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JAMES BAIDEN & ORS v GRAPHIC CORPORATION [23/5/2002] C.A. NO.45/2001

IN THE SUPERIOR COURT OF JUDICATURE

IN THE COURT OF APPEAL

ACCRA – GHANA

———————————————

               CORAM:          ESSILFIE-BONDZIE JA (PRESIDING)

 FARKYE, JA.

ANSAH, JA.

                                                                                                               CA/NO. 45/2001

                                                                                                              23RD MAY 2002

JAMES BAIDEN & ORS                    :                    PLAINTIFFS

VRS.

GRAPHIC CORPORATION              :                    DEFENDANTS

_______________________________________________________________________________________

 

JUDGMENT

ANSAH, JA :

This is  an appeal against the judgment  of an Accra High Court delivered on 15th December 1999.  As per their writ of summons, the plaintiffs claimed the following reliefs against the defendants, namely:

(a)  Declaration that plaintiffs’ redeployment or termination of their appointment or howsoever called, is wrongful and unlawful, null and void of no legal effect;

(b) Order that Defendants pay to Plaintiffs their due entitlements under the provident fund scheme.

(c)  Compensation for wrongful termination of appointment.

(d) Order that Defendants (sic Plaintiffs) be paid their accrued salaries from the date of their pretended termination or re-deployment until the final determination of their status with the Defendant Corporation, or in the alternative.

(e)  An order compelling Defendants to go by the laid down provisions for the payment of End of Service Award under the Collective Bargaining Agreement.

In his judgment after the trial of the case, the trial judge said, in entering judgment for the plaintiffs that:

(a)  “The Defendant Corporation was right in terminating the appointments of Plaintiffs.

(b)  Defendant Corporation is to compute Plaintiffs’ entitlements by reference to Section 28(4) of the Collective Bargaining Agreement and in particular the Defendant must apply the salary of each plaintiff at the point of re-deployment on 20/10/93. From this should be deducted whatever has already been paid to each plaintiff. The difference is to attract interest.

(c) Defendant Corporation is to provide each Plaintiff with a statement of account of his Provident fund contribution to determine if there has been any under-payment. Any difference should be paid back to Plaintiffs with interest; and

(d) The severance award of two months’ salary and four months’ salary respectively paid to Junior and Senior Staffs should not be disturbed by the court. In order words the claim for enhancement of the awards is dismissed”.

All the trial, the plaintiffs said that they were employees of the Defendant Corporation.  It was on 28/10/92 when they were told that their employment with the corporation had been terminated.  In fact they were 155 in all and the plaintiffs were only some of them. Meanwhile, their appointments were governed by a Collective Bargaining Agreement.  In a Certificate of Service issued to each of them after the dismissals, the reason given for their dismissals was that they were being re-deployed. The plaintiffs complained that they worked very diligently with the Defendant Corporation and so much without any blemish that they did not deserve to be treated that way.  They also said that they contributed into some funds in the hope and belief that in the event of leaving the employ of the Defendant Corporation they would be paid back to them. Their hopes did not materialize for nothing was ever paid to them.  To vindicate their rights under the terms of the collective agreement, they instituted the action that culminated in the judgment under appeal.

The defendant on the other hand did not agree that there were any sums of money to be paid to the plaintiffs for they had paid all their entitlements under the collective agreement to them in full.  In so doing, they had the full backing in the form of a fiat of the Ministry of Labor and Social Welfare.  Originally, the Defendant Corporation filed six grounds of appeal including the omnibus ground that the judgment was against the weight of evidence.  This ground was later abandoned.  Other grounds of appeal were that:

“2(b) that the Learned Trial Judge misdirected himself on the evidence when he stated that Defendant’s conduct in freezing plaintiffs’ entitlement under Section 28.04 was not only wrongful but also led to various diminutions in the Plaintiffs’ entitlement.

That the trial judge failed to adequately consider that the freezing of the Plaintiffs’ entitlement was a Government decision, which was accepted by representatives of employees including plaintiffs.

(a) That the learned trial judge erred in law when he held that the freezing of the End of Service Benefits was contrary to law even though it was by a Government directive;

(b) The Learned Trial Judge erred in law when he failed to consider that under the Transitional Provisions of the 1992 Constitution such a directive cannot be entertained by any Court of Law;

(c) The Learned Trial Judge erred in law when he held that Defendant was to provide each plaintiff with a statement of Account of his Provident Fund Contribution when the same was not claimed even though in evidence the plaintiffs claimed they had not been given a statement”.

