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VOLTA ALUMINIUM CO LTD v. TETTEH AKUFFO & ORS

2004

SUPREME COURT

GHANA

CORAM

  • KPEGAH, J.S.C. (PRESIDING)
  • ATUGUBA, J.S.C.
  • MISS AKUFFO, J.S.C.
  • BADDOO, J.S.C.
  • DR. DATE-BAH, J.S.C

Areas of Law

  • Employment Law
  • Contract Law
  • Civil Procedure

AI Generated Summary

The Supreme Court of Ghana addressed an appeal arising from redundancies at Volta Aluminium Company Limited (VALCO) affecting unionised employees represented by the Industrial and Commercial Workers’ Union (ICU). After a VRA-induced shutdown, VALCO declared redundancy on 16 May 1994 and, relying on article 15(e) of the collective bargaining agreement, paid two months’ salary in lieu of notice along with end-of-service benefits and a goodwill package. A wage re-opener effective 1 July 1994 later granted a 71.52% increase. The plaintiffs argued their terminal benefits should reflect remuneration that would have accrued had two months’ notice been given, by reading article 15(e) with article 13(a), and challenged the fairness of the union’s negotiations. Writing for the Court, Date-Bah JSC held that article 15(e) stands alone and authorises payment in lieu based on the termination-date salary; courts cannot police the fairness of collective agreements; NLCD 157 s 33(9) applies only to oral agreements; and plaintiffs failed to prove oral contracts. The Supreme Court allowed VALCO’s appeal and restored the High Court’s dismissal.