A.G.A. 2006 EARLY RETIREES ASSOCIATION & OTHERS v. ANGLOGOLD ASHANTI GHANA
2021
COURT OF APPEAL
GHANA
CORAM
- I. O. AMADU TANKO JSC. (PRESIDING)
- HENRY A. KWOFIE JA
- ANTHONY OPPONG JA
Areas of Law
- Employment Law
- Civil Procedure
2021
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
AGA 2006 Early Retirees Association, formed by 86 former employees, sued their former employer claiming redundancy pay and interest, alleging the employer unilaterally switched a negotiated redundancy severance to an “early retirement scheme” contrary to the Collective Bargaining Agreement (CBA). Plaintiffs pursued internal grievance processes, petitioned the company, and had redundancy approval from the Chief Labour Officer as part of a labour rationalization exercise (Exhibit AGA 5A). The High Court awarded redundancy pay and interest. On appeal, the employer challenged capacity, limitation, and the evidentiary basis for finding a redundancy agreement. The Court of Appeal held that the named individuals could sue and, given their common interest, amended the party designation; that time did not run while grievance procedures were pursued and the employer’s letter urging delay made limitation inapplicable; and that documentary evidence and the CBA supported redundancy while “early retirement” was alien to the CBA. The appeal was dismissed in its entirety.
ANTHONY OPPONG, JA
On or about 18th March, 2015, the Plaintiff/Respondent (to be referred to simply as Plaintiff in this delivery) caused a writ of summons together with a statement of claim to issue against the Defendant/Appellant (also to be simply referred to as Defendant hereafter). I must say in parenthesis that I will soon refer to Plaintiff as Plaintiffs for reasons that will soon be unfolded in this delivery. The reliefs Plaintiff sought against Defendant were:
(a) Payment of redundancy award as earlier on agreed between the members of the plaintiff association and the defendant company acting per its Industrial Relations Manager
(b) Payment of interest on any amount payable by the defendant company under redundancy from December 2006 to the date of final payment
(c) Damages for breach of agreement
(d) Costs as the court may deem fit.
In paragraph one of the statement of claim, Plaintiff disclosed its capacity, namely that it is an incorporated association limited by guarantee with members having the common interest of pursuing their end of service benefits from their former employer, the Defendant. Plaintiff being voluntary association disclosed that they have eighty six members and the names of these members were attached to the writ of summons. I can therefore confidently say that 86 persons mounted this action to vindicate their common interest against their employer.
The very first relief Plaintiff sought was quite expressive of the contention of Plaintiff that there was an agreement reached between members of plaintiff association and defendant whereby the latter had agreed to pay the members of plaintiff association redundancy award but, according to Plaintiff, contrary to the said agreement, members of plaintiff association were issued with early retirement letters with the aim of reducing the end of service benefits due the members of plaintiff.
In other words, it was the contention of plaintiff that the redundancy exit agreement was unilaterally changed by the defendant to what was termed “early retirement scheme”, thereby depriving the members of plaintiff association the full financial benefit they would otherwise have received.
In fact, it was the members’ efforts to address this alleged short change the defendant perpetuated to the detriment of the members of plaintiff that culminated in the formation of plaintiff to deal with the problem with one voice.
The members of plaintiff resorted to petitions and subsequently sought