between
the association (STOAN)and
the appellant.
12.
On issue one, “Whether
the Industrial Arbitration
Panel was right
when it concluded
its findings and gave its award that the 1st Rrespondent is
not liable to
pay the 610 dockworkers any terminal benefits,
they not being employees of
the 1st
Respondent”. The 1st
Respndent submits that the claim of the appellant sinks
or
swims on whether
they are able
to prove that they were employed by the 1st
Respondent and that the 1st Respondent
denied the averments of the
appellant on this issue. The 1st Respondent argued that the
issue of Casual Workers in the pool of the appellant
came to an end in
2007
when the Ports were privatized or concessioned.
The 1st Respondent further submits that with the failure of the appellant to exhibit the
employment letters of the 610 so called employees of the 1st Respondent as emanating from the 1st Respondent, their case is
bound to fail. The 1st Respondent further submits
that the letters of employment of the 610 dockworkers, that is the bundles of letters of employment as can be found at pages 145-757 of the record of appeal
do not support
the argument.
13. Issue two – Whether Industrial Arbitration Panel was right when it held in its award that the contract between the 2nd respondent
and stevedoring companies was terminated by effuxion of time and therefore
the 1st respondent is not liable to pay any redundancy
benefit to the staff of the said stevedoring companies, the 1st respondent not being party to the said contract. The 1st Respondent submits that the Industrial Arbitration Panel
was right in its award when it held that the contract of the
stevedoring company was terminated by effluxion of time
and
was never revived as against the argument of the appellant before
this Honourable Court in paragraph
5.3 of the Appellant's brief of argument
and thus the 1st
Respondent is not liable to pay any redundancy benefit. The 1st Respondent submits that it
could not have
declared the members of
the appellant redundant because
the members of the appellant were
never employees of the 1st
respondent and therefore could not have been declared redundant by
the 1st respondent.
Rather, it was the 2nd Respondent who had a
contractual relationship with Faitone stevedoring services
limited, Joesco and Tonesco Enterprises and Modern stevedoring services Limited and that contract between
the 1st respondent
and the named companies were terminated on the 28 February
2019 as can be seen at clause 6.1 at page 44 of the Record of Appeal.
The 1st Respondent also submits that a claim of redundancy amounts
to a claim for special damages
and that the law is that such claim
must be particularized
and proved. See the case Johnson v.
Mobil
Producing (Nig)Ltd
(2010)
7NWLR
(Pt.1194)P 462 @p.506
Para G-507 Para
F). The 1st Respondent
submits that Counse's
brief
or address cannot take the
place of pleadings no matter how well prepared. That,
the Appellants having failed to particularize the claim for special
damages, the court cannot at this appellate
level begin to consider the issue of special damages based on particulars not pleaded
but subsumed in the appellant's addrcss. That it was based on this lack of particularization that the
Industrial Arbitration Panel at paragraph 4.6 to 4.7 at page 974 of the record of appeal
found that:
4.6
The
18
party also merely dumped the condition of
service of
OSBAS annexure 5 of the further
and better memo on the panel without explaining the entitlement of
each dockworker.Moreso,we do not find how the said document
relates to the 2m party.We
agree with the view of the 2"party that this is not the job of the panel to engage jn mathematical gymnastic by
calculating the entitlement of each of the
610.
14. Issue three - Whether the Industrial Arbitration Panel was right when it held that the appellant did not prove that the 1st respondent is a
signatory to the Collective Bargaining Agreement or a member of the Seaport Terminal
Operators Association of Nigeria (STOAN)and therefore not
bound by the Collective Bargaining Agreement between
the association (STOAN)and the Appellant.
The 1st Respondent argues that it is not a member of Seaport
Terminal Operators Association of Nigeria (STOAN) and not bound by the collective Bargaining Agreement. The 1st Respondent submits
that there is nothing
before this Court to show the 1st
Respondent's membership of STOAN. The 1st Respondent referred to the
Appellant’s brief (paragraph 6.3) where it referred this Court to the email communications between Uzamot Boye, secretary
of STOAN and Usaini Garba, as
evidence of the 1st Respondent's membership of the Seaport
Terminal Operators Association of Nigeria (STOAN). The 1st Respondent argues that the said email communications are annexures 10A
and 10B which can be seen at pages 134
-136 of the Record of Appeal.
The 1st Respondent argues that the Annexure 10A
and 10B are neither an official
or unofficial communication from the Seaport Terminal Operators
Association of Nigeria (STOAN) in the sense that:
(a) Annexure 10A is a forwarded message dated 15 February
2008 by an unknown person
to Uzamot Boye. The said Uzamot Boye received annexure
10A in his private
email box uzamotboye@gmail.com who now
forwarded the same
message to usainegarba@yahoo.com and CC to usaine.garba@intelservices.com .
(b)Neither Uzamot Boye nor Unsainegraba@yahoo.com acted either
for STOAN
nor the 1st
respondent. That the Annexure
10A did not carry the letterhead paper of STOAN.
(c) A look
at Annexure 10B
at page 136
of the Record
of Appeal captioned “OUTCOME
OF MEETING OF TERMINAL OPERATORS OF TUESDAY
26TH MARCH 2013” shows that it is
a forwarded message
by “tessy.kuagbecha@enlco …”who now forwarded the said email
message on the 27 day of
march to various email addresses. This forwarded email is also a private
email ommunication which also has no bearing or connection with the
1st Respondent.
(d)
Annexure 10A and 10B were
made on the
15th
day of February 2008 and 27"day of March 2013 respectively whereas the contract, the termination of which and the quest for the redundancy benefit was terminated in 2019
(in annexure 2b at page
44
and annexure F1 at page 866 of
the record of appeal). Thus the said annexure 10AB and 10
has nothing to show that as at 2019 the 1st respondent was a member
of the
Seaport Terminal Operators Association of Nigeria (STOAN).
(e) Annexures 10A and 10B
were not
signed by
anybody as to give it some sort of legitimacy that it is
coming from a known person.
15. The 1st Respondent therefore submits that Annexure 10A
and 10B have no
evidential value in this case and have no
relationship whatsoever with the 1st respondent in proof of 1st
respondent’s said membership of STOAN.The
appellant also relied on annexure 7 at page 87 of the record
of appeal which is the collective bargaining agreement between STOAN and the
appellant, Maritime WUN to show that the appellant is a member of STOAN and therefore
bound by
annexure 7. The 1st Respondent submits that annexure
10A and 10B not having been signed by anyone
cannot be said to bind
the 1st respondent as it was neither sent
to the 1st respondent or
showed to have been
sent by an officer of STOAN and signed as such. The 1st Respondent points to the position of the law that
unsigned documents have no probative
value in law, and submits that the said annexures in no way proves that the 1st Respondent is a member of the Seaport
Terminal Operators Association
of Nigeria (STOAN).
16. The 1st Respondent also argued
that it must also be shown that the CBA entitles individual members
to bring an action
for and against based on the collective agreement;
and that in law collective
agreements are not binding
and its contents cannot be enforced in the law courts except through negotiation and reconciliation. The 1st Respondent submits that it
is therefore out of place
for the appellant to base part
of their heads of claim on a collective
agreement that in law is unenforceable.
The 1st Respondent referred to the cases of Osoh v Unity Bank Plc (2013)9 NWLR(Pt 1358)P.26 Para H to p.27 Para A which
held that; “collective agreements between
an employer and employees, or between an employer and union of employees are not intended to create
any legal relations giving
rise to any
contractual obligations and are therefore not justiciable.” The case of U.B.N Ltd v Edet
(1993)4 NWLR (Pt 287)(P.298,Para C;H),
and Afribank (Nig.) Plc v. Osisanya (2000) 1 NWLR(Pt.642)(P.613,Para C).
The Case of the 2nd
Respondent:
17. The 2nd Respondent is a duly registered indigenous and
independent stevedoring company in Nigeria under the Companies and Allied
Matters Act and a licensed Labour recruiter agent of the federal Ministry of
Labour and Employment and a registered dock labour employer and Stevedoring
company by the Nigerian Maritime Administration and Safety Agency (NIMASA) the
regulatory agency of the maritime industry established under the Nigerian
Maritime Administration and Safety Agency Act 2007. The Appellant on behalf of
its members (Dockworkers) usually negotiates with the 2nd Respondent,
the terms of employment and conditions of service of the dockworkers which
evidenced in the Collective Bargaining Agreement (CBA) endorsed by both parties
to the agreement, for a four-year term which is subject to future negotiations
upon expiration. (see pages 77-84,
924-931 of the Records of Appeal). The
1st Respondent sometimes engages the services of the 2nd Respondent
on a contract of service to carry out stevedoring services at its operational
terminals, cargoes, boats and barges, at an agreed fee as its remuneration. The
first contract between the 1st and 2nd Respondent was for
the 2nd Respondent to provide stevedoring services on board ocean
going vessels at Onne, Calabar and Warri ports from the 1st of
January 2018 – 2nd of January 2019. (see pages 898-911 of the Records of Appeal). The second
Stevedoring contract between the 1st and 2nd Respondents,
was for the 2nd Respondent to provide stevedoring services on board
ocean going vessels for cargoes of Dangote Petrochemical Refinery and
fertilizer project, from the 23rd of January 2019- 23rd January
2020. (see pages 912-920 of the Records
of Appeal). The third stevedoring contract between the 1st and
2nd Respondents, was a tripartite joint venture agreement with
Modern Stevedoring Services Limited, an indigenous stevedoring company duly
registered and recognized dock labour employer by the Nigerian Maritime
Administration and Safety Agency(NIMASA) and the stevedoring agreement, was a guideline
on how the three entities were to discharge the bulk liquid cargoes at the
Federal Ocean Terminal Onne, from the 1st of January 2018 – 31st
December 2018. (see pages 932-935 of
the Records of Appeal). That in other to meet up with its contractual obligations
with clients, the 2nd Respondent entered into a stevedoring contract
with other independent stevedoring companies and dock labour employers, duly
registered and recognized by the Nigerian Maritime Administration and Safety
Agency, to carry out stevedoring services for its clients on a one off basis
for an agreed fee as its remuneration. Some
of those stevedoring companies and dock labour employers includes; Nted
International Limited now known as Faitone Stevedoring Services Limited, Modern
Stevedoring Services Limited and Joesco & Tonesco Enterprises. The first
stevedoring contract between the 2nd Respondent and Nted
International now known as Faitone Stevedoring Services Limited was on the 1st
of January 2004, for the company to carry on the stevedoring services of
Loading of Coated Pipes at the Federal Ocean Terminal (FOT) and the Federal
Light Terminal (FLT) Onne at an agreed fee as its remuneration on a one off
bases. (see pages 8-9, 877-879 of the
Records of Appeal). Thhe second stevedoring contract between the 2nd
Respondent and Nted International Limited now known as Faitone Stevedoring
Services limited was for the company to carry on stevedoring services on board
service boats and barges at the Federal Ocean Terminal (FOT) and the Federal
Light Terminal (FLT) Onne, from the 1st of March 2018,with an expiry date of
28th February 2019, at an agreed fee of Thirteen Million Naira ( N13,000,000)
as its remuneration on a one off basis, (see pages 33-54, 884-895 of the Records of Appeal).
18. After the stevedoring contract
between the 2nd Respondent and Nted International Limited now known
as Faitone Stevedoring Services Limited had elapsed by effluxion of time on the
28th of February 2019, the Stevedoring company continued to provide
stevedoring services to the 2nd Respondent, and was paid for the
additional stevedoring services, but on the 10th of February 2021, the 2nd
Respondent terminated the additional stevedoring services rendered by the
stevedoring company, and reminded the stevedoring company the fact that the
contractual obligations each party owed the other had been determined by
effluxion of time on the 28th of February 2021. (see pages of the Records of Appeal) With regards to Tonesco &
Joesco Enterprises, the first stevedoring contract between the 2nd Respondent
and Tonesco & Joesco Enterprise was on the 2nd of January 2003,
for Tonesco & Joesco Enterprise to provide stevedoring services and
maintenance at the federal Ocean Terminal (FOT) and Federal Light Terminal
(FLT) Onne, Warri and Calabar Ports, on a one off basis, at an agreed fee as
its remuneration. (see pages 858-861 of
the Records of Appeal). The
second stevedoring contract between the 2nd Respondent and Tonesco
& Joesco Enterprise commenced on the 1st of March 2018 and elapsed on the
28th of February 2019, and the contract was for Tonesco & Joesco Enterprise
to provide stevedoring services on board ocean going vessels at Onne, Warri and
Calabar ports, on a one off basis at an agreed fee of Ten Million Naira
(N10,000,000.00), (see pages 866-894 of
the Records of Appeal). The stevedoring enterprise continued to render
additional stevedoring services to the 2nd Respondent, which were
acknowledged and paid for by the 2nd Respondent, but on the 10th of February 2021, the 2nd Respondent
terminated the additional contractual relationship between the patties
reminding the Stevedoring enterprise the fact that the main contractual
obligations each party owed to the other had been determined by effluxion of
time on the 28th of February 2021. Few
months after the 2nd Respondent had officially written to Nted
International Limited now known as Faitone Stevedoring Services Limited and Joesco & Tonesco Enterprises, terminating
the additional stevedoring services rendered by the two entities, after the
expiration of the main stevedoring contract on the 28th of February
2019, the Appellant wrote the 2nd Respondent vide a letter
referenced MWUN/MD/AMS.HQ/RPTB.2/4.21 and
dated the 20th of April 2021, claiming that 270 dockworkers in the
employ of Joesco & Tonesco now known as Faitone Stevedoring Services
Limited were laid off from their jobs at the instance of the 2nd Respondent,
demanding that the 2nd Respondent pay the terminal benefits of the
270 disengaged dockworkers. Based on the
documents exhibited by the Appellant at the Industrial Arbitration Panel, the 2nd
Respondent got to know that similar notices of demand were made to the 1st
Respondent, with respect to 210 dockworkers claimed to have worked for Modern
Stevedoring Services Limited vide a letter referenced MWUN/MD/INTELS/RP.5/HQ.8, dated the 30th of July 2021.(see pages 122-123 of the Records of Appeal),
and another demand letter referenced MWUN/MD/INTELS/RP.6/HQ.8,
dated the 15th of February 2022 with respect to 69 dockworkers of Joesco &
Tonesco Enterprises, 270 dockworkers of Faitone Stevedoring Services Limited
and 210 dockworkers with respect to Modern Stevedoring services Limited. (see pages 124-125 of the Record of Appeal). In furtherance to the above demands, the
Appellant wrote to the Permanent Secretary, Federal Ministry of Labour and
Employment vide a letter referenced MWUN/PM/FL&E.1/P/8,
and dated the 9th of August 2022 informing the Permanent
secretary of a looming industrial unrest in all the nations port terminals,
jetties and oil and gas platforms, due to the unfair labour practice of the 1st
and 2nd Respondents and their
refusal to pay dockworker their statutory terminal benefits. Based on the above letter, the
Honourable Minister of Labour and Employment appointed a mediator to settle the
matter between the parties, but when mediation failed, the Honourable Minister
of Labour and Employment on the 3rd of October referred the matter to the
Industrial Arbitration Panel in the exercise of the powers conferred on him in
section 9 of the Trade Disputes Act, Cap T8 LFN 2004, for the Industrial
Arbitration Panel to enquire into the trade dispute between the parties over
the disengagement and non-payment of the terminal benefits to 610 dockworkers
who are members of the Appellant.(see
pages 976-977 of the Record of Appeal).