This appeal is seeking an order to set aside that part of the judgment that dealt with Paragraph 2 set out above. Counsel for the appellants argued 2(b), (c) and (a), (b) and (c) which with the permission of the court now read  (d), (e) and (f), together. The submission in support of these grounds was that one James Baiden, giving evidence for himself and the other plaintiffs said that he was paid ¢3,326,234.94 out of which ¢2,743,356.00 was for an End of Service Benefit (E.S.B).  In so doing, the defendant failed to comply with Section 28.04 of the collective Bargaining Agreement.  That was Exhibit B at the trial.  Counsel drew attention to the fact that as per Exhibit G, the balance left unpaid of the E.S.B was 60% of the total and that was ¢1,646,014.53.  James Baiden however admitted later that it had been paid to him.  His complaint was that if he had been paid under the heading “redeployment” he would have received a higher sum of money.  Counsel pointed out that term was unknown to Exhibit B, the collective agreement.  Concerning the End of Service Award in Exhibit B, counsel maintained that it was the same as End of Service Benefit that was abolished by the Government in 1990.  I must pause here and refer to the said Section 28.04 of the collective agreement. It was what was to be paid to employees on their leaving the service of the Corporation, other than summary dismissal.

That the E.S.B that inarguably was said to be the same as End of Service Award, was frozen in 1990 by the Government was confirmed in evidence by the Representative of the Chief Labour Officer, Mr. Adisa Sulley.  I have no reason to doubt his veracity on this assertion, for, who and when the E.S.B was frozen is a notorious fact of which this court can take judicial notice. The learned trial judge took due notice of the E.S.A or E.S.B and commented thus on it.

“It therefore means that whatever agreement may have been reached by the Tripartite Committee to freeze the E.S.A would be in direct conflict with S. 28.04 of exhibit ‘B’, since the said E.S.A was to be paid to employees of Defendant Corporation on death or on leaving the service of the Corporation other than on summary dismissal”.

It was pointed out that the Government froze all E.S.Bs itself but not by the Tripartite Committee as the judge held.  If he had appreciated that point correctly, he would not have said that what the Committee did was inconsistent with the Collective Agreement and sinned against Section 10(4) of the Industrial Relations Act 1965, Act 299, and for that reason was wrongful and a diminution of the plaintiffs’ entitlements.  By taking that line the trial judge, it was submitted, disabled himself from considering whether the decision by Government to freeze the E.S.B/E.S.A. was unlawful or wrongful.  It was emphasized upon that it was the then P.N.D.C Government itself that froze the end of service benefits in 1990.  As and act by the Government, it could not be questioned in any court of law under Provision 34(5) of the Transitional Provisions of the 1992 Constitution.  As stated the submission on the Transitional Provisions were marshaled in support of grounds 2(b), (c), (d), (e) and (f) of appeal.

The reply by counsel for the respondent was a three-fold denial of the invocation of the said transitional provisions. It was submitted that the appeal to those provisions was totally misconceived. Also that the courts’ attitude to provisions that tend to oust their jurisdiction was one of repulsion and abhorrence and thirdly that the conditions necessary in order to successfully invoke the ouster clause did not obtain in this case. The argument in support of the first point raised was that going by what a learned author, S.Y. Bimpong-Buta wrote at page 253 in his invaluable book, “ “The Law of Interpretation in Ghana–Exposition and Critiques” that “ to take away the power of jurisdiction of all Courts or Tribunals to entertain any proceedings or grant any order in respect of any ‘matter relating to the unconstitutional and violent overthrow of the Government of Ghana by a coup d’etat” was the primary objection of the whole of Section 34 of the Constitution.

What the defendant did in this case was not for the sake of any matter covered or envisaged under this provision, namely, the unconstitutional and violent overthrow of the Government of Ghana, or a coup d’ etat.  Rather it was a mere industrial dispute that cannot be equated with what had been proscribed by the constitution. The two other grounds canvassed in support of the opposition to the reliance of the transitional provisions were that there is a judicial frown against them as was exemplified by the case of Republic v. Court of Appeal & Others; Ex parte Agyekum [1982-83] GLR 688.

I think it is not very necessary to continue to set out the unending arguments on the transitional provision and their efficacy in this judgment.  I think the pivotal issues in this case must be gleaned from the claims put before the court and the evidence led in support thereof.  It was simply put a claim for the payment of what the plaintiffs perceived to be their entitlements upon leaving the employment of the defendant. The plaintiffs thought that they were entitled to receive an end of service benefits under the collective agreements, among others.  They put in a claim for that relief.  The trial judge apparently agreed that the plaintiffs were so entitled.  He reasoned that the freezing of the end of service benefits was a contravention of sections of the Industrial Relations Act and was on account of that wrongful. It mattered very little that he erred when he said it was the Tripartite Committee that froze the E.S.B.  It was clear that it was the act of freezing the end of service benefit that he condemned and not because it was frozen by the committee. The significance in the Kwakye case lay in the fact that it lay it down that a successful invocation of the indemnity provisions in the Constitution was predicated upon a demonstration of the factual situation.

