MERCHANT BANK LTD v. NATIONAL LABOUR COMMISSION
April 10, 2014
COURT OF APPEAL
GHANA
CORAM
- OWUSU, JA (PRESIDING)
- OFOE, JA
- TORKORNOO, (MRS) JA
April 10, 2014
COURT OF APPEAL
GHANA
CORAM
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JUDGMENT
OFOE, JA
Reverend Joseph Koranteng, hereinafter referred to as Rev, attended the Annual General Meeting of the appellant Bank on the 27th of March 2012 as proxy of the Merchant Bank (Ghana) Limited Permanent Staff Provident Fund. This Fund is managed by trustees. It is these trustees who gave the mandate to Rev to represent the staff of the Fund since it will not be convenient for all of them to leave their post to attend the meeting. Shareholders of the bank, include some members of staff, both unionized and non- unionized staff and ex employees. All these were entitled to attend the meeting. In addition to being a shareholder, Reverend was also the Union Chairman.
After the said Annual General Meeting Reverend was alleged to have circulated false information with intent to cause disaffection for the Board members and other workers of the Bank using the Banks intranet. By the Collective Bargaining Agreement the intranet is considered part of the notice board of the bank. The appellant viewed this conduct reprehensible and queried him to explain his conduct. There were two queries dated the 20th April 2012 and 7th May 2012 which were responded to on the 23rd of April 2012 and 7th of May 2012. Management was not satisfied with the answers to the queries and so on the 20th of May 2012 Rev was summoned to appear before a Disciplinary Committee as demanded by the Collective Agreement of the appellant bank. On the 1st of June 2012 the Union issued a notice to embark on an industrial strike if the Disciplinary Committee sitting was not discontinued. The stand of the Union was that since the Reverend’s act complained of by the appellant bank was done in his capacity as a workers representative and a Union Chairman, it was for the appellant to summon Reverend to the Standing Joint Negotiating Committee (SJNC) and not a Disciplinary Committee. The appellant bank held the contrary view. It is that the Rev, being a staff first and foremost, should be taken through the Disciplinary Committee in terms of the Collective Agreement existing between the appellant bank and the Union. On the advice of the Union of Industrial, Commercial and Finance Workers (UNICOF) ie the Union, Reverend did not appear before the said Disciplinary Committee. One other reason the union gave warning of the industrial strike was that the appellant bank had disconnected the leadership of the union from using the intranet facility thereby disabling the leadership of the local union in
AI Generated Summary
Merchant Bank (Ghana) Limited terminated Reverend Joseph Koranteng, a shareholder and Union Chairman, after accusing him of circulating false and disaffection-causing information on the Bank’s intranet following the 27 March 2012 AGM. He had attended the meeting as proxy for the Permanent Staff Provident Fund trustees. Management issued two queries, then summoned him to a Disciplinary Committee; the union disputed the forum, advised him not to attend, and warned of an industrial strike. The National Labour Commission convened the parties, took oral and written submissions, and found the Bank failed to meet its burden of proof, declaring the termination void ab initio. On appeal, the Court of Appeal held that the dispute qualified as an industrial dispute and could be summarily settled under Regulation 33 after hearing the parties. It further ruled that unfair termination may be addressed under either the industrial dispute framework or sections 62–64 of Act 651, that refusal to attend the Disciplinary Committee was not insubordination, and that the Bank did not prove misconduct regarding alleged falsehood, confidentiality, or email misuse. The appeal was dismissed and reinstatement upheld.