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General News of Friday, 20 April 2007

Source: GNA

GHAPOHA pay severance awards set aside

Accra April 20, GNA- The Court of Appeal (CA) in a 2-1 decision on Friday set aside a judgment of the Tema High Court, which ordered the Ghana Ports and Harbour Authority (GHAPOHA) to pay severance awards to 4,195 former casuals.

It however, asked that one of the plaintiffs, Mr Clement Agbesi be paid his severance awards and other benefits as directed by the High Court. Interest on the said awards was to be calculated from the day Agbesi was employed through the six-year period that he had worked for the authority.

The court, presided over by Mr Justice J.B Akamba did not awarded any cost.

Other members on the panel were Mr Justice Oquaye and Mr Justice Addo. Setting aside the judgment, the Court of Appeal cited procedural errors on the writ as its reason, pointing out the discrepancies on the number of workers involved in the matter.

Originally 3,839 workers were involved in the suit but later when the writ was amended, 356 more were added. The CA questioned where the 356 had been when the writ was brought before the court, adding that, this created irregularities on the writ. Mr. Justice Addo, a member of the panel, who was of different opinion, said failure to amend the writ did not render proceeding null and void.

He noted that Collective Bargaining Agreement (CBA) was breached, adding that under the agreement, once a person worked more than 154 days his status should be converted to permanent worker. Mr Albert Adaare, who represented the ex-workers said he would study the decision of the CA and know "our next line of action."

On July 11, 2003 the retrenched workers filed a suit against GHAPOHA seeking damages for breach of the provisions of the CBA and asked the court to award compensation for maintaining them as casuals, a clear violation of their economic rights under the constitution. They also sought an order that compensation packages payable for severance permanent employees be paid to them and interest on all sums at prevailing bank rate from October 1, 2002 to that date of judgment. The High Court on January 18, 2006 entered judgment in favour of the ex-workers and ordered GHAPOHA to pay each worker five million cedis for breach of the CBA and 10 million cedis for each, "after the expiration of the 154 continuous working days" for keeping them as casuals. The court also ordered the authority to pay severance awards comprising three months salary for each year of service, three million cedis in lieu of rent, 2 million cedis as medicals, two bags rice, two gallons of oil, 1.5 million cedis conveyance fees, bonus for 2001, five months salary as "handshake", interest from October 2001 and 10 million cedis cost.

GHAPOHA however, appealed against the decision on the grounds that "the trial judge gave judgment for 3,839 workers plus 356 plaintiffs as if they were parties to the action, although the record of proceeding and relevant rules of the court establish that they were not. The authority argued that, "there is no evidence that any of the plaintiffs had worked satisfactorily for 154 days in any year to qualify for upgrading as a permanent employees or warrant that the trial judge ruled that GHAPOHA breached the CBA." 20 April 07