The National Industrial Court sitting in Port Harcourt has declared the termination of the employment of Gbordei Joseph Paul, Baadom Kpobari Samu, Okinedo Jacob, and 25 other former employees of Julius Berger Nigeria Plc wrongful, and ordered the construction company to pay their entitlements.
Delivering judgment at the Port Harcourt Judicial Division, Presiding Judge Hon. Justice Faustina Kola-Olalere held that Julius Berger wrongfully terminated the workers’ employment after they participated in a strike over unresolved demands. The court also directed the company to pay a total of ₦110,389 as severance benefits to the 25 claimants whose monthly pay slips were tendered before the court, representing 7.5 per cent of their monthly wages.
The former employees had instituted legal action against Julius Berger, contending that after presenting their demands to the company and embarking on a strike following its failure to address those concerns, their employment was terminated without notice and without payment of salaries in lieu of notice.
They sought declarations that the terminations were unlawful and requested payment of salaries in lieu of notice, hydrocarbon swamp allowance, terminal benefits, litigation costs, and interest.
In its defence, Julius Berger maintained that the employment relationship was governed by the Internal Conditions of Service agreed between the company and the National Union of Civil Engineering, Construction, Furniture and Wood Workers.
The company argued that the claimants participated in an unauthorised strike without the approval of their union and that such action attracted dismissal without notice or terminal benefits under the applicable Conditions of Service.
Julius Berger further argued that there was no agreement requiring the payment of hydrocarbon swamp allowance to the former employees and urged the court to dismiss the suit.
Counsel to the claimants, Enahoro Dakare, submitted that Julius Berger failed to follow the disciplinary procedures contained in the Internal Conditions of Service before terminating his clients’ employment. He argued that the company’s actions were unlawful and oppressive and urged the court to grant the workers’ claims.
In her judgment, Hon. Justice Kola-Olalere held that the employment relationship between the parties constituted a private contract regulated by the workers’ letters of employment and the Internal Conditions of Service.
The judge observed that the letters issued by Julius Berger clearly indicated that the employees had been terminated rather than dismissed. She further noted that no reason was provided in the letters for the termination.
Hon. Justice Kola-Olalere held that Julius Berger wrongfully backdated the effective date of the termination and failed to state any reason for the action, describing the conduct as inconsistent with international labour standards and best labour practices.
The court ruled that the workers were entitled to salaries in lieu of notice and severance benefits under the Conditions of Service. However, it held that the claimants failed to establish their claim for hydrocarbon swamp allowance, as there was no credible evidence of any agreement between the parties supporting the demand.
Consequently, the court dismissed the claim for ₦60.8 million as accrued hydrocarbon swamp allowance and the request for ₦5 million as litigation costs for lack of proof.
Hon. Justice Kola-Olalere, however, awarded general costs of ₦800,000 in favour of the 28 former workers and directed Julius Berger Nigeria Plc to comply with the judgment within 30 days.
The court further ruled that any outstanding amount not paid within the stipulated period would attract interest at the rate of 10 per cent per annum until full payment is made.
