[2004]DLSC1052April 29, 2004Supreme Court

VOLTA ALUMINIUM CO LTD vs. AKUFFO AND OTHERS

The plaintiffs/respondents were former employees of Volta Aluminium Co Ltd (VALCO) and members of the Industrial and Commercial Workers’ Union (ICU). On 16 May 1994, VALCO terminated their employment on grounds of redundancy pursuant to article 15(e) of a collective bargaining agreement, paying them two months’ salary in lieu of notice. The dispute arose because a wage re-opener under article 52 of the labour agreement later produced a 71.52% wage increase effective 1 July 1994. The plaintiffs contended that their terminal benefits should have been calculated on the remuneration that would have accrued by 15 July 1994 had they been given two months’ notice rather than pay in lieu. This factual basis appears in the judgment where Date-Bah JSC states: “On 16 May 1994 the defendant terminated the employment of the plaintiffs ... on the ground of redundancy ... Article 15e is in the following terms: ‘Employees to be declared redundant will be given two (2) months’ notice or paid in lieu.’” He further records the plaintiffs’ claim that “the calculation of their terminal benefits should be based on the amount of remuneration which would have accrued to them on 15 July 1994.”

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JUDGEMENT Kpegah JSC. I have had the advantage of reading beforehand, the judgment to be delivered by my learned brother Date-Bah JSC. I agree with his reasoning and conclusion. I have nothing useful to add. Akuffo JSC. I have also had the advantage of reading beforehand, the judgment of my learned brother Date-Bah JSC. I also agree with his reasoning and conclusion. Date-Bah JSC. This appeal turns on the interpretation to be given to certain provisions in a collective bargaining agreement between the employer of the plaintiffs-respondents and their trade union. The facts of the case are not in dispute. The facts The plaintiffs-respondents (hereinafter referred to as the plaintiffs) used to be employed by the defendant-appellant company (hereinafter referred to as the defendant). They were members of the Industrial and Commercial Workers’ Union (ICU) of the Ghana Trades Union Congress. On 16 May 1994 the defendant terminated the employment of the plaintiffs (along with.....