19. At the hearing of the trade dispute
before the Industrial Arbitration Tribunal, it was the Appellant’s claim and
submission that its members numbering six hundred and ten (610) that worked for
the 1st Respondent at the 1st Respondent’s port terminal between the period of
2009 to the 29th of February 2021 as dockworkers, were laid off from their
employment following the termination of the stevedoring contract between the
2nd Respondent and Modern stevedoring services Limited and Faitone Stevedoring
Service Limited. That the
contract was terminated on the instructions of the 1st Respondent,
because the 2nd Respondent is the labour manager of the 1st
Respondent and that the relationship between the affected dockworkers and the
1st and 2nd Respondent is a tripartite employment relationship. That the
termination of the stevedoring contract between the 2nd Respondent and Modern
Stevedoring Services Limited, resulted in the dockworkers becoming redundant,
but that the 1 st and 2nd Respondents have refused to pay the 610 redundant
dockworkers their redundancy/terminal benefits. That based on the dock labour industrial minimum
standard set up by the National Joint Industrial Council which consist of all
the key players in the maritime industry such as the NPA, NIMASA and STOAN,
that terminal operators are recognized as the master stevedores of their
respective port terminals and as such dockworkers working at their operational
port terminals are deemed the employees of the terminal operators and the
terminal operators the employers of the dockworkers irrespective of the fact
that such jobs had been contracted out to other third parties. That based on
the dock labour industrial minimum standard set up by the National Joint
Industrial Council, the minimum standard benefits payment for dockworkers who
have worked for ten (10) years and above for general cargo terminal is Seven Hundred
and Fifty Thousand Naira (N750,000.00) per dockworker. That the 1st Respondent
being a member of the Seaport Terminal Operators Association of Nigeria
(STOAN), is bound by the Collective Bargaining Agreement (CBA) between the
Appellant and the association on the conditions of service which has the
contents of the dock labour industrial minimum standard set up by the National
Joint Industrial Council. It was the
submission and averment of the 1st Respondent at the Industrial
Arbitration Tribunal, that it was not a member of the Seaport Terminal
Operators Association of Nigeria (STOAN) and therefore not bound by the
Collective Bargaining Agreement between the Appellant and STOAN, that the 2nd
Respondent was not the agent of the 1st Respondent as such the 2nd Respondent
did not terminate the stevedoring contract with Modern stevedoring Services
Limited and Joesco & 6Tonesco Enterprises on the instructions of the 1st
Respondent, and finally that the 610 disengaged dockworkers are not its
employee and that it’s not liable to pay them any terminal benefits. It was the submission of the 2nd
Respondent at the Industrial Arbitration Tribunal, that the contract between it
and Modern Stevedoring Services Limited, Faitone Stevedoring Services Limited
and Joesco & Tonesco Enterprises had elapsed by effluxion of time, and that
the stevedoring companies it entered into a contract with, were independent
contractors who were responsible for the recruitment of their personnel, and
that there were well remunerated. That the 1st and 2nd Respondents
are not liable to the Appellant for the payment of the terminal benefits to the
610 disengaged dockworkers, that those who should be held liable should be
Faitone Stevedoring Services Limited, Modern Stevedoring Services Limited and
Joesco & Tonesco Enterprises who are their employers and those who also
laid them off from their work. At
the conclusion of hearing, the Industrial Arbitration Panel made its findings
and gave its award, which was communicated the parties by the Honourable
Minister of Labour and employment through the Director of Trade and Industrial
Relations, Federal Ministry of Labour and Employment, vide a letter dated the.
The Industrial Arbitration Panel in its award held that the Appellant failed to
establish that the 610 disengaged dockworkers were the employees of the 1st
Respondent and that the determination of their employment is redundancy that
entitles them to be paid redundancy benefits. Dissatisfied with the findings
and Award of the Industrial Arbitration Panel, the Appellant based on the
exhibit attached to its counter-affidavit and written address in response to
the preliminary objection of the 2nd Respondent dated the 16th of April 2024,
raised an objection to the Honourable Minister of labour and Employment,
against the award of the Industrial Arbitration Panel vide a letter reference
MWUN/HM/FML & E/MTML/2023, and dated the15th of May 2023.
2ND RESPONDENT’S ARGUMENT
20. The 2nd Respondent raised four
issue for determination in this appeal, to
wit:
(a) Whether
the Industrial Arbitration Panel was right to have held in its award, that the
Appellant had failed to establish its claims against the 1st and 2nd
Respondents.
(b) Whether
the 2nd Respondent and the Stevedoring contractors namely; Nted
International Limited now known as Faitone Stevedoring Services Limited, Modern
Stevedoring Services Limited and Joesco & Tonesco Enterprises can be
classified as independent contractors, self-employed persons and vendors.
(c) Whether
the stevedoring contract between the 1st and 2nd Respondent
and the Stevedoring contractors namely; Nted International Limited now known as
Faitone Stevedoring Services Limited, Modern Stevedoring Services Limited and
Joesco & Tonesco Enterprises can be classified as contract for service.
(d) Whether
the National Industrial Court of Nigeria has the jurisdiction to entertain
matters that border on contract for service.
21. Issue one - Whether the Industrial Arbitration Panel was right
to have held in its award, that the Appellant had failed to establish its
claims against the 1st and 2nd
Respondents. The 2nd
Respondent submits that the Industrial Arbitration Panel was right to have held
in its award that the Appellant failed to establish its claims against the 1st
and 2nd Respondent, based on the fact that the information contained
in the bundle of employment letters exhibited by the Appellant, at pages
145-757 of the records of Appeal, are inconsistent and contradictory to the
Appellants claims and its exhibits in pages 120- 127 of the records of appeal.
That while the Appellant claimed that its members (610 disengaged dockworkers)
were employed by the 1st and 2nd Respondent in 2009, information on those
employment letters has Modern Stevedoring Services Limited and Faitone
Stevedoring Services Limited as the employers. The 2nd Respondent
further submits that the Industrial Arbitration Panel was right to have held in
its award that the Appellant failed to establish its claims against the 1st and
2nd Respondent, based on the fact that the information contained in the bundle
of employment letters exhibited by the Appellant, at pages 145-757 of the records of Appeal, were dumped on the
Panel by the appellant, without explaining or tying the employment letters to
its case.
22. On issue two - Whether the 2nd Respondent and the Stevedoring contractors
namely; Nted International Limited now known as Faitone Stevedoring Services
Limited, Modern Stevedoring Services Limited and Joesco & Tonesco
Enterprises can be classified as independent contractors, self-employed persons
and vendors. The 2nd
Defendant argues that an independent contractor refers to a self-
employed individual or entity contracted to perform work or provides services
to another person or entity as a non-employee, it also refers to a person or
entity hired to do work, and who controls how work is done. The 2nd
Respondent argues that the stevedoring contract between the 1st and
2nd Respondent, placed the obligation for the supply, control and
management of dockworkers on the 2nd Respondent as an independent
contractor; and that the 2nd Respondent as an independent
contractor, had the unfettered power to control, supervise and manage all the
dockworkers engaged in the provision of stevedoring services to the 1st
Respondent in the stevedoring contract between the 1st and 2nd
Respondent as per clause 2,3,4,6,9 and
18 of appendix 1 at pages 915-916 of the
Records of Appeal). The 2nd Respondent then submits that it was
an independent contractor in the Stevedoring contract between the 1st
and 2nd Respondent. The 2nd
Respondent further submits that the stevedoring contract between the 2nd
Respondent, and Modern stevedoring services Limited, Nted International Limited
now known as Faitone Stevedoring Services Limited, and Joesco & Tonesco
Enterprises; were contracted between independent and separate entities that are
duly registered in Nigeria by the Corporate Affairs Commission (C.A.C), because
the NIMASA ACT 2007 requires Stevedoring Companies and Dock Labour employers to
submit their incorporation documents with the body for them to be registered
and issued with licenses to operate as stevedoring companies within the maritime
industry in Nigeria.
23. Issue three - Whether the stevedoring contract between the 1st
and 2nd Respondent and 2nd Respondent and the Stevedoring
contractors namely; Nted International Limited now known as Faitone Stevedoring
Services Limited, Modern Stevedoring Services Limited and Joesco & Tonesco
Enterprises can be classified as contract for service, and whether the National
Industrial Court of Nigeria has the jurisdiction to entertain matters that
border on contract for service. The 2nd Respondent referred to the
case of Shena Security Co. ltd v. Afropak (Nig) Limited & 2 others (2008) 18 NWLR (pt.1118) 77 SC; and argues
that the case laid down factors that should guide courts in determining
the kind of contract parties have entered into.
The 2nd Respondent restated the nature of the relationship
between the parties, but without a conclusion whether the NIC has jurisdiction
to entertain this suit or not.
24. Issue
four - Whether the National Industrial Court of Nigeria has the jurisdiction to
entertain matters that border on contract for service. The 2nd
Respondent here submits that the
jurisdiction of the National Industrial Court only covers disputes relating to
contract of service and does not cover matters relating to contract for service;
that cases involving independent contractors, self-employed persons or vendors
engaged for a fee to carry out an assignment or project, are not justiciable
before the National industrial court.
APPELANT’S
REPLY TO THE RESPONDENTS’ BRIEF OF ARGUMENT
25.
In response to the Respondents’ separate arguments, the Appellant argued
that in its argument in support of its issue 1, and the 1st
Respondent’s denial at the IAP that it was not the employer of the 610 affected
members of the Appellant; the Appellant failed to produce employment letters
issued to the said workers by the 1st Respondent and as such the
Appellant failed to establish by credible evidence its claim that the said 610
disengaged dockworkers actually worked for the 1st Respondent from
2009 to 2021 and were its employees.
That the 2nd Respondent equally argued in paragraph 4.3 of
its brief that the Appellant alluded to an agency relationship between the 1st
and 2nd Respondent in the employment of the 610 dockworkers but
failed to adduce credible evidence before the IAP to prove the existence of
that agency relationship and equally failed to prove that the stevedoring
contracts between 2nd Respondents
and the stevedoring companies were terminated by the 2nd Respondent
based on the instructions of the 1st Respondent. The Appellant submits that the above stated
arguments of the 2nd Respondent are misconceived; and that the 2nd
Respondent cannot approbate and reprobate at the same time. The Appellant
submits that both the 1st and 2nd Respondents did not
deny that the 610 dockworkers affected by this trade dispute worked for the 1st
Respondent in its port terminals by virtue of the above stated stevedoring
contracts; and also clearly admitted the fact of its agency in the working
relationship between the 1st Respondent and the affected 610
dockworkers/the stevedoring companies that engaged them. The Appellant’s case
is simply that the said 610 (six hundred and ten) dockworkers are deemed
employees of the 1st
Respondent by the dock labour industry
minimum standard owing to the fact that
they all rendered their dock services in
the 1st Respondent’s Port Terminals for over a period of 10 years
until the termination of the stevedoring contracts of Faitone Stevedoring
Services Ltd and Modern Stevedoring
Services Ltd on the said terminals on 28th February, 2021 and by virtue of the Collective
Bargaining Agreement between the Seaport Terminal Operators Association of Nigeria (STOAN) which the 1st
Respondent is a member of which vest the responsibilities of an employer in
such circumstances on terminal operators
and the 1st Respondent is the operator of the terminals in which the said 610
dockworkers rendered dock services. On 1st
Respondent’s argument that there is no nexus between the 1st
Respondent and annexure 6 attached to the Appellant’s memorandum before the
IAP(the email stated by the Appellant in its Memorandum to have been written by
the 1st Respondent to the 2nd Respondent instructing for
the termination of the stevedoring contracts of Faitone Stevedoring Services
Ltd and Modern Stevedoring Services Ltd under which the 610 dockworkers
worked. The Appellant argues that
annexure 6 is a private document between Husseine Usman and one Mike (surname
unknown) and that the duty of this Court is to do justice and not to dwell on
technicalities.
26.
On 2nd Appellant’s argument that that the National Joint Industrial
Council is unknown to law and does not
have the legal capacity to make regulations or set up a minimum standard for
entities operating in the maritime industry, the Appellant submits that this argument
is misconceived, as the NJIC is a body established pursuant to Section 18
of the Wages Boards and Industrial Council Act 1973 for
different industries in Nigeria for the purpose creating collective agreements
for workers and employers within the industry; and further submits that the
provision for payment of redundancy benefit contained in Clause 6 of the STOAN
and MWUN CBA is cogent , credible or verifiable and clearly prescribes for
payment of redundancy benefit/ payment of retirement benefit to aged
dockworkers and those with health issues. On the legal capacity of the Seaport
Terminal Operators Association of Nigeria (STOAN); an entity registered under
Part F of the Companies and Allied Matters Act 2020 to enter into a binding and
enforceable contract with other entities under the name and style of Seaport
Terminal Operators Association of Nigeria relying on the case of Fawehinmi v. NBA, the Appellant
responded that while the case of Fawehinmi
v. NBA deals with the legal capacity of unincorporated associations to sue
or be sued, the 2nd Respondent’s argument deals with the capacity of
such association registered under Part F of CAMA to enter in contracts. The
Appellant argues that the Labour laws in Nigeria recognize the legal status of
employers’ associations which STOAN is one of to enter into collective
bargaining Agreements. On the argument of the 2nd
Respondent that the Appellant dumped the employment letters on the IAP without
explaining or tying the employment letters to its case, the Appellant submits
that the letters are self-explanatory as to the purpose for which they were
tendered. On the 2nd
Respondent’s argument that that the stevedoring contracts between the
Respondents and the Stevedoring companies is classified as contract for service
and as such this Honourable Court lacks the jurisdiction to entertain the
Appellant case, the Appellant submits that it is the Claimant’s (in this case
the Appellant) case as shown in his originating processes that determines the
jurisdiction of the Court; and that in this case, their case is that the
Respondents conduct affected
the Appellant’s members; hence the subject matter of the present dispute
bothers on labour dispute that relates to the interpretation and application of
a collective agreement which this Honourable Court is clearly vested with
jurisdiction to entertain under Section 254C(1)(a) &( j).
THE PRELIMINARY
OBJECTION
27. The Respondents each brought a preliminary
objection against this suit. The 1st
Respondent’s objection was filed on 16th April 2024; while the 2nd
Respondent’s objection was filed on 20th May 2024. The two objections seek basically the same
reliefs and are founded on almost identical grounds. We shall therefore take the two objections
together. The two applications are
brought pursuant to Order 17 Rule 9 and order 50 Rule 1(1)of the National Industrial Court of Nigeria (Civil
Procedure)Rules 2017,Article
30(6)Industrial Arbitration Rules 2021, section
13(2)and section 14(1)of
the Trade Dispute
Act and under the
inherent jurisdiction of the Court. The 1st
Respondent seeks for an Order to striking out the appeal for not coming before
the Court initiated through the laid down due process of the law; and for such
further Order(s) as the Honourable Court may deem fit to make in the
circumstances. The 2nd
Respondent on its part seeks for:
1.
AN
ORDER DISMISSING/STRIKING OUT the appeal by the
Appellant/1st Respondent
against the Award delivered by the
Industrial Arbitration
Panel on
the
22"day of February 2023 in Suit
No.IAP/HP/3924 in the matter of
a
trade
dispute between
Maritime Workers Union of Nigeria vs.Intels Nigeria Limited and Associated Maritime Services Ltd, as the
Honourable Court
lacks the jurisdiction to entertain the
appeal brought by the Appellant, having
not complied with the
rules.
28. The grounds
upon which the application is brought are:
a.
That this
matter was
commenced at
the Industrial
Arbitration Panel
sitting at
Lagos wherein the Panel made its award and same was
communicated to the
parties by the Director,Trade Union Services and
Industrial Relations on behalf
of the Minister of
Labour and Employment
on the 4h day of May 2023 in line with section 13(2)of the Trade Dispute
Act,Cap T8 LFN 2004.
b.
That the Appellant
without complying
with the provisions
of section 13
(2)of the Trade Dispute Act,Cap T8 LFN 2004 by raising an objection to the Minister of Labour and Employment against the said award within
7 days of the
communication of the award compiled and transmitted a record of appeal on the 27 day of November
2023.
c.
That there is no evidence
of the
Appellant
raising an objection
to
the
award,
hence this court has no jurisdiction to entertain the matter having failed to comply with the provisions of section 12(2) of
the Trade Dispute Act nor Article 30(6) of the Industrial Arbitration Rules
2021.
29. In addition, to the fact of non-objection to
the award, the 2nd Respondent also raises the issue that:
d. the
referral of the Minister of this dispute to the National Industrial Court, was
never communicated to the 2nd Respondent.
e. The
2nd Respondent was left in the dark over this appeal before the
Court, as it was not notified by the office of the Hon. Minister of Labour and
Employment that the award had been objected to and that the matter had been
referred to the NIC, till it was sered with the records of appeal from the IAP
by the Appellant/Respondent on the 19th of January 2024, and
f. That
the National Industrial Court never served the 2nd Respondent with
the Court’s hearing notice, wherein it would have attached the referral
instrument from the Hon. Minister of Labour and Employment.
30. In support of the the objection, the 1st
and 2nd Respondents deposed to affidavits supporting the grounds of
objection stated above. Both Objectors
also filed written addresses in support of their objection. Being founded on the same grounds, the arguments
in support of the objections are also based on the same legal basis. The 1st Respondent raised a sole
issue for determination; which is, “whether this Honourable
Court has the jurisdiction to entertain this matter being that the matter is brought without following due process of law, and submits that due process
demands that the parties conduct their case according
to the laid down
rules and principles of the court;
that the laid down process necessary for one who desires to appeal
in a trade dispute matter
is provided for in the Industrial
Arbitration Rules 2021, the National Industrial Court of Nigeria(Civil Procedure)Rules 2017 and the
Trade Dispute Act CAP T8 LFN 2004.
The Respondents refer to Article 30(6) of the Industrial Arbitration
Rules 2021, Order 50 Rule 1(1) of the National Industrial Court Rules 2017,
section 14(1) of the TDA and section 13(2) of the TDA. The Respondents argue that there is no notice
of appeal before this Court, which
notice would have drawn its
strength from the notice
of objection, had any been raised by the
appellant.That nothing precluded the
Appellant from following the due process of
filing and serving a notice of
appeal which gives life to the
appeal. See the case of Aderibigbe
&Anor V.Abidoye (2009)LPELR-140(SC)(Pp.27 paras.C)where the supreme court held that “….the Notice of Appeal is the spinal cord of an appeal. It does not only place the
appeal in its proper perspective,
it is the cynosure or fulcrum of the appeal. There cannot
be a valid appeal without a Notice of Appeal or more accurately without a valid Notice of Appeal.”
31. The Respondents also argue that apart from
the notice of appeal,
the referral instrument by
the minster is also an originating process that forms a mode of
commencing of this
appeal. See Order 3 Rule 1(1)of the National
Industrial Court of Nigeria (Civil
Procedure) 2017 which provides that
a referral instrument is one of the modes of commencement of action before the
National Industrial Court. The
Respondents submit on this premise that this court has no jurisdiction
to entertain this matter as there is no notice of objection,or a notice of
appeal or a referral
from the Minster of Labour and Employment
to the National Industrial Court of
Nigeria.
They argue that assuming but not conceding the fact that there is a referral from the minister,
same was not served on the 1st respondent as required by section 13
(2)(a)(b)&(c)of the Trade
Dispute Act CAP T8 LFN 2004. See
the case of Aondoakaa
v. Obot & Anor(2021)LPELR-56605(SC)(Pp.14-15 paras.D)that “It is well settled beyond
any equivocation,that the service of an originating process on a named party, who ought to be served, is an indispensable aspect of any adjudication. It goes to the root of the Court's competence
and jurisdiction to entertain
the suit”. The Objectors also
submit that,assuming but not conceding that there was a notice of objection
made to the Minster,this
objection must be made
within seven (7)days,
the time stipulated under section 13 of the Trade Dispute Act CAP T8 LFN 2004 and
which
the Appellant's
time lapsed on the 15 May 2023 from the date of communication of the award which is 4th May 2023.
32. Furthermore,
the Objectors submit that the
Appellant was out of time to compile and transmit the record of
appeal,as they failed to compile and transmit the
record of appeal within the thirty(30)days as
stipulated by Order 50 Rule 1(1)of the National Industrial
Court of Nigeria (Civil Procedure)Rules 2017 which elapsed on the 6 April 2023 from the date the
award was made
which is 22md February 2023.
The Appellant rather compiled and transmitted record
on the 27th of November 2023 and no motion of
extension of time was filed to that effect.
33. The Appellant filed two nine paragraph
counter affidavits in response to the two preliminary objections on 9th
May 2024 and 27th May 2024, averring the same facts, in opposition
to the preliminary objections. The
deponents aver that the Appellant received the award of the IAP on the 11th
day of May 2023, and communicated its objection to the Award to the Minstry of
Labour on 16th May 2023. Upon
receipt of the notice of objection, the Minister referred the matter to the
National Industrial Court. In their
address in support of the counter affidavit, the Appellant raised the issue
“whether the Respondents are entitled to the relief sought? The Appellant submits that they met the
requirement of section 13(2) of the TDA by annexures A and B to their counter-affidavit;
the notice of award received on 11th May 2023 and the notice of
objection delivered on 16th May 2023.
34. In Reply on Points of Law, the 2nd
Respondent conceeded that the Appellant annexed the notice of award showing it
was received on the 11th of May 2023, and that the notice of
objection was lodged on the 15th of May 2023. The 2nd Respondent however argues
that the Appellant failed to exhibit the referral instrument grom the Minster
of Labour and Employment. On its part,
the 1st Respondent replied that the Appellant/1st Respondent's
did not
deny that
both the notice of objection it purported
to have filed, notice of appeal challenging the
award
made by the Industrial Arbitration Panel and the Referral Instrument by the Honourable Minister referring
this matter to this
Court
(if any), were not served on the Respondents; which
failure preponderate to admission of
non-service of the said processes on
the Applicant, but appears to contend to the
effect that the failure of service of the said processes on the Respondents
has been cured by the purported Referral Instrument which, having been purportedly transmitted to the Honourable
Court, activated the jurisdiction of the Honourable Court,without
more.
RESOLUTION OF THE PRELIMINARY OBJECTION
35.
We have gone through the processes filed in this application, the
exhibits tendered and the argument of Counsel.
After going through these processes, we find that the main issue for
contention is;
·
Whether
this appeal was initiated by the due process of the law.
36. The Applicants’ contention is that this
appeal was not commenced by due process of law, robbing this Court of
jurisdiction to hear this appeal. The
Applicants/Respondents contend that there is no notice of objection to
the award of the AIP, or a notice of appeal or a referral from the Minster of Labour and Employment
to the National Industrial Court of
Nigeria.
They also argue that assuming but not conceding the fact that there is a referral from the minister,
same was not served on the
Respondents as required by section 13
(2)(a)(b)&(c)of the Trade
Dispute Act CAP T8 LFN 2004.
37.
The Trade Disputes Act, Cap T8, LFN, 2004 provides for the machinery for
the resolution of trade disputes in Nigeria.
The machinery set up by the Act, includes a referral to the Industrial
Arbitration Panel under section 9.
Under section 13 (1)(b) of the Act, after an Award is made, the IAP
shall “forthwith
send a copy thereof to the Minister, and shall not communicate the award to the
parties affected. Subject to subsection
(3) of section 13(1), on receipt of a copy of the award of the tribunal, the
Minister shall immediately cause to be given to the parties or their
representatives; a notice—
(a) Setting out the awards;
(b)
Specifying the time (not being more than seven days from
the publication of the notice) within
which the manner in which notice of objection to the award may be given to the
Minister by or on behalf of either party to the dispute; and
(c)
Stating that, except where notice of objection to the award
is given within the time and in the manner so specified by one or both of the
parties, the award will be confirmed by the Minister.
38. The crux of the Respondents/Objectors’
argument is that there is no proof of an Objection by the Appellant/Respondent,
enabling the Minister to make the Referral.
According to the Respondents/Objectors, since they did not receive the
Notice of the Appellant/Respondent’s Objection; the implication is that the
provision of section 14(1) has not been complied with.
Section 14(1) of the TDA
provides that:
(1) If
notice of objection to the award of an arbitration tribunal appointed under
section 9 of this Act is given to the Minister within the time and in the
manner specified in the notice under section 13 (2) of this Act, the Minister
shall forthwith refer the dispute to the National Industrial Court established
by this Act.
39. The vital issues before this Court to
determine the competence of this Referral are three pronged; whether indeed
there was an Objection to the Award, made to the Minister of Labour and
Employment by the Appellant/Respondent; and if there was; was it made within
the 7 days stipulated by the letter of the Minister; and if it was, were the
Respondents served with notice of the referral?
40. The Appellant/Respondent attached two
documents; marked A and B. Annexure A.
dated 4th May 2023 is the Notice of Award from the Minister of
Labour and Productivity to the Appellant.
It was received on the 11th of May 2023. Annexure B, is the
Notice of Objection to the Award dated 15th May 2023, and received
on the 16th of May 2023.
Mathematically, the notice of objection to the award was made and
received within the 7 days stipulated in section 13(1) of the TDA. The Applicants/Respondents, after receiving
these documents in the counter affidavit, did not challenge their
authenticity. Rather, in their Reply on Points of Law, the Respondents acknowledged the
annexed Notice of Award showing it was received on the 11th of May
2023, and that the notice of objection was lodged on the 15th of May
2023. The Respondents thereafter hinged
their argument on the failure of the Appellant to exhibit the referral
instrument from the Minster of Labour and Employment, to this Court. From annexures A and B, to the Appellant’s
counter affidavit to the Respondents’ preliminary objection, the Appellant has
established that it entered objection to the Award of the AIP, within the time
stipulated by law.
41. The remaining
issue is the service of the referral to the Respondents. The Respondent/Applicants did not cite the
law that provides that it is the responsibility of the Appellant to serve them
with the Minister’s Referral of the dispute to the National Industrial
Court. Section 14(1) of the Trade
Disputes Act requires the Minister to “refer
the dispute to the National Industrial Court”.
The very first process in the proceedings in this suit is the Referral
Letter dated 20th May 2023 signed by Emmanuel Igbinosun, Director Trade
Union Services and Industrial Relations, accompanied by the Instrument of
Reference dated 25th May 2023, and the Award of the Industrial
Arbitration Panel (IAP). Paragraph 3 of
the Referral letter indicated that “copies of the instruments have been forwarded
to the disputants whose addresses are as follows…” The addresses of the three parties before the
IAP, the parties in this appeal, followed.
Upon the constitution of this panel by the President of this Court, the
Court ordered hearing notices to be served on the parties to the suit, with the
understanding that parties had been served the instrument of referral. By the 22nd of February 2024,
hearing notices having been issued; all the parties were in Court, whereupon
the Court gave directions on how processes were to be filed. Parties thereafter filed their respective
Briefs. We therefore do not agree that
the Respondents were not aware of the referral.
By the provision of section 167 of the Evidence Act, this Court may
presume the existence of any fact which it deems likely to have happened;
regard shall be had to the common course of natural events, human conduct and
public and private business, in their relationship to the facts of the
particular case.
42. The parties having come before the Court, and
the Court having ordered for the filing of their briefs on the well founded
presumption that the Minister copied the referral letter to the parties herein,
the Respondents assertion of none service of the referral letter (assuming that
is the case) begs a lot unto technicalities.
This suit, having not been commenced under Order 50 Rule 1(1)of the National
Industrial Court of Nigeria (Civil Procedure)Rules 2017 is not regulated as such,
rather by the Trade Disputes Act. Thus
the argument that the Appellant was out
of time to compile and transmit the record of appeal, in failing to compile and transmit the record
of appeal within the thirty(30)days as stipulated
by Order 50 Rule 1(1)of the National Industrial
Court of Nigeria (Civil Procedure)Rules 2017, does not apply to this proceedings; which is
governed by the Trade Disputes Act. We
therefore hold that this suit is proper before this Court, that this Court has jurisdiction
to entertain this matter as there is notice of objection,
and referral from the Minster of Labour and Employment
to the National Industrial Court of
Nigeria. Further, the referral letter
indicates that it was to be served on the parties, by the Minister; which this
Court by section 167 of the Evidence Act, can presume was done.
RESOLUTION OF THE SUBSTANTIVE APPEAL
43. We have considered the processes filed in
this appeal, the exhibits attached, the argument of counsel, and the referral
of the Minister of Labour and Productivity.
The Referral of the Honourable Minister of Labour and Productivity to
this Court is:
To
inquire into the trade dispute existing between Maritime Workers Union of
Nigeria and Intels Nigeria Limited and Associated Maritime Service Limited
(AMS) over the following issue:-
Non-payment
of terminal benefits to six hundred and ten (610) disengaged workers of Intels
Nigeria Limited.
44. We have deciphered five issues for
determination, in order to resolve the inquiry referred to this Court; as
arising from the issues identified by the parties in this appeal:
1.
Whether the National Industrial Court of
Nigeria has the jurisdiction to entertain matters that border on contract for
service.
2. Whether the Industrial Panel was right when it held that the 1st
Respondent was not the employer of the 610 disengaged dockworkers.
3. Whether the Industrial Arbitration
Panel (IAP) was right when it held that the Appellant herein did not prove that
the 1st Respondent is a member of Seaport Terminal Operators
Association of Nigeria (STOAN) to be bound by the Collective Agreement between
the association and the Appellant.
4. Whether the Industrial Arbitration
Panel was right when it held that the contracts of the stevedoring companies by
virtue of which the six hundred and ten
(610) disengaged dockworkers worked at the 1st Respondent’s
terminal was terminated by effluxion of time and as such the
resultant disengagement of the 610 dockworkers does not amount to redundancy.
5. Whether the Industrial Arbitration
Panel (IAP) was right when it held the claim that the six hundred and ten (610)
disengaged dockworkers were employees of the 1st Respondent was not
established and as such the 1st Respondent is not liable to pay the
six hundred and ten (610) dockworkers any terminal benefits.
45. Issue one - Whether the
National Industrial Court of Nigeria has the jurisdiction to entertain matters
that border on contract for service.
This issue arises from the contention of the 2nd Respondent
that it, alongside the Stevedoring contractors namely; Nted International
Limited now known as Faitone Stevedoring Services Limited, Modern Stevedoring
Services Limited and Joesco & Tonesco Enterprises are independent
contractors, self-employed persons and vendors, and that their contracts should
be classified as contracts for service, excluding this Court from exercising
jurisdiction over their conduct. The 2nd
Respondent referred to the Supreme
Court decision in Shena Security Co. ltd v. Afropak (Nig) Limited & 2 others (2008) 18 NWLR (pt.1118) 77 SC; and submits
that this Court is robbed of jurisdiction over them. The 2nd Appellant, in making that
argument, forgets that this Court’s jurisdiction is guided by subject
matter. As stated in section 254C of the
Constitution of the Federal Republic of Nigeria:
54C. Jurisdiction
(1) Notwithstanding the
provisions of sections 251, 257, 272 and anything contained in this
Constitution and in addition to such other jurisdiction as may be conferred
upon it by an Act of the National Assembly, the National Industrial Court shall
have and exercise
jurisdiction to the
exclusion of any other court in civil causes and matters-
(a) relating to or
connected with any labour, employment, trade unions, industrial relations and
matters arising from workplace, the conditions of service, including health,
safety, welfare of labour, employee, worker and matters incidental thereto or
connected therewith;
(b) relating to, connected
with or arising from Factories Act, Trade Disputes Act, Trade Unions Act,
Labour Act, Employees’ Compensation Act or any other Act or Law relating to
labour, employment, industrial relations, workplace or any other enactment
replacing the Acts or Laws.
j) relating to the
determination of any question as to the interpretation and application of any-
(i) collective agreement,
(ii) award or order made by
an arbitral tribunal in respect of a trade dispute or a trade union dispute,
(iv) term of settlement of any trade dispute,
(v) trade union dispute or
employment dispute as may be recorded in a memorandum of settlement,
46. See
also section 7 (1) of the National Industrial Court Act 2005. The facts of this case show clearly that it
is related and connected with labour, employment, trade unions and industrial
relations matters. It relates to the
determination of interpretation of a collective agreement and an award of an
arbitral tribunal. It is also connected
and arising from the Trade Disputes Act and the Appellant is a trade union,
representing the interest of its members in this trade dispute. Clearly, there is no other Court in this
country that has jurisdiction to hear the subject matter of this suit. We agree with the finding of the Industrial
Arbitration Panel, that:
We find in support the case of National Union of Food, Beverage and
Tobacco Employees of Cocoa Industries ltd reported in Digest of Judgment of National Industrial Court (1978-2006)
at page 486. Where the National Industrial Court
(NIC) affirmed the Award of the lAP that a case of wrongful termination handled
by a union on behalf its members who were aggrieved falls within the definition
of the trade. dispute under section 47 of the Trade Disputes Act Cap 432 of the
laws of Federation of Nigeria, 1990.
47.
With respect to the status of the parties, it is the right of the
Claimant/Appellant that must often determine capacity before the National
Industrial Court. The Respondents are
persons under the law, and can be sued before this Court. On the issue of contract of service or contract
for services, this Court has held in Suit
No: NICN/LA/416/2020 Bukonla Abimbola
(Trading under the name and style of Bukky Joy-Bright Ventures) v. Nigerian
National Petroleum Corporation & Anor judgment delivered on 3rd
July 2024 that:
14. I hold this view because, as can be seen in the decision of the
Supreme Court of
Nigeria in Shena Security Co. Ltd v Afro
Pak (Nig) Ltd & 2 others (2008) 18 NWLR (Pt. 1118) p. 82, where
the Court was
faced with the issue of whether the contract to supply security guards and
supervisors by the Appellant to the Respondents was a contract of service or
one for service to qualify the Appellant as a worker; the Court restated the meaning of a worker under
the Labour Act as referring to any person who has entered into or works under a
contract with an employer whether the contract is for manual or clerical work
or is expressed or implied oral or written and whether it is a contract of
service or a contract to personally execute any work or labour. Such a contract, according to the Supreme Court is commonly referred to as contract
for service. In that matter, the Court held that the Appellants were workers
contemplated by the Labour Act.
We hold that this Court has the jurisdiction
to hear this appeal.
48. Issue
two - Whether the Industrial Panel was right when it held that the 1st
Respondent was not the employer of the 610 disengaged dockworkers. The cardinal consideration in this appeal and which is the bedrock of the Appellant's case is that its members are the employees of the 1st Respondent. To determine this, we have to consider if the
essential elements of employment exist, either expressly or by implication,
between members of the Appellant, and the 1st Respondent. The case of the Appellant is that the
Appellant’s members who are affected
by this suit
are dockworkers recruited by the
2nd Respondent from its pool and sent to 3rd Party companies namely modern
Stevedoring Services Limited and Faitone
Stevedoring Services Limited for the purpose of using them to provide Stevedoring Services
for the 1st Respondent.
The Appellant claims the existence of a triangular employment. The 1st Respondent contends that
it never employed
any member of the Appellant and sent to any company including Modern Stevedoring Services
Limited and Faitone Stevedoring Services Limited. The
1st Respondent also states that it is not a recruitment/employment agency, nor
is it licensed to do so,
thus it does not recruit dockworkers and send to 3rd party companies as
alleged; but that each dockworker is now an
employee of a specific company, who issues such dockworkers employment letters.
49. A worker is defined by the Labour Act as any
person who has entered into or works under a contract with an employer whether written
or unwritten and whether it is a contract of service or a contract personally
to execute any work or labour (section 91 of the said Act). Where there are no written instruments of
employment, Courts would look at the conduct of parties to determine whether a
contract of employment exists between the parties. However, in ambiguous
contract of employment relationships, as
laid down by international labour jurisprudence, this Court applies the primacy
of facts in determining employment relationship. This is as laid down in the ILO Report titled:
The Scope of the Employment Relationship; ILO Office: Geneva, 2003 at page 24
and 25). This principle has been applied
by this Court in many cases. See for
instance the case of PENGASSAN v. Mobil Producing Unlimited Suit
No. NIC/LA/47/2010 delivered on 21st March, 2012 by B.B Kanyip and
O.A. Obaseki-Osaghae J.J, and Stephen Ayogu & 16 Ors v Mobil Producing
Nigeria Unlimited & Anor Suit
No.NIC/LA/38/2010 Ruling delivered on 13th December 2012. The principle of primacy of facts in our
view, is also consistent with the definition of contract of employment in
section 91 of the Labour Act which recognised “agreement, whether oral or written, express or
implied. The implication of this
definition is that it is the facts that determines when a person is in a
contract of employment or not, and not only the presentation of a contract
document.
50.
In this case, there is a contract document; and indeed, the
letter of appointment
of an employee
is the bedrock of his/her
contract of employment. We have considered letters of employment as found in the record of appeal. None of the letters emanated from the 1st Respondent. Modern
Stevedoring Services Limited issued separate
letters to separate individuals, at each page from page 145 to 644 of the
record of proceedings. Faitone
Stevedoring Services
Limited issued letters shown
at pages 645 - 757 of the Record of Proceedings. These letters shows Modern Stevedoring
Services Limited and Faitone Stevedoring Services, as the employers
of the 610 dockworkers.
The letters appointed them to work in the 1st Respondent;
but, there is no contractual relationship shown to exist between the 1st
Respondent and these two stevedoring companys.
None of the contractual documents relied on by the Appellant shows a
contract between the employers of the members of the Appellant, and the 1st
Respondent, whom the Appellant wants to bear the termination liabilities of the
Appellant’s members. If there was a
triangular employment in the circumstances of this case, the 1st
Respondent is certainly not in that triangle.
Rather, from Annexure 2(b) at page 44 of
the record of appeal, it is the 2nd Respondent
that had agreement with the the Stevedoring companies(see pages 44 to 54).
Page 866 of the record of
appeal shows another stevedoring contract
between the 2nd
Respondent and Joesco
and Tonesco Enterprises. The only document we see with 1st
Respondent, 2nd Respondent and a 3rd party stevedoring
company is at page 55 of the record of proceedings(Memorandum of
Agreement). However, this document is
signed by the 1st and 2nd Respondents, only. Modern Stevedoring Services Ltd did not sign
the document. We agree with the Industrial
Arbitration Panel, in its finding
on Appellant’s submission that “the
said 610 dockworkers sent to various ports' terminal were from the pool of 2nd
Party's dockworkers supplied
by the 3rd Party under the 2nd Party's instruction to Faitone and Modern
Stevedoring companies”. The AIP held that:
1.4 Our findings is that the letters of
employment of the dockworkers- bundle of letters of employment do not support
the above assertion instead it is the Modern Stevedoring Services ltd and
Faitone Stevedoring services ltd that employed the 610 dockworkers.
1.5 Again, a cursory look at Annexure 2(b) of
the 1st Party's Memo, the Agreement between the 3rd Party and
Faitone to supply Stevedoring Labour on Board Service boats and barges does not
lend credence that 610 dockworkers came from the pool of 2nd Party's
dockworkers and supplied to the 3rd Party on the instruction of the
2nd Party to Faitone or Modern instead, however, it is an agreement
between the 3rd Party and Faitone.
1.6 A closer examination of the Appendix 1 of
Annexure 2(b) (see paragraph 15.4) above goes to show that the Faitone is an
independent contractor and shall exercise control, supervision, management and
direction as to the method and manner of obtaining good result.
1.7 The contention by the 3rd party of
tripartite employment does not hold water.
1.8 Firstly,
Annexure 2(b), Appendix 3 is very explicit that the supplier (3rd
Party) is independent, that the 3rd Party has no right to claim for
additional payment for services assigned to him and shall be deemed to have
included the following items in its price.
1.9 "Provision
for all necessary labour, staff and management (i.e payment of all salaries,
wages, allowances, pension, administration and overhead costs, medical expenses
housing (if any) transport cost, all applicable taxes incidental and
miscellaneous items" See paragraphs 8-G of Appendix 3 for
other items. In all these there is no involvement of the 2nd Party
in it.
51. Furthermore, there is no evidence that the 1st
Respondent issued any letter of termination or redundancy to any of the
Appellant’s members. Therefore, there is
no basis on which this Court can conclude that the 1st
Respondent declared
610 members of
the Appellant redundant. We resolve this
issue two and hold that the Industrial Panel was right when it held that the 1st
Respondent was not the employer of the 610 disengaged dockworkers.
52. Issue three - Whether the Industrial
Arbitration Panel (IAP) was right when it held that the Appellant herein did
not prove that the 1st Respondent is a member of Seaport Terminal
Operators Association of Nigeria (STOAN) to be bound by the Collective
Agreement between the association and the Appellant. The Appellant’s basis for asserting that the
1st Respondent should bear the liability of paying its members
redundancy benefits is founded on annexure 7; the Collective Bargaining
Agreement between STOAN & MWUN. The
1st Respondent’s case is that it is not a member of STOAN. As evidence of the 1st
Respondent’s membership of STOAN, the Appellant relies on annexures 10A and
10B. Annexure 10A is an email
communication between the secretary of STOAN Uzamot Boye and Usaini Garba of
the 1st Respondent via his official email address; usaini.garba@intelsservices.com with the subject
“TERMINAL OPERATORS ASSOCIATION DUES”
conveying invoice for the 1st Respondent’s membership dues
and monthly operational exigencies and a printed out copy of another email from
the same secretary of STOAN Uzamot Boye communicating the outcome of terminal
operators meeting to STOAN’s members and the 1st Respondent is among
the members communicated to (through usaini.garba@intelsservices.com). These email
communications are found at pages 134-136 of the record of appeal. We agree that those two documents are
inadequate to prove the 1st Respondent’s membership of STOAN. We agree with the 2nd Respondent
that the best evidence to
adduce in proving that the 1st Respondent is a member of the Seaport
Terminal Operators Association of Nigeria (STOAN) is by exhibiting the
membership number and certificate as well as the date of admission of the 1st
Respondent into the Seaport Terminal Operators Association of Nigeria (STOAN). In the absence of certificate of membership,
a communication showing membership might suffice. However, annexures 10A and 10B relied on by
the Appellant, fall short of that. A
forwarded email to several emails, including that belonging to an individual
with 1st Respondents email, is not enough to conclude that the 1st
Respondent is a member of STOAN. There
is no evidence that the request for payment of dues made in annexure 10A was
paid by the 1st Respondent.
We are therefore of the view, that the Appellant has not given
convincing evidence of membership of the 1st Respondent in
STOAN. The Industrial
Arbitration Panel was therefore correct when it held at paragraph 4.1
to 4.3 at page 193 of the
record of appeal that:
4.1 The
1st Party submits that the 2nd Party is a member of
Seaport Terminal Operators Association of Nigeria (STOAN) therefore the 2nd
Party is bound by the Collective Bargaining Agreement (CSA) of STOAN. The 1st Party relied on its Annexure 10A and
1 DB. The 2nd Party denied it.
4.2 The
said Annexure 10A of the 1st Party's Further and Better Memorandum
of claim, is an invoice to the 2nd Party described as "being
payment for monthly operational exigencies, Exhibit 10B is the outcome of
minutes of the meeting of terminal operators. There is no where it was stated
that the 2nd Party is a member of the Terminal Operators.
4.3 The above Annexure 10 did not
also show that the 2nd Party paid for the membership fee.
4.4 It
is our considered view that for the Collective Agreement to be binding on the 2nd
Party, it must be shown that the 2nd Party is a signatory to it. See National Union of Hotels and Personal service workers (NUHPSW) V.
Whassan Eurest (Nigeria Limited (1978-2006)
Digest of Judgments of National Industrial Court page 452 at 453.
53. However, assuming it is established that the
1st Respondent is a member of the STOAN(which is not the case), yet,
the said collective agreement relied on, does not contain any provision that
operators of terminals, such as the 1st Respondent, are to pay the
terminal benefits of members of the Appellant.
The Appellant referred to Article 6 of
the CBA as placing responsibility to pay redundancy/retirement benefits for
dockworkers on their respective terminal operators. However, in reproducing the said article 6,
the Appellant omitted a clause in the provision. This is what the Appellant reproduced in
paragraph 7.5 of its Appellant’s Brief:
7.5
For the
purpose of emphasis, Article 6(a) of the CBA between the Appellant and STOAN
2020 to 2023 provides thus:
“That payment of redundancy/retirement
benefits shall be the responsibility of terminal operators as follows:
(a) Redundancy/retirement of 10 years and
above for general cargo terminal shall be increased to N750, 000.00……”
54. However, the full and correct provision of
Article 6 of the Collective Agreement between STOAN and the Appellant is:
That
payment for redundancy/retirement (for
aged dockworkers and those with health problems) benefits shall be the
responsibility of terminal operators as follows:
55. In our view, the words in bracket capture the
class of persons the provision is intended to cover. The Appellant has not shown that the 610
members, over whom this action was commenced, fall under the class of aged dockworkers
and those with health problems. The
removal of that clause is clearly intended to mislead this Court. We so hold.
56. From the findings of this Court on issues one
to three, there is no need to consider issue for “whether the Industrial
Arbitration Panel was right when it held that the contracts of the stevedoring
companies by virtue of which the six hundred and ten (610) disengaged
dockworkers worked at the 1st Respondent’s terminal was terminated
by effluxion of time and as such the resultant disengagement of the 610
dockworkers does not amount to redundancy”.
This is because, we have already found that there is no employment
relationship between the members of the Appellant, and the 1st
Respondent, either directly or impliedly.
A consideration of this issue will merely be academic.
57. On the basis of issues one to three, we are
of the opinion that the Industrial Arbitration Panel (IAP) was right when it
held the claim that the six hundred and ten (610) disengaged dockworkers were
employees of the 1st Respondent was not established and as such the
1st Respondent is not liable to pay the six hundred and ten (610)
dockworkers any terminal benefits. We so
hold.
58.
Before we draw the curtain on this judgment, we find a need to address
the Defendant’s argument that for the Collective Agreement to be
binding on the 2nd Party, it must be shown that the 2nd
Party is a signatory to it. The Respondents’ argument is clearly
founded on the common law, which is no longer the applicable position. In the case of Chima Ezechukwu v. Tecon Oil Services Nigeria Limited Suit No:
NICN/LA/27/2017, judgment of which was delivered on 25/3/21, this Court, relied on the Third Alteration Act, and
the affirming position of the Court of Appeal, per Ogakwu JCA on the
implication of the provision of section 254C(2) in Sahara Energy Resources Limited v.
Mrs Olawunmi Oyebola (2020) LPELR-51806(CA). Ogakwu JCA in that case, recognised and
reiterated the potentials of the section to change the application of legal
principles, from what it used to be.
This Court found that collective agreements have
become applicable into employees’ contract without need for incorporation. It
was the argument of the Defendant in that case that the “Condition of Service
for Senior Staff 2010/2012” which the Claimant relied on was made between the Petroleum and Natural Gas Senior Staff
Association of Nigeria (PENGASSAN) and the Defendant, and is totally
unconnected and unrelated to the Claimant’s contract of employment; that the
said condition of service for Senior Staff 2010/2012 was not incorporated into
the Claimant’s contract of employment with the Defendant and that the
Claimant’s employment was a non-union, non-permanent and not a senior staff.
Aside from relying on some of the earlier decisions of the NIC on the point,
this Court found reliance also on the power of the Court, (the National
Industrial Court of Nigeria) to pronounce on unfair labour practice and
international best practice in labour and industrial relations. This Court held
that:
The Defendant in this case, has again
raised this vexed issue in arguing that exhibits C4 and C12 cannot apply to the
Claimant without express incorporation.
The Defendant cited a long list of decisions of our appellate courts
that took this position. The Defendant
in making that submission conceded to the existence of the Third Alteration Act
to the Constitution of the Federal Republic of Nigeria. Counsel however argued that nothing is
changed by the Third Alteration Act, and that collective agreements must need
still be incorporated into an individual contract before becoming
enforceable.
24.
Two issues stand out for deliberation in this case; first is whether by
virtue of section 254 (C) (J) (i) of the Constitution of Nigeria 1999 (as
amended by the 3rd Alteration) collective agreements continue to be
binding in honour only and only enforceable upon incorporation; and second,
whether in the present case, the collective bargain agreement had become
enforceable in favour of the Claimant.
28. Once a
valid collective agreement is shown to have been entered into between legal
parties; that agreement becomes applicable, in favour of those expressed to be
covered by the said instrument. In the
interpretation and application of collective agreements, this Court is enjoined
to go beyond itself, and apply international law and practices. The power having been granted prior to
section 254C(1)(j) by section 254(1)(f & h).
33.
Applying all the above authorities of this Court in this case, first, it
has been established that the collective agreement was executed between legal
persons and second, that the Claimant was a member of the bargaining trade
union. I find therefore that exhibit
C4/CC1 is applicable to the Claimant.
59.
International labour standards and best practices are geared towards the
enforcement of collective agreements.
Practices by other countries are further proof of this, and exist as
evidence of international best practices.
(See Oji E A, “The New Face of Collective Agreements in Nigeria Labour
Jurisprudence” in Essays in Honour of
Hon. Justice Mary Ukaego Peter-Odili, CFR, DSSRS (Rtd) Justice of the Supreme Court
(FIDA Nigeria, 2022). Respondents’
position is therefore no longer the position of the law. It must be noted however that in this case,
we have not found proof of membership of the 1st Respondent to
STOAN; therefore the issue of enforceability of the collective agreement; cannot
arise.
This appeal fails, and is dismissed.
Judgment is entered
accordingly. Parties are to bear their
individual costs.
HON. JUSTICE M. N. ESOWE
Presiding
Judge
HON. JUSTICE A. N. UBAKA HON.
JUSTICE E. A. OJI Judge Judge