Admittedly, it must be demonstrated to the court that the P.N.D.C Government in fact issued a circular to freeze all Ends of service benefits.  One of the surest ways to do this was to have just produced the circular.  I subscribe to the view that this was not the only way to prove this fact in law.  A certified true copy would serve the same purpose. Yet another mode is for the court to take judicial notice of the existence of such a circular.  It was all too clear that the trial judge was aware of the freeze; he only fell into the egregious error that it was by an agreement by the Tripartite Committee. It was manifestly an executive act of the Government of the day. The defendant was bound to follow it.

Section 34(5) of the Transitional Provisions has been the subject of interpretation in the Kwakye case.  I do not attempt to further construe it, seeing also that to do so is to wander into an area reserved for the Supreme Court.  I only quote it in full now.  It reads as follows:

“5. It is not lawful for any court or tribunal to entertain an action instituted in respect of an act or omission against a person acting or omitting to act on the instructions or authority of the Provisional National Defense Council or the Armed Forces Revolutionary Council or a member of the Provisional National Defense Council or the Armed Forces Revolutionary Council and alleged to be in contravention of any law, whether substantive or procedural, in existence before or during the administration of the Provisional National Defense Council or the Armed Forces Revolutionary Council.”

In this case the defendant purported to act on the circular aforementioned in freezing the end of service benefits. They were acting on the instructions of the P.N.D.C. The trial judge said that the circular sinned against the law of the land governing workers and their employers and regarding agreement on how much benefits was contrary to law.  The first plaintiff did not mince his words when he said that even though he had been paid the whole of his benefits by giving first 40% of it and later the balance of 60%.  I think all the conditions necessary to invoke section 34(5) of the Transitional Provisions were satisfied.  It was unlawful for the judge to have entertained the claim for an order as was put in by claim (e). He should not have made an order to compel the defendants to compute the awards for the plaintiffs under the severance awards provisions of the collective agreement. I think the trial judge misdirected himself by not directing his attention to the ouster clause in the transitional provisions and Section 34(5) in particular.  He erred in this wise.  In consequence the able submissions in support of grounds 2 of the appeal are upheld.

By way of a brief observation, no matter how one look at the ouster clause of those provisions, sight must not be lost the purpose they tend to serve in some respects, limited though they may seem to be. In this case in particular, the then P.N.D.C Government took the step of freezing but not cancelling Ends of Service Benefits indefinitely.  It may seem unpalatable and even inimical to the overall interest of the ordinary worker but that was the policy of the Government of the day.  We are very much aware of efforts to do away with the policy so as to give some ray of hope to the worker especially on his retiring from employment.  It is the wish of the Ghanaian worker that sooner than later the freeze would be lifted and  many are looking forward to that day with much expectation. As stated earlier, the task of pronouncing on the validity or otherwise of the transitional provisions or any part thereof is in excusive jurisdiction of the Supreme Court and our wings are clipped and our mouths zipped from commenting or even attempting to interpret them.  For the meantime we allow the appeal on grounds two.

We do not say the same for ground three.  Admittedly, nowhere in the writ of summons was any claim put in for accounts on the Provident Fund to be furnished the plaintiffs.  But the answer to this ground is found in Order 20r5, which provide that:

“5. Every statement of claim shall state specifically the relief which the plaintiff claims either simply or in the alternative, and it shall not be necessary to ask for general or other relief, which may also be given, as the judge or court may think just, to the same extent as if it had been asked for ….”

I have looked at the amended statement of claim and found that it did not contain any claim for account on the Provident Fund but the rule afore-mentioned permits the trial court to give a relief that has not been asked for. The provision is that the judge would use his discretion in making or awarding that relief. The most important consideration is whether or not there was enough evidence on the record to support such a relief being granted. For all that was said, nothing appeared that there was no evidence in support of the order for accounts on the Provident Funds.  Consequently we do not find any merit in that ground of appeal and we dismiss it.

We also do not find any reason to vary the judgment as a whole and we refuse the invitation to us to vary it.

J. ANSAH

JUSTICE OF APPEAL

ESSILFIE-BONDZIE, JA:

 I agree.

A. ESSILFIE-BONDZIE

JUSTICE OF APPEAL

S. T. FARKYE, JA:

I also agree.

S.T. FARKYE

JUSTICE OF APPEAL

COUNSEL:

*vdm*

 
 